JetBlue staff handing out freebies

JetBlue, whose fares are 50%-70% less than comparable big-name airlines, has managed to win over legions of fliers who have become hooked on the quirky yet courteous service the airline provides.

Upscale extras, such as leather seats and personal television sets, have also wooed travellers not used to such amenities at JetBlue's deeply discounted fares.

It is a winning formula that helped push JetBlue to its first-ever annual profit in 2001 after just two years in business

It brought in close to $40m, while the airline industry as a whole suffered billions of dollars worth of losses.

Airline expansion

JetBlue is one of a few discount airlines to successfully launch in north east US, with a base at New York's John F Kennedy airport, where it does much of its business.

The airline keeps it costs low by forgoing costly in-flight meal service and by enticing fliers to book flights over the internet rather than over the telephone.

JetBlue, launched in February 2000, has had the support of deep-pocketed private investors, such as George Soros, through his Private Equity Partners Fund, and Weston Presidio.

Investment bankers Merrill Lynch and Morgan Stanley were the lead underwriters for the deal.

JetBlue stands to make more than $150m from the initial sale of its shares, which will go into expanding the airline, including the purchase of up to 60 new jetliners over five years to add to its existing 23.

Kew Gardens, New York-based JetBlue was set to first offer its shares last September but postponed its stock flotation due to the terrorist attacks on New York and Washington.

Waiting in the wings are at least two other airline stock floats. ExpressJet, a regional jet service of Continental Airlines, and Northwest Airlines regional carrier Pinnacle Airlines are expected later this year.