JetBlue CEO To Step Down In 2015
In recent months, reports had emerged of Barger being out of step with trends in the airline industry.
Fortune's Cyrus Sanati wrote that JetBlue's investors considered Barger to "overly concerned" with passenger comfort.
Following its founding in 1998 by David Neeleman (who moved on in 2008 and started an airline, Azul, in his native Brazil), JetBlue established itself as a sort of low-cost boutique alternative to the major carriers, providing passengers with confortable leather seats and individual TV monitors.
As Sanati noted, however, competitors such as Spirit Airlines have boosted investor returns in recent years by cutting back on types of perks that were JetBlue's calling card.
Nonethless, JetBlue's stock is up almost 50% this year. In June, the airline introduced Mint, a first-class option on flights between New York's JFK and Los Angeles' LAX, going counter to its longtime one-class-only ticketing.
Expanded first- and business-class service has become increasingly attractive to airlines as they seek to earn higher profits.
In after hours trading on Thursday, Jet Blue's stock was up 5%.
Here's JetBlue's official statement about Barger's departure:
Robin Hayes to Succeed Dave Barger, Effective February 16, 2015 NEW YORK, NY -- (Marketwired) -- 09/18/14 -- JetBlue Airways (NASDAQ: JBLU) today announced that Robin Hayes, the company's current President, will succeed Dave Barger as Chief Executive Officer, effective February 16, 2015. Barger will serve on the JetBlue Board of Directors until February 15, 2015, and Hayes is expected to join the Board on February 16, 2015.
Joel Peterson, JetBlue's Chairman, said, "On behalf of the Board of Directors, I would like to congratulate Robin on this appointment and thank Dave for his extraordinary contributions toJetBlue for more than 16 years. Dave's talent, intellect, and inspired leadership helped makeJetBlue what it is today -- one of the world's great brands and a leader in its industry. Robin is a highly talented and experienced airline executive who understands JetBlue's culture and strategy. During his time as Chief Commercial Officer and President, Robin proved he is the right leader to take JetBlue into the future."
Barger said, "Helping to found and lead JetBlue has been the experience of a lifetime. We set out to create a better airline, and through our commitment to that simple goal, the people of JetBluesucceeded in establishing a new standard for value and customer service in our industry. I have been looking for the right time to take the next step in my life for a while, and my decision was ultimately determined by the strong state of the company and my absolute confidence in Robin's leadership. I want to thank Robin and all of our crewmembers. With their incredible passion and dedication, I know that JetBlue's best days are ahead."
Hayes said, "It is a tremendous honor to succeed Dave as CEO of JetBlue. I continue to believe in our mission to inspire humanity, and as CEO I will be a faithful steward of the culture that has madeJetBlue so successful. The airline industry has never been more competitive, but I believe we can continue to grow profitably. As we maintain our operational focus on safety and efficiency, we will continue to expand our network in underserved markets and roll out new products that enhance the JetBlue Experience and create value for our shareholders. Our commitments to our customers, crewmembers, and investors are all integrally connected and critically important to the long-term future of this great company."
Hayes was named President of JetBlue in 2013. He is responsible for the airline's operations and commercial activities, including Airport Operations, Customer Experience, Customer Support/Reservations, Flight Operations, Inflight Experience, System Operations, Technical Operations, as well as Communications, Marketing, Network Planning and Sales. From 2008 to 2013, he served as JetBlue's Executive Vice President and Chief Commercial Officer.
Prior to joining JetBlue, Hayes was British Airways' Executive Vice President for The Americas. Over the span of a 19-year career with British Airways, he also served as Area General Manager for Europe, Latin America and the Caribbean. Hayes is a graduate in electrical and electronic engineering from the University of Bath in the United Kingdom. He received a BSc and a master's in engineering from the university.
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