JetBlue Airways: Starting from Scratch In 1999, a group of experienced individuals in the airline industry came together to start a brand new company, JetBlue Airways. JetBlue decided that its strategy was going to be very similar to Southwest Airlines (low cost airline), but focus more on technology by providing the customer with a better experience and ensure more productivity from the aircraft. The company decided that its home base was going to be JFK, with a potential of 2.5 million passengers
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today and is majorly affected by Michael Porter's "Five Forces" model. The following write up conducts an analysis on how the model affects the airline industry today. The central force of Porter's model is Internal Rivalry within the Industry. In case of the Airline industry, this is the most important force today, especially since the market is completely saturated. There are more service providers than needed in both local as well as international markets. The various airlines are competing for
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passenger traffic fell by 19 percent, and revenue at major airlines fell by over 30 percent. Even though demand and profits plummeted at the big six airlines, some carriers continued to make profits during 2001-2003, most notably the budget airline Southwest. In addition, other newer budget airlines, including AirTran and JetBlue (which was started in 2000), gained market share during this period. Indeed, between 2000 and 2003 the budget airlines in the United States
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Case Analysis By: Omar B. Caligan TITLE OF THE CASE: Positioning Southwest Airlines through Employee Branding VIEWPOINT: Top Level Management – Executive TIME CONTEXT: 2005 I. PROBLEM STATEMENT * The use of employee branding as a process to gain an organizational “position” in the minds of customers II. OBJECTIVES: * To determine how employee branding works * To determine how employee branding can be utilized to position the organization in the minds of customers, employees
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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
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Journal of Industrial Organization Education: Vol. 5: Iss. 1, Article 1. DOI: 10.2202/1935-5041.1034 Unauthenticated | 62.189.189.132 Download Date | 6/6/13 12:08 PM United-Continental Merger Robert J. Carbaugh and Koushik Ghosh Abstract This case study discusses the nature and likely effects of the proposed merger between United and Continental. It is intended as a lecture for instructors teaching undergraduate courses in Industrial Organization or Antitrust Economics KEYWORDS: United, Continental
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Melissa Renobato April 6, 2015 Case Study 6 Taking Responsibility: “High-Flying Labor Relations at Southwest Airlines” Based on the information provided the Phoenix policies for pay and benefits I find reasonable are that they pay part of the health insurance premiums and offer dental coverage. I like the automatic enrollment of life insurance and the option to purchase additional insurance for spouse and children. Also, the payments to the City’s pension plan from both employees and employers
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FEU MBA 209 Case Study Jetblue Airways: A Cadre of New Managers Takes Control Case Background JetBlue is a low-cost domestic airline in the United States following a rather interesting combination of ‘low-cost and differentiation’ as its strategy. From its inception in 1998, the airline grew to become the 11th largest player in the airline industry in a short span of 6 years. It had been the only other airline apart from Southwest airlines, to have been profitable during the aftermath
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operating cost than a Boeing 737. Since these planes were new, repairs and maintenance costs were low for the first couple of years of operations. By investing it secured them from the problems that American Airlines and Southwest Airlines encountered. Of course, American Airlines and Southwest Airlines aircraft
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contact point, making matters right with the customers if the execution is not flawless and treating employees well (Johnson, & Weinstein, 2004 pg 317). Neeleman who was formerly a founder of another airline and longtime leadership member of rival Southwest feels that combining efficiency, technology, and a focus on customer value will continue to drive customer loyalty around what has become one of the, if not the single, strongest brands in the Airline industry. Neeleman and JetBlue have set out with
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