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Jetblue Paper

Essay by   •  August 27, 2011  •  Case Study  •  5,096 Words (21 Pages)  •  1,212 Views

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Executive Summary

In 1998, David Neeleman determined there was a niche in the airline industry that he could successfully fill. David Neeleman had years of experience in the airline industry and borrowed some of the ideas from his previous employer Southwest Airlines. A "value priced" airline with a touch of class was his vision. Starting in 1998 and completing by 2000, Mr. Neeleman successfully financed and acquired planes and completed the regulatory and application process for his new airline. Mr. Neeleman wanted to focus on a low fare travel experience with a few perks to set it above a cut above the rest of competing cost conscious carriers.

JetBlue is the only airline to start with over $100 million in capital. The company truly started out at an advantage with this type of capital and was going to prove their idea could work in the already crowded airline industry. Although they are a low-cost carrier, comfort and service is the major focus of this carrier. JetBlue focuses on making their customer comfortable through the whole process. They have adopted a hassle free purchase, seating, refund and rewards programs all while providing the best in customer service. Their planes are equipped with roomy, leather seating and all the perks of a relaxing flight. Without charging an additional fee, their passengers can kick back and read a book, tune into their favorite XM Satellite radio station or choose from a variety of DirecTV or Fox Film programs while flying to their favorite destination.

JetBlue began its journey by traveling to a limited number of destinations from their air base in New York City's, John F. Kennedy Airport. In February 2000, JetBlue flew its inaugural flight from New York, New York to Fort Lauderdale, Florida. By the end of 2000, JetBlue transported customers to ten different locations. Each year, JetBlue gradually added a number of destinations to its roster, building a larger nest each year. Within its first ten years of existence, JetBlue flew to 63 destinations from the United States to 6 other countries.

They have invested in their product and their personnel. They set themselves apart from other airlines by purchasing new aircraft. Constantly reevaluating themselves, listening to customer concerns and proper budgeting has allowed JetBlue to add to their Airbus A320 and 23 EMBRAER fleet nearly every year. They are routinely screening and training their personnel. Their number one priority is customer satisfaction.

JetBlue is the only air carrier that has not entered into any type of bankruptcy protection, or merger or acquisition to allow for its own growth and development. JetBlue has been successful due to its overall strategic plan and budget. The cost conscious carrier has made wise decisions in the overall implementation of such plans. JetBlue has been able to remain on top due to its commitment to its focus on products and service. Another lower operating cost tactic utilized by JetBlue is the use of technology that allows agents to work directly from their homes, providing the company with better scheduling flexibility and saving both time and money.

JetBlue has invested in the newest and most fuel efficient airplanes of modern times. On average the majority of their aircraft are less than six years old. By operating only two types of planes, the airline has been able to minimize its fuel costs; a limited fleet minimizes the number of repair and maintenance problems, and maximizing scheduling and air time operations. By combining efficiency in these areas, JetBlue is able to keep operations costs as low as possible.

Success is in this company's blood. Efficiency is seen in many aspects throughout the company. Whether it is managing the paperless booking process, greeting each customer with a personal touch or quality, on time flights, JetBlue has got it covered. In 2009, JetBlue was ranked number five in the industry for the most on-time flights. According to an article published in 2009, by Triangle Business Journal, approximately, 88% of all its flights were on time. When this fact is compared to other, larger carriers, JetBlue has the potential to dominate this category.

In 2010, Purdue University and Wichita State University conducted a study involving 18 airlines. The study focused on four major components and overall company performance. JetBlue was rated number one beating out Southwest, American, United, and Delta. When it comes to performance and customer service, JetBlue has shown it is raising the standard and a true competitor in a crowded industry.

Proving JetBlue properly strategized and implemented an effective fleet, JetBlue received recognition in October 2008. Forbes Magazine rated JetBlue as the third most reliable airline in their low fare industry. The awards were based on data provided by Department of Transportation information. This supports the idea that using only two types of newer planes benefit the company. Less time spent on repair and maintenance, translates into customer satisfaction.

Value is further added to the low cost carrier by efficient administration. JetBlue encourages booking a travel experience through its website and toll free telephone number. The use of electronic media has benefited JetBlue in two ways; they have saved on administrative costs and helped the environment. The company only issues electronic tickets. By issuing electronic tickets JetBlue saves on paper, postage, employee time and back-office processing expense. The elimination of paper has dramatic long-term savings, financial as well as image benefits.

JetBlue management is committed to their staff, also known as, crew members. JetBlue has learned employee satisfaction often translates into customer satisfaction. They have developed a strong and vibrant service-oriented company culture built around five key values: Safety, Caring, Integrity, Fun, and Passion. The company believes in investing in itself through training, evaluation and re-evaluation. Treating all employees as an individual contributing to the benefit of the whole company produces an effective work force. A flexible, highly technologically savvy work force is a happy, productive work force.

JetBlue has tirelessly promoted their commitment to people. By people JetBlue includes their employees, customers, shareholders and public. JetBlue wants the globe to know they are business dedicated to making that business a personal experience. It must be said, this company has perfected the balance of business management without losing the personal touch. In a technologically savvy world, JetBlue truly has brought "humanity back to air travel". (JetBlue.com)

It is clear JetBlue focuses on people. Few airlines have adopted as many successful programs

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