JetBlue's Strategy Pivot

The airline is following MBA 101 and now intends to compete where it can win. How refreshing.

Dear readers,

Judging by how many of you became subscribers in order to read my thoughts on American chief commercial officer Vasu Raja (welcome to all new readers), you like it when I spill tea and share sharp opinions. So if you are expecting more catty comments from me today, unfortunately, I have bad news.

Loyal readers know that I once relished dropping the hammer on JetBlue, chronicling the more puzzling decisions made by airline’s former CEO, Robin Hayes, but today you’re getting a synopsis of JetBlue’s new plan, because times have changed. With Hayes gone, three top JetBlue executives spoke last week at an investor conference and offered entirely rational ideas about how the airline will recover from its loss-making tailspin. These executives promised to focus on the airline’s strengths, and stop trying to play to every market segment.

We’ll see JetBlue fly less from Los Angeles and Europe, and bolster its schedules in Boston and San Juan, where it will play to win. We’ll also see JetBlue’s renewed focus on premium leisure as the airline stops chasing lucrative road warriors who typically fly American, Delta and United.

More broadly, we have seen (and will continue to see) more transparency and more willingness among top executives to interact honestly with analysts and media. Finally, after years of denial, the people now running JetBlue seem willing to say out loud what works and what does not.

Most of you know that the commercial operation at JetBlue is again led by industry favorite Marty St. George, who returned earlier this year as president, five years after leaving under mysterious circumstances. St. George joined CFO Ursula Hurley and head of finance and strategy Dave Clark last week at the Bank of America Transportation, Airlines, and Industrials Conference, and I thought they did a nice job of outlining what now matters to JetBlue.

Here are some highlights: