Florida Entrepreneur Discusses JetBlue Board Seat as Stake Nears 10%

(Bloomberg) — JetBlue Airways Corp. investor Vladimir Galkin, a Florida entrepreneur, has increased his stake in the carrier to 9.98% and says he’s met with top executives to discuss a possible board seat.

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Galkin has been steadily building up a stake in JetBlue this year, and is now the airline’s third-largest investor, behind BlackRock Inc. and Vanguard Group Inc.

Galkin said in an interview that he met with JetBlue’s Chief Executive Officer Joanna Geraghty and Chief Financial Officer Ursula Hurley earlier this week.

“I have not decided whether I want to become a director,” he said. “Any consideration would, of course, require further discussions with the board and adhering to their nominating process.”

Galkin said he “expressed my interest in monitoring my significant investment as a director at some point” during the discussions. Geraghty didn’t make a commitment “either way,” and encouraged him to speak with the board’s nominating committee as required by the company’s bylaws, Galkin said.

In a statement, JetBlue said it “regularly speaks with shareholders and investors to listen to their views on the company’s strategy and progress.” A spokesman declined to comment on discussions with individual shareholders.

The airline is in the midst of a turnaround effort after federal judges blocked a planned acquisition and a partnership with another carrier, limiting its growth prospects. Geraghty has detailed plans to pull out of some cities and delay $3 billion in new aircraft purchases to help control persistently high costs. The airline will shift its focus back to leisure customers in its original strongholds of New York, New England, Florida and Puerto Rico.

“I was really impressed with Joanna and her team and their progress to date,” said Galkin, who cofounded and owns a majority stake in HUBX, an online global marketplace for wholesale electronics.

Galkin, who cashed in on GameStop Corp. during the meme stock craze, reiterated in the interview that he will hold his JetBlue investment to below 10%. Reaching a 10% stake triggers additional disclosure requirements and would allow him to call for a special shareholder meeting. He would also be considered an insider.

Activist investor Carl Icahn, who took a stake in JetBlue of nearly 10% earlier this year, subsequently secured two board seats.

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Galkin has had, and intends to continue to have, discussions with JetBlue executives and board members “regarding the possibility of board representation,” according a regulatory filing Thursday. He may communicate with the board, management or other investors about operational, strategic, financial or governance matters, it said.

Shares of the company rose 1.3% in postmarket trading as of 6:02 p.m. Thursday in New York. The stock is down nearly 3% this year.

–With assistance from Crystal Tse.

(Adds JetBlue comment in sixth paragraph.)

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