Jetblue airlines: start from the scratch.case study analysis
2. HOW IT STARTED
Founder: David Neeleman
Founded in early 1999.
Initial capitalization of $130
million.
Main base as JFK Airport.
Paperless airlines
Motive: Bring humanity back to
air travel.
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3. CASE SYNOPSIS
Low Cost Leader
Top management of JetBlue
Aircraft 320
Strategies
- Paperless airline
- Selling Tickets online or through Salt lake city reservation
HR Practices
- Core Vales
- Non Union environment
- Customised employment packages
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4. Not having enough capital and equity to start jet blue from the
roots
Targeting airports which were not obvious choice for start up
airline
Attrition rate was high even after investing heavily on pilot
training
ISSUES / CHALLENGES3
5. JetBlue Strategies
Cost leadership Strategy
Paperless Airlines
Building of top management
Allowing laptops to pilots
Supervisors as coaches
No union
Buying new planes instead of leasing them
65% less fares than the competition
Customized employee packages
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7. STRENGTHS
Low OPERATING cost
Paper less “e-tickets”
Strong employees
Employee and customer satisfaction
Differentiated employee packages
In-Flight Entertainment System
Highly experienced Top Management
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8. WEAKNESSES
Low brand awareness
Targeting people who do not prefer
traveling
Less plane and less employees in the
beginning
Less experience
Too much dependency on IT
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10. THREATS
Competition from established brands
Possibility of rise in fuel price
New Regulations by FAA
Competition by other low price
airlines Eg. WestJet
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11. New advertising campaign to raise awareness among
the target group.
Start a Website which will be user friendly and attract
new people.
Start flying Internationally.
RECOMMENDATIONS8
12. Low fares than others
Attractive packages for their employees
Revising routes from 10 – 16 from 2000-01
2 forces it focused on – stay focused on your strategies and
adaptable to change in taste of customers
Compensation for loss or inconvenience
50 departures/day from 9 departures; 950 employees in 11
months; 10 airbuses
High quality airline service @ affordable prices
INFERENCE3