Founder of JetBlue Pushes for Finding Alternative Fuel

Nov. 16, 2006
If alternative fuels can be developed, Neeleman said, he foresees huge cost savings.

JetBlue Airways is known for leather seats, satellite TV and blue potato chips.

Now the low-fare carrier, which inaugurated Richmond-to-New York service in March, has taken on a new cause: energy independence.

David Neeleman, JetBlue's founder and chief executive officer, recently made the case for alternative fuels, including some, such as liquid coal, not normally associated with powering aircraft.

"I have been frustrated by energy issues as a businessperson for a long time, given how much fuel we consume," Neeleman wrote Friday on his airline's Web site.

Neeleman called for development of "a more predictable and efficient energy supply that is less prone to speculative market fluctuations." In turn, he said, consumers will benefit from lower prices.

U.S. airlines have been hard hit by the rising cost of crude petroleum during the past few years. Jet fuel represents up to 30 percent of an airline's operating costs in the past two years, or double the historical average.

Last year, Neeleman wrote, "I started learning everything I could on a specific alternative energy that would, I believe, greatly benefit the American economy: converting coal into liquid fuel."

This coal-based product could be made into aircraft fuel, said JetBlue spokesman Bryan Baldwin.

The Air Transport Association of America, which represents all major U.S. airlines, says on its Web site that it also supports alternative fuels, including those based in coal.

If alternative fuels can be developed, Neeleman said, he foresees huge cost savings -- dropping the price from $60-plus a barrel for conventional jet fuel to less than $45 a barrel for coal-based fuel.

In 2005, JetBlue spent nearly $488 million to buy 303 million gallons of fuel.

Neeleman called on the U.S. government to take a leadership role in developing an energy plan that includes coal-to-liquid facilities.

"American consumers, especially people who rely on air travel for business or leisure, will greatly benefit" through lower air fares and more travel, he wrote.

Neeleman said he has worked with Virginia Rep. Rick Boucher, D-9th, a member of the House Energy and Commerce Committee. Boucher has co-sponsored a bill to fund at least six coal-to-liquid production plants, Neeleman said.

The airline chief called on JetBlue's customers to urge their elected representatives to support the legislation.

Neeleman's blog can be viewed at . Click on "about JetBlue" at the bottom right of page, then go to "David Neeleman's flight log."

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