...JetBlue's Organizational Plan JetBlue's Organizational Plan Introduction JetBlue is known as the airline that promises, and also delivers. JetBlue delivers Air flight of the future, with new jets and the lowest fares available. JetBlue has proved to the world that one can have it all. JetBlue’s Airways started in 2000 with the mission as stated by the founder Neeleman: “to bring humanity back to air travel by offering passengers low fares, friendly service, and high-quality product” (Ford, 2004, p.139). JetBlue has five core values that they operate by on a daily basis, which includes, safety, caring, integrity, passion and fun. JetBlue continues to adapt to the changing environment, and its community by evaluating the risks and opportunities for adjustment to the changes presented (Jetblue.com/green, 2012). Main Goal JetBlue Airlines main goal is to provide cheap tickets to consumers with continued profit to the business as a whole. This includes the internal and external stakeholders. The internal stakeholder combines the customers, the investors and the crewmembers. Some of the external stakeholders are the environmental conditions, the government and the competing airlines. To accomplish the goal, the stakeholder should include in the primary goal for the company’s success. For example, consumers should be able to purchase cheaper tickets when comparing prices to other airlines with more incentives. Crewmembers should be rewarded for efficient work with provided...
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...Assessment #1: Crafting and Executing Strategy: Jet Blue Airlines Name: David T. Browne Instructor: Professor Joy Thomas Bus 599: Strategic Management – Crafting & Executing Strategy Date: October 15th, 2011 Abstract The purpose of this paper is to evaluate Jet Blue Airways (JetBlue) company’s crafting and executing of strategy in an industry that has been undergoing challenging changes. These trends are unique to the industry and affect how organizations strategize to remain competitive. To do this analysis, this paper takes a deeper look into JetBlue’s strategic intent which is born of its business model. Next, the paper examines JetBlue’s financial objectives and the methodology by which they have been able to achieve those objectives. Then the paper looks at the company’s operations through the elements of its human resources, organizational culture, handling of costs (which is an industry wide problem) to find out if these elements create a competitive advantage. Finally, 2008 was an important year in the strategic direction of the company therefore the paper looks at how the strategies implemented have performed and if they will allow the company to survive thereafter. Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy. The airline industry has been at the peak of a cost and profit battle for more than a few years now. High fuel and other costs have made some airline giants either file...
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...for its clients. Aside from that, Jet Blue Airways Corporation also reaches out to the public by being active into community service. Essentially, Jet Blue is committed to enriching the lives of children and supporting the communities they serve through their core values of caring, fun and passion. In connection, one of the best community services offered by the company is giving books to children of not wealthy parents in one of the cities in the United States. The unwritten mission statement of Jet Blue Airways Corporation is reflected in its core values and principles created and set by the company. In lieu of mission statement, Jet Blue Airways Corporation is presenting a strategic set of core values. These core values include safety, caring attitude, integrity, fun and passion. The company commits to safety as the first priority in all business operations. In order to do so, the company adheres to rules and regulations implemented by regulatory agencies whenever is needed. Maintaining high standards in a consistent manner is the primary goal of the company when it comes to safety matters. Thus, the company never compromises safety of its crewmembers and customers during and after flights. The company also takes social responsibility for the benefit of the people in general and strives to be a role model in the business community. The company cares for its employees and the customers in one-way or another. In addition, Jet Blue Airways Corporation...
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...Jet Blue Airways case study Introductіon Twelve years ago JetBlue was a breath of fresh air in an airline industry bogged down by the ways of legacy carriers that were unconcerned with customer service and known for price gouging. JetBlue was revolutionary. With a fleet of new planes -- all Airbus A320s, which cut down on repair costs -- a staff that worked primarily from home, and 40% of ticket sales executed online, the company emerged as the premier low-cost carrier focused on providing extra-friendly, efficient service (LaMotta, 2010). Jet blue was a discount airline carrier that offered passengers low fares; operated point-to-point systems; used two types of aircraft; served only snacks; and maintained quick turnaround times at airports. Its operating costs were low, especially compared to those of other major U.S. airline companies. In the first quarter of 2008, for example, JetBlue’s total operating expenses amounted to 12.77 cents per revenue passenger mile, compared to 20.95 cents per revenue passenger mile for Delta and 13.85 cents per revenue passenger mile for Southwest (Michael, 2010). According to (Enterprise, 2011) JetBlue Airways is a low-cost passenger airline that provides customer service primarily on point-to-point routes. The company primarily operates in the US. It is headquartered in Forest Hills, New York and employs 12,532 people. The company recorded revenues of $3,286 million during the financial...
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...Jet Blue Airways JetBlue Airways took to the skies in 2000 under a novel concept: bringing humanity back to air travel. Based at New York's Kennedy International Airport, JetBlue, a non-union airline, distinguished itself from other low-fare carriers such as Southwest Airlines by offering seat-back entertainment systems with live television, comfortable seats and blue corn chips. During the last six years, when traditional airlines were piling up more than $40 billion in losses, JetBlue grew to $1.7 billion in annual revenue and became increasingly popular with travelers. But now that fuel prices have pushed up expenses for all airlines, and older carriers have sharply cut their own labor costs, the advantage JetBlue enjoyed as a start-up is greatly reduced. JetBlue — too new to have built up excessive costs that can now be trimmed, is trying mightily to raise fares in a bid to restore profits after surging fuel prices caused it to lose $42.4 million during the fourth quarter of 2009. The trends in the U.S. airline industry and how these trends might impact a company’s strategy The airline industry is susceptible to upturns and downturns with the trends in the economy. A growing economy and booming business mean greater demand for air travel, and a slow-down in the economy means reduced demand, consequent unutilized capacity and intensified competition. The availability of venture capital and other capital sources have an impact on the number of new entrants...
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...Jet Blue Airways: Analysis of a Company The airline industry serves not only as a means of transportation to millions of people on a daily basis, but also a huge customer service industry. Customers analyze every aspect of air travel from the food services offered and convenience of completing business transactions, to the airline’s safety results and ratio of on-time departures. Many customers become brand loyal, where others will do business simply based on price. It is also vital to note that, like any company, brand perception plays a large role in the success or failure of a company within the airline industry. Because of the number of individuals impacted when a flight goes awry, it only takes one incident to completely destroy an airline company’s credibility for safety, which can also lead to reduced sales and ultimately profit. Airlines must also now adapt to the world of technology as many consumers are looking for airlines that provide high tech amenities, such as paperless boarding passes and the ability to use cell phones while in flight. To keep their customer’s content, airlines must use their Research and Development teams to meet these expectations or they will lose those customers to competition. At the creation of Jet Blue, its Chief Executive Officer, David Neelman, wanted to “combine the low fares of a discount airline carrier with the comforts of a small cozy den in people’s homes” (Thompson, Strickland, Gamble, 2009). He wanted leather seats...
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...Strategic Management January 9, 2012 Discus the trends in the U.S. airline industry and how these trends might impact a company’s strategy. Change is the only thing that is constant. The airline industry has been through many changes in the past ten years. The September 11 event of 2001 sparked many changes. Security has been strictly enforced and fuel prices are at an all-time high. Many air-line companies have implemented baggage fees to help recover from the rising fuel prices and etc. There are some recent trends that have helped the air-line industry and also affected the air-line industry. With booming cellular data usage on the rise, many companies have turned to mobile apps. Smart phone applications are convenient for customers and the companies are taking advantage of the availability of these mobile devices. It is instant access and information in the palms of their hands. Airlines are increasing their reliance on technology to streamline passenger experience at check in and at the gate. Despite unfounded security concerns, paperless boarding passes have been adopted by some airlines and are being tested by others. A bar code is sent to the phone and then scanned by a barcode reader at security and during boarding. The TSA actually prefers the electronic bar codes, because they are much harder to counterfeit than printable boarding passes. One of the most recent trends that will impact the air-line industry is the European emissions regulations. Everyone...
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...Business Proposal Professional Development II Prepared by: Casey Foo Don Lin Karen Lim Kim Hong Lawrence Lim 1 Executive Summary The airline industry is not young, and if it is not because of budget airlines who revolutionized how the industry works in terms of pricing strategies and marketing, it is honestly quite boring to fly! Since the September 11 attacks, airports around the world, including Australia has stepped up security measures extensively, which adds to the ʻhecticʼ experience of air travel. This is exactly the phenomenon what our proposal, called the WonderFlight program intends to address, by bringing our customersʼ flying experience to the next level. WonderFlight aims to bring our customersʼ flying experience to the next level by introducing themes into selected domestic B737-700 flights and each theme changes every three months. To start with, the launching theme would be Lady Gaga. For each WonderFlight, our flight attendants will dress up according to the theme and perform the usual in flight services such as serving meals & beverages. Passengers may also opt to take polaroid pictures on board with our well dressed flight attendants with a charge. On top of that, a custom flight safety demonstration will also be performed by our flight attendants according to the theme to encourage our customers of their interests in the safety features of the aircraft. Famous hits of that theme will also be played on-board to generate a fun and party going atmosphere. Passengers...
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...CONSUMER BEHAVIOUR Service Quality Perceptions of Domestic Airline Consumers in India: An Empirical Study SUBMIITED TO: MEENAKSHI HANDA BY: SAHIL MALHOTRA (13) RAHUL KALRA (39) Abstract Pricing and service quality are the key variables that decide the brand equity of each player in the airline industry. Existing literature suggests that measurement and management of service quality is the key for survival of airline companies. This research paper examines the service quality delivered by four major airlines in India on the backdrop of stiff competition in the airline service sector. The process of traveling on a domestic airline was divided into pre-flight, in- flight and post-flight experiences. A survey was conducted to find out the perceived service quality of frequent fliers on each of the four airlines across a series of service performance variables. The airline brands were positioned in a perceptual space, where the perceived service attributes were also mapped. Clear differences emerged among the airlines, with two of them perceived as being similar to each other, and the other two differing in many respects. INTRODUCTION India at present has twelve competing airlines in the domestic market as against a single government owned airline in 1991. According to McKinsey Quarterly (2005), the Indian aircraft market is the world’s second largest commercial aircraft market. On-time performance and service levels have risen dramatically and fares have...
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...Case Outline of JetBlue Airways Corporation I. Problem: The main problem facing JetBlue Airways Corporation is: how to maintain low-costs structure and continue enlarging its market share in the competitive airline industry with increasing fuel costs. II. Strategic Considerations A. Industry Analysis 1. History a). American aviation pioneers attempted to start airlines using airships in the mid-19th industry. b). Aktiengesellschaft was world’s first airline which was founded in November 16, 1909 with the government assistance, and operated airships manufactured by Zeppelin Corporation. c). Tony Jannus conducted the United States’ first scheduled commercial flight on January 1914. d). In 1918, the United States Postal Service won the financial support from Congress to begin air mail service. e). In 1925, Stout Aircraft Company began to construct Ford Trimotor with 12-passenger capacity which became the first successful American airliner. f). At the same time, Pan American World Airways created an air network that linked America to the world. g). At the end of twenty century, a new style of cost airline appeared, offering a no-frills product at a lower price. The representative low-cost carriers are Southwest Airlines, JetBlue and AirTran Airways. h). The September 11th terrorist attacks resulted the airline industry bailout which lost $30 billion with 100,000...
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...making……………………………………8 2.2 Problem Solving Process in Jet Airways………………………………………………..9 Chapter: 3 3.1 Introduction of the Tools Used by the Jet Airways……………………………………11 3.2 Solution Taken by the company ………………………………………………………..12 3.3 Alternative solution………………………………………………………………………12 3.4 Impact of success ………………………………………………………………………...13 Chapter: 4 4.1 SWOT Analysis of the Approaches Used by the Company…………………………..13 4.2 Comparing the Company’s Adopted model with other model………………………..14 4.3 Finding from the Comparison Results………………………………………………….15 4.4 Recommendations………………………………………………………………………...16 Chapter: 5 5.1 Introduction of strategy…………………………………………………………………..16 5.2 Strategies adopted to illustrate your suggestions are appropriate…………………….16 5.3 Implementation of your recommendation model against Organizational Problem or Issues…………………………………………………………………………………………….17 Conclusions……………………………………………………………………………………...18 PROBLEM SOLVING AND DECISION MAKING IN JET AIRWAYS Chapter: 1 1.1 Introduction The Problem Solving and Decision making process focuses on the competencies for effective problem analysis and evaluation for problem solving. It includes process like finding the root causes, generation solutions with alternatives and making appropriate decisions. The issues occurred in Jet Airways are analyzed using models and solutions are...
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...Case Outline of JetBlue Airways Corporation I. Problem: The main problem facing JetBlue Airways Corporation is: how to maintain low-costs structure and continue enlarging its market share in the competitive airline industry with increasing fuel costs. II. Strategic Considerations A. Industry Analysis 1. History a). American aviation pioneers attempted to start airlines using airships in the mid-19th industry. b). Aktiengesellschaft was world’s first airline which was founded in November 16, 1909 with the government assistance, and operated airships manufactured by Zeppelin Corporation. c). Tony Jannus conducted the United States’ first scheduled commercial flight on January 1914. d). In 1918, the United States Postal Service won the financial support from Congress to begin air mail service. e). In 1925, Stout Aircraft Company began to construct Ford Trimotor with 12-passenger capacity which became the first successful American airliner. f). At the same time, Pan American World Airways created an air network that linked America to the world. g). At the end of twenty century, a new style of cost airline appeared, offering a no-frills product at a lower price. The representative low-cost carriers are Southwest Airlines, JetBlue and AirTran Airways. h). The September 11th terrorist attacks resulted the airline industry bailout which lost $30 billion with 100,000...
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...Professor Samir Moussalli MGMT499 November 18, 2010 Analysis Conducted by PSPS Associates Outline I. Management Summary II. Introduction a. Purpose b. goals III. Background IV. Strategy Formulation a. Vision b. External Opportunities & Threats c. Internal Strengths & Weaknesses d. Long Term Objectives e. Alternative Strategies f. Strategy Selection V. Strategy Implementation a. Annual Objectives b. Policies c. Employee Motivation d. Resource Allocation VI. Strategy Evaluation a. Internal Review b. External Review c. Performance Measurement d. Corrective Action In this analysis of Jet Blue Airlines, we will take an in-depth look at the internal and external factors surrounding the operation and continued success of the airline. We will reveal the opportunities, both internally and externally. As well as expose threats that could potentially...
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...Charging for baggage, mergers, and elimination of meals are cost-cutting initiatives which drive trends at it relates to airline passengers. The airline industry, among other commerce industries has shown pockets of recovery after some painful years. According to ATA, the industry trade organization for major U.S airlines, this year there were eight months on consecutive revenue growth. Passenger travel skyrocketing to 17 percent in comparison to last year. (Thompson, Strickland, & Gamble, 2010, p. 62). These trends severely impact a company’s strategic vision and must be considered when implementing business objectives with the end goal of strengthening the business. Moving toward success requires in-depth analysis of industry trends. Discuss Jet Blue’s strategic intent. As America’s first and only airline to develop its own Customer Bill of Rights, JetBlue...
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...• A strategic analysis report relating to Jetstar Airlines o A competitive analysis of the market/s including: A brief description of the history of the company and a history of the main competitors. Include joint venture alliances where applicable. History of the company Jetstar’s mission is to offer all day, every day low fares to enable more people to fly to more places, more often. The Jetstar Group is a value based, low fares network of airlines operating in the leisure and value based markets. The Group consists of: Jetstar Airways in Australia and New Zealand (wholly owned by the Qantas Group). Jetstar Asia based in Singapore. The company is managed by Newstar Holdings, majority owned by Singapore company Westbrook Investments (51 per cent), with the Qantas Group holding the remaining 49 per cent. Jetstar Pacific based in Vietnam (majority owned by Vietnam Airlines with the Qantas Group holding 30 per cent). Jetstar Japan, a partnership between the Qantas Group Japan Airlines, Mitsubishi Corporation and Century Tokyo Leasing Corporation. Jetstar Hong Kong, a partnership between China Eastern Airlines and the Qantas Group (subject to regulatory approval). The Jetstar Group is the largest low cost carrier in the Asia Pacific by revenue and has flown over 100 million passengers since it launched in 2004. In the past financial year ended June 2012, the Jetstar Group carried more than 20 million customers. The Jetstar Group has grown from providing...
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