Jet Blue Case Study Essay example

1203 Words Dec 4th, 2010 5 Pages
1. The decision maker in the Jet Blue case was former CEO David Neeleman. He was the person who started Jet Blue and formed it to become a low cost airline provider, providing luxury and comfort and destinations to various cities at a low affordable cost. He understood how to cut cost and keep operating expenses low, and as a result Jet Blue had rapid expansion and flew to 53 destinations in 21 states, including Mexico, Puerto Rico, and the Caribbean. Up until 2007, when David Barger took over, Neeleman made Jet Blue prosperous and consistently made strategic moves in order to produce the best outcome in the areas of maintenance, total operating expenses, and benefits. Even as a response to the ice storm in 2007 where passengers were …show more content…
Increases in cost were partly also due to rise in fuel cost in an attempt to cost operating costs.

Customer Complaints: Customer complaints (ranging from cancelled flights, poor customer service, and discrimination) had placed Jet Blue in the top 5 (#2, 2, and 4 respectively) of the 9 airline carriers. This is something that has a direct impact on the customer and has room for potential lost business.

Lack Of Proper Training: In a survey by employees, the results showed Jet Blue wasn’t fully training its staff with proper tools and skills to handle various situations. Many employees struggled before a year on the job. This exemplified a weakened infrastructure. Flight attendants, maintenance crews, pilots, and other members work together to make sure operations run smoothly and customers have the best experience. If one area is struggling, the infrastructure begins to collapse such as the ice storm in 2007 where 1,100 flights were cancelled over 6 days, and 130,000 passengers were affected. Their systems didn’t support a huge crisis which led to a backup in phone lines and standbys. This left a negative impression from the consumer’s point of view, and has potential for lost business.

Lost Baggage: Jet Blue ranked in the top 3 for 2005, 2006, and 2007 for lost or damaged baggage; when a customer’s personal

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