On the Runway

Neeleman: We've been having these conversations from the beginning. We're always looking for new technology that makes us more efficient or a better way of managing the business. If you look at last year compared to this year, fuel costs will be more this year, but that's true for everybody. And maintenance costs will be double what they were, because our engines have scheduled maintenance. The biggest chunk is for overhauls. We have 25 engines we'll send in this year and it'll be 30 next year. We haven't sent more than seven in previous years. But we've planned for this. We know we won't have a big jump the following years. Those costs will be predictable, and they'll be spread out over more planes. As we get bigger, we'll take advantage of economies of scale. We'll save on parts. We'll save on marketing.

FC: What doesn't scale?

Neeleman: We used to have a big anniversary party every year. We fit everybody in our New York office in the biggest banquet room at a hotel, and we had a satellite truck to tie in employees at different locations. This year we realized it wouldn't work. We've gotten to big. We said, 'Let's go with smaller parties' in our Blue Cities, and Dave Barger and I will do a summer tour to visit them.

Also, responding to every email is not scalable. I get over 100 emails a day, maybe 30 from customers. I'm trying to reconcile their need to hear from me and their need for a quick answer. I selectively respond to these. More and more, though, someone on our Customer Commitment team provides the answer. I can't respond to every crew member's question, either. This is why you have to have damned good leaders in place. We want supervisors to be able to solve these problems.

FC: In September, JetBlue acknowledged that it had violated its privacy policy and shared some passenger data with the Defense Department. How much did it affect ticket sales, and how do you restore customers' trust?

Neeleman: We didn't see an effect, but it was painful to go through. I felt it was important to come out and take responsibility. We had to come out and tell our customers, 'We made a mistake. This is what happened. And here's why it won't happen again.' I wrote a letter on our Web site and called a number of concerned customers. This happened when we were still small, but it's an example of what can happen when you're big. It was one decision by one person, and I didn't have any knowledge of what happened until later. But you don't want to make every decision. If you're growing as fast as we are, you can't. You have to give people that responsibility and counsel them on how you make decisions.

FC: Where do you get your best ideas?

Neeleman: In the shower. I come up with something, and I'll come to work and bounce it off a few people. I'll take it into the executive meeting, and they'll say, 'Yeah, it's a good idea,' or "That's the stupidest idea you've ever had.' You have to surround yourself with strong, smart people who will push back. My team knows I can come up with some doozies.

FC: Such as?

Neeleman: I can't seem to get over the finish line on this one: a female-only bathroom on planes. I've been talking about it for years. I just think it recognizes that nowhere else in society are women required to share the same bathroom as men. But it's not a big deal to the women I ask.

FC: Where do you get your passion for service?

Neeleman: I worked in my grandfather's store from the time I was 9 until I was 19. If he didn't have something, he'd run out and buy it so no one was disappointed.

FC: I know you help clean the planes whenever you fly. Is it true you have cleaned gum out of the carpet?

Neeleman: Here's what happened. I was vacuuming one of the planes that had just been reconditioned. The carpet comes out. It's part of a complete make over. The plane was two years old, but it looked brand new. When I came across this big clump of gum, I wasn't happy about it. The carpet was maybe two weeks old. I got down on my hands and knees and picked at it with a plastic fork.

FC: Who won, you or the gum?

Neeleman: I got most of it up with the fork. But I had to use a piece of ice on the last bit. After I froze it, it chipped right off.