SOUTHWEST AIRLINE VS JET BLUE AIRWAYS

BY NAZMA SULTANA PRAVEEN NAFRI MANNU TANEJA SUJOY SHAMISHA SONAM

CONTENTS
HISTORY OF BOTH THE AIRLINER VISION AND MISSION OPERATIONS- ITS EFFECTS STRATEGY AND SERVICES MARKETING ASPECTS COMPARISON OF BOTH THE AIRLINE RELATION BETWEEN MANAGEMENT & EMPLOYEES FOCUS ON EMPLOYEES A COMPARATIVE ADVANTAGE THE MANTRA OF LOW COST AIRLINE STRENGTHS & WEAKNESS CHALLENGES FACED BY BOTH AIRLINES PROBLEMS OF SOUTH-WEST AIRLINE PROBLEMS OF JET-BLUE AIRWAYS

HISTORY OF BOTH AIRLINER

Rollin King,started the South West Airline in 1967 David Neeleman in july 1999 launched the Jet Blue Airways South West Airline was started to improved intercity air service within texas Jet Blue Airways was started to give passenger a low cost airline in U.S South West Airline has initially chosen Dallas-Fort Worth,Houston and San Antonio Jet Blue start operating from JFK(Newyork) to some states in U.S David Neeleman was an CEO in South West Airline

VISSION STATEMENT
{ SOUTH-WEST AIRLINE} To provide the most affordable, reliable, and comfortable air transportation in the world. { JET- BLUE AIRLINE} To provide the passenger friendly and lowcost airline

MISSION STATEMENT
{SOUTH-WEST AIRLINE} To provide excellent customer service and timely air travel at an affordable price for markets in the United States. {JET-BLUE AIRLINE} TO PROVIDE ART OF GREAT TRAVEL EXPERIENCE IN A LESSER TICKET PRICE

ITS OPERATIONS
South West Airline is having its headquarters in Dallas, Texas Jet Blue Airways is having its headquarters in the Forest Hills of the New York City South West Airline cover all the nearby destination of Texas Jet Blue Airways cover almost all destination of U.S from JFK In 2004, South West start operating all the major places in U.S

STRATEGY AND SERVICES

The main motive of Jet Blue Airways is to operate low cost airline The main motive of South West Airlines is to make maximum turn in short duration The main strength was given to low fare Both the Airliner gives important to on time services Inflight services was provided by both Airliner

MARKETING ASPECTS
South West Airline has position itself in the concept of LUV South West Airline serve its passenger drinks and peanuts on board Jet Blue gives its passenger flat low fare in all routes Jet Blue offers onboard entertainment by Live -Tv Jet Blue seats were leather coated Jet Blue tickets could be booked from its various home based agents

COMPARISON
SOUTH-WEST GIVES MUCH PREFERENCE TO PROMOTION JET-BLUE GIVES IMPORTANCE TO MARKETING SOUTH WEST AIRLINE FLIGHTS WERE COLOURED IN DIFFERENT SHADES JET BLUE MAINTAINS SAME COLOUR SOUTH-WEST AIRLINE FLY TO THE NEAREST DESTINATION JET-BLUE OPERATES ALMOST ALL PLACES IN U.S

RELATION- MANAGEMENT AND EMPLOYEES

South West Airline maintains a healthy relation with its own people South West give away a portion of its profits to employees Jet Blue Airways also values its employees Jet Blue gives perks and other benefits to its employees Jet Blue often talks with its employees for the benefit of all

COMPARATIVE ADVANTAGE
Key Performance Indicator
Motivation Job Satisfaction Employment Security Labor Agreement Internal Customer

South West Airlines

Very High Very High (85%) Never had a lay-off 10 years Yes

JET BLUE
No Average Below Average to Average (50%) Very frequent layoffs 1-3 years No

Employees come 1st Yes

MANTRA OF LOW-COST AIRLINE

Operated only one type of aircraft ,it minimized the size of spare parts inventories. It helped to improve the proficiency and speed over maintenance, making scheduling of aircrafts easier. Helped them to bargain with BOEING for the best price.

STRENGTHS {SOUTH-WEST AIRLINE}

1. High capacity usage 2. Named the best low cost airline leader for the last three consecutive years 3. Diversity in upper management 4. Revenues increase by 8 percent to 5.94 billion in fiscal year 2003 5. Net income increased 83 percent to $402 million in fiscal year 2003 6. Dominates the short haul segment of airline industry 7. Fourth largest domestic airline 8. In 2008 Southwest posted a profit for the 36th consecutive year

STRENGTHS {JET-BLUE AIRWAYS}

Better customer services Aircraft equipped with modern facilities

Safety comes first for the Airline

Attractive offers for the guest Efficient staff both onboard and in ground

WEAKNESS {SOUTH-WEST AIRLINE}

1. No international flights 2. No segmented seating 3. Dependent on a single producer 4. Lack of exposure towards online booking agencies 5. Four out of five employees are members of the union 6. Carry a small amount of freight and cargo 7. Do not use chat communication such as e-mail 8. Do not offer morning flights

WEAKNESS {JET-BLUE AIRWAYS}

Seats were not comfortable No on board catering

No on time performance
Staff training was not better Flights were over booked

CHALLENGES FACED BY BOTH

Price rise in turbine fuel Airports duties were high

Entry of new low cost Airline

Passenger seeking better luxury on board Connectivity of flights were not good

PROBLEMS OF SOUTH-WEST AIRLINE

Problem was with their turnover, as a result, chaotic situation occurred.

PROBLEMS OF JET- BLUE AIRWAYS

Cutting their cost down every time Expansion of this airline was limite d.

Revenues got stagnant