Preview

Jetblue Hits Turbulence

Good Essays
Open Document
Open Document
436 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Jetblue Hits Turbulence
Ch.2. Business: How Businesses Use Information Systems

Case: JetBlue Hits Turbulence? pp. 74-76. 1. What type of information systems and business functions are described in this case? Streamlined information System and a leaning staff

2. What is JetBlue’s business model? There business model was to fly one type of plane from one vendor: Airbus A320. They figured this approach enabled the airline to standardize flight operations and maintenance procedures to a degree that resulted in savings. How do its information systems support this business model? Under normal circumstances, the lean staff was sufficient to handles all operations and the computer system functioned well below their capacity.

3. What was the problem experienced by Jet Blue in this case? The problem was JetBlue wasn’t prepared for the fierce ice storm that struck New York. What people, organization, and technology factors were responsible for the problem? JetBlue’s : CEO David G. Neeleman, Vendor Sabre solutions of Southlake, Texas to manage, schedule, and track planes and crews and to develop actual flight plans. Navitaire reservation system.

4. Evaluate JetBlue’s response to the crisis. What solutions did the airline come up with? They deployed a new software that would send recorded messages to pilots and flight attendants to inquire about their availability. Neeleman promised to train 100 more employees to serve as back ups, they addressed its customer relations and image problems by creation a customer bill of rights, they also set a maximum holding time for passengers on a delayed plane.

How were these solutions implemented? One month after the incident, these changes were put through the test when another storm hit the north east. JetBlue cancelled 215 flights early. Do you think that JetBlue found the correct solutions and

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Meltdown at Jetblue

    • 394 Words
    • 2 Pages

    Management made the first mistake by looking at the problem too simply, and not thinking about the end result fully. When I say this, I am talking about the planes and the weather, but it could also apply to the IT solutions that Jet Blue had implemented prior. The planes should have been left in the terminal until the weather cleared, instead of loaded with passengers and try to make the flight out on time when the weather was so bad. Management looked so blindly at the goal of achieving on time flights, that it ignored the reality that on time flights could not happen in this weather. (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

    Tale of two airlines

    • 556 Words
    • 3 Pages

    Poor service management by a failure of airline employees to coordinate standard operations strategy of inclement weather procedures. Inflight attendants failed to identify passengers with close-connecting flights and to notify employees at destination airport to hold planes. Resulted in loss of revenue and possible long term customers.…

    • 556 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The management of Jet Blue accomplished being both effective and efficient utilizing a flat organizational structure. Unlike a typical expanding business, Jet Blue maintained a small business feel and did not develop numerous layers of management that characterizes a tall structure. Neeleman remained the one and only chief and CEO while his initial partners expanded on their positions and managed the associates. Neeleman and his partners made all vital decisions from the start to present. Most important of which included which plane to purchase, which routes to fly, where to set up headquarters, and whether or not to become a unionized corporation. None of these decisions were made by the associates reflecting a purely…

    • 422 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    JetBlue had a fleet of 194 Airbus A320 aircraft and 30 Embraer 190 regional jet aircraft. JetBlue revenue in2007 was $2.6 billion, one-quarter the size of Southwest. The company had a net loss in 2005 and 2006but returned to profitability in 2007. A major ice storm that hit New York in early 2007 severely testedthe company. More than 1,200 flights were cancelled over a six-day period. Not long after, DavidNeeleman was asked by the Board to step down as CEO. He remained as Chairman. Southwest Expansion Southwest grew steadily over the years prior to 2008, but the growth was highly controlled. New air-ports were carefully selected, and only a few new cities were added each year. As Kelleher wrote to hisemployees in 1993, “Southwest has had more opportunities for growth than it has airplanes. Yet, unlikeother airlines, it has avoided the trap of growing beyond its means. Whether you are talking with anofficer or a ramp agent, employees just don’t seem to be enamored of the idea that bigger is better.”17In October 1996, with the initiation of flights to Providence, Rhode Island, Southwest enteredthe northeast market. The entry into the northeast region of the U.S. was, in many respects, a logicalmove for Southwest. The northeast was the most densely populated area of the country and the onlymajor region where Southwest did not compete. New England could provide a valuable source…

    • 1745 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    JetBlue's Airways Income Statement JetBlue's Airways Income Statement 2013 - 2015 Currency in Millions of US Dollars Dec 31 2013 Dec 31 2014 Dec 31 2015 TOTAL REVENUE 6,416 5,817 5,441 Cost of Revenue 2,302 2,775 2,764 GROSS PROFIT 4,114 3,042 2,677 OPERATING EXPENSES Research and Development 0 0 0 Sales, General and Admin. 2,553 2,207 1,959 Non-Recurring Items 0…

    • 135 Words
    • 1 Page
    Satisfactory 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

    Airlines and aviation grounded flights in the United States and Canada for a long time after the 9/11 attack due to financial troubles for the airport industry, which became even worse after the attack, and safety for people. Many airlines became bankrupt or were threatened with bankruptcy due to how many people were scared about being in the airports or on planes (Amadeo, 2015).…

    • 662 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    The core of JetBlue's strategy was low operating cost achieved through a smaller and more productive workforce; utilizing aircraft efficiently; better use of technology to achieve lower distribution cost i.e. use of electronic ticket as against paper ticket; use of brand new single model planes that reduced maintenance costs and training costs at the same time. However, moving into the growth phase, JetBlue was contemplating expansion with the introduction of a new model of planes, i.e. Embraer E190, that are smaller than the A320s that they were using. These planes were to be utilized for penetrating mid-size cities and also during off-peak times on existing routes. The company defined these markets as destination with 100 to 600 local passengers per day each way, compared to the much larger markets that the company was serving with its A320s. This had potential implications for its low-cost strategy.…

    • 2882 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    American Airlines Flight 1420 is an excellent example of James Reason’s Swiss Cheese Model of accident causation, whereby causal factors in an accident slowly slip by preventative measures until they compound into a preventable accident. A variety of contributable actions and conditions ultimately lined up to create the opportunity for a major accident to occur. The first action in the chain can be found in the flight plan from Dallas-Ft Worth International Airport to fly to Little Rock National Airport in between two converging storms, called a “bowling alley” by the flight dispatcher. The aircraft was on its final leg, on a multi-leg flight that started at Chicago O’Hare and the conclusion of a 3-day sequence for the flight crew. The plan to race the storm was not in violation of any company policy or Federal Aviation…

    • 2439 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    the terrorist attacks in New York on September 11 hit the airline hard in the third quarter of…

    • 4263 Words
    • 18 Pages
    Powerful Essays
  • Better Essays

    The low visibility has caused thousands of flights to be either delayed or canceled. Highways were shut down and commercial transportation was suspended. As part of the emergency measurement, the government ordered more than 100 factories to temporarily shut down. (Wong) The aggravated air condition has not only stirred discontent among people but also incurred huge cost.…

    • 1185 Words
    • 37 Pages
    Better Essays
  • Satisfactory Essays

    The announcement was done due to rise in aviation fuel. Jet Airways thought through retrenchment the expenditure can be controlled which was going high due to fuel prices.…

    • 251 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    t toJetBlue, however. On February 14, 2007, JetBlue wasunprepared for a snowstorm that hit the East Coast. Dueto the lack of planning, JetBlue held hundreds ofpassengers on its planes, at JFK, in some cases for aslong as 10 hours (with bathrooms closed!). To the…

    • 541 Words
    • 3 Pages
    Good Essays