Demotion or not, JetBlue founder David Neeleman has been booted out of the role of CEO and made a “non-executive chairman” following an embarrassing service disruption on Valentine’s Day.
Reuters is reporting that President Dave Barger, 49, will replace Neeleman as CEO effective immediately.
An ice storm on February 14 stranded hundreds of JetBlue passengers for hours on several planes. Nearly 1,200 flights were cancelled and the company lost an estimated $30 million. The Valentine’s Day snafu exposed operational weaknesses in the carrier that had yet to be addressed because of its rapid growth.
Neeleman, who received a salary of about $200,000 for 2006, told Reuters he was looking forward to the new role, which will allow him to take a more strategic approach to the company’s long-term plans. He will be looking to focus on developing JetBlue’s Live TV unit, as well as new forms of electronic ticketing and alternative fuel sources.
News of Neeleman’s removal came on a heavy news day for the airline industry. Delays at the world’s largest airplane manufacturer Airbus for its new “double decker, super-jumpo” A380 has reeked havoc with the European Aeronautic Defence and Space, which reported a loss of 10 million euros ($13.4 million US) for Q1 of 2007 because of the delay. Meanwhile, Dubai-based Emirate Airlines announced today it was ordering an additional four A380s, worth about $1.2 billion, which brings their total order of the double-deck plane to 47. Airbus’s deliveries of the A380s have been delayed three times and are now two full years behind schedule.