JetBlue CEO sounds pessimistic on Newark Operational issues worry low-cost carrier's leader Wednesday, July 26, 2006 BY SUSAN TODD Star-Ledger Staff JetBlue Airways, which brought down Florida fares when it moved to Newark Liberty International Airport last year, is having second thoughts about its business prospects in New Jersey. "Newark is a tough operating environment, with a lot of ground delay programs," JetBlue Chief Executive David Neeleman said yesterday during a quarterly earnings conference call with Wall Street analysts. "It gives us pause about adding more (flights) there." Advertisement Neeleman made it clear the company's problems were primar ily a result of operational issues at Newark Liberty, including bad weather and crowded flight schedules, rather than the tough rivalry with Continental Airlines for a share of the busy Florida-bound air travel business. "People in New Jersey love us," Neeleman said. "It's the cost and operational side of it (that are the trouble at Newark) rather than the revenue side of it." While JetBlue has strengthened its Florida business recently -- re versing its decision to drop two Tampa flights -- Neeleman's comments were the strongest indica tion yet that the airline is questioning its potential to grow at Newark. However, the airline continues to expand at John F. Kennedy International, which serves as its base. "I think they've lost interest in being at Newark," said Ray Neidl, an airline analyst with Calyon Se curities. "I don't think they'll pull out, but it sounded like (Neele man's) not really happy with what they're doing there." JetBlue Airways, a 6-year-old low-fare carrier based on Long Island, started flying out of Newark Liberty late last year, creating an in-your-face competition against Continental for the Florida market. In addition to five Florida cities, JetBlue flies to Puerto Rico from Newark. But JetBlue has tried to distinguish itself with more than low fares. It also touts its reliable performance -- measured by on-time arrivals and departures -- and cancels far fewer flights than many of its larger competitors. The operating conditions at Newark make both of those things more challeng ing, according to JetBlue executives. "Our performance at Newark on average operates with 20 percent less reliability," said Rob Maruster, JetBlue's senior vice president of operational planning. Newark's notorious weather conditions are part of the reason, but Maruster said Newark's limited runway space and traffic congestion -- airlines tend to oversche dule flights, especially during peak hours -- have proven to be major challenges for JetBlue's performance. CONTINUED 1 | 2 Next Roger & Amanda La France