JetBlue removes Neeleman as CEO

By Chris Reiter

NEW YORK (Reuters) - JetBlue Airways Corp. (JBLU.O: Quote, Profile, Research, Stock Buzz) removed David Neeleman as chief executive on Thursday, three months after a major service meltdown, putting the 47-year-old founder of the company into the role of nonexecutive chairman.

JetBlue said Neeleman, who started the company in 1998, will be replaced as CEO by President Dave Barger, 49, effective immediately.

Neeleman said the new role will free him up to spend more time on strategic issues that had been neglected amid the carrier's rapid growth.

The change in leadership comes after JetBlue suffered an embarrassing service disruption on February 14 that exposed weaknesses in the No. 8 U.S. carrier's operations.

A Valentine's Day ice storm stranded passengers on planes for hours, led to nearly 1,200 flight cancellations over several days, and cost the company more than $30 million.

Signs of trouble were evident last year, when the New York-based airline reined in growth plans and sold some planes after posting losses.

"When you're a founder and an entrepreneur and you get mired in the operation, it's not good for anybody," Neeleman said in an interview.

"This is a much better structure for us going forward," he said. "That was the board's recommendation, and I said 'Great, let's do it.'"