Jet Blue Term Paper

1804 WordsMay 14, 20068 Pages
JetBlue Airways Corporation has been a rapidly growing discount airline and biggest success story in the industry by using its strong customer service considerations and low fares to build a solid, growing customer base. David Neeleman, CEO and director began JetBlue in 1999 and flying since 2000 after his previous airline company-Morris Air was brought by Herb Kelleher, the Southwest Airline founder. He signed a 5-year non-compete agreement not to launch another airline. Kelleher hired Neeleman at Southwest but was not happy with the structured environment he did not control and was fired (Essentials of Entrepreneurship p78). JetBlue 's strategy is developed around its core competencies. The company has benefited by being…show more content…
Mr. Neeleman is an innovator and so is his airline. He made JetBlue the only U.S. airline to be 100% ticketless (jetblue.com). And with this, the company causes problems for other airlines due to their prices. Neeleman believes the JetBlue can compete on more than price. In some markets, its passengers are willing to pay fares that average $20 more than on American and Song. Also, he installed security cameras at each passenger for customer and crew safety, keeping pilots aware of passengers ' activity. He installed bulletproof cockpit doors in the whole fleet. The cockpits are sealed off with steel doors that only the pilots can open; preventing terrorist attacks on JetBlue planes. JetBlue 's target market was people who would drive or take an expensive coach flight. Catering to passengers was always the key, but they also worked on attracting business professionals and people traveling that are from New York who could pay more but would like to save with compromising their standards (Fast Company). JetBlue established a brand quickly. The branding strategy was integral part of the startup process and has remained at the forefront. CEO Neeleman has bigger plans for JetBlue. He wants to vault his startup airline into the ranks of the major airlines. He plans in adding 290 planes and having 250,000 employees within 7 years. JetBlue almost recorded $1 billion in revenue in 2004 but is far less

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