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JetBlue’s CEO will step down early next year

By WTOP Staff

SCOTT MAYEROWITZ
AP Airlines Writers

JetBlue Airways Corp. CEO Dave Barger will step down in February and be replaced by the company’s president, ending months of speculation about leadership at the airline, which is profitable but has lagged its rivals.

The new CEO, just the third in JetBlue’s 14-year history, will be Robin Hayes, a 48-year-old former British Airways executive who joined JetBlue in 2008.

The change was announced after a meeting of the New York-based airline’s board. Hayes will take over on Feb. 16, after Barger’s contract expires.

Barger has been CEO since 2007. He said that he and the board agreed on the decision to change leaders, and that his departure wasn’t due to any single event or trend.

“You just kind of know when you need the next level of ideas, innovation, evolution,” Barger said in an interview. “It made sense to me and it made sense to the board.”

Barger credited Hayes with pushing recent changes at the airline, including Mint, its premium seats on some transcontinental flights.

Hayes was named president in January. That promotion and his recent acquisition of U.S. citizenship helped fuel speculation that he was being groomed to take over.

Wall Street analysts have expressed hope that Hayes might take steps to increase revenue, including adding a fee for the first checked bag and putting more rows of seats on its Airbus jets. Hayes declined to comment on either of those potential moves.

“We serve the customers that are underserved by other airlines, and that strategy isn’t going to change,” he said.

Hayes said that JetBlue will continue with targeted expansion and improvements in the flying experience. The results, over the next two to three years, will “bear out the earnings growth that our shareholders expect,” he said.

JetBlue has been profitable — it earned $234 million in the first six months of this year — but not as much as some rivals. It underperformed competitors by other measures too. For every 1,000 miles JetBlue flew in the first half of this year, it collected an average of $119 for each available seat — less than Southwest Airlines, at $135, and Delta Air Lines’ domestic routes, at $166.

JetBlue just repealed a generous booking policy that let passengers get money back if the price of a flight fell after they booked. Wolfe Research analyst Hunter Keay had called the refund policy “destructive” and said it was “emblematic of a ‘shareholder last’ strategy.”

JetBlue has major operations in New York and Boston, which exposes it to bad winter weather. The airline has had some memorable stumbles, including last January, when it suspended operations at four Northeast airports so that crews could rest and planes could be repositioned after a storm.

JetBlue only carries about 4 percent of U.S. passengers but remains popular with travelers because of limited extra fees, more legroom and being the first airline to offer all passengers individual TV screens with free live TV. Its Airbus A320 jets have 150 seats — 28 fewer than on budget carrier Spirit.

It has about 11,000 full-time employees and 4,000 part-timers.

Shares of JetBlue rose 13 cents to close at $11.33 before the announcement. In extended trading, they were up 52 cents, or 4.6 percent, to $11.85.

___

Koenig reported from Dallas; Mayerowitz from Las Vegas.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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