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Jetblue airlines: start from the scratch.case study analysis
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.
1
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
2
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
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
4
Jetblue airlines: start from the scratch.case study analysis
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
4
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
5
OPPORTUNITIES
Vast industry
International alliances
Capitalise on domestic route
Technological improvements in
operation maintenance and
design
6
THREATS
Competition from established brands
Possibility of rise in fuel price
New Regulations by FAA
Competition by other low price
airlines Eg. WestJet
7
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
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
TEAM: ADITYA VIKRUM BIRLA
Priyanka Banerjee
Ankur Sharma
Ankita Sharma
Gaurav Vikrant Singh
Arshpreet Kaur Sohal

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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. 1
  • 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 2
  • 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 4
  • 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 4
  • 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 5
  • 9. OPPORTUNITIES Vast industry International alliances Capitalise on domestic route Technological improvements in operation maintenance and design 6
  • 10. THREATS Competition from established brands Possibility of rise in fuel price New Regulations by FAA Competition by other low price airlines Eg. WestJet 7
  • 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
  • 13. TEAM: ADITYA VIKRUM BIRLA Priyanka Banerjee Ankur Sharma Ankita Sharma Gaurav Vikrant Singh Arshpreet Kaur Sohal