Following investor Carl Icahn’s recent acquisition of nearly 10% of JetBlue, two of Icahn’s representatives, Jesse Lynn and Steven Miller, have been appointed to the airline’s board of directors. Lynn, the general counsel of Icahn Enterprises, and Miller, the portfolio manager of Icahn Capital, are set to serve as nonvoting observers until JetBlue’s upcoming annual meeting of stockholders this spring. After the meeting, they will transition to full voting members of the board. The move comes as Icahn has expressed his belief that JetBlue is currently undervalued.
Positive Reception and Expectations
In response to the appointment of Lynn and Miller, Carl Icahn stated, “We appreciate the constructive engagement we have had with JetBlue’s board and leadership team. We very much look forward to working with them in the future.” JetBlue chairman Peter Boneparth added, “We welcome Jesse and Steven to the board. With their experience on public company boards, often when navigating key inflection points, they will add useful insights as we set JetBlue on a path back to long-term sustainable growth and shareholder value creation.”
JetBlue CEO Joanna Geraghty emphasized the airline’s commitment to restoring its historical earnings power. She outlined the company’s strategy, which includes executing over $300 million in revenue initiatives for the year and achieving significant cost savings through various programs aimed at reducing fixed costs and modernizing the fleet. Geraghty highlighted JetBlue’s focus on delivering value to shareholders and stakeholders alike while leveraging the brand’s unique value proposition.
Following the addition of Lynn and Miller, the JetBlue board is expected to expand to 13 directors, with 12 of them designated as independent. This move signifies a shift in the composition of the board and the introduction of new perspectives that may influence the airline’s strategic direction moving forward. The increased diversity of the board members could bring fresh ideas and insights to the decision-making process within JetBlue.
Carl Icahn’s increased influence on the JetBlue board through the appointment of Lynn and Miller reflects a strategic effort to enhance the airline’s growth and shareholder value. With a focus on collaboration and leveraging the expertise of new board members, JetBlue aims to navigate the current challenges in the aviation industry and position itself for long-term success.
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