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JetBlue founder wins Jannus Award

Two Tampa Bay area chambers of commerce honor David Neeleman for his success when others struggled.

By STEVE HUETTEL
Published March 2, 2005

TAMPA - David Neeleman's brainchild, 5-year-old JetBlue Airways, has shaken up the airline industry. With cheap fares, roomy leather seats and satellite TV, JetBlue has generated consistent profits and a loyal following.

In naming Neeleman as recipient of the Tony Jannus Award on Tuesday, organizers said JetBlue's success and his earlier accomplishments put him in the ranks of previous winners, such as American Airlines icon Robert Crandall and Southwest Airlines founder Herb Kelleher.

"He has packed an awful lot of achievements into a 20-year career," said John O'Connor, co-chairman of the local committee that presents the award for contributions to commercial aviation. "And to be as successful as he has been in a downward business cycle is remarkable."

The Jannus Award is presented each year by the Greater Tampa Chamber of Commerce and the St. Petersburg Area Chamber of Commerce.

Neeleman, 46, helped launch two other airlines. Utah-based Morris Air was acquired by low-fare giant Southwest along with Muse Air which it operated as a separate subsidiary called TranStar Airlines.

He's also credited with introducing the airline industry's first electronic ticketing system and the use of home-based reservations agents to save money on rent for sprawling reservation centers.

Those credentials provided Neeleman the financial clout to order a fleet of new jets and launch JetBlue. He raised $130-million from investors, making JetBlue the best-capitalized startup airline in U.S. aviation history.

The airline started flying between New York's John F. Kennedy International Airport and Fort Lauderdale in February 2000. JetBlue now has 72 Airbus A320 jets and flies to 30 destinations in 12 states, Puerto Rico, the Dominican Republic and the Bahamas.

Highly competitive routes connecting Florida and New York City are its bread and butter, making up about 44 percent of revenue. JetBlue has 10 daily departures from Tampa International Airport, seven to New York and three to Boston.

JetBlue adopted characteristics of discounters. Sale fares from Tampa to the Northeast are as low as $69 one-way. JetBlue doesn't require a Saturday-night stay or round-trip ticket purchase for the lowest price. Cabins are all coach and passengers get only snacks.

But JetBlue provided a few frills that set it apart. The biggest are the seat-back satellite TV with 24 channels and reserved seats, unlike Southwest's open seating, which customers sometimes compare to cattle stampedes.

JetBlue also cultivates a chic style, with in-flight fitness cards showing exercises passengers can do in their seats and free, high-speed wireless Internet hot spots in three airports.

Neeleman makes a habit of flying JetBlue each week, serving snacks, cleaning out seat-back pockets and chatting with customers.

A devout Mormon and father of nine who readily volunteers that he has attention-deficit disorder, Neeleman says on the airline's Web site that he started JetBlue to "bring humanity back to air travel and make flying more enjoyable."

The Jannus Award is named for the pilot of the first commercial airline flight flown from St. Petersburg to Tampa on New Year's Day 1914. The award dates back to 1964. Neeleman will be honored at a dinner at the Tampa Airport Marriott on Oct. 27.

Steve Huettel can be reached at huettel@sptimes.com or 813 226-3384.

[Last modified March 2, 2005, 20:28:28]