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Jetblue airlines strategic analysis
Jetblue management strategy
Jetblue management strategy
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Individual Case Analysis
JetBlue Headquarters, Forest Hills, New York.
Summary Statement
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.
Analysis
The case of JetBlue illustrates JetBlue’s plan to succeed, and be among the few airlines that have had longevity. Dave Neeleman was the founder of Morris Air, which was later purchased by Southwest Airlines in the mid 1990s. Neeleman models the operation of JetBlue after Southwest Airlines, in doing so JetBlue only operates one type of airline, the Airbus A 320, as a result they will only need to train and FAA certifies their crew of pilots, flight attendants and mechanics on only that kind of plane. JetBlue also operates from smaller airports instead of the busy international airports, in an effort to save on landing fees there’s also a lot less traffic, so airlines are easier to turn. JetBlue is also able to save on flight cost due to the fact that they operate newer airlines that require less maintenance, and a nonunionized workforce, making their wages a lot lower than those of established airlines.
As David Neeleman stated in a Dec 14th, 2006 article, he stated that “The best experience in the skies just got better,” he stated customers loved flying JetBlue because they get more value for their dollar, as they wil...
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...ement maintaining close ties to employees this will also prove to be a difficult task as, they will now have more employees to monitor, and naturally as an organizational grows the chains of commands becomes longer, thus making it harder to develop close relationships and ties to those that are not immediate within reach.
References
Bailey, Jeff. (Feb.19, 2007). JetBlue’s CEO Is ‘Mortified’ After Fliers Are Stranded. Retrieved August 30th, 2008 from www.nytimes.com
Salter, Chuck. (May 2004). Calling JetBlue. Retrieved August 30th, 2008 from www.FastCompany.com.
Williams, Chuck. (2007). JetBlue Headquarters, Forest Hills, New York.
N.A. (Dec 14, 2006). Taking the JetBlue Experience to new Heights—New A320 Cabin Configuration Will Give Customers More Inches of Legroom Than Any Other Airlines’ Coach Cabin. Retrieved August 30th, 2008 from www.primenewswire.com.
Their extra space sit it may cost a little bit more; however customers don’t have to pay for a double sit price. Although I am don’t agree with the policy base on heavier customers. People must be aware that airlines, works base on weight regulations they have to have the exact amount of weight that way the impact of incorrectly calculating an aircraft’s load increases in significance as the size of the aircraft decreases and thus the contrary effects of underestimating loads are likely to affect smaller piston airplane much more meaningfully than large jet-powered aircraft. Another example is International airlines such as Air Canada addresses this issue more amicably: Because the airline considers obesity a medical condition, it provides overweight passengers with a free extra seat as long as they present a doctor 's note. (Barnes,
From 2004 to 2009, I lived in Atlanta, Ga while working for a large firm; I was able to travel all across the country and overseas. When I was younger I use to travel quite a bit with my family. These times in my life cannot be over looked as they gave me experiences in culture that cannot be learned from a book. When I use to travel, I hated the actual traveling aspect. Getting on planes were the worst. Most companies were the same. Really uncomfortable and no space for my legs loved getting the aisle seat for legs but the occasional cart crashing or running into my leg sucked. The one thing missing from most of my flights was the service and the way employees and customers were treated by the companies.
Due to the increased use of the internet, it is becoming more and more easier to book online. This allows customers to book flights easier and increase Jet2’s revenue. Revenue is increased through not having to deliver or post tickets out to its customers, in comparison with other non-internet based airlines. It is believed that over 97% of Jet2’s customers book online, which further highlights Jet2’s emphasis on online bookings.
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.
According to the International Air Transport Association, 2001 was only the second year in the history of civil aviation in which international traffic declined. Overall, it is believed that the IATA membership of airlines collectively lost more than US$12 billion during this time (Dixon, 2002).
Use of technology and automated processes to reduce reservation, ticketing and customer services costs. Paperless cockpits, use of e-manuals, electronic ticketing, owning its own in-flight entertainment provider, automated baggage handling are some of the examples where Jet Blue’s use of technology has lowered operating costs.
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.
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
United Airlines aircraft have soared through the skies for more than 70 years. Initially used to transport U.S. mail, the planes soon took on a few adventurous passengers. In a matter of years, air travel was embraced by the general public, creating a demand for larger, faster, more luxurious aircraft.
This concept was challenged by Southwest Airlines by marketing itself as a cost leader. Their entire growth curve in the industry has been attributed to its cost effective strategies which has made it more efficient and successful than traditional airlines.
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.
The target market of JetBlue airlines is customers who along with low cost seek services. The services provided by JetBlue included in-flight entertainment, TV on every seat, satellite radio, extra leg room, free unlimited snacks, and leather seats. The target market of JetBlue is also the leisure traveler, the low cost ticket seeking traveler, and the cost conscious business traveler. JetBlue has actually, posed a threat to the other low cost airlines like the Southwest Airlines.
Jet Airways was found in 1st April 1992 by Mr. Naresh Goyal and they started their operation after one year may 5th 1993, Jet began international operations from Chennai to Colombo in March 2004. The company was listed on the Bombay Stock Exchange
For me, this topic hits home and in my pocket. My uncle, retired Coast Guard Captain Brian Murray, flies for Emirates Airlines out of Dubai. Growing up with aviation in our family, I've seen and heard the best stories of flight, but it seems the best are yet to come. Every new dawn breeds a new idea of some component of flight that will lead to the best experiences offered in the passenger aircraft world. Personally, I have been flying regularly for the last ten years.