Jetblue Airways Starting from Scratch
HARVARD
BUSINESS
SCHOOL
9-801-354 REV: OCTOBER 29. 2001
JODY HOPPER GITTELL CHARLES O'REILL Y
Where have you heard this before? We're starting tickets and go to the big cities.'
a new low-fare airline.
We're going to offer low-fare
-Financial
If you want to be a millionaire, start with a billion dollars and launch a new airline: -Richard Branson, Founder, Virgin
Analyst
Atlantic
Airways
Keep an eye on ]etBlue.
That could prove to be a successful operation.3 -Herb Kelleher, Co-founder,
CEO, Southwest
Airlines
Ann Rhoades looked up from the stack of papers in front of her and gazed out the window. She watched with pride as a JetBlue plane lifted off from Kennedy Airport. She knew from the departure time that this one was bound for Buffalo. She paused for a moment to reflect on what had been a very exciting year for the start-up. JetBlue's service had grown from 9 departures per day at launch in February 2000 to more than 50 per day in the past 11 months. The fleet had grown from 2 planes to 10 with the arrival of one new Airbus A320 every five weeks (se4~ Exhibit 1 for first year growth). The business plan called for adding 10 new planes every year thrOllgh the end of 2003, bringing the fleet to 40.
Rhoades,Executive Vice President for People, had been extremely busy -growing the JetBlue team from the original 10 people to almost 1000. She knew that she would continue to add approximately 100new "crew members" with the arrival of every Ilew airplane and that, if they hit their plan, JetBluewould employ nearly 5000people within the next 4 years. Shewas charged with achieving this rapid growth while building a values-based, high conunitment organizational culture. Her experienceas head of human resourcesfor Southwest Airlines from 1988to 1994provided Rhoadeswith both appreciation for the challenge and expertise to meet it. She was committed to attracting, developing and retaining outstanding people who could make the
BUSINESS
SCHOOL
9-801-354 REV: OCTOBER 29. 2001
JODY HOPPER GITTELL CHARLES O'REILL Y
Where have you heard this before? We're starting tickets and go to the big cities.'
a new low-fare airline.
We're going to offer low-fare
-Financial
If you want to be a millionaire, start with a billion dollars and launch a new airline: -Richard Branson, Founder, Virgin
Analyst
Atlantic
Airways
Keep an eye on ]etBlue.
That could prove to be a successful operation.3 -Herb Kelleher, Co-founder,
CEO, Southwest
Airlines
Ann Rhoades looked up from the stack of papers in front of her and gazed out the window. She watched with pride as a JetBlue plane lifted off from Kennedy Airport. She knew from the departure time that this one was bound for Buffalo. She paused for a moment to reflect on what had been a very exciting year for the start-up. JetBlue's service had grown from 9 departures per day at launch in February 2000 to more than 50 per day in the past 11 months. The fleet had grown from 2 planes to 10 with the arrival of one new Airbus A320 every five weeks (se4~ Exhibit 1 for first year growth). The business plan called for adding 10 new planes every year thrOllgh the end of 2003, bringing the fleet to 40.
Rhoades,Executive Vice President for People, had been extremely busy -growing the JetBlue team from the original 10 people to almost 1000. She knew that she would continue to add approximately 100new "crew members" with the arrival of every Ilew airplane and that, if they hit their plan, JetBluewould employ nearly 5000people within the next 4 years. Shewas charged with achieving this rapid growth while building a values-based, high conunitment organizational culture. Her experienceas head of human resourcesfor Southwest Airlines from 1988to 1994provided Rhoadeswith both appreciation for the challenge and expertise to meet it. She was committed to attracting, developing and retaining outstanding people who could make the