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Strategic Management by
Michael A Hitt
INTRODUCTION
INTRODUCTION
Incorporated in Delaware in August 1998.
David Neeleman1st founder ,February 1999,
under the name "NewAir.
JetBlue followed other domestic airlines approach
of offering low-cost travel, but sought to
distinguish itself by its services, such asin-flight
entertainment, TV on every seat and Satellite
radio.
CEOs vision To bring humanity back to air
travel.
JetBlue's founders had set out to call the airline
"Taxi The idea was dropped later.
INTRODUCTION
The company is headquartered at theLong Island
New York.
Its main base isJohn F. Kennedy International
Airport
The airline mainly serves destinations in the
United
States,
along
with
flights
to
theCaribbean,The Bahamas,Bermuda,Barbados
,
Colombia,Costa
Rica,
theDominican
Republic,Jamaica,MexicoandPuerto Rico.
Slogan :
To bring humanity back
to air travel and to make
fl ying more enjoyable
VISION
At JetBlue our goal is to provide the
best, most affordable flight experience
of any air carrier while providing
superior service.
Mission Statement
Jet Blues mission is to be the leading low-fare, lowcost passenger airline offering high quality
customer service to underserved markets and
customer who are looking for the best value in their
flight. We have the newest most advanced planes
that are reliable, fuel efficient, utilizes paperless
cockpit technology, live in-flight satellite TV and
security cameras. Our philosophy is to give
customers the best price value for their ticket,
offering things our competitors dont offer. At
JetBlue we feel that hiring educated employees that
are highly motivated and well trained will provide a
better experience to the customers. We feel that
our high-value, high quality service philosophy will
lead the way to our becoming the number one in
the industry.
CORE Values
Safety
First &
always in
the
business
Relations
with
Customer
& Crew
Exhibit a
Sense of
Humor
Achieveme
nt
Orientatio
n&
Striving
Organizati
onal
Commitme
nt, &
honesty
SAFETY: Airline
commits to
"Safety First;
Set and Maintain
Consistently
High Standards;
Ensure the
Security of
Crewmembers
and Customers;
Never
Compromise
Safety
CARING: Maintain
Respectful
Relationships
with
Crewmembers
and Customers;
Strive to be a
Role model;
Healthy Balance
Between Work
and Family;
Responsibility for
Core Values
PASSION: Strive to Meet
the Needs of
Crewmembers and
Customers; Team Spirit;
Deliver Superior
Performance;; Look for
Innovative Solutions to
Business Issues
Sense of Humor ;
Add Personality
to the Customer
xperience;
Demonstrate
Enthusiasm for
the Job; Seek to
Convert a
Negative
Situation into a
Positive Create a
Friendly
Environment.
INTEGRITY:
Demonstrate
Honesty, Trust
and Mutual
Respect; Never
Compromise the
Values for ShortTerm Results;
Possess and
Demonstrate
Broad Business
Knowledge;
Innovative Strategies
No meals during
flights
Providing personal
television
Leather seats instead
of cloth seats
Use of new aircrafts
Use of more fuelefficient and less
maintenance cost
Airbus
Initially less routes
Point-to-point flight
Innovative
Strategies
Use of secondary
airports which did not
handle too much
traffic
Reduction in the
Turnaround time by
efficient ground staff
Use of electronic
ticketing
Paperless cockpit and
use of e-manuals by
crew
Customer-oriented
approach
Picking the right
people
Slow Growth
Operating revenue
continued to increase in
2005 and 2006 but
airline suffered losses
Airline suffered loss of
US$ 42 million in CS too
Loss suffered due to
Rapid increase in
fuel price
Political situation
and war
Heavy Interest
expense &
repayment of debt
By end 2006 JetBlue
slowed down growth by
delaying deliveries of
aircrafts, eliminating
low profit routes and
cutoff destinations from
Cutting of destinations
was done to preserve
cash & remain stable
Jetblue came under
strong criticism due to
delay of flights in
February 2007
JetBlue Strategy in
Slow Growth
Airline created
Jetblue Customer
Bill of Rights
Cross training of
crew members
Waived change fee
Waived fare
differences
Improved
reservation system
Competitive Advantage
Other Competitors
Spirit
Airlines
United
Airlines
Virgin
America
Southwest
Airlines
America West
Frontier Airlines
Delta
Sun Country
Airline
SWOT Analysis
Strength
Low Operating
cost
Strong brand
Efficient
employees
Two types of
aircrafts in the
fleet
Consumer
satisfaction
Effective use of
technology
Advertisement
Weakness
Relative new
company
Two types of
aircrafts
Concentration on
middle class
Shifting
customers need
Fleet now aging
High
maintenance
costs
SWOT Analysis
Opportunity
Industry
expansion
Route & fleet
expansion
Creation of
Airlines Alliances
Technological
Deregulation of
international air
travel
Threat
Security issues
Increase in fuel
price
Strong
Competition
Global crisis
Incidents like
9/11
Pay / Benefit
packages
increasing
Market Positioning
Price
High
United Airlines
American Airlines
Low
Quality
Delta
JetBlue
Southwest
AirTran
Frontier
Low
Position
Map
terminal in
at Flight
service provider Develop a new Comfort
Offered pre flightJFK
airport
its on- 2 inches of leg
and
during to improve
Additional
departure androom
arrival
flight free snacks time
and optional
US$80
lunch / dinner on averages
payment at airports.
100%
non-fat selection of
Customers benefited
million
invested
from
complementary
and
Sold a stake of its shares
to snacks
simple to use reservation
unlimited
Germen carrier Lufthansa
to
system
All passengers
provided
Booking agents could
increase
workrevenue & allow
with the
comfort kit for a
customers to book code
sharesleep
from home
healthy
Pre assigned seating
flights
and
Crew
wakes
up
the
Customer
advisory customer
council from sleep
ticketless travel was
made
was established
possible
Single class travel for all
passengers
Double points for true blue
members
Gains By JetBlue
99.6% operations completion rate
First among American Carriers for least
number of lost or mishandled baggage.
JetBlue's maximum liability for lost or
damaged baggage is $2,800 per
passenger
Reservations from home using VOIP
technology
Competitive Advantages
JetBlue has one of the finest features in the airline
industry. It also stands out from its competitor by providing
other facilities as follows:
New Slogan
QUESTIONS ?