Vlad Galkin told Bloomberg that the airline’s board of directors should be cut from 13 seats to five.
JetBlue’s refreshed A220 paint scheme. (Photo: JetBlue)
JetBlue’s second-largest shareholder is calling on the airline to cut its board of directors by nearly two-thirds.
In an interview with Bloomberg, Florida businessman Vlad Galkin said he’s recommended that the board be reduced from 13 members to five as a cost-saving measure.
“That’s a big board,” Galkin told the outlet. “They need to be let go tomorrow. There’s a lot of fat that needs to be trimmed, and they need to be laser focused on making money, paying down debt.”
Galkin holds close to a 10% stake in JetBlue.
The airline’s directors earned an average of $243,234 in 2024, including stock and other compensation. The board is currently led by chairman Peter Boneparth, a former executive at Jones Apparel and Kohl’s.
JetBlue is facing mounting financial pressure as demand for domestic air travel slumps and costs rise. The airline has responded by restructuring some leadership positions and cutting routes, including all service to Miami, but its stock price continues to slide and is down 46% so far this year.
According to Bloomberg, this is the worst stock performance in Standard & Poor’s index of nine airlines.
Galkin, who estimates he’s lost about $60 million on paper with the stock’s decline, said he supports the changes instituted by JetBlue’s leadership and backs a recently announced alliance with United, which would allow customers to book flights and earn loyalty points across both airlines.
He told Bloomberg he doesn’t currently plan to sell his shares, though that could change.
“I’m definitely not going to hold it to the ground,” he said. “I’m not going to be the last one without a chair. I haven’t made any set decisions. It’s going to be a game-time decision.”
Receive a daily dose of the airline industry's top stories along with market insights right in your inbox.
Southwest CEO Bob Jordan shared that he was brought to tears as he grappled with the decision to lay off…
Southwest is considering changes to its traditionally low-cost business model, including airport lounges, more premium seating, and long-haul international destinations,…
The rise of FedEx Corp. from a startup express carrier with a few aircraft to the largest air cargo airline…
Leave a Reply