JetBlue Airways: Starting from Scratch
Where have you heard this before? We’re starting a new low-fare airline. We’re going to offer low-fare
tickets and go to the big cities.1
—Financial Analyst
If you want to be a millionaire, start with a billion dollars and launch a new airline.2
—Richard Branson, Founder, Virgin Atlantic Airways
Keep an eye on JetBlue. That could prove to be a successful operation.3
—Herb Kelleher, Co-founder, CEO, Southwest Airlines
Ann Rhoades looked up from the stack of papers in front of her and gazed out the window. She
watched with pride as a JetBlue plane lifted off from Kennedy Airport. She knew from the departure
time that this one was bound for Buffalo. She paused for a moment to reflect on what had been a
very exciting year for the start-up. JetBlue’s service had grown from 9 departures per day at launch
in February 2000 to more than 50 per day in the past 11 months. The fleet had grown from 2 planes
to 10 with the arrival of one new Airbus A320 every five weeks (see Exhibit 1 for first year growth).
The business plan called for adding 10 new planes every year through the end of 2003, bringing the
fleet to 40.
Rhoades, Executive Vice President for People, had been extremely busy – growing the JetBlue
team from the original 10 people to almost 1000. She knew that she would continue to add
approximately 100 new “crew members” with the arrival of every new airplane and that, if they hit
their plan, JetBlue would employ nearly 5000 people within the next 4 years. She was charged with
achieving this rapid growth while building a values-based, high commitment organizational culture.
Her experience as head of human resources for Southwest Airlines from 1988 to 1994 provided
Rhoades with both appreciation for the challenge and expertise to meet it. She was committed to
attracting, developing and retaining outstanding people who could make the JetBlue concept a
reality. Still, she recognized that JetBlue’s expansion goals were more aggressive than any she had
met before.
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