Preview

Jetblue Case Study

Better Essays
Open Document
Open Document
955 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Jetblue Case Study
1. Describe the “JetBlue Experience.” How is it related to the company’s overall business strategy?
With the JetBlue Airways experience, passengers enjoyed free amenities such as watching live satellite TV, listening to XM satellite radio, brand name snacks, coffee and drink. Passengers can also experience paperless ticketing, assigned seating with more legroom. These experiences have helped to streamline JetBlue’s business strategy as being the best customer service in the airline industry.

2. What challenges did David Neeleman and his executive team face in managing the customer experience as the airline grew rapidly? How did they respond to those challenges?
The challenges were new airline fleets were behind schedule and installation of the in-flight system was taken longer than expected. In addition to that, the main market route was damage by an active hurricane seasons resulting in flight cancelation and delays. The demand for air travel also fell; the fuel cost increased thus causing JetBlue to suffer a loss in revenue. The responses were to grow revenue by fare increases, using their resources wore effectively and increase service to areas with fewer competitions. Promise was also made to improve workforce productivity through better training, no pay increases and a more extensive use of automation.
After the Ice Storm

3 What exactly went wrong? Why did it go wrong? Who, or what, is responsible?
One of the biggest disasters that happened in JetBlue history took place on Valentine’s Day, February 14, 2007, a high air-traffic day. Caught by a bad winter storm and bad airline planning, JetBlue passengers ended up spending as many as 11 hours trapped on planes on a frozen tarmac in New York. JetBlue thought the weather would break and it would be able to fly, keeping its revenue flowing and its customers happy.
Customer service was damaged for JetBlue, as most people were not happy with the long amount of time they were spending on the planes. Even

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Meltdown at Jetblue

    • 394 Words
    • 2 Pages

    The main technical issues that caused the Jet Blue problem were that the system was designed with limitations and incompatibility with the rest of the Jet Blue system. All the different systems did not communicate with one another. By not matching the number of terminals to the ticket agent capacity, the system was instantly overwhelmed when the extra call volume was needed. Once Jet Blue was able to get jets back in the air, other systems failed as well. Traffic Simulation Planning was unable to put flight plans into the system because it was a standalone system. Rainer, R. K., Jr., & Turban, E. (2009)…

    • 394 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Jetblue Airlines

    • 1078 Words
    • 5 Pages

    JetBlue started their business in a positive approach, by ensuring the main elements were in place prior to starting operations. Compared to JetBlue 's counterparts that started up their airlines in the 1980 's and 1990 's, JetBlue began with a highly experienced senior management team, dedicated core values, and plenty of capital to ride out the low times.…

    • 1078 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Jet Blue Case Study

    • 1186 Words
    • 5 Pages

    References: Bailey, Jeff. (Feb.19, 2007). JetBlue’s CEO Is ‘Mortified’ After Fliers Are Stranded. Retrieved August 30th, 2008 from www.nytimes.com…

    • 1186 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Problems at Jetblue

    • 524 Words
    • 3 Pages

    JetBlue marketed themselves as the inexpensive alternative to other airlines. Therefore, the company had to eliminate all of the bells and whistles its competitors offered in an effort to keep costs down. This also meant that its operations staff and IT systems were significantly limited. As a result, the company was not prepared for an emergency situation of such a large scale. The bad weather on February 14, 2007 caught them off-guard; their IT systems in place were not capable of handling the overload of required information. Also, JetBlue’s staff was limited and not properly cross-trained in handling reservation, flight and crew applications. Additionally, poor policies and procedure in place, like the airlines policy to do whatever it could to ensure a flight was completed, even if it meant waiting for a few hours, contributed to the downward spiral that took place in 2007 for JetBlue. Management took a risk that the weather would improve and hoped that the decision they had taken would pay off with huge profits.…

    • 524 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Johnson, M. E. (2009, May 08). Enhancing Service at Southwest Airlines. Tuck School of Business at Dartmouth,…

    • 2454 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Jetblue Case Analysis

    • 1125 Words
    • 5 Pages

    JetBlue Airways airline was established by David Neeleman as a low-fare airline with high-quality customer service. His goal was to create an airline that was innovative for the current market. Their main focus was to provide service to areas that were underserved as well as to large cities with overpriced fares. He aimed to establish a strong brand that differentiated itself from its competitors by being a safe, reliable and low cost-airline. Neeleman managed to achieve this partially by hiring friendly, helpful, team-oriented, and customer-focused people. JetBlue is capable of offering low-cost flights due to their low operating costs. In order to achieve the cost advantage, they initially operated a single-type aircraft, the Airbus A320, as opposed to the more popular but costly Boeing 737. Not only was the airbus cheaper to maintain, but it was also more fuel-efficient. Additionally, they decided not to serve any meals on their planes as well as their pilots had to always be available, if needed, to help do the cleanup of the aircraft in order to minimize the time the aircraft was on the ground. They also pioneered the low-cost airline industry by displaying the lowest incidence of delayed, mishandled, or lost bags, and the third-lowest number of customer complaints. Since JetBlue is a customer-oriented company, its objective is to make the customer’s experience extraordinary by providing electronic ticketing and improved in-flight entertainment so that it can rapidly grow as an affordable airline.…

    • 1125 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Jetblue Case Analysis

    • 4169 Words
    • 17 Pages

    However, over the years, JetBlue has experienced financial problems due to the fuel prices increase, as well as an image issue regarding the ice storm in 2007. Even though JetBlue is known to be an innovative airline, their debacles have caused a downturn in the company’s finances, as well as operations. In recent years, Lufthansa, the German airline, has purchased a significant share of JetBlue which helps the company provide more stability. In addition, JetBlue has had to change strategies and CEO's along the way, in order to remain a competitive carrier in today’s airline industry.…

    • 4169 Words
    • 17 Pages
    Powerful Essays
  • Satisfactory Essays

    Jet Blue

    • 422 Words
    • 2 Pages

    3. In light of the Feb. 2007 crisis how did JetBlue try to repair the damage to its reputation? Was the company successful?…

    • 422 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Jetblue Airways

    • 695 Words
    • 3 Pages

    In 2007, due to a severe winter ice storm the company experienced an operational disaster and customer relations nightmare. Unfortunately, this was a quite expensive lesson for JetBlue with an extremely negative impact on the company image. The case itself required quick strategic actions. Trying…

    • 695 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    WestJet would have been wise to supervise a huge amount of scenarios by empowering new framework however JetBlue learnt from the scenarios of WestJet and took wellbeing measures. WestJet would have done well to trade around 840000 records and it took an incredible arrangement of time. Customers were not satisfied because of their direct work and it demolished their reputation.…

    • 350 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    JetBlue Airways Corporation was formed in August 1998 as a low-fare, low-cost but high service passenger airline serving select United States market. JetBlue's operations strategy was designed to achieve a low cost, whilst offering customers a pleasing and differentiated flying experience. JetBlue has had a successful business model and strong financial results during that period, and performed well in comparison to other airline companies in the US during the period between 2000 and 2003. It had been the only other airline apart from Southwest airlines, to have been profitable during the aftermath of the September 11, 2001 attacks on World Trade Center, and at a time when the entire airline industry was experiencing losses.…

    • 2882 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    Fryer Airlines Essay

    • 1030 Words
    • 5 Pages

    Since the birth of flight in 1903, air travel has emerged as a crucial means of transportation for people and products; It has been a way to travel faster and better overall. The airline business is a major industry, relied upon by millions not only for transportation but also as a way of making a living. In 2001, the industry dealt with the effects of another economic downturn, as business travel decreased substantially while labor and fuel costs increased. The events 9/11 greatly magnified the airlines' issues, leading to a sharp decline in customers and significantly higher operating costs. Losses continued for years; the industry as a whole didn't return to profitability until 2006. A relatively stable period followed, although controversies arose over service quality and passenger treatment in terms of flight delays,…

    • 1030 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    “A Tale of Two Airlines in The Network Age” case description of Professor McPherson’s extremely different flying experience with the two Airlines lays out the facts of what matters the most in such a difficult situation. Airlines are constantly facing unexpected delays caused by weather conditions. How to improve customer service quality in those occasions has become a challenge to airline management and should be dealt with great attention. The lists of factors below compare the difference of customer service provided by the two airlines from different aspects.…

    • 418 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    JetBlue began operations in 2000 as a well-funded start-up, which afforded us the ability to make significant investments in our product offerings, including all new aircraft equipped with leather seats and Live TV. This product investment combined with superior customer service at low fares led to widespread brand recognition and early success, predominantly with leisure travelers in New York. By the end of 2006, JetBlue employed over 10,000 employees (to whom we refer as Crewmembers), operated500 daily flights with a fleet of 119 aircraft and generated annual revenues exceeding $2 billion. A heavy debt load taken on to finance this rapid early growth, a wide-spread economic recession and record high energy prices led to annual losses in 2005 and 2006. It became clear to us this rate of growth, as then reflected in our aircraft order book, if not moderated, was unsustainable. Over time, we modified our growth rate through the sale and deferral of aircraft. Additionally, we began to structure our network and invest in offerings targeted to attract a higher mix of business travelers, particularly in Boston. At the same time, we allocated growth to Caribbean routes which typically mature to profitability faster than domestic routes.…

    • 4559 Words
    • 19 Pages
    Powerful Essays
  • Good Essays

    just as outrageous. For an airline that prided itself oncustomer service and had regularly been rated as the topU.S. airline in customer satisfaction, it was a…

    • 541 Words
    • 3 Pages
    Good Essays