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JetBlue Headquarters, Forest Hills, New York.
JetBlue Airways, an American low-cost airline, headquartered in Forest Hills, New York started flying out of John F. Kennedy Airport in February of 2000.JetBlue started by following Southwest’s approach of offering low-cost travel, setting themselves apart from their competitor’s through the amenities they offer like in-flight entertainment, flat-screen TV’s on each seat, live digital satellite radio for all passengers, one-way tickets and no weekend stay over requirements to receive their cheaper fares.
The case of JetBlue illustrates JetBlue’s plan to succeed, and be among the few airlines that have had longevity. Dave…show more content…
airlines’ coach cabin. This means whether you are traveling for business or pleasure, that extra legroom will help to make your travel arrangements as good as the destination itself, Neeleman said. The article also went on state that in their then six years of operation JetBlue Airways has focused on creating a new airline category – an airline that offers value, service and style. In Calling JetBlue by Chuck Salter, Salter states that JetBlue’s recipe for customer service success combines work-at-home moms, flexible schedules, employee education and individual initiative. Also according to Salter, Neeleman pioneered the arrangement at his first airline Morris Air, and it worked so well that he replicated it at JetBlue. This again is because equipping agents with a home computer eliminates the need for a large expensive call center. This also results in a boost to efficiency and job retention, in an industry with high turnover rates.
Though JetBlue has had many positive impacts on the industry, trouble was on the horizon; one problem was that the company planned on increasing their crew from a mere 6,500 to 25,000 and planes from 73 to 290 within a five-year period, whereas it took Southwest 27 years to obtain 280 aircrafts while remaining profitable. As the case states with grow of this magnitude serious issues could result for JetBlue, with the addition of nearly 20,000 new employees, in just five years, analysts believes that this growth
Jetblue Case Study Essay
1736 WordsDec 3rd, 20097 Pages
JetBlue Airways is a low-cost passenger airline that provides customer service primarily on point-to-point routes. JetBlue offers its customers a quality product with young, fuel-efficient aircraft, leather seats, free in-flight-- (24-Channel live television via satellite Direct TV, Thompson et al. p C-53)--entertainment at every seat, pre-assigned seating and reliable performance. JetBlue. . As of Dec 31 2008, serves 52 destinations in 19 states, Puerto Rico, Mexico, and five countries in the Caribbean and Latin America. JetBlues fully owned corporate subsidiary, LiveTV, LLC, or LiveTV provides in-flight entertainment systems for commercial aircraft, including live in-seat satellite television, digital satellite radio,…show more content…
Problems and Issues that Management Needs to Address Makeshift Solutions My Timeframe Recommendations in Industry:
Some of the Pressing Issues Facing Management Included
1. How to raise JetBlue’s Spiraling Stock Price From $12.99 Feb 13, 2007, to $3.97 May 30, 2008 per share to $3.14 July 11, 2008 to its Current October22,2009 $5.38 to prevent takeover target
2. How to account for rising Fuel Costs.
3. How Prevent a possible Bankruptcy: and failing airlines. Or Takeover
4. Consolidation and Merging surged by rising operating costs and fees. Reaction Solutions: Raise Airfares
5. High Cost Of Doing Business through Energy Conservation: Employee Salaries and Oil prices affecting cost of Jet Fuel& Ticket prices Reaction Solution: Hedge on GAS; Buy fuel efficient Planes
6. Increase Competition from New Entrants: Newair and Tours and Virgin America to make a all saturated market moreso
7. How to replace aging baby-boomer Airline Pilots going into retirement.
8. Specific Operational Discrepancies that affect Jet Blue
A. How to avoid Bumped passengers: operational margin: filling customer seats
B. How to increase On-time arrival: Delays and cancellations
C. How to avoid Lost baggage: no computerized system to record and track lost bags.
D. How to improve Customer Service 9. Profitability and Growth: cutting cost by lowering wages, and grounding aircraft