Preview

HMP1 000305944 Task 1 2

Better Essays
Open Document
Open Document
4618 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
HMP1 000305944 Task 1 2
JetBlue Airways: Starting From Scratch
Troy Thorpe
WGU

JetBlue Airways: Starting from Scratch
Before David Neeleman’s non-compete agreement with Southwest Airlines expired, he envisioned the concept of starting a low-fare airline that would combine common sense, innovation, and technology and bring the humanity back into air travel (Gittel & O’Reilly, 2001). In 1998, JetBlue was born. In order for David to fulfill his goal of a “do-it-right” kind of airline, he needed to recruit superior industry veterans who were willing to start from scratch and place an emphasis on employees and customers. Each of these individuals, from the President, General Counsel, CFO, and the HR director, wanted to create an airline that was fun, had integrity, was safe, and cared for their employees, plus had a passion to get it right (Gittel & O’Reilly, 2001).
When JetBlue hired Ann Rhoades away from Southwest Airlines, she brought with her, her experience on how to set up the rules and regulations that JetBlue would use to manage its personnel. During JetBlue’s beginning operations, they relied upon five core values that were emblematic of the main characteristics of the company (Gittel & O’Reilly, 2001). These values included safety, caring, integrity, fun, and passion. Taking into consideration these five values, JetBlue used the Equal Employment Opportunity (EEO) acts to determine how, where, when, and which employees would join JetBlue as team members. In order for JetBlue to become successful, they needed to abide by the equal employment opportunity laws that formed a structured path that would enable the HR department to defend their decisions legally, if challenged. JetBlue started with high integrity standards and, to this day, continues to sustain these high standards (Gittel & O’Reilly, 2001). When hiring or dealing with personnel issues, some of the EEO acts that JetBlue references on a daily basis include the following: the Equal Pay Act of 1963, the 1972



References: Mondy, R.W. (2012). Human resource management. Upper Saddle River, NJ: Prentice Hall. Gittell, J.H., & O’Reilly, C. (2001). JetBlue airways: starting from scratch [PDF]. Retrieved from http://people.westminstercollege.edu/faculty/mkoerner/00_courses/mba_650_spr_06/jetblue_airways_starting_from_scratch.pdf Occupation Safety and Health Administration. (2001). OSH Act of 1970. Retrieved from https://www.osha.gov/pls/oshaweb/owasrch.search_form?p_doc_type=OSHACT&p_toc_level=0 Federal Aviation Administration. (2007). FAA Fair Treatment for Experienced Pilots Act. Retrieved from https://www.faa.gov/news/press_releases/news_story.cfm?newsId=10072

You May Also Find These Documents Helpful

  • Powerful Essays

    Business Strategy – BAD 4013 – SUMMER 1999 Case Study Southwest Airlines I. Strategic Profile and Case Analysis Purpose The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit. Twenty-seven years ago, Rolling King, owner of floundering commuter airline, and Herb Kelleher, King’s lawyer, got together and decided to start a different kind of airline that would provide a short-haul, low-fair, high-frequency, point-to-point service in the United States. The company began service on June 18, 1971 with flights between Dallas, Houston, and San Antonio (“The Golden Triangle” as Herb called it). Southwest Airlines is the fourth largest customer airline carrier in the United States. They use all Boeing 737 jets in order to save money on training and maintenance. The average age of company’s fleet is only 8.4 years. The average trip length is 451 miles with an average duration of about one hour and 23 minutes. Southwest Airlines averages more than 2,400 flights per day, almost twice the industry average. The average one-way airfare is $75. Southwest Airlines flies to 54 cities in 28 states. Southwest Airlines is recognized as the industry leader in focused low-cost airfare by introducing new strategic competencies such as ticketless travel and selling seats through Internet sites. Southwest Airlines is also known as “Southwest Spirit” which represents their unique organizational culture. The case questions whether Southwest Airlines should expand their operations to Northeast. Actually, they already began new services to Manchester in New Hampshire on June 7, 1998 and to Islip in New York on March 14, 1999. So, our critical question for Southwest Airlines is whether they should expand their operations overseas, especially to Europe since it is the second largest emerging market for the airline industry next to the United States, or whether it should remain…

    • 3794 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Abstract: When Southwest Airlines was founded in 1971, company executives decided it had to be different if…

    • 1226 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Jetblue Airways

    • 926 Words
    • 4 Pages

    JetBlue’s strategy for success in the marketplace can be summed up, as “a leading low-fare, low-cost passenger airline by offering customers high-quality customer service and a differentiated product” (JetBlue 10-K/A Report, 2005). They believe that by offering low rates, their demand will increase, offering travelers with a low-cost alternative. They believe that having low operating costs allows them to keep unit costs down. They also research areas that have little travel and those with high travel and high costs. This allows them to target another travel point. Offering a more luxurious travel accommodation is JetBlue’s key to staying innovative and separate from the rest.…

    • 926 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Southwest Airlines

    • 2655 Words
    • 11 Pages

    Southwest Airlines pledges a commitment to provide its employees a stable work environment with equal opportunity to learn and for personal growth. Creativity and innovation are encouraged for improving the effective leadership and effectiveness of Southwest Airlines. The company is a principal supplier of air transportation in the United States for the transport of passengers for business and leisure purposes. “Southwest Airlines has capture the U.S. Department of Transportation’s “triple crown”- as the airline carrier with the most on-time flights, the best baggage handling, and the highest customer satisfaction ratings” (Southwest Airlines). The company retained its leadership in customer satisfaction, increase their fleets to better service their customers, and increase on profitability.…

    • 2655 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Jetblue-Case Study

    • 3321 Words
    • 14 Pages

    Jet Blue Airways was established to adhere to corporate values of safety, caring, integrity, fun, and passion (Gittel & O’Reilly, 2001). These values, in turn, became the basis for the human resources policies and procedures established by the company. As a player in the highly service-oriented airline industry, the company’s commitment to its corporate values has enabled it to adhere to several key tenets of the Equal Employment Opportunity policies under the 1964 Civil Rights Act. In particular, the Equal Employment Opportunity “prohibit the discriminatory practices in hiring, discharging, promotion, layoff, and pay of workers…these policies extend to the training, selection, or recruitment of workers” (United States Commission on Human Rights 1966, p.1). In view of Jet Airways, one key policy that ensured that it complied with, and even surpassed, the equal opportunity tenet was on the aspect of pay. In particular, the company provided customized employment packages intended to “ensure overall equity in treatment” (Gittel & O’Reilly 2001, p.10). The company also waived the probationary period, which meant that employees were certain of job security. Furthermore, the company also gave above industry compensation, medical benefits, and profit-sharing benefits to the “most overlooked group in the industry – the customer service and ramp workers” (Gittel & O’Reilly 2001, p.11). Hence, as a service-oriented company that employs a lot of people, Jet Blue Airways and its recruitment policies are also significantly influenced by the Equal Pay Act, which “protects men and women who perform substantially equal work in the same establishment from sex-based wage discrimination (Equal Employment Opportunity Commission, 2009). Consequently, since the company provides 401K benefits and insurance benefits, the company is adhering to the spirit of the Age…

    • 3321 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    southwest airlines case

    • 287 Words
    • 2 Pages

    After establishing a unique business model in the airline industry, Southwest has had its fair share of imitators. Yet none of these efforts at reproducing the success of Southwest have reached expectations. There are many reasons why imitators of Southwest have struggled so much but one of the biggest is the success of Southwest’s human resource management. Southwest is able to pay its employees less than the other major airlines yet get more production out of them. This is due to Southwest’s family atmosphere as managers try to foster a sense of teamwork and purpose. As a result, Southwest’s employees work very hard for less money and benefits of this include quicker turnaround times and less employees needed to run daily operations. The two biggest imitators who were potential threats to Southwest were Continental Lite and United’s Shuttle. Neither one of these airlines could match Southwest’s turnaround time of 15 minutes as they both struggled to even get their times under a half an hour. Southwest’s pilots averaged 20 more hours a month of flying time while they were paid almost 100,000 dollars less than pilots at United. Southwest’s gates were operated by about half as many employees as gates of other airlines including continental and united. So while CAlite and Shuttle flights were significantly cheaper than their parent companies, they were still at a competitive disadvantage to Southwest. These imitators still use a hub and spoke system and cannot match the simplicity Southwest has in its business model. So as long as Southwest continues to get great production from its employees and sticks to its strengths like only flying 737’s and staying away from major airports, imitators will be doomed to fail.…

    • 287 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Southwest Airlines

    • 1317 Words
    • 6 Pages

    Southwest Airlines became one of the most admired airlines in the world based on their dedication to their customers and the corporate strategies their leadership instituted. Their leadership created a different corporate culture that CEO Herb Kelleher and his company are devoted to the philosophy of putting employees first (Govindarajan, pg. 115). In doing so, Southwest was able to instill a management control system that relied on their employees and empowered them to achieve the overarching goals of their company and its shareholders. Southwest’s main strategy to be the best airline in the world through customer satisfaction, low cost and simple fares, and profitability are supported by their management and the control system they have put in place. CEO and founder, Herb Kelleher, dedicated his company to promoting an invigorating workplace for his employees. “If they’re happy, satisfied, dedicated, and energetic, they’ll take real good care of the customers. When the customers are happy, they come back. And that makes the shareholders happy” (Govindarajan, pg. 115). Southwest’s value chain of profitability stems from creating a prominent workplace that reflects on their customers who in turn create happy shareholders by spending their earnings on Southwest’s services.…

    • 1317 Words
    • 6 Pages
    Better Essays
  • Better Essays

    Southwest Airlines

    • 1785 Words
    • 8 Pages

    Brancatelli, J. (2008) Southwest Airlines’ Seven Secrets of Success. Wired. Retrieved June 18, 2012 from http://www.wired.com/cars/futuretransport/news/2008/07/portfolio_0708…

    • 1785 Words
    • 8 Pages
    Better Essays
  • Good Essays

    Process Engineer

    • 692 Words
    • 3 Pages

    The JetBlue case gives students the opportunity to apply concepts in cost leadership. At the time of the case, JetBlue has enjoyed a meteoric rise to success in the airline industry by coupling a low-cost strategy while giving customers the sense that they are actually providing better features to their service (e.g. leather seats, satellite TV). Essentially, the company must figure how to grow and its adoption of the E190 to go along with its fleet of A320s suggest that the company’s managers believe that they must moderate their low-cost approach in some ways in order to find new ways to grow. More specifically, David Barger, the new CEO of JetBlue faces some important challenges:…

    • 692 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    In May 2004, Southwest Airlines’ new line in Philadelphia began to operate, which triggered enormous commotion in the existing airline industry—especially US Airways. Southwest Airlines is famous for its low cost strategy, which goes against the industry’s conventional wisdom (See Form 1 below). Having persisted in its strategy, Southwest expended quickly, becoming the most popular airlines which boarded more domestic customers than any other airlines in US. While Southwest Airlines kept growing continuously, indicated as one of the nation’s best-performing stocks, the major airlines of US has stuck with the problems as their high cost structures make them difficult to change while many other small airlines begin to adopted Southwest-like strategies and began to capturing more and more market shares. Form 1 Southwest Airlines’ Strategy vs. Conventional Strategy Southwest Airlines—low cost strategy Fly Pattern Meal Change Fee Point-to-point No meal, only snacks No charge for changing same-fare tickets Seats No assigned seats Choose seat beforehand Electronic entertainment Retirement plan, including pension and health benefits Hub-and-spoke Formal meals Extra fee for ticket-changing Industry’s conventional strategy…

    • 2947 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    While other Airlines struggle to maintain profits due to increasing price of oil and gas, Southwest Airlines CEO Gary Kelly has managed to keep the company afloat as one of the most profitable airlines in the country. Although he didn’t want to be a CEO, due to the stress, pressure and anxiety of the position, he turned out to be a very impressive leader and manager. Mr. Kelly always travels at the back of the aircraft, talking to customers and taking notes of their expectations and…

    • 542 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    In February 2000, JetBlue started flying daily to Fort Lauderdale, Florida and Buffalo, New York, promising top-notch customer service at budget prices. The airline featured new Airbus A320 planes with leather seats, each equipped with a personal TV screen, and average one-way fares of only $99 per passenger. JetBlue was able to provide this relatively luxurious flying experience by using information systems to automate key processes, such as ticket sales (online sales dominate) and baggage handling (electronic tags help track luggage). Jet Blue prided itself on its “paperless processes.” JetBlue’s investment in information technology enabled the airline to turn a profit by running its business at 70 percent of the cost of larger competitors. At the same time, JetBlue filled a higher percentage of its seats, employed non-union workers, and established enough good will to score an impressive customer retention rate of 50 percent. Initially, JetBlue flew only one type of plane from one vendor: the Airbus A320. This approach enabled the airline to standardize flight operations and maintenance procedures to a degree that resulted in considerable savings. CIO Jeff Cohen used the same simple-is-better strategy for JetBlue’s information systems. Cohen depended almost exclusively on Microsoft software products to design JetBlue’s extensive network of information systems. (JetBlue’s reservation system and systems for managing planes, crews, and scheduling are run by an outside contractor.) Using a single vendor provided a technology framework in which Cohen could keep a small staff and favor in-house development of systems over outsourcing and relying on consultants. The benefit was stable and focused technology spending. JetBlue spent only 1.5 percent of its revenue on information technology, as opposed to the 5 percent spent by competitors. JetBlue’s technology strategy…

    • 2315 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    JetBlue is relentlessly focused on making sure that every customer experience lives up to the company slogan, “Happy Jetting.” At JetBlue, customer well-being is ingrained in the culture. The discount airline has focused on providing niceties that are simply not the norm when it comes to commercial air travel. Things like more legroom, comfortable leather seats, gourmet snacks, LCD entertainment at every seat, and free e-mail onboard. These things are sure to delight customers. But JetBlue knows that these tangible amenities are easily replicated. That’s why JetBlue’s real competitive advantage is its culture. The goal is to provide exceptional customer service at every touch point. To accomplish this, JetBlue starts by hiring the right employees. Then, it trains them according to the company’s core values: safety, integrity, caring, passion, and fun. Loving customers breeds truly loyal customers who share the brand by word-of-mouth. Thus, customers are delighted far more by how they are treated by JetBlue’s employee’s than by what they get in a flight. As JetBlue and Southwest (the other low-fare airline known for excellent customer service) start to overlap on routes serviced, many are watching to see which will be victorious. In the end, the loser might just be “all other airlines.”…

    • 295 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    The airline industry has undergone significant restructuring in recent years.Airlines, formerly rivals in a highly regulated industry, have become opportunisticseekers of co-operation. In today's world, mega-carriers and small airlines areworking together rather than competing with one another.…

    • 1739 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    JetBlue case

    • 3782 Words
    • 12 Pages

    Furthermore, another topic highlight in the case is the culture that the company professes, the way they treat each other, “the human side of the equation”. An example of this is the opportunity to workers to do their job from home. Employees are so satisfied with the company that they care for it, which reflects in how they do their job and their attitude towards clients. As the CEO communicated, “everything can be copied, except the culture”. All this combination results in higher employee commitment and desire to make the customers feel happy and gently serve them. In addition, love is one important thing that JetBlue implements, they say that when you love your customer, they love you back, and it can be demonstrated with the desire of the customer to keep in touch with the company even if they are not flying on time. This airline is the strongest brand in the USA. This is a proof that a low-cost airline can give an excellent service and steady profits.…

    • 3782 Words
    • 12 Pages
    Powerful Essays