Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
The deregulation of the airline industry over the last 28 years has resulted in
The deregulation of the airline industry over the last 28 years has resulted in
Summary of jetblue airways
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Imagine how you would create an airline if you were building it from scratch. That is what Dave Neeleman set off to create with the inception of JetBlue in 1999. JetBlue is a bright, young startup airline. Why has JetBlue succeeded where most have failed? Is Dave's strategy as simple as bringing "humanity back to air travel"? The billion dollar question is: can JetBlue really stand out in an industry known for its negligible if not absent profitability (over the life of the industry), an industry fret with failure and infamously known for its horrendous labor-management relations? The Airline Industry is a fascinating market. It has been one of the few industries to reach astounding milestones. For example, over 200 airlines have gone out of business since deregulation occurred in 1978. Currently, more than 50% of the airlines in the industry are operating under Chapter 11 regulations. Since 9/11, four of the six large carriers have filed for and are currently under bankruptcy court protection. Since 9/11 the industry has lost over $30 billion dollars, and this loss continues to increase. Despite the fact that the airline industry is in a state of despair, JetBlue has become the golden example, a glimpse of what the industry could be. In 1978, deregulation removed government control over fares and domestic routes. A slew of new entrants entered the market, but within 10 years, all but one airline (America West), had failed and ceased to exist. With long-term growth estimates of 4 percent for air travel, it's attractive for new firms to service the demand. It was as simple as having enough capital to lease a plane and passengers willing to pay for a seat on the plane. In recent news, the story about an 18-yr British... ... middle of paper ... ...s created and focused on a JetBlue model that combines the best within the industry. In an industry that is highly competitive in every process and system, HR is one of the few ways to differentiate a player. Key issues include non-union environment and customized employment packages. They differ greatly from the current firms that are overly regulated and overtly mismanaged. Many companies are plagued with huge pensions, and the inability to motivate their staff. Tensions among employees do not bode well for long-term viability for many of these firms. JetBlue's sources of competitive advantage are it's the alignment of its people, systems and culture. Although JetBlue's strategy is one of a low-cost structure, JetBlue's strength is the dedicated and passionate workforce working with the values set forth by the company: safety, caring, integrity, fun and passion.
Red Orbit News JetBlue Helps Customers Tell Their Story With the Launch of a Groundbreaking Brand Program. 30 March 2006.
Since maintaining access to capital markets was considered vital to JetBlue’s aggressive growth plans, discounting the company’s IPO price seemed like a reasonable concession to ensure a successful deal and generate a certain level of investor buzz.
JetBlue Airways entered the market in 2000 from a position of financial strength, leadership capability and several rare advantage points uncommon to others in the industry: 1) David Neeleman, the founder, had several years of industry experience as a result of having successfully launched and sold an airline (Morris Air), bringing both explicit and tacit knowledge into the his new venture; 2) Neeleman was afforded the opportunity to work directly with his idol, Herb Kelleher, at Southwest Airlines (the king of the low-cost leaders) after Southwest purchased Morris Air from Neeleman; and 3) Substantial financial support from venture capitalists who had funded Neeleman's previous ventures and were more than willing to support and capitalize on his idea for a new low-cost passenger airline.
The terrorist attacks of September 11th, 2001 have forever changed how commercial airlines operate. Even with today’s security measures in place, terrorism is once again on the rise. In the aviation community, the airlines are the ones left to feel the negative effects of these terroristic attacks. Logan (n.d.) explains that airlines had a 30 percent loss in demand with the initial shock of the attack of 9/11 (para. 2).
JetBlue Airways Corporation has been a rapidly growing discount airline and biggest success story in the industry by using its strong customer service considerations and low fares to build a solid, growing customer base.
The Boeing Corporation is one of the largest manufacturers in the world. Rivaled only by European giant Airbus in the aerospace industry, Boeing is a leader in research, design and manufacture of commercial jet airliners, for commercial, industrial and military customers. Despite enjoying immense success in its market and dominating an industry that solely recognizes engineering excellence, it is crucial for Boeing to ensure continued growth through consistent strategy formulation and execution to avoid falling behind in market share to close and coming rivals.
In the airline industry, Southwest Airlines is considered a true innovator. By shaking up the rules of flying and improving upon inefficient industry norms, Southwest has quickly grown by leaps and bounds. From the very start, Southwest Airlines' goals were to make a profit, achieve job security for every employee, and make flying affordable for more people (Southwest,2007). Southwest has not strayed from these goals. It does not buy huge aircrafts, fly international routes or try to go head to head with the major carriers; and thanks to a great planning, Southwest airlines has become the most successful airline company in the U.S., if not the world.
JetBlue airways face many external factors that influence their business in the industry. Despite the economic downturn, JetBlue’s position will continue to remain unassailable in this competitive world. JetBlue adopted a proactive, customer-oriented approach to service and it also chose its employees very carefully in order to meet the complete customer satisfaction. Although the fuel prices have increased dramatically in recent times, many airlines faced weak economy leading to poor ticket sales in turn losing their customers but JetBlue effectively escaped this hurdle. Usually all potential passengers look at the price of the ticket even before considering any other factors. Typically being the lowest-cost airline JetBlue is suitable type of aircraft in the current economic environment and is easy to reac...
Airlines industry all over the world is experiencing a major setback when it even comes to breakeven. Most of them are heading towards losses. Unprofitable airlines continue to fly as the shareholders cant let them close as they will incur great losses, thousands of people will be unemployed and there will be inconvenience for the travellers.
I. Introduction Southwest Airlines has come from an underdog to being one of the best airlines in the industry. This reputation translates from its strategic management of resources. The Co-founder and former CEO, Herb Kelleher, established a unique corporate culture that leads to high customer satisfaction, employees’ morale, and is one of the most profitable airlines in the industry (Jackson et al., 2012). Corporate culture concentrates on empowering the workforce. It shows through Southwest Airlines core values that “happy employees lead to happy customers, which create happy shareholders” (Jackson et al., 2012).
The global economic crisis of 2008 has been a terrible blowback to the airline, reducing the purchasing power of the people and shrinking the customer base.
Several large scale, interrelated conditions have affected the airline industry over the past several years in such a manner that every carrier has had to respond in order to remain viable and competitive.
Although JetBlue focuses on service value through highly productive personnel and aircraft, potential consumers are still interested in value when they fly; the Price aspect of the marketing mix. Customers are interested in quality service at a reasonable price.
The first initiative that they were able to gain in competitive advantage was the reduction of costs. They have been able to use an online system where consumers can reserve tickets avoiding which avoids using travel agents. Having this systems reduces costs for the company as well because they do not have to hire nearly as many as employees. Along with buying tickets, JetBlue has been able to use other systems to reduce costs which helps them with the maintenance of their planes and organizing information that involves every aspect of their business ranging from their planes to their employees and consumers. The second initiative that JetBlue uses is the creating of new services. By creating their new online services and systems they are able to gain competitive advantage because it allows easier and less expensive accessibility to their services. Not only have they created new services but they are able to differentiate these services from their competitors because of the easiness and quality of the services that they do provide. They not only focus on making their services the best but also the highest level of customer service that they can offer which other airlines struggle to do. Other competitors have realized that JetBlue is beating them in many aspects in the business that they have needed to adjust what they are doing to catch up. Even with the jumps in technology use with the other companies, JetBlue has still been able to enhance their services to continue to gain competitive
Examine the causes of the problem: The problem is that JetBlue focused on expansion during its’ initial success. Profits realized at this time were used to acquire a larger fleet, expand routes, enlarge staff and increase terminal space. Seemingly, the primary focus was rapid growth, with an assumption that it would be rewarded with future profits. When profits began to decline, JetBlue chose to focus on competition making changes that would allow them to compete more directly with larger airlines. JetBlue became vulnerable to its competition when management made the choice to shift focus from customer service to expansion.