Flying High: How JetBlue Founder and CEO David Neeleman Beats the Competition... Even in the World's Most Turbulent Industry Review

Flying High: How JetBlue Founder and CEO David Neeleman Beats the Competition... Even in the World's Most Turbulent Industry
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This really isn't a biography of David Neeleman (pronounced "Neel-Mun"). Rather, Wyndbrant carefully integrates relevant information from both Neeleman's life and his career to explain JetBlue's success to date. Neeleman would be the first to point out that, in the airline industry (de-regulated since October 28, 1978), it is a fool's errand to predict which airlines today are totally secure and which are doomed. All airlines have problems which vary only in nature and degree. However, JetBlue is probably in better shape than most others are even as Neeleman explains that how it can become better while becoming larger "is the question that we're wrestling with at JetBlue, and I think it's something that we focus on a lot." He adds, "I believe we are going to be able to...have a thriving, prosperous company, that we're setting the standard in what we're doing in customer service, and that we'll continue to grow in the future."
Of special interest to me is what Wyndbrant reveals about the major influences on Neeleman's life and career, notably his membership in the Church of Latter Day Saints, his career successes (e.g. leadership of WestJet and then Morris Air) as well as career failures (e.g. bankruptcy and liquidation of The Hawaii Express and being fired by Southwest Airlines), the impact of having A.D.D., and his efforts to plan, obtain financing for, and then launch JetBlue.
With regard to JetBlue's business model, it clearly indicates what Neeleman learned during his associations with the three airlines (WestJet, Morris, and Southwest Airlines). According to Wyndbrant, as JetBlue was about to be launched at John F. Kennedy International Airport in February of 2000,
"Neeleman promised New Yorkers -- and the world -- a new kind of economy travel aboard planes with wider, all-leather seats, extra leg room, preassigned seats, and more overhead storage space than other carriers delivered. Moreover, all of this would be provided at a price that was up to 65 percent less than the competition. Furthermore, there would be no requirement for staying at destinations over a Saturday night to qualify for the lowest fare, as the major carriers mandated. Even the price of walk-up tickets would be below standard fares many airlines charged for flights of a similar distance. On the ground, JetBlue would offer quick, computerized, touch-screen check-in. Perhaps most notable of all, in the air, passengers would be able to watch 24 channels of live TV displayed on individual monitors mounted in every seatback. JetBlue would be the first airline in the world to make this entertainment amenity available to all its passengers."
This is almost precisely the same business model which enabled JetBlue to attract its senior management team as well as to obtain about $130-million in initial financing. It also explains how JetBlue was able to differentiate itself from various competitors. With all due respect to JetBlue's business plan, leadership, and capital, however, Neeleman insists that JetBlue's crewmembers (NOT "employees" nor even "associates") have established -- and will continue to sustain -- the airline's single most decisive competitive advantage. On this point, he and Southwest Airlines' Herb Kelleher are in total agreement as I shall explain in greater detail later. Wyndbrant devotes substantial attention in this book to how JetBlue recruits, interviews, and evaluates prospective crewmembers. He then explains how they are trained.
There is so much of value in this book which is directly relevant to decision-makers in almost any other organization, regardless of size or nature. Obviously, Neeleman is an uncommonly intelligent, ambitious, talented, principled, and caring CEO. However, the success achieved by JetBlue thus far is the result of teamwork under his leadership. For me, the key point in this book is illustrated by what is certainly not unique to JetBlue: the process by which a visionary can attract and then galvanize so many different but compatible people with comparable skills, decency, and experience to help launch what became a crusade, in this instance (in Neeleman's words) "to bring humanity back to air travel."
Wyndbrant focuses on so many revealing, indeed defining moments in his book. I now conclude this brief commentary with one of them. Kelleher once told Neeleman, "I don't care about my shareholders." Neeleman was shocked. What did he mean? Was Kelleher really serious? "Because I just take care of my employees. I know if I take care of my employees, they'll take care of my customers, and my customers will take care of my shareholders." Long before Neeleman went to work for Southwest Airlines, Kelleher once observed "You can get the same airplane. You can get the same ticket counters.  You can get the same computers. But the hardest thing for a competitor to match is your culture and the spirit of your people and their focus on customer service because that isn't something you can do overnight and it isn't something you can do without a great deal of attention every day in a thousand different ways. That is why I say that our employees are our competitive protection."
What lies ahead for these two uncommonly successful airlines? Since my crystal ball imploded more than 20 years ago, I stopped making predictions. Let's await further developments...and probably not have to wait long.

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