Jet Blue Airways
I. Problem Statement Jet Blue Airways owner, David Neeleman, understands the difficulty that comes with trying to break into the airline industry. Being as though the airline industry is expensive, will David Neeleman be able to start an airline that has low ticket costs, technology driven, and customer friendly atmosphere while still competing with other airlines?
II. Analysis Jet Blue Airways was first introduced in 1998 five after David Neeleman sold Morris Air to Southwest Airlines because Southwest Airline had David signed a no compete agreement. David Neeleman plan for Jet Blue Airways was to “use new airplanes, offer great personal service, create a state-of-the-art revenue management system, and a single class of service with fares averaging 65% less than the competition.” The first step of developing this plan David Neeleman had create a capital structure that will help him fund this new venture.
Although other people was telling him that he didn’t need a lot of capital, David Neeleman knew that he didn’t want to do what other airlines have done with becoming unionized, charging high prices, and not engulfing the customer relationship importance. Having previous knowledge of David’s involvement with Morris Air and Southwest, Michael Lazarus of
Weston Presidio invested $30 million, Chase Capital invested $20 million, and George Soros invested $40 million. With his own equity and the help of three other contributors, David was able to putting his plan into action.
Culture With a new start up company, wanting to keep a small firm feel, no matter the growth potential, a strategy was put into place to find what the organization wanted to stand for and what values they wanted to uphold. This began the process of defining the culture of JetBlue. The culture at jet blue is based on 5 core values that are stressed in each area of businesses. These core values include