Jet Blue vs Southwest

1141 Words5 Pages
Pooja Rathan
Marilyn R. Kaplan, Ph.D.
Strategic Management
6 March 2013
Comparative Analysis: JetBlue VS Southwest
This case is a report that compares the financials of two well-known firms in the airline industry, JetBlue and Southwest. JetBlue Airways Corp was established in the year 1998 with a vision of being a leading cost efficient passenger airline with competitive, low rates. The company has been working toward a goal of growing sustainably while also maintaining efficient liquidity. The second firm in this case report, Southwest Airlines Company is a much older airline, which was founded as a commuter airline in 1971. Both companies operate on point-to-point services, and have aimed for competitive and cheap rates. However,
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Southwest however had been faltering in this area, with its ROE going down from 7.99% in December of 2011. Another area we shed focus on is the Value Chain Analysis, which is basically the break down of the primary and secondary activities of the firm. Under primary activities, both airlines should focus on trying to make better use of less congested airports as well as partner with other airlines to be able to provide connecting flights to more places, all of this would fall under inbound and outbound logistics in the value added chain. Under operations, the focus should be providing fuel-efficient aircrafts that seat more people, and Southwest needs to offer better attractions to its customers, such as comfortable leather seats and entertainment in flight, to keep up with its competitors. JetBlue’s True-Blue points program allows customers to use their miles to receive free round-trip tickets, which is a great incentive for frequently returning customers. Small services like on-time arrivals and departures, fewer mishandled bags and helpful crew adds to good customer service. Higher utilization of aircrafts by Southwest allowed faster turnaround and more efficient use of the aircrafts. With secondary services, employees of JetBlue were experienced veterans, with expertise and good knowledge. Southwest hired people with good humor and entertaining skills, and fun and laughter is now part

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