...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...
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...Problems at JetBlue April 15, 2011 Problems at JetBlue I think that the problems that at JetBlue were a combination of managerial and technology issues. I think that it was a failure to plan on both parts and a lack of consideration for their customers. When the disaster happened in 2007 things were going along fine until that day. I am surprised that something of this magnitude had not happened until this point. The company had been in business since 2000 and it took seven years for a major issue to come up. There really is no reason that the company shouldn’t have had protocol in place to follow in case of an emergency. The company and its top level executives should have known better and should have planes in place. JetBlue should have had the technology in place to take on more phone calls than what they did. When customers started to overload the system other people couldn’t get through and caused a jam. That problem should have been foreseen and taken care of when the company first started. I think the person who founded the company and all the people at the top should be embarrassed that something like this even happened. Maybe the company just always thought things would be fine and they wouldn’t ever run into a problem so they just didn’t plan for it. I think the managers should have been asking questions about what to do in case of an emergency. If those questions were asked and then bought up to people that were in charge maybe something could have been...
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...------------------------------------------------- MARKETING ------------------------------------------------- CASE ANALYSIS JETBLUE * SYNOPSIS This case illustrates the success that JetBlue Airline has achieved since founded in 1999, though it had trouble in 2007 during Valentine´s day and a few more, it managed to overcome the issue and become one of the most known companies for excellent customer service. The author mentions that JetBlue truly cares about the customer because JetBlue doesn´t sell just airplane tickets and its customers neither seek for airplanes tickets when buying at JetBlue. They buy the whole experience in which each detail included in the service made the customer feel special with things such as ´´legroom seats´´, plenty of food and drinks and a zone for entertainment which seeks to satisfy the client while they wait for their flight even though if its delayed among other tangible elements that the company offers. All the actions of JetBlue are encouraged to reflect their slogan “Happy Jetting”. Furthermore, another topic highlight in the case is the culture that the company professes, the way they treat each other, “the human side of the equation”. An example of this is the opportunity to workers to do their job from home. Employees are so satisfied with the company that they care for it, which reflects in how they do their job and their attitude towards clients. As the CEO communicated, “everything can be copied, except the culture”. All this combination...
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...JetBlue Airways: Managing Growth Case Analysis Part I: Issue Identification In May 2007, David Barger, President and CEO of JetBlue Airways, expressed the great need to slow down the airline’s growth in response to increasing fuel costs and the consequences stemmed from the Valentine’s Day crisis. As an LCC, JetBlue had to decrease its growth rate by reducing deliveries of E190 and A320 due to its weak financial position and the market’s softening demand. Considering the performance of JetBlue after the addition of E190 to its fleet, JetBlue overestimated its capacity of handling this large scale of expansion. The new CEO, David Barger was now facing with JetBlue’s key issue that he should reconsider the distribution of E190 and A320, and building long-term managing strategies for sustainable development. Besides, with a big movement of launching E190 in 2005, some small but critical problems loomed: Compensation of pilots, satisfaction of customers and employees, challenges for staff to adopt unexpected changes, complexity resulting from the integration of E190 and A320. Without experience of operating two types of aircrafts and combining them, as well as without sufficient capital, large scale of purchases of the new aircraft would definitely lead to operational failure. It was the key principle for JetBlue, which made a difference from other airline companies, that fight cancellations should be avoided at all costs. Unfortunately, this principle was...
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...JetBlue Airways: Managing Growth Case Analysis Instructed by: Prof. Jonathan Lee Section3 Team 2 Jie Yan | 103795915 | Ling Lu | 103999797 | Nan Liu | 103744807 | Renhan Zhu | 103943651 | Yishi Shi | 103956048 | 2014/10/20 Part I: Issue Identification In May 2007, David Barger, President and CEO of JetBlue Airways, expressed the great need to slow down the airline’s growth in response to increasing fuel costs and the consequences stemmed from the Valentine’s Day crisis. As an LCC, JetBlue had to decrease its growth rate by reducing deliveries of E190 and A320 due to its weak financial position and the market’s softening demand. Considering the performance of JetBlue after the addition of E190 to its fleet, JetBlue overestimated its capacity of handling this large scale of expansion. The new CEO, David Barger was now facing with JetBlue’s key issue that he should reconsider the distribution of E190 and A320, and building long-term managing strategies for sustainable development. Besides, with a big movement of launching E190 in 2005, some small but critical problems loomed: Compensation of pilots, satisfaction of customers and employees, challenges for staff to adopt unexpected changes, complexity resulting from the integration of E190 and A320. Without experience of operating two types of aircrafts and combining them, as well as without sufficient capital, large scale of purchases of the new aircraft would definitely lead to operational failure...
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...study Main problem Ice storm grounded air bus. Affected 130000 passengers, caused the cancellation of 1100 flights over a six day period, and cost Jetblue an estimated 30 million dollars. The ice storm was a problem in Jetblue’s external environment and as such was out of the company’s control. Stock prices fell from 12.99 to 3.97 from feb 13 2007 to may 30 2008 Rising jet fuel prices – another factor in the firm’s external environment. New competititors – the firm’s industry environment was seeing the rise of many competitors mainly Southwest airlines. Jetblue’s reaction to problem Passenger’s bill of rights- this can be seena as a reactive strategy to correct problem that occurred during ice storm. Assembly of new senior management team Founding of jetblue Neeleman’s vision: a company that would combine the low fares of a discount airline carrier with the comforts of a small cozy den in people’s homes. Introduction of 24 channel live television via satellite for free to make air travel entertaining. Individual monitors installed in all seats. Introduction of electronic tickets and the allowing of reservation agents to work from home. Money was saved on paper tickets, on postage for mailing of tickets and rental of office space. Competitive advantage – Jetblue was able to obtain a competitive advantage by striving to be the industry’s low cost provider. Feb 11 2000, launching of first flight between buffalo and nyc. This round trip at jetblue cost $98 while...
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...Question I 1. Types of information system used [4] In this study case, JetBlue uses the Transaction Processing system, which is a computerized system that performs and records the daily routine transactions necessary to conduct the business. 2. Business function of information system [8] JetBlue has the ability to provide a luxurious flying experience with leather seats, each equipped with personal TV screens, while at a budget price. Some airlines have to invest heavily in the quality of service that they offer, both on the ground and in the air. Ticket-less travel, new interactive entertainment systems, and more comfortable seating are just some of the product enhancements being introduced to attract and retain customers. JetBlue is now ahead of the game due to the initiative that it took and by using the information systems to automate key processes, such as ticket sales, and baggage handling. By using the Transaction Processing system, JetBlue was able to create “paperless processes”. Question II 1. Description of JetBlue’s business model [4] JetBlue airline is lauded for its lean operating structure. The company lived up to “paperless processing” by directing its customers to do most of their transaction online, and only dealing with employees when there is an issue. They offer low fares and point-to-point rather than a network service, and are focused on second-tier airports rather than going head to head against established hub. 2. Uses of information systems...
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...JetBlue Questions for Discussion 1. Give examples of needs, wants, and demands that JetBlue customers demonstrate, differentiating these three concepts. What are the implications of each for JetBlue’s practices? * First of all people who go to an airline are because they have the need to travel, which the main feature is. Inducing the consumer or person, as their main need. * JetBlue customers to contract your travel company this time JetBlue, wanted a good service during the flight, as the other American airlines had a basic customer service, which did not feel very comfortable, where they found an airline that will feature an extensive variation of national destinations, also where the client does not feel comfortable with the treatment of the service on board, where he had nowhere to eat, no technology on board, little comfort seats and above very low value of the company to its customers. * National Flights In United States, apart from being very basic and failing to meet the expectations of consumers and transform routine travel to something kind of awkward for people, also did not have the best rates, and this is what people demand, apart from good service to meet their needs also need to optimize resources. The implication for the needs, wants and demands of customers because the bad services of the other airlines it provoked that JetBlue was renewing all his ideology and it will begin to be employed at his culture focusing especially in...
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...Strategies for Growth and Value Creation Case Analysis: JetBlue – Managing Growth Prepared by, Alexander Martinus Christian (1342980602) Dina Sandri Fani (1342981574) Muhammad Irsan (1340001263) Puntin Kulmongkon (1342980514) BINUS BUSINESS SCHOOL BINUS UNIVERSITY JAKARTA 2015 I. Case Synopsis JetBlue Airways, Inc. (JetBlue) is a low-cost carrier (LCC) that is based in New York’s John F. Kennedy International Airport. The founder, David Neeleman, developed JetBlue’s business plans in 1998, and established the company in February 1999 after raising the needed financial resource to create the airline. JetBlue started its operations in February 2000, with its first flight from JFK to Fort Lauderdale airport in Florida. The September 11, 2001 terrorist attacks caused a very devastating time for the airline industry. Even though this occurred only a year after JetBlue started as a LCC, the company was one of three airlines to produce a profit at the end of 2001. Their performance in this year alone showed many other airlines that JetBlue was a big competitor in the airline industry who couldn’t be ignored. In the following years JetBlue grew substantially as one of best-rated airlines in the industry for customer satisfaction. In May 2007, JetBlue now decides to change its command structure. David Neeleman is being replaced by David Barger, former chief operating officer (COO) and president of the company, as chief executive officer (CEO). After gaining...
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...JetBlue Airways: Growing Pains A case report prepared for MG 495 Business Policy Spring II 2014 Paige Pence Jamie Neidholdt Tyler Slayton Ja-ir Gooden Jacob Miller May 4, 2014 JETBLUE AIRWAYS: GROWING PAINS I. Introduction A. Executive Summary 1. Summary statement of the problem: JetBlue Airways was a fairly new airline that was going up against such airlines like Southwest, AirTran, and Delta. Started in 1999, JetBlue Airway was able to turn profits fairly quickly; in 2001 the company had profits of $38.5 million (George & Regani, 2008, 20-4). From there on it seemed that the company would continue to be profitable especially with expansions in the works; moving into areas that competitors ignored, ordering more planes, expanding to the west coast, and building a new terminal at JFK. However, due to various external and internal factors the company once again posted losses in 2005 and 2006. 2. Summary statement of the recommended solution: The problem is that JetBlue is expanding too fast and too soon to keep up. The company needs to slow their growth so that the company can keep up with the pace. Furthermore, the company needs to continue to do what the company does best; superior customer service, low fares, short-to-medium routes instead of offering what the competitors are doing. This is lessening JetBlue’s differentiation from other companies creating just another option for customers. Finally, JetBlue needs to continue to make cuts...
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...JetBlue Hits Turbulence Case Study Question I. What types of information systems and business functions are described in this case? The information system described in this case is the Transaction Processing System (TPS) which is used to perform and record the day-to-day business transactions including reservations, paperless ticketing and baggage handling. JetBlue attempted to standardize its IT processes by utilizing a single vendor for its technological framework for all facets of its operations from logistics to passenger online booking tools. JetBlue’s mission was customer satisfaction and retention. From the beginning, efforts were made to attract passengers. E-commerce in the form of online ticket sales was a means of attaining customer satisfaction. Question II. What is JetBlue’s business model? JetBlue’s goal was to deliver airline a luxurious customer experience while operating at low cost. JetBlue’s technological expenses were approximately one-third of its competitor’s IT costs in spite of the fact that operations were extremely reliant on automated systems. This automation helped keep headcount low and union affiliation nil. Planes operated at or near capacity as customers were attracted to JetBlue’s leather seating, personal entertainment systems and paperless ticketing – all at lower fares than their competitors, albeit with arrivals and departures to second-tier airports. How do its information systems support this business model? JetBlue’s...
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...Jet Blue In February 2000, JetBlue started flying daily to Fort Lauderdale, Florida, and Buffalo, New York, promising top-notch customer service at budget prices. The airline featured new Airbus A320 planes with leather seats, each equipped with a personal TV screen, and average one-way fares of only $99 per passenger. JetBlue was able to provide this relatively luxurious flying experience by using information systems to automate key processes such as ticket sales (online sales dominate) and baggage handling (electronic tags help track luggage). Jet Blue prided itseft on its "paperless processes." JetBlue's investment in information technology enabled the airline to turn a profit by running its business at 70 percent of the cost of larger competitors. At the same time, JetBlue filled a higher percentage of its seats, employed non-union workers, and established enough good will to score an impressive customer retention rate of fifty percent. Initially, JetBlue flew only one type of plane from one vendor: the Airbus A320. This approach enabled the airline to standardize flight operations and maintenance procedures to a degree that resulted in considerable savings. Chief information officer Jeff Cohen used the same simple-is-better strategy for JetBlue's information systems. Cohen depended a1most exclusively on Microsoft software products to design JetBlue's extensive network of information systems. (JetBlue's reservation system and systems for managing planes, crews, and scheduling...
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...JetBlue Airways was created with the primary purpose to provide low cost American flights with “top-notch customer service” at budget prices. On the stormy day of February 14, 2007, their airline service was tested to the extreme. JetBlue initially serviced passengers between New York and Florida and then expanded rapidly. By the end of 2006, the airline had 500 flights operating in 50 different cities providing each passenger with (luxury) amenities such as TV, and leather seats (Laudon, pg. 72). This rapid expansion brought challenges the airline had not prepared for. JetBlue’s most valuable differential advantage above other airlines, their “customers come first” attitude, was severely tarnished. Jet Blue had and was utilizing several different information systems, standardized flight operations and maintenance procedures, an out-sourced reservation system and a system for managing plane and crew. However, their system was not seamless or adequate to handle the onslaught of turbulence on February 14th. In an attempt to identify the problem, a Fish diagram (please refer to the end of synopsis, before reference page) shows that there were many issues with their current information system that were not addressed in the event of a massive scale shutdown. In evaluating the problem with the JetBlue disaster, we find that the organizations business model was highly based on customer service. It was founded on the basis of offering luxurious flying experience and quality customer...
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...Module 3 Discussion Read Case 4-1 (“JetBlue Airways: Regaining Attitude”) in Corporate Communication and respond to the following: •Clearly and concisely identify what was the most significant business problem JetBlue faced and support your claim. •Assess and identify the critical constituency issues. •Articulate what you believe are the three most desirable outcomes. •Discuss at least three communications best practices implemented by JetBlue. Post your initial response to the discussion question no later than Thursday 11:59 PM EST/EDT. Post responses to at least two classmates no later than Sunday 11:59 PM EST/EDT The most significant business problem JetBlue faced during the 2007 crisis was inadequate communication. In this case JetBlue CEO David Neeleman stated, “Among the primary culprits: inadequate communication protocols to direct the company’s 11,000 pilots and flight attendants about where to go and when; an overwhelmed reservation system; and a lack of cross-trained employees who could work outside their primary area of expertise during an emergency” (Argenti, 2011, p.105).JetBlue spokesperson Sebastian White stated, “We thought there would be these windows of opportunities to get planes off the ground, and we were relying on those weather forecasts” (Argenti, 2011, p.104). This risk taking by JetBlue ultimately lead to several critical constituency issues. Nine JetBlue jets were forced to sit idle on the tarmac for more than six hours....
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...JetBlue Airways JetBlue Airways books Windows XP Professional for efficiency, reliability, and security. Published: December 2001 To maintain its high level of customer satisfaction and build even higher levels of operational efficiency, JetBlue Airways implemented Microsoft® Windows® XP Professional for all its users. The remote support, easily customizable interface, and user migration tools enabled the airline to implement Windows XP Professional without additional training and support a widely distributed work force with a small IT staff. In addition, JetBlue expects that the improved reliability and security features, such as support for Smart Card logon, will enable it to maintain a reliable, more secure environment for all users. Situation JetBlue Airways took flight on February 11, 2000, from New York City to Ft. Lauderdale, Florida. Nearly two years later, it serves 18 cities across the United States with a fleet of new planes equipped with roomy, all-leather seats, each of which features free LiveTV satellite television offering 24 channels of DIRECTV. The airline not only reports a profit in its second year of operation but also has received several customer-service-related awards. It earned the highest scores of any airline in the Conde Nast Traveler 2001 Business Travel Awards and was ranked #2 Best Domestic Airline for comfort and service in the 2001 Zagat Airline Survey. Those kudos come as a result of a unique low-fare, low-cost business model...
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