JetBlue founder was ‘death knell’ for Canada carrier, suit says

A would-be Canadian discount airline sued aviation entrepreneur David Neeleman, saying he interfered with its ability to get financing by hiring away its CEO and bragging about it to an investment bank. Canada Jetlines hired Lukas Johnson, the former commercial chief of Allegiant airline, in June 2018 after an unidentified investment bank advised it to hire a well-known industry figure to help secure financing. Johnson left Jetlines about six weeks later for Neeleman’s own low-cost startup airline, tentatively called Moxy. Neeleman then called the investment bank “to gloat over having done so,” according to the complaint, filed Nov. 19 in federal court in Connecticut, where Neeleman lives and Moxy is based. “Neeleman’s call was, as he intended, the death knell for the Bank’s participation in Jetlines’ financing efforts,” the lawsuit said. Neeleman, the founder of JetBlue Airways., called the lawsuit “ridiculous” and said he has no interest in the Canadian market. The litigation comes less than a month after Vancouver-based Jetlines postponed a planned Dec. 17 launch date, having failed to meet conditions of other financing offers. The company cited the prospect of intense competition from existing Canadian carriers, such as WestJet’s ultra-low-cost unit Swoop.<br/>