JetBlue resets with new CEO, industry veterans to run airline on time, and profitably

In the 24 years since JetBlue Airways’ first flight, the New York-based airline has pushed the envelope for a carrier of its size. Now, with some veteran executive hires and cost-cutting, it’s trying to get back to basics. JetBlue was a pioneer in seat-back entertainment, free Wi-Fi, good snacks and a business-class cabin with lie-flat seats that debuted at lower prices than rivals’. More recently, it’s ventured across the Atlantic with flights to London, Paris, Amsterdam and Dublin. And, until a judge blocked the deal last month, it planned to buy budget airline Spirit Airlines for $3.8b. (The carriers are appealing that decision.) While JetBlue has never lacked big ideas, it has come up short on profits, cost control and reliability. Those challenges will be top of mind for incoming CEO Joanna Geraghty when she takes the helm on Monday, succeeding Robin Hayes. And the pressure is on: On Monday afternoon, activist investor Carl Icahn disclosed a nearly 10% stake in the company and said he would pursue discussions around board representation. Geraghty, 51, has been at JetBlue for nearly two decades, most recently as president and chief operating officer. By naming her CEO, the company is promoting an insider who knows the complexities of running an airline with quirks like New York’s congested airspace. She’s the first woman to lead a US passenger airline. “The key strategic challenge we’ve always faced is how to thrive as a small player in an industry dominated by four large airlines,” Geraghty said on a Jan. 30 earnings call, referring to American, Delta, United and Southwest, which control about 80% of the domestic market.<br/>