JetBlue Airways Founder and Chairman David Neeleman Not Seeking Re-Election

NEW YORK (AP) -- JetBlue Airways Corp. said Wednesday that founder and Chairman David Neeleman will not run for re-election to the company's board, effectively cutting his ties with the carrier ahead of his launch of a new Brazilian airline.

Neeleman said that by relinquishing his post as chairman, he will be able to devote his full attention to the new venture, which is expected to begin operations next year from a base in Sao Paulo.

"It has been a tremendous honor for me to see JetBlue become a true success story," Neeleman said in a statement. "I set out to bring humanity back to air travel, and we did just that by having the most talented crewmembers in the industry serving our customers."

The move was not entirely unexpected. At a news conference last month, Neeleman -- who was born in Brazil and has both Brazilian and American citizenship -- said he was discussing with directors his future at JetBlue. "My attention needs to be here," he told the reporters in Brazil at the time.

Election of the next chairman is scheduled for JetBlue's shareholders meeting on May 15.

Spokeswoman Alison Eshelman declined to say which candidates were under consideration for the role of chairman. She did not rule out the possibility that Chief Executive David Barger, who is already a member of the board, might seek the post.

"It's a decision that will be made by the board, but any member of the board is eligible," she said.

Representatives for Barger and Neeleman said the executives were not available for comment.

Neeleman founded JetBlue in 1998, although the Forest Hills, N.Y.-based carrier did not launch its first flight until February 2000. He served as CEO until last May, when he was ousted after a widely criticized response to two winter storms forced the airline to cancel nearly 1,700 flights.

Neeleman at first said he understood the board's decision but later expressed surprise that it had moved so quickly to remove him from power. Less than a month after stepping down as CEO, Neeleman sold off 2.5 million shares of JetBlue stock, or 23 percent of his holdings at the time. It was his first sale of JetBlue stock.

In a statement Wednesday, Vice Chairman Joel Peterson thanked Neeleman for his vision and leadership.

"His dream of building a great airline in the United States has clearly come to fruition, and we all look forward to seeing him realize another successful airline startup in Brazil," he said.

Shares of JetBlue fell 36 cents, or 6.4 percent, to close at $5.25. The stock rose 10 cents to $5.35 in after-hours activity.