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 / CHALLENGES 3

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

STRENGTHS

Low OPERATING costPaper less “e-tickets”Strong employeesEmployee and customer satisfactionDifferentiated employee packagesIn-Flight Entertainment SystemHighly experienced Top Management

4

WEAKNESSES

Low brand awarenessTargeting people who do not prefer

travelingLess plane and less employees in the

beginningLess experienceToo much dependency on IT

5

OPPORTUNITIES

Vast industryInternational alliancesCapitalise on domestic routeTechnological improvements in

operation maintenance and design

6

THREATS

Competition from established brandsPossibility of rise in fuel priceNew Regulations by FAACompetition 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 employeesRevising routes from 10 – 16 from 2000-012 forces it focused on – stay focused on your strategies and

adaptable to change in taste of customersCompensation for loss or inconvenience50 departures/day from 9 departures; 950 employees in 11

months; 10 airbusesHigh quality airline service @ affordable prices

INFERENCE3

TEAM: ADITYA VIKRUM BIRLA

Priyanka Banerjee

Ankur Sharma

Ankita Sharma

Gaurav Vikrant Singh

Arshpreet Kaur Sohal