JetBlue Founder Steps Aside

His concepts have included using Kennedy International Airport for a domestic hub, which the airline industry had long considered to be an impossibility, and providing a high level of comfort and service in coach.

But JetBlue has always lived on the edge of the industry. Its share price soared, then sputtered. The airline shifted strategy several times, starting with a list of widely scattered cities to serve from Kennedy with a fleet of Airbus A320s, then becoming heavily involved in transcontinental routes, and eventually moving to serving midsized cities with a smaller aircraft.

Early this year, JetBlue made news -- and the wrong kind of it -- when a Valentine's Day storm resulted in about 1,200 canceled flights, stranded thousands of passengers and cost the carrier roughly $41 million.

Neeleman very publicly took responsibility. He expressed contrition for the incident, assured the flying public it wouldn't happen again and offered a passenger bill of rights. He was generally applauded for his efforts.

The next month, however, another winter storm put JetBlue back in the headlines. Although the airline had made preparations to prevent a repeat, its Web site and telephone system malfunctioned, leaving many travelers uncertain about the status of their flights

Baldwin said JetBlue last year began "a realigning of our leadership structure [as] part of our natural evolution as a growth company -- from a startup to a $3 billion company." The carrier hired Trey Urbahn as chief revenue office in November. In March, it hired Russell Chew, a 17-year veteran of American(AMR Quote - Cramer on AMR - Stock Picks), as chief operating officer.