...Problems at JetBlue Debate Stephanie Benson XBIS/219 August 23, 2013 Richard Wallace Problems at JetBlue Debate I think that some things that contributed to the meltdown at JetBlue was how disorganized they were without knowing it. It seemed the decision they had made to wait for the weather to get better was made because they wanted to be known as the best. But instead it ended in failure because the more time they waited for the weather to clear the worse the weather kept getting. In this time period it brought in more people hoping to catch a flight with JetBlue since they remained open without canceling any flights. This added to the chaos by building up the hopes of people trying to get to their destinations. When this didn’t happen they had a lot of angry people and no backup plan in place. Since New York has always had this type of weather during the winter season I would have made sure there was a plan in place in case we had to cancel flights. I would plan for the worst and if didn’t happen than at least we would have been prepared. If weather worsened to the point that it started to freeze than I would have started cancelling flights slowly so we wouldn’t be bombarded all at once with people trying to call and cancel. Having some type of system in place for people to cancel online would have been my first priority and I would put this plan in place way before something like this ever had a chance of happening. I think this plan should have been put...
Words: 284 - Pages: 2
...Problems at JetBlue JetBlue’s problems were caused by both management as well as technological issues. If JetBlue’s management team would have been better prepared or made different decisions then many problems could have been avoided. One of the things that airlines know is that bad weather can never be predicted or controlled no matter what the circumstance and any airlines should be prepared for the worst, especially during the off season when bad weather occurs the most. From my experience, delaying customers to their flights happens quite often, especially during bad weather. But every airline knows that a customer will only wait for so long before getting discouraged and upset. Having customers wait for several hours or sitting on a plane for up to 11 hours would cause most people to never consider that airline again, in turn JetBlue would be losing large quantities of customers due to bad management decision making. When customers where finally allowed off the plane and already upset they were not able to get ahold of airline agents or had an hour wait time to try to rebook or find out where their bags were. This just added to an already furious customer base. Although JetBlue had a system in place their system was only equipped to handle under normal circumstances and was not equipped for emergencies. If JetBlue had prepared their system for an emergency situation then customers could have handle the situation through the airline agency in a more timely manner and would...
Words: 318 - Pages: 2
...Problems at Jet Blue XBIS/219 Jet Blue was the answer to the airline industries problems. It was a private company that provided an option to larger airlines that were very impersonal. During Jet Blue’s introduction to the world, a small managerial issue was left out, how does Jet Blue handle the same problems that the larger airlines have? Early success let Jet Blue believe that they were untouchable and immune to the problems of the larger airlines; however, not planning for problems, does not mean they won’t show up. Jet Blue did everything “right” to make sure that they were better than the larger airlines, but management only looked at how they could be better and did not focus on the standard problems that both themselves and the larger airlines face. Had the management looked forward toward possibilities of problems instead of trying to be better, they would have seen that all airlines face the same issues hen it comes to weather. Technology is in place to handle any problems that are related to weather and had Jet Blue management looked at every situation they may have faced and put technology in place to help handle it, then Jet Blue would not have had such a problem. Looking at any situation after the fact is always going to be easy to access the situation. I would have tried to find which situations would cause us the most problems, before they happened. I understand that offering amenities and smaller planes does make jet Blue better, but when air flights...
Words: 293 - Pages: 2
...Checkpoint: Meltdown at Jet Blue March 8, 2012 Amir Herschberg This checkpoint will describe the meltdown at Jet Blue, my thoughts on the issues and what I would have done differently. Until Valentine’s Day of 2007 Jet Blue was a success story, but with the occurrence of that storm it showed Jet Blues true colors and unveiled their horrible and outdated IT systems. What happened was simply this Jet Blue managers kept their planes full of customers on the tarmac in hopes to wait out the storm. The storm had other plans, after 11 hours of waiting on the planes customers were bused to their terminals which were filled with other irate customers. Jet Blues melt down and IT happened right after that. Here is what happened, the customers wanted to obviously want to change their flight but could not because Jet Blue didn’t offer that feature unless the customer called customer service. So that is exactly what they did but Jet Blue didn’t have an adequate enough system or staff to handle the call load. Furthermore Jet Blue didn’t have a luggage tracking system this caused even more problems for the customers the staff and Jet Blue. This is a great example of not upgrading an IT system to accommodate stakeholders and being more focused on the present not the future and how IT can help. This meltdown cost Jet Blue over thirty million dollars and a CEO, but it also forced them to make the changes that they so desperately needed...
Words: 340 - Pages: 2
...PROBLEMS AT JETBLUE DEBATE Caroline Huyck XBIS219 FRI 09/14/2012 Katherine Escobar PROBLEMS AT JETBLUE DEBATE Jet Blue an airline company, which was started in the year 2000. The first couple of year’s jet blue was up in the running and where doing great capitalizing their company. But in 2006 Jet Blue took a great turn of events causing a down fall in their company. The reason for this downfall was that the managers at jet blue did not do a very good job while thinking things through to make sure this type of thing would not happen while in a disaster, many of the issues consisted to why JetBlue was shutdown. One of the first things that jet blue failed to do was to think ahead, they took their good fortunes in to belief that failure was not an option, but there was failure, one of the top issues was technology, but this was a managerial issue, and jet blue just did not have the technology to get proper help or train properly with such problems as lost luggage. If they had the proper technology they would have been able to keep track of the luggage that was lost. One of the many things you do not want to think about but yet look at is disaster when looking to achieve a great company, but part of this is the job of the managers , you need to think as well as plan ahead for such issues that might arise if a disaster was to arise, also with the managerial team is at fault for not having the information in the way of technology, If I was ahead of Jet Blue, or the owner...
Words: 421 - Pages: 2
...& 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 be a major downfall for the company as a whole. Whether the threat is internal or external, our goal is to confront the issue directly and offer a strategy designed to convert the threat into an opportunity for the betterment of the company. As much as we would like for the strategy to be constant, the fact is that change is inevitable. Therefore, our strategy will be inclusive...
Words: 4121 - Pages: 17
...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...
Words: 1769 - Pages: 8
...Winona Thomas Week 6 case Study 1. How important is the reservation system this system is very important it is because of how quick, easy and convenient it is to the customer especially those that are busy and travel a lot. Before this system the chance for comfort and convenience with seating depended on the attendant. With this system a customer can plan, book and reserve their own tickets also pay all in one step this allows the customer to know where they are seated accommodate their own comfort on the flight. This also allows the customer to shop around for the price they are looking for because they can shop around on different sites for a better deal. This system was a good decision to make on the companies behave and the operation activities run smoother because this system allows the company’s information such as inventory other pertinent information like records are maintained and managed through this system. Because of the communication platform of this system communication between other companies as far as code sharing, plans and or other offices like ticketing booths can access true and accurate information as far as the seat availability for certain dates and the flight load on certain dates. As for the impact it runs easier as far as accounts with other airlines the internal processing that go on amongst the department since all is done online. It has also help with the growth of the company because the customers are happy with this system because as mentioned...
Words: 1043 - Pages: 5
...For the flight attendants, they understand that it is not a career for people, just a job for that time. Offering three different kinds of pay helps JetBlue as a company because it gives them options of people to hire. Another good value of Jet Blue’s compensation aspect is that they paid their jobs more than their competitors. This gives them an advantage for finding employees because not only do they offer better pay they also offer benefits and stock options. In Mondy’s textbook we learn that a union is a group of employees who all join together to form a third party to deal with their employer when it comes to wages, benefits, and working conditions. However, what we saw in this Jet Blue case is that the management team didn’t want a union to be formed. They saw not having unions in their workplace would help create a better team environment which would lead to more success. Not having a union helps Jet Blue maintain their offering of their different pay contracts. The importance of focusing in on the customers is exemplified by JetBlue’s strategy of going paperless. Jet Blue got ahead of its competitors by reaching for a new innovative way for citizens to fly easier and cheaper. By providing a paperless travel for flyers, Jet Blue saved money by not having to pay for employees dealing with all the paperwork. By saving money they were able to focus in on providing the best service for the...
Words: 642 - Pages: 3
...Jet Blue Airlines Strategic Management (Bus 599) October 16, 2011 In today’s society there are very few things that are limited in number. There are an immense number of companies that provide goods and services; those companies include but are not limited to wireless telephone companies, grocery stores, clothing stores, car dealerships, and airline companies. There are many different airline companies used daily for both national and international travel. JetBlue Airways is one amongst a number of airline companies. At one point JetBlue Airways was a discount airline carrier; which offered customer’s low fares, operated point-to-point systems, used two types of aircraft, served only snacks, and maintained quick turnaround times at airports. One of the airline company’s focal goals was for their customers to feel as if they were in a small cozy den in someone’s home. However, in the first six months of the year 2008 the US economy slowed and crude oil prices rose to a record of $140 per barrel. By this happening businesses had to cut back on employee travel and this rise in crude oil prices also stopped consumers from going on vacations. The rise in oil prices made air travel more expensive. There operating costs were low, especially compared to those of other major US airline companies (Thompson, Strickland & Gamble, 2010). Discuss Jet Blue’s strategic Intent Being affected by the increase in oil prices, Jet Blue decided to invest in the new airbus A320 which offered...
Words: 1315 - Pages: 6
...Metldown at Jet Blue Jet Blue faced a “perfect storm” crisis that revealed a less than adequate operational system. They were faced with poor management decision-making and an insufficient IT system. These factors added to the failure and lead to a major customer service disaster. Management elected to operate flights in bad weather conditions where other airlines were canceling flights. The problem with this is Jet Blue’s customers saw their flights were delayed rather than cancelled and traveled to the airport expecting to take their flights. As the weather worsened, so did the airlines problems. Not only did they have employees now stuck in the storm, they caused their customers to be trapped by the bad weather. Either management did not follow the weather forecast close enough, or made improper decisions about how to handle the situation. Poor communications further enhanced these problems. The failure of the IT system was a result of short sightedness by management and IT development. This managerial decision lead to the exposure of an IT system that was not integrated very well. All the independent systems worked well for their specific tasks, but when it came to coordinating information from different operational aspects, they had no interface. The technology team at Jet Blue was put in a high pressure situation to resolve communication issues between software applications doing an excellent job in a short period of time. The system they had developed was...
Words: 512 - Pages: 3
...JET BLUE XBIX/219 Problems at JetBlue David Neeleman CEO was the founder and creator of JetBlue’s Airlines. His philosophy was to bring back humanity to the airline industry with a combination of innovation and technology. CEO Neeleman felt that customers were supposed to have the accessibility to high quality airline service at affordable prices. It has been said that his vision was Great in theory, but not very realistic. While for some time prices were able to remain affordable, but the quality of service at JetBlue failed tremendously when an ice storm hit the eastern cost on Valentine’s Day in 2007. All of the other airline competitors had cancelled flights where JetBlue thought that we would be able to fulfill all of their fight, but once they didn’t realize they would need to cancel flights until the weather got worse which in the end cause for thousands of stranded passengers in terminals and hundreds sitting around for hours on airplanes sitting as long as 10 + hours on the tarmack. What Jet Blue needed to was take an intense look at how the company managed its IT to help ensure that such severe incidents such as this doesn’t happen again. When David Neeleman was interviewed by the New York Times, he stated he had pilots emailing him stating “I am available, what do I do?” To insure that things such as this don’t happen again Jet Blue needs to upgrade their online, customer service for center reservation system to handle its...
Words: 269 - Pages: 2
...Jet blue hits turbulence assignment 1. As shown in the case, the types of information systems are - TPS ( Transaction Processing)system that is used for making the reservation, papereless processes in this case - CRM (Customer Relationship Management) that enables the customers the communication with the airline company and acquire updated flight info such as delays and cancellations - ESS (Executive Support System)- rovides senior management a way to address strategic issues and planning based on results provided by the systems 2. Jet Blue business model was to provide a luxurious flying experience by using info systems to automate key processes such as the process of ticket sales, and baggage handling, they were also used to manage planes, crews and scheduling. This enabled the airline to turn a profit by running its business at 70% of the cost of larger competitors. The Jet Blue scored customer retention rate of 50%. 3. The problem appeared when the ice storm struck the NYC area. JetBlue made a fateful decision to maintain its schedule in the belief that the horrible weather would break. The weather conditions and the delays or cancellations of other flights caused customers to flood JetBlue’s reservation systems, which couldnt handle the onslaught. Also, JetBlue didnt have a system in place for the rested crews to call in and have their assignments rerouted. The communication system was inadequate. The department responsible for allocating...
Words: 422 - Pages: 2
...Mission and Vision Statement Today, in the 21st century, when the borders between countries erased, and people travel all over the world and within their countries, the airline industry has become more popular. Air carriers have become more sophisticated and aware of their customers’ needs; thus, they operate at all levels providing a valuable service to their customers. Talking about the US airline industry, I want to analyze such companies as Southwest Airlines and Jet Blue Air. In order to analyze these companies, it is necessary to start with what are the company aims, what is important to it, what it wants to achieve, and who the groups are. All this valuable information is reflected in the company’s mission and vision statement. Thus, let’s take a closer look at mission and vision statements of Southwest Airlines and Jet Blue Air. According to the Southwest Airlines Annual Report (2013), “The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.” Moreover, the company has expanded mission statement, “We are committed to quality service for the everyday person. Southwest provides air transportation to cities all around the United States. We fly the most luxurious planes on the market with the latest technology money can buy. We competitively provide the lowest airfare price in search for the greatest advantage in today’s busy world. We provide the...
Words: 3518 - Pages: 15
...What are the main problems facing Jet Blue? JetBlue can face some important problems in this market. First we have the fuel. Prices are too high and have many changes but, without that, the company can’t exist. Then the competition in this business is huge and very aggressive and good strategies are fundamental to survive in this market. This company fights against high costs, like operational costs, that do not help the company to have a solid financial structure. Another difficulty is the number of empty seats in each flight. As we can read in the case-study JetBlue is a relatively small company so it does not have the powerful weapons that other big companies in the sector have. The Government with his federal taxes creates an important barrier to the success of JetBlue. Besides that and because of the company’s price/cost policy it has low operating revenues; because of fuel prices changes JetBlue is not able to maintain its growth. An additional problem related to this last one is the delay of many flights, that don’t pass on a good image of JetBlue for the outside environment. As we can see so many times in television, the hurricanes in some parts of the world are responsible for the raising of prices of fuel, situation that is disastrous for the company. Resuming, there are some significant problems to which JetBlue has to respond with innovative and continuous successful strategies if the will of the administration is to turn JetBlue in a memorable...
Words: 514 - Pages: 3
