JetBlue Ventures invests in a number of firms tied to aviation, energy, logistics, and technology.
A JetBlue Airways Airbus A220 prepares for landing in Fort Lauderdale, Florida. (Photo: AirlineGeeks | William Derrickson)
San Francisco-based aviation asset manager SKY Leasing has acquired JetBlue’s venture capital wing.
In a joint statement, the two companies said the change in ownership will allow JetBlue Ventures to continue to pursue promising investments in cutting-edge technology in the transportation and travel sectors. Financial details of the acquisition were not disclosed.
“Through our aviation partnerships around the world, we are witnessing firsthand the rapid advancements and innovations in the travel industry, and as a long-term partner to JetBlue, we have consistently admired JetBlue Ventures’ track record of nurturing these groundbreaking technologies,” said Matthew Crawford, SKY’s co-chief investment officer. “This transaction is a natural evolution of our partnership and will provide us, our investors, and our global aviation partners with direct access to the cutting-edge innovations and technologies shaping the future of travel.”
SKY provides aircraft leasing and lease management services to airlines and airline investors. It currently manages over $5 billion in aviation assets.
According to the statement, JetBlue Ventures will continue to be led by CEO Amy Burr, and it will keep its current name through a brand licensing deal with its former parent company. JetBlue also plans to maintain its position in existing JetBlue Ventures portfolio companies.
JetBlue Ventures was formed in 2016 and has invested in over 50 early-stage startups. Its current portfolio includes aviation technology firm Beacon AI, delivery infrastructure business ClearJet, and weather technology concern Tomorrow.io., among others. Eight of the businesses backed by JetBlue Ventures have been acquired or gone public.
JetBlue officials said the spinoff will allow the carrier to concentrate on its core business.
“As we look at the needs of our airline today, we are fully focused on our JetForward strategy to get JetBlue back to profitability and set us up for long-term success as we compete against the legacy carriers,” said JetBlue CEO Joanna Geraghty. “This transaction enables us to focus on our core airline operations, while maintaining our access to the innovations and opportunities of current and future portfolio companies through our ongoing strategic partnership with JetBlue Ventures.”
JetBlue has struggled to rebound after the COVID-19 pandemic, posting a profit in just two of the last nine quarters.
The carrier attempted to revitalize its business with a partnership with American Airlines. The arrangement would have allowed the two companies to share passengers and coordinate on routes, but a federal judge ruled against it, finding the partnership would harm competition in the industry.
American is now suing JetBlue over the failed alliance and seeking to recoup damages.
JetBlue also attempted to buy Spirit, but that deal was also blocked by a federal court ruling after a trial last year.
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