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Jet Blue Airways

Decent Essays
Jet Blue Airways

DeVonne Boler

Christina Brown

Terrel Davis

I. Problem Statement Jet Blue Airways owner, David Neeleman, understands the difficulty that comes with trying to break into the airline industry. Being as though the airline industry is expensive, will David Neeleman be able to start an airline that has low ticket costs, technology driven, and customer friendly atmosphere while still competing with other airlines?
II. Analysis Jet Blue Airways was first introduced in 1998 five after David Neeleman sold Morris Air to Southwest Airlines because Southwest Airline had David signed a no compete agreement. David Neeleman plan for Jet Blue Airways was to “use new airplanes, offer great personal service, create a
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Knowing at this the Boeing 737s were the staple aircraft, but Neeleman’s investors believed that in order to compete Jet Blue Airways needed a newer aircraft. Airbus A320 had more space, burned less fuel, and wider cabins. The values of Jet Blue Airways were also key factors for its success. Creating an oar of safety, caring, integrity, fun, passion values that all employees are given once hired to ensure that both employees and customers are treated the same. Finally, the overall operations of the company played a major role in Jet Blue Success. The airline did everything to ensure they had a tight grasp of the airline market. Jet Blue Airways had “48 flights in nine cities”. They also in the first year of operations had 10 air crafts, 950 employees, and flew about 53 flights a day. Also, the airline had an 80% on-time record compared to the top 10 competitors of only 74%. Jet Blue Airways had devised a business strategy that will revamp the airline industry.
Implementing Factors
Several key factors that impact the airline industry are related to the national and global economy. Fuel prices, customer demand for air travel, cost of goods related to air travel, etc. are all dependent on the current economy. When fuel prices were abnormally high two years ago it affected the industry’s profitability and each air carrier responded differently. Some carriers
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