Fast Company: A lot of startup airlines have failed since deregulation in 1978. Why do you think JetBlue will make it?
David Neeleman: One advantage is we’ve already been able to get higher fares than our competitors. Customers are saying it’s worth a little more to fly us and get the JetBlue experience. If you had told me when we were starting out that this would happen, I would have said, ‘You’re insane.’ When fares are comparable, people tend to go with the incumbent. The loyalty of our customers is astounding. It’s proof you can build affinity with a new brand and a higher level of service.
FC: How do you feel when JetBlue is compared to People Express, which abruptly went from popular upstart to bankruptcy back in the 1980s?
Neeleman: When I went to talk to a business class at Yale, Don Burr [the founder of People Express] was in the audience. The professor showed a 20/20 piece on Burr and People Express, and it was chilling to see the rah-rah-rah with those employees, knowing what happened to the company. Then, we watched a 60 Minutes piece on us and the professor asked, ‘What are you going to do so you don’t end up sitting here one day like Don, with some other young guy talking about his new airline?’ I did research on People Express. It didn’t have the technology we have. And it had a different business model. We’ve built JetBlue with quality customer service, low costs, and a really strong balance sheet. I’m a firm believer that if you have those elements, you’ll survive rough spots in the road.
