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Proposed low-fare airline setting its sights on JFKjetBlue promising discounted fares, leather seats, satellite TV service for every passengerJuly 14, 1999 NEW YORK (CNNfn) -- A proposed new low-fare airline now has a new name: jetBlue. The carrier, which until now had been called New Air, is financed by investors such as George Soros, Weston Presidio Captial and Chase Capital. It plans to fly to cities from Maine to Florida, but has not yet received approval for gates anywhere but at New York's Kennedy Airport where it is based. The carrier did not say exactly how many planes it's going to have in its fleet. jetBlue has been funded by an initial capital investment of $130 million, the largest amount ever for an aviation start-up. The airline, based at Kennedy International airport, plans to launch in early 2000 and has put in an order for up to 82 new A320 Airbus jets. Promising fares an average of 65% off competitors prices, jetBlue says it will serve up to 44 cities. jetBlue plans only one-class of service, but with lots of bells and whistles: Voice recognition and touch-screen reservation systems, leather seats and 24-channel live in-flight satellite television service for every passenger. David Neelman, jetBlue's CEO, started Salt Lake City-based discount carrier Morris Air which was bought by Southwest Airlines in 1993 for $129 million. Needleman says he expects jetBlue to be profitable by the end of the first year of flying, that they won't fly routes that aren't profitable and that "we have done this before and know how to do it." But some airline analysts are skeptical. Ivor Schucking of Strong Funds thinks there is too much competition. "They do have the backing, and they do have new aircraft, but I do not know how you make money in this business," Schucking said. "The only successful start up has been Southwest; no one else has done it. Look at TWA -- they can't make money as a low-fare airline. The environment is less favorable due to higher labor coats, higher fuel costs and the FAA is really looking into start-ups after Value Jet. This is real high on the list of things I would be skeptical of, low-cost is not enough in this business. The Uniteds of this world are not about to give up seats to this start-up airline." The airline has three pending applications under review with the Transportation Department and the Federal Aviation Administration.
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