JetBlue names a new CEO

NEW YORK — David Neeleman stepped down as chief executive of JetBlue Airways Corp. on Thursday, giving up operational control of the airline he built from a scrappy low-fare upstart into a perk-heavy carrier with nearly 600 daily flights.

Neeleman is being replaced as CEO by Dave Barger, who has been president, but will stay on as chairman.

The move comes less than three months after two winter storms forced JetBlue to cancel nearly 1,700 flights. Neeleman acknowledged Thursday that it was time for him to step aside and let the operating experts take over.

"I think the board has been talking about this for a long time," Neeleman said in an interview.

Neeleman had been CEO since 1998. He said he will focus on strategic initiatives by staying on as chairman.

Still, it's quite a change for a business whose brand, some analysts say, became intertwined with Neeleman's personality.

"He has embodied the personalized service of that airline," said Richard Levick, president and CEO of Levick Strategic Communications in Washington.

However, pure energy can only carry a chief executive so far.

"While Neeleman's infectious enthusiasm and entrepreneurial spirit was perfect for the company in its early start-up and hyper-growth phases, as the company matures, a renewed focus on operations will likely make JetBlue a stronger business," wrote William Greene, an analyst at Morgan Stanley & Co. Inc., in a research note.

Neeleman concedes that his entrepreneurial skills didn't translate well to the operational side of his business.

Storms on Valentine's Day and St. Patrick's Day essentially shut JetBlue down, forcing the cancellation of nearly 1,700 flights and stranding thousands of travelers throughout the Northeast.

To prevent a recurrence, JetBlue drafted a "customer bill of rights," under which the company now issues vouchers to some customers who experience delays.

The canceled flights and vouchers cost JetBlue $41 million, contributing to the company's first-quarter loss of $22 million, or 12 cents a share. That was an improvement over the year-ago quarter but was less than analysts had originally expected.

Last month, JetBlue lowered expectations for the rest of the year.

Neeleman said the change at the top isn't a direct result of JetBlue's storm meltdown. He characterized it as "a natural evolution" of JetBlue's leadership structure.