Jetblue Case Study

Topics: Southwest Airlines, Airline, JetBlue Airways Pages: 6 (1732 words) Published: November 18, 2009

JetBlue Airways is a low-cost passenger airline that provides customer service primarily on point-to-point routes. JetBlue offers its customers a quality product with young, fuel-efficient aircraft, leather seats, free in-flight-- (24-Channel live television via satellite Direct TV, Thompson et al. p C-53)--entertainment at every seat, pre-assigned seating and reliable performance. JetBlue. . As of Dec 31 2008, serves 52 destinations in 19 states, Puerto Rico, Mexico, and five countries in the Caribbean and Latin America. JetBlues fully owned corporate subsidiary, LiveTV, LLC, or LiveTV provides in-flight entertainment systems for commercial aircraft, including live in-seat satellite television, digital satellite radio, wireless aircraft data link service and cabin surveillance systems. As of Dec 31 2008, Co. operated an average of 600 daily flights with a fleet consisting of 107 Airbus A320 aircraft and 35 EMBRAER 190 aircraft. .

JetBlue was the first U.S. Airline to provide 100% ticket less boarding •JetBlue was the first U.S. Airline to install security cameras in passenger cabin for customer crew and safety •JetBlue was the first U.S. Airline to install bulletproof cockpit doors across the fleet.

JetBlue which was begun by Brazilian born and Seattle raised David Neeleman who studied accounting at the University of Utah for 3 years before dropping out to start his own Traveling Agency business partnering with Pineapple Express to sell Hawaiian packages including airfare and time-share vacation residence. He had to shutdown his Travel Agency business when his partner Pineapple express went out of business in 1983 when it run out operating cash. His next job at Morris Air, Seattle based local carrier for which he worked for 8 years beginning in 1984 (Thompson et al., pC-53) Prepared him as executive vice president and president and later became part of senior management after a 1993 acquisition of Morris by Southwest Airlines. He was with Southwest for about 5 years pertaining to his contract and severance when he lost his job at Southwest to lounge the company JetBlue. Learning from Southwest, JetBlue was begun in 1998 with some venture capitalist money and a fourth of money, 5million dollars he earned through the acquisition that once made him a Southwest executive. David Neeleman initially staffed JetBlue Executive team with David Barger as president and COO; John Owen as executive vice president and CFO; Thomas Kelley as vice president and general counsel then executive secretary; and Ann Rhoades as executive president of Human Resources. Senior Management who to date serve in some capacity at the corporation with a few casualties including the top guy. Newbies Include Russel Chew hired in March 2007 as COO when David Barger Assumed David Neelemans job as CEO because Neeleman left the company to start an airline company in Brazil. Ed Barnes assumed the CFO position officially February 13, 2008 when a previous CFO John Harvey only lasted 18 months on the job. Leaving CEO David Barger on helm with new leadership to direct the future path of struggling company with potential. TRENDS IN US AIRLINE INDUSTRY AND HOW THEY IMPACT COMPANY’S STRATEGY The principal competitive factors in the airline industry are 1) fare pricing,2) customer service,3) routes served, 4)flight schedules, 5)types of aircraft, 6)safety record and reputation,7) code-sharing relationships,8) in-flight entertainment systems and 9) frequent flyer programs. Much of the same advanced technologies that other companies use such as 10) ticketless travel, 11) laptop computers and 12) website bookings, Most Airlines are now using this president initiated by JetBlue. However with major trends including frequent bankruptcy, and failing airlines; the need for groups of airlines to consolidate and merge due to rising and operating cost and fees in doing business; and the toll the recession of 2007-2008 has...

References: Thompson, A.A., Strickland, A.J., & Gamble, J.E. (2010). Crafting and executing strategy (17th ed.). New
York: McGraw-Hill-Irwin pp. C51-C76.
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