Introduction:
Tamara Ecker, Managing Director of British American Business, welcomed everyone to the Accelerate series session, featuring Robin Hayes, CEO of JetBlue. BAB is a leading transatlantic business association supporting companies in the US and UK markets.

Robin Hayes’ Background:
Robin Hayes joined JetBlue in 2008 and held various leadership positions before becoming CEO in 2015. Prior to JetBlue, he worked at British Airways as Executive Vice President for the Americas. He also serves as chairman of IATA and sits on several boards.

Formative Years:
Robin Hayes was born in London and studied electrical electronic engineering at the University of Bath. He initially worked for a military defense contractor, focusing on the avionics side of the business.

Inspiration for Aviation:
Robin Hayes’ passion for aviation was sparked by his work in avionics. He found the industry fascinating and saw the potential for innovation and growth.

JetBlue’s Growth and Expansion:
Under Robin Hayes’ leadership, JetBlue has grown significantly, expanding its network and customer base. The airline has focused on providing a high-quality customer experience, including comfortable seating, free Wi-Fi, and live TV.

Challenges in the Aviation Industry:
Robin Hayes acknowledged the challenges faced by the aviation industry, including rising fuel costs, regulatory changes, and competition. He emphasized the importance of adapting to changing market conditions and staying ahead of the curve.

Future of JetBlue:
Robin Hayes discussed JetBlue’s plans for the future, including expanding its network, investing in new technology, and continuing to provide a superior customer experience. He expressed optimism about the airline’s growth potential.

Q&A Session:
The session concluded with a Q&A segment, where Robin Hayes answered questions from the audience on various topics, including JetBlue’s growth strategy, sustainability efforts, and employee engagement.

British Airways to JetBlue:
Robin Hayes worked at British Airways before joining JetBlue in 2008. The friendly BA crew at Logan Airport inspired him to apply for a job at the airline. He was attracted to JetBlue’s focus on customers and its startup culture.

COVID Impact and Rebuilding:
COVID caused a significant loss of staff at JetBlue, leading to a massive hiring effort. Hayes emphasizes the need to rebuild cultural moments and traditions that were suspended during COVID. He highlights the importance of leaders spending time in operations and engaging with crew members.

JetBlue’s Success Factors:
JetBlue’s growth is attributed to its focus on customers and empowering crew members to provide excellent service. The company’s positive social media presence reflects the enthusiasm and belief of its employees in the product. Despite challenges, Hayes expresses confidence in stabilizing the workforce and returning to normalcy in the industry.

JetBlue’s Growth Strategy:
JetBlue’s team analyzes market opportunities and aircraft availability to identify potential growth areas. The airline has expanded significantly in New York, with plans to increase its presence by 50% in 2022 compared to 2019. New facilities and terminals are being built to accommodate the growth, including a move to a new terminal in LaGuardia and a new facility in Newark.

UK Route Launch:
London was the largest unserved market for JetBlue’s customers. The airline conducted extensive research and planning to ensure profitability and develop a compelling product. JetBlue’s focus on improving the product and lowering fares aligns with its core strategy. The airline created a unique Mint experience in business class, offering a private jet-like ambiance. Core customers are provided with farm-to-table organic food, great entertainment, and free Wi-Fi and TV. The British audience has particularly appreciated the ability to watch Premier League soccer during flights. JetBlue’s limited capacity on the UK routes reflects its focus on providing a premium experience.

Importance of Gender Diversity:
JetBlue’s CEO, Robin Hayes, is also the chairman of IATA, the trade association representing global airlines. In 2019, IATA launched a global initiative called “25 by 2025” to address gender diversity in the airline industry. Hayes emphasizes the importance of gender diversity for growth and highlights the impact of female pilots on inspiring young girls.

Diversity in Leadership:
Robin Hayes acknowledges the underrepresentation of women in leadership positions in the airline industry. JetBlue has created pathways for crew members to become pilots and extended these opportunities to families of JetBlue crew members. Leadership programs are available for frontline crew members who wish to move into corporate roles. Hayes believes that having a diverse leadership team is the right thing to do and helps the bottom line.

Diversity Challenges:
Hayes recognizes that there is still more work to be done in terms of gender and racial diversity in leadership positions. Hayes emphasizes the need for patience as it takes time to develop diverse candidates for leadership roles.

Carbon Climate:
JetBlue has set a goal to achieve net zero carbon emissions by 2040. Hayes believes that this goal is not only the right thing to do but also a business-savvy move. Focusing on sustainability will help JetBlue attract customers and crew members who are increasingly concerned about climate change.

Robin Hayes’ Focus on Sustainability:
Robin Hayes, CEO of JetBlue, emphasizes the growing awareness of sustainability in the US airline industry. Hayes highlights JetBlue’s membership in A4A, a US airline trade association, where airlines recognize the importance of sustainability and strive to address it.

Decarbonization Challenges:
Hayes acknowledges the difficulty of decarbonizing the airline industry due to the physics of flying airplanes.

Short-Term Initiatives:
JetBlue’s focus in the next 10 years includes purchasing more fuel-efficient airplanes and investing in sustainable aviation fuels with lower life cycle carbon footprints.

Long-Term Innovations:
Hayes emphasizes the need to explore new technologies for flying and different fuel sources. Hayes discusses the concept of producing synthetic fuels through green hydrogen and carbon sequestration.

Investment and Collaboration:
Hayes stresses the importance of billions of dollars of investment and research to achieve sustainability goals. JetBlue makes investments in companies that can contribute to their sustainability efforts and engages in regular conversations with manufacturers.

Industry Commitments:
US airlines have committed to signing up to 10% of fuel intake of sustainable aviation fuel by 2030. The global airline industry aims for a net carbon zero target by 2050.

Robin Hayes’ Insights on Environmental Concerns and Talent Acquisition:
Robin Hayes acknowledges the growing awareness of environmental concerns among the younger generation and its impact on talent acquisition. He emphasizes the risk of the airline industry becoming viewed negatively like tobacco due to its environmental impact. Hayes highlights the importance of addressing these concerns to avoid government regulations and negative consumer perceptions.

Sustainability Challenges and Business Travel:
Hayes discusses the challenges faced by the airline industry in reducing its environmental impact, particularly compared to other sectors that can decarbonize more quickly. He believes that business travel may continue to be considered essential by many companies despite environmental concerns.

Disruption in the Airline Industry:
Hayes comments on the entry of new players like Breeze Airways, which targets underserved smaller markets with direct flights. He predicts the emergence of more startups in the industry, but sees limited potential for significant changes in the market structure due to the dominance of large legacy airlines. Hayes mentions JetSuite, an airline that operates out of private air terminals, as an example of a successful niche business model.

Innovation and JetBlue Technology Ventures:
Roger Barton, Chairman of the Accelerate initiative, asks Hayes about JetBlue Technology Ventures and its role within JetBlue. Hayes explains that JetBlue Technology Ventures is based in Silicon Valley and focuses on investing in startups and emerging technologies related to the airline industry.

Innovation Pipeline:
JetBlue established JetBlue Technology Ventures (JTV) to cultivate a pipeline of innovation and address internal challenges. JTV seeks innovative solutions to improve JetBlue’s operations and customer experience.

Investment Focus:
JTV’s investments prioritize improving JetBlue’s operations and competitiveness, rather than solely pursuing financial returns. Examples include investments in AI-driven revenue management and hyperlocal weather forecasting technology.

Collaborative Investments:
JetBlue collaborates with other travel organizations and startups to leverage their expertise and resources. Collaborative investments allow JTV to access a broader range of innovative ideas and solutions.

Servant Leadership:
JetBlue emphasizes servant leadership, encouraging leaders to lead by example and empower their teams. Leaders are expected to be willing to perform any task they ask of their team members.

Reinforcing the Message:
JetBlue reinforces the message of servant leadership through training, recognition programs, and storytelling. Leaders who embody servant leadership principles are celebrated and promoted as role models.

Robin Hayes’ Leadership Approach:
Robin Hayes emphasizes the importance of staying connected with frontline crew members and rediscovering JetBlue’s traditions to maintain a strong company culture.

Future Input Costs and Pricing:
Hayes acknowledges the elevated fuel and labor costs and the impact on pricing for consumers. Staffing challenges limit capacity growth, affecting the number of flights airlines can operate. These factors may lead to higher prices in the short term, but competition may eventually bring prices down.

Business Travel vs. Leisure Travel:
Leisure travel has recovered to pre-pandemic levels, driven by pent-up demand and people’s desire to travel again. Business travel is catching up but is unlikely to return to 2019 levels due to companies adapting to virtual meetings and alternative work arrangements. Airlines may adjust their routes and fleet composition based on the shift in travel demand.

Staffing Challenges and Attrition:
Airlines face high attrition rates as employees move between companies more frequently, seeking better opportunities. Hayes believes the talent movement will stabilize eventually, possibly by next year.

Combating Attrition:
JetBlue focuses on hiring more people and emphasizes its culture and values to attract and retain employees. Hayes highlights the importance of companies demonstrating their commitment to employees during tough times, such as not furloughing crew members.

Future of Supersonic Travel:
Hayes expresses interest in the potential return of supersonic travel, noting the decline in flight speeds compared to 30-40 years ago. He sees opportunities for technological advancements to enable faster travel in the future.

Supersonic Travel:
Supersonic travel may return by the end of this decade or early next with smaller aircraft around 100 seats. Sustainable practices will be crucial, ensuring minimal environmental impact.

Customer Service Innovation:
JetBlue looks within its industry and beyond for best practices in customer service. Digitization has influenced how JetBlue supports customers beyond just onboard experiences. The Tech Ventures team collaborates with innovative organizations to find new solutions.

Fuel Costs and Carbon Reduction:
JetBlue has not hedged fuel costs, but recent events warrant reevaluation. Sustainable aviation fuel, efficient air traffic control, and next-gen engines are short-term opportunities for fuel reduction. Hydrogen-powered aircraft and electric air taxis are long-term goals for achieving net carbon zero.

Travel Patterns and Nationalism:
Nationalism may not significantly impact travel patterns, as people still have pent-up demand for international travel. Domestic travel has increased due to COVID-19 restrictions but is expected to balance out with international travel.

Air Traffic Control Improvements:
Air traffic control improvements can significantly reduce the carbon footprint of aviation. Infrastructure spending may support airport improvements, leading to increased efficiency and reduced emissions.

Key Infrastructure Concerns:
Focus on infrastructure that improves throughput, such as enhancements to air traffic control systems, rather than solely prioritizing terminal aesthetics.

Air Traffic Control Staffing Shortages:
Airlines express concerns about potential staffing shortages in air traffic control centers, leading to delays and frustration for travelers and airlines.

Investment Priorities:
Airports have various avenues for infrastructure investment, but concerns arise regarding air traffic control investments and ensuring adequate staffing levels.

Challenges of International Expansion:
Transitioning from a domestic to an international business requires addressing logistical, mechanical, and philosophical nuances.

Innovation and Complacency:
Maintaining a culture of innovation and avoiding complacency is crucial for established businesses to stay competitive and keep employees engaged.

Post-COVID Rebirth:
The industry’s near-death experience during COVID-19 has provided an opportunity for a fresh start and rebirth for airlines.