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Neeleman of JetBlue announces new Brazilian airline

By James Bernstein | james.bernstein@newsday.com

6:39 AM EDT, March 28, 2008

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With $150 million of investors money in his pocket, JetBlue Airways Corp. founder David Neeleman announced Thursday that he is starting a new airline, this one in Brazil, which is certain to do what his Queens-based discount carrier did in the U.S. -- stir up competition in the industry.

Although word had circulated previously about Neeleman's plans, Neeleman made it official, speaking at a news conference in Sao Paulo and announcing that he has raised $150 million from U.S. and Brazilian investors to start a domestic Brazilian airline that is to begin operating in early 2009. Neeleman, who founded JetBlue in 1999, holds both U.S. and Brazilian citizenship.

Neeleman, who was JetBlue's founder, chief executive and chairman, was nudged out of the CEO's job last May, three months after a Valentine's Day ice and snow storm blanketed the East Coast, trapping thousands of passengers on grounded airplanes, including those operated by JetBlue, which seemed to be harder-hit than most other airlines by the bad weather.

Neeleman remains JetBlue's non-executive chairman. But the Associated Press said that Neeleman said at the news conference Thursday that his attention to the new airline may mean he should step away from the JetBlue position. A JetBlue spokesman said he was not aware of conversations Neeleman said he has had with company board members.

But late in the day Thursday, Dave Barger, who replaced Neeleman as CEO of JetBlue Airways, issued a statement, saying: ``We congratulate David Neeleman, our founder, and his team on their venture to launch a new domestic airline in Brazil. David is an expert at exploring market opportunities in the airline industry and stimulating travel demand. Creating a quality airline product by partnering with Brazilian aircraft manufacturer Embraer will be beneficial to the growing Brazilian travel market. On behalf of JetBlue's 12,000 crewmembers, I wish him well in this new endeavor.''

Gareth Edmonson-Jones, Neeleman's spokesman, said the Brazilian airline -- which does not yet have a name -- will start operating with three Brazilian-built Embraer E-195 jets. Another 36 have been ordered and Neeleman has taken options on 20 more. Under Neeleman's direction, JetBlue bought Embraer 190s to add to its fleet of Airbus airplanes. The Brazilian airline will be based in Sao Paulo and is to serve most major cities in Brazil.

Edmondson-Jones said that the E-195 has a range of 1,800 miles, making it capable of serving other South American markets. The E-195s will seat 118 passengers and, like the JetBlue planes, will be fitted with televisions at every seat.

Already, Neeleman is thinking about stirring up the competition, "We respect TAM and GOL (both Brazilian airlines) as well-run companies with deep pockets," Neeleman said in a statement. "We believe, however, that the Brazilian market is ready for a third major airline and that there is sufficient untapped potential to support all of us."

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