Customer Reviews

Blue Streak: Inside jetBlue, the Upstart that Rocked an Industry

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Blue Streak: Inside jetBlue, the Upstart That Rocked an Industry, $24.95 US, written by Barbara S. Peterson, is about the history of United States airliners, but more specifically a single company - jetBlue - the most successful discount airline in history.

Barbara C. Peterson does an admirable job of profiling David Neeleman, the somewhat unconventional CEO of jetBlue. We get his family history, tidbits about his upbringing in Brazil and Utah, and some personal anecdotes about both his early attention deficit disorder and his unabashed missionary work. Peterson then drags out the fact that Neeleman was a third year dropout from the University of Utah and had two children before he ever tasted one iota of financial success. But being a college drop-out hasn't hampered Neeleman, who simply followed his hearts desire and found a way to soar.

Neeleman had a natural gift for numbers, and proved to be excellent at sales. In 1982, he started tracking the potential of the airline industry after delving into a long article that he found in the Wall Street Journal. Eventually Neeleman would back into his opportunity, but only after operating a successful packaged tour business that suddenly imploded in late 1983 when Hawaii Express declared bankruptcy, and took his growing agency down in the process. Unable to refund a substantial number of deposits, Neeleman's first startup was forced into bankruptcy.

From the ashes of that debacle, he formed Morris Air after working under travel agency CEO June Morris. By the late 80's, June was the first female CEO in aviation history, and Morris Air - under Neeleman's watch - was a successful airline. At least on paper. The fledgling enterprise existed as a public charter out of Salt Lake, where Morris leased all planes and crews, but they faced competitive disadvantages. Money handling rules were strict, they couldn't accept credit card payments, and they had to keep all funds in segregated escrow accounts. Their advertising also failed to mention their charter status. This drew the ire of both regulators in Washington D.C. and Alaska Airlines, whose home turf Morris was squeezing.

Needleman dodged controversy, and with the aid of Tom Kelly, the hamstrung charter received certification to fly as a fully scheduled airline anywhere in the USA. However, less than a year later, Neeleman was stunned when the airline he built from scratch was sold out from under him - to Herb Kelleher's Southwest.

What Neeleman thought of as an opportunity to join forces with Southwest, devolved into a disaster as the two boardroom tribes clashed and were at each others throats. Kelleher fired David and Neeleman retreated to Salt Lake with his growing family (and $25M) during the Summer of 1994. Neeleman faced a quandary at this point, for Kelleher had tricked David into signing a five year No Compete when Southwest absorbed Morris.

To get around this legal straightjacket, he incorporated a small company named Open Skies, which sold electronic ticketing and reservations software that he'd developed while nurturing Morris. (Neeleman later sold this to HP, and became their best client.) Eager to soar again, Neeleman joined a group of Calgary investors that wanted to challenge Air Canada. David thought it was the best revenge. He got to launch another startup, and was well North of Kelleher's legal reach. The new airline christened WestJet launched in 1996. Neeleman felt alive again, but he was only biding his time.

When the No Compete expired, David worked the phones and started talking up investors. He'd assembled a "Dream Team" in his mind. He'd meld executives from Kelleher's Southwest and Branson's Virgin into a cohesive whole. Southwest because he had something to prove to Kelleher, and Virgin because they had a very strong name brand. Neeleman had that familiar startup itch, and he had to scratch it. He'd been formulating his plan while he sat on the sidelines those five years, and he was ready to shake everything up. And thus jetBlue was hatched.

I really enjoyed this one Barbara, a great read!

The Book:

Blue Streak: Inside jetBlue, the Upstart That Rocked an Industry,

Portfolio Hardcover 2005

(Portfolio, a business imprint of Penguin)

Pages:

233 Pages

262 Pages including the epilogue and endnotes.

Rating:

4 Stars

Chapter Titles:

01. Flying Home

02. Love Field

03. The Virgins

04. Building Blue

05. Paper Airline

06. Air Born

07. 9/11

08. Blue Envy

09. jetblue u

10. welcome to my world

If You Like Blue Streak You Might Enjoy:

Flying High

No Frills

Ryanair

Flying Off Course

Simpli-Flying

Visit the Official Websites:

www.penguin.com

When I bought this book, I was skeptical at first on how much I would like it. Well, it turns out I absolutely loved it.

I picked this up because I have an interest in aviation, and had a desire to learn about jetBlue. This book looks at David Neeleman, the CEO of jetBlue, and how he came to make a successful upstart airline, that as the title states, "Rocked an Industry."

From his past experience in the aviation field, to every little nook & cranny of detail on how he founded jetBlue, this book has it all. This is a very interesting read as jetBlue isn't the average airline, it's an airline designed to be customer friendly.

If you have ever wondered how jetBlue became a success, or how the airline came to be, this is the right book to pick up.

A Review of Blue Streak - Inside JetBlue, the Upstart That Rocked an Industry by Barbara S. Peterson

I knew that JetBlue was something special from the feedback I was hearing from friends and family members who had flown them. I began to understand how the upstart airline had achieved that success when I had a chance to meet the Founder, David Neeleman last year when he spoke at Harvard Business School. As I heard him speak, and then later when I had a chance to engage with him one-on-one, I sensed beneath the smooth and polished executive exterior a personal warmth and passion that embodies the vision of JetBlue - to build a low cost airline that delivers superior service and treats its customers and employees alike as persons of worth.

Neeleman loves to tell the story of an encounter with a Delta flight attendant who accosted him and accused him of: "stealing all the nice passengers." His retort: "No, they are the smart passenger; they know we'll treat them fair and give them a fair deal."

Barbara Peterson tells the story of the gestation and birth of JetBlue from the inside out. An experienced travel writer, she involved herself in the lives of the JetBlue leaders and immersed herself in the JetBlue experience to try to explain to herself and her readers why so many individuals have "drunk the blue Kool-aid"!

One of the most gripping stories that encapsulates much of what makes JetBlue unique in the airline industry is the story of how JetBlue employees at New York's Kennedy Airport responded to the unfolding events on 9/11/2001.

"Doreen Lawrence, head of in-flight, was driving west on the Grand Central Parkway when the news came over the radio. She was heading toward Connecticut with Brian Manubay, an in-flight manager. . . They were halfway across the Whitestone Bridge to the Bronx when they realized they had to get to JFK fast. . . They got to the airport ten minutes later, just before all access to the airfield was closed off. The found Terminal Six packed with passengers, many of whom were not holding tickets on JetBlue flights but, rather, had been expelled from other terminals. Most airlines had shut the doors to their terminals so after the attacks on the advice of the Prot authority, which was acting prudently - who knew if other attackers were still at large? Several strandees told Manubay that a rumor had circulated at the airport that "if you go to JetBlue, they'll help you."

. . . An hour later, the Port Authority told JetBlue it, too, had to evacuate its terminal. Lawrence and Manubay made an announcement: All present, no matter whose customer they were, could go with them to a nearby airport motel, where they could stay until they had someplace else to go. For the next three days, the JetBlue pair slept on cots in the ballroom of a nearby Best Western, with hundreds of displaced fliers; no one, it seemed, could get out.

Lawrence had not needed to check with her superiors to approve this act of charity; early in the day Neeleman and Barger [Dave Barger, JetBlue President] had told anyone from the field who called in that they should just follow their conscience and no questions would ever be raised about the expense.

There were lighter moments as well. Al Spain [JetBlue's Chief Pilot], who was in Toronto at a meeting of airline safety directors the morning of the eleventh, had gotten back to New York by renting a car and driving nonstop for twenty hours. When he arrived in Queens, he'd gone to the airport to lend a hand. There were so many diverse passengers under JetBlue's wing at that point, he recalled, that they finally secured space in a motel some miles away for a tour group that was due to fly back to Europe on Delta as soon as service was restored. Their luggage was back at the airport, and so that they could have a change of clothes, Lawrence handed out JetBlue T-shirts to everyone. "So imagine how Delta feels when they see this huge group show up in JetBlue T-shirts because we - not they - took care of their passengers," Spain recalled (pages 143,144)

That is the kind of customer service that earns lifelong loyalty. I cannot wait to fasten my seat belt and taste the JetBlue experience.

Books and articles about the demise or bankruptcy of yet another airline are not uncommon, but how often do you find a good read about a thriving airline? JetBlue, the brainchild of David Neeleman, has beaten the odds by surviving, thriving and becoming successful beyond anyone's imagination, except maybe Neeleman's. JetBlue reached $1 billion a year in sales in 2004, is consistently profitable while the major airlines are losing billions and has developed a devout following. Author Barbara S. Peterson began reporting on JetBlue before it launched its first plane. She documents its progress from conception and birth to early development. She obviously "drank the blue Kool-Aid," an insider's allusion to JetBlue loyalty, and couches even the negative in soft terms. However, we welcome the fascinating story she tells. Curious readers will be intrigued to find out how JetBlue elevated customer service to an art form while keeping its planes running on time.

I must agree with the other reviews of this book -- it is a captivating read. The only reason it took me two days to finish this book is that I do have a job and family that need a good portion of my time.

This book was very well written and provides an inside look at the founding of a business where the needs of the customer truly is what it values the most. In fact, this book should be a must read for anyone thinking of starting their own business regardless of the industry.

"Blue Streak" is an engaging and readable account of JetBlue, the most highly capitalized airline startup in since deregulation, and its incredible success. JetBlue's growth has been unprecedented, and it is one of the top ten airlines in America entering only its fifth year of operation. It has consistently turned profits since its first year, and is expecting to add seven to ten employees each day in the future and nearly sextuple the size of its fleet. This book is a highly recommended read for anyone interested in the airline industry, entrepreneurship, customer service and marketing, or simply upending those stodgy, inhumane aspects of Corporate America.

"Blue Streak" is about JetBlue founder and CEO David Neeleman's endeavor to "bring humanity back to air travel." Barbara Peterson does an excellent job demystifying a complex industry, but the book shines when she lets Neeleman and the rest of his executive "dream team" speak for themselves. I had the opportunity to hear David Neeleman speak a year ago about JetBlue and his life as an entrepreneur. It was without a doubt one of the best talks I've ever attended. The greatest strength of this book is capturing Neeleman's ease, charm, honesty, and simplistic business sense. Peterson conveys a number of Neeleman's anecdotes and ties them together well. One from Neeleman about a man trying to reach his dying mother captures what has set JetBlue apart:

"`So this guy calls Delta, and they tell him the fare is going to be $800, and he asks, `Don't I get a bereavement fare?' And they say `Well, that depends ... has she died yet?''

That drew an audible gasp for there it is, in just one choice image, the reason why airlines are such poison to consumers: that abject lack of humanity, that twisted logic behind those irritating rules.

`And so he came to us, and we gave him our lowest fare. And now he flies with us all the time ... and he tells everyone he knows to fly us.'"

The JetBlue insistence on treating their customers with dignity (never "passengers" because, as Neeleman put it, "A `passenger' is somebody who is just a piece of baggage") is why it has proven such a successful challenge to the scathingly inhumane majors. A highly selective recruitment and training process is part of finding the right people to deal with customers, but Neeleman puts it as simple as "You treat your people right, and they'll treat your customers right." This book shows how at JetBlue these two ideas are vitally interconnected.

The company does come off a bit cultish at times - especially the stories from JetBlue U and the inside joke that JetBlue crewmembers have "drank the blue Kool-Aid." But the idea behind the airline is just common sense - charge low but profitable fares, treat your customers right, and they will continue to fly with you. It gives you hope that an industry besieged with customer revulsion and labor strife could finally get it.

Peterson conducted on-hand research and interviews with upper management to get "a backstage view of the JetBlue experience." Neeleman's history as a serial airline entrepreneur helps explain his motivations for creating JetBlue and his feelings about the state of the airline industry and where it ought to be. The personalities and contributions of other top executives are skillfully woven together, from those such as COO Dave Barger, CFO John Owen, Amy Curtis-McIntyre in marketing, and EVP Tom Kelly, "a sober-minded sounding board" for a somewhat impulsive Neeleman (Neeleman has ADD, which he credits with helping him in his career), among others.

Although Peterson would agree with Neeleman that the verdict is still out, there is no denying JetBlue's current presence and success. As other airlines try and fail to mimic or destroy JetBlue, this book shows why the airline really is something exceptional in its industry. It covers the creation of the team, the startup and naming of the company, its first years, how it reacted to 9/11 (really worth a read in itself), and what it has done since then and plans to do in the future.

The book had some confusing sections that seemed to wander and more than a few sentence fragments that gave me the impression it was either rushed or not well edited. But these were overshadowed by a simple, clear style (vital in a genre read by MBA's) that successfully synthesized the vision and success of JetBlue.

There were times, such as recounting the customer privacy scandal, that I wished Peterson had been a bit more objective. She even admitted at the end of the introduction that, after learning all about JetBlue, "I'd done it. I'd drunk the Kool-Aid."

But after discovering JetBlue, it's hard not to.

Why does airline travel have to suck? That question served as the bedrock for JetBlue's beginning and continued excellence.

This book follows JetBlue from Dave Neeleman's initial conception of it shortly after his stint at Southwest through it's 5 year anniversary (the point at which the FAA no longer considers an airline a startup). Although there were some rocky points, the sheer dominance of simple, creative common sense is inspiring.

Just one example: employee ID numbers where not assigned sequentially. Instead of #1, Neeleman was employee #82226. This was done to discourage hierarchy and an the unearned sense of importance based on seniority alone.

The story of JetBlue and David Neeleman and his team is a fascinating one in the airline industry where red ink at the bottom line is the norm rather than the exception. Here is an airline that has found a firm footing in the hostile airline industry that is characterized by very low profit margins at best. It is even more remarkable that the airline sprang up and thrived during the recession period of the last few years.

The remarkable success story of jetBlue to a large extent mirrors that of another legendary airline in the USA, Southwest Airlines, which managed to invent a new airline business model (low cost airline) in the early 1970s, and then had the unique distinction of consistent profitability over several decades. JetBlue appear to follow on these footsteps driven by intense people orientation, a family work atmosphere and exceptional customer service. All the major legacy carriers in the USA are struggling in the face of competition largely from jetBlue and Southwest Airlines.

Since jetBlue offers fair prices, provide extremely reliable services and offer value for money services, passengers flock to the airline and spread the good news by word of mouth to their friends and relatives (drastically cutting advertisement and promotion costs for the airline).

This book is excellent reading for those airline managers (indeed managers and entrepreneurs in all industries) that need to learn how to earn good money in the airline industry, how to be innovative and think outside the box, whilst providing customers with high quality services. The book will provide valuable lessons to those managers that need to understand the practical application of the oft-stated dictum that "look after your employees and your employees will look after your customers".

What I liked about this book is that apart from the storyline which is well written about David Neeleman and how he started JetBlue, the author gives intricate details of how they picked the name, how they focused on Customer Service (starting from training), what culture they set from the beginning and above all every industry has these Goliaths and how a start-up can face them. This shows how a company totally focused on their objectives can thrive, irrespective of market conditons. Most of the big airline industries blamed 9/11 for their downfall, it was actually the ice berg (airlines are the Titanic) that hit them, but they were also sleeping at their wheel. I thoroughly enjoyed reading it.

This amazing business success story reads like a fast-paced novel. You don't have to know anything about the airline industry to find BLUE STREAK fascinating. I couldn't put it down once I began. Now I feel I have an inside look at something I knew virtually nothing about before.