JetBlue Airways
jetBlue Airways is a United States low-cost airline. It was founded by CEO David Neeleman in February of 2000. The company is headquartered in the Forest Hills neighborhood of New York City, New York, and runs almost all of its flights to and from John F. Kennedy International Airport, although it has recently begun a smaller hub operation at Long Beach Airport near Los Angeles, California, and has begun another hub at Logan International Airport in Boston, Massachusetts in 2004.
The airline flies to destinations in the United States, including Puerto Rico, and will establish service to the Dominican Republic starting June 10, 2004.
Its fleet consists entirely of Airbus A320 aircraft, although it will begin delivery of 100 Embraer 190 regional jets in 2005, with an option for an additional 100 aircraft.
Several of JetBlue's executives, including Neeleman, are former Southwest Airlines employees. JetBlue has followed Southwest's approach of offering low-cost travel, but has sought to distinguish itself with its amentities, like all-leather seating and aforementioned in-flight entertainment. In Neeleman's words, JetBlue seeks "to bring humanity back to air travel." JetBlue's success has been closely watched in the airline sector: Delta Airlines started a rival carrier called Song, United Airlines started another rival called Ted, and major airlines like American Airlines are seeking to launch their own low-cost carriers in the future. Industry pundits, however, have commented that Southwest and JetBlue's competitive advantage comes from the low costs and high outputs that the latter two generate.
In 2002, JetBlue acquired 100% of the ownership interests in LiveTV, LLC for $41 million in cash and the retirement of $39 million of LiveTV debt. LiveTV equips JetBlue with 24 channels of live DirecTV television programming at every seat.
In 2004, JetBlue announced it will add XM Satellite Radio, Fox TV programs and 20th Century Fox movies, and provide over 100 channels of DirecTV service to its in-flight entertainment by the end of the year.
JetBlue is one of only a few U.S. airlines that has made a profit following the sharp downturn in airline travel following the September 11, 2001 Terrorist Attacks. Since its IPO at the NASDAQ in 2002, JetBlue has been one of the most popular airline stocks in history and currently has a multi-billion dollar market capitalization.
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