Abstract Jet Blue is the U.S based airline headquartered in New York. Jet Blue airline became one of the biggest airlines after nine years of its establishment. This airline was a great success in a very short time. More than 32 million passengers use the opportunity to travel through the Jet airline every year to over 90 cities. This airline operates approximately 825 flights in a day, which proves the success of Jet Blue airline. The success of Jet Blue airline is only because of its high performance, and extra satisfactory services. The capacity is increased on a daily basis. Jet Blue is highly recommended if someone is looking for a low-cost with satisfied air travel. In the year 2007, Jet Blue conquered almost 30% of the domestic departures. …show more content…
Economic indicators can be used to measure much economic health like the gross domestic product (GDP), per capita income, the production of the industry and consumer confidence. The fluctuations in the prices of oil have created many issues for the airline. The incident of terrorist attacks has also added to the operating cost of Airline Company. It has also effect on the profitability of the airline, as it is the most important part of maintaining its budget for the end day. The rise in the inflation of the fuel has caused disturbances in economic factors for the airline especially when it comes to Jet Blue airline due to its low-cost …show more content…
The reason for the growing use of technology is due to this factor. Jet Blue airline has been able to compete with this trend. They have hired the services of a software company that helps it to deal with the trends and apply them to e-ticketing and internet booking. Jet Blue as a customer-oriented airline increased ease and comfort for their customers for the booking like e-ticketing and e-booking. SWOT Strengths Jet Blue airline is very well known in the airline industry when it comes to its strong customer service. This airline was named as the highest in airline customer satisfaction among low-cost carriers. It received 7/7 star rating for its safety and 5/5 star rating for its product offerings. Weakness Jet Blue as being low-cost airline lacks when they conclude their expenses. The highest expense for Jet Blue Airways is their fuel. They cannot increase their rates if the price of the fuel goes high. In this case, the profit earning will be lower for Jet Blue airline.
Westjet has a unique corporate spirit: To enrich the lives of everyone in WestJet's world by providing safe, friendly and affordable air travel (2). In order to fulfill this company mission, westjet pursue to become one of the five most successful international airlines in the world by 2016, providing the guests with a friendly and caring experience that will change air travel forever.
Jet2 places its emphasis on low costs, safety and reliability to ensure a satisfied customer base and therefore with the aim of increasing its potential revenue.
Airline of choice: Remain the top choice for international flights for premium customers as well a...
With a clear mission and vision, he implemented a low-cost, differentiation business-level strategy, that set out to position JetBlue as the leading low-cost passenger airline in the industry, differentiating on high-quality customer service, providing customers with a geographically diversified flight schedule of both short and long hauls, along with efficient and reliable service.
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.
Jet Blue’s strategy to use a combination of cost leadership and differentiation strategies at the same time in an integrated way helps Jet Blue to overcome any major drawbacks and risks associated with any of the standalone individual strategies. The components and enablers for Jet Blue’s low cost strategy and differentiation strategies are complimentary to each other and they mutually reinforce Jet Blue’s overall integrated combined business level strategy. This combination of low cost and differentiation strategies enables Jet Blue to provide a high quality low cost differentiated customer service experience. This helps Jet Blue create a unique value and also provides a unique competitive advantage for Jet Blue to outperform its competition and achieve long term
Features that draw customers in include assigned seating (contrary to its competitor, Southwest Airlines), leather seats, more leg room, and superior on-board service. Furthermore, JetBlue is one of only a few airlines that offers each passenger free Direct TV and XM satellite radio entertainment. Finally, with regard to customer service, JetBlue focuses intently on attracting and motivating a talented workforce. The company gives each employee a sense of ownership in the operations. This value and respect bestowed on each employee translates into a motivated, productive workforce that focuses on customer satisfaction and exceeds consumer expectations.
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.
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
Airline and travel industry profitability has been strapped by a series of events starting with a recession in business travel after the dotcom bust, followed by 9/11, the SARS epidemic, the Iraq wars, rising aviation turbine fuel prices, and the challenge from low-cost carriers. (Narayan Pandit, 2005) The fallout from rising fuel prices has been so extreme that any efficiency gains that airlines attempted to make could not make up for structural problems where labor costs remained high and low cost competition had continued to drive down yields or average fares at leading hub airports. In the last decade, US airlines alone had a yearly average of net losses of $9.1 billion (Coombs, 2011).
The main threats to the industry over the next five years are the rise in oil prices, legislation, the TSA, and labor costs. Each of these threats affects the scheduled air transportation industry, not only endangers Delta Airlines, but the entire industry. As the price of labor increases for ground operations and pilots, this creates a burden on the industry by causing them to spend more to satisfy their labor requirements. The price of fuel increasing leads to the price of fuel increasing, which not only affects a single airline, but every airline. With each time that the crude oil price rises, the prices associated with the costs of refining the jet fuel as well as transporting it.
Every company in the market has to face the different challenges and try to cope with the challenges to come up with the strong idea to stay and survive in the market. Market is getting tougher and there are different factors which effect on the company policies and the strategies which the company is looking to apply. Some factors can be managed by the skills of the companies and can be tackled. These factors called internal factors but there are some factors which are very hard to tackle. They are out of control of the company but the alternative actions can be taken to avoid the consequences of the impacts. To analyze the external factors which are affecting the Air India airline, the pestle analysis can be used.
...ry long and successful history in the airlines industry, which makes it one of the leading airlines in the world. Also, it provides the most comfortable flights and services to its costumers and employees, which makes it unique.
The positioning of Southwest Airlines is a reliable, low cost, no frills airlines. The positioning of JetBlue Airlines is a low cost, reliable airline that provides extra services to its passengers. JetBlue positioning is a low cost airline with several extras to passengers. These are the perceptions of customers of airlines in the US market.