1. Describe the “JetBlue Experience.” How is it related to the company’s overall business strategy?
With the JetBlue Airways experience, passengers enjoyed free amenities such as watching live satellite TV, listening to XM satellite radio, brand name snacks, coffee and drink. Passengers can also experience paperless ticketing, assigned seating with more legroom. These experiences have helped to streamline JetBlue’s business strategy as being the best customer service in the airline industry.
2. What challenges did David Neeleman and his executive team face in managing the customer experience as the airline grew rapidly? How did they respond to those challenges?
The challenges were new airline fleets were behind schedule and
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A basic problem was JetBlue’s communication system. The ice storm had left a large portion of the airline’s pilots and flight attendants far from where they needed to be to operate the planes, and JetBlue lacked the trained staff that was needed to find them and tell them where to go. Another problem was the reservation system; the system was so overwhelmed that customers were unable to get through to human agents to check on a flight.
4 Did the airline handle the crisis well? Why or why not? What else could JetBlue have done to improve the situation?
I believe the situation was handled well, because after the February 14th delays, JetBlue executives developed a passenger Bill of Rights to help deal with the situation if it happens to arise again. The Bill of Rights provides real compensation for delays and cancellations, and it is believed to be stronger, deeper, and much more defined than any other customer commitments you could find in the airline industry.
Although there was no way JetBlue could have prevented the cancelled flights due to bad weather, they should have had risk management plan in effect addressing ice storms before this incident occurred. Another solution to the problem would be to park incoming flights near the gate and send a bus out to pick up the passengers. This way they wouldn’t have to wait in the plane until a gate is available or call other airlines and see if they can use there
JetBlue Airways Corporation was formed in August 1998 as a low-fare, low-cost but high service passenger airline serving select United States market. JetBlue's operations strategy was designed to achieve a low cost, whilst offering customers a pleasing and differentiated flying experience. JetBlue has had a successful business model and strong financial results during that period, and performed well in comparison to other airline companies in the US during the period between 2000 and 2003. It had been the only other airline apart from Southwest airlines, to have been profitable during the aftermath of the September 11, 2001
"To continue to bring humanity back to air travel." This is the promise JetBlue Airways Corporation has made to its shareholders, customers, and "crew members" in order to build a strong, solid and rapidly growing company. JetBlue uses two significant tools that drive its success: low fares and superb customer service. This growing discount airline works to keep its costs down and implies this goal by offering one-class service and eliminating airport lounges and full meal services. JetBlue relies completely on technology with an operation strategy of choosing
Founded by the discount airline veteran David Neeleman in 2000, JetBlue Airways has quickly become one of the largest discount airlines in the United States. Starting primarily by serving the East Coast, the airline has since expanded throughout the country and entered the international market. The reasons for its early success are numerous: JetBlue entered the market with one of the largest levels of liquidity of any start-up airline; it met the needs of customers’ whose primary concerns are price and route; and it successfully defined its brand and differentiated itself
Jet-blue Airways is American low cost airline head quartered near New-York city. It’s foundedin August 1998 by David Neeleman with Joel Peterson as a chairman and David Barger as apresident and CEO. By late 2006,like some other airlines, JetBlue faced some softening demand and high cost due to the increase in fuel prices. Barger realizes that JetBlue needs to take further steps to slow its rate of growth. Barger was not sure about the reductions across E190 and A320. The E190 showedpromising growth opportunities and challenges for JetBlue. At the same time, the A320 wasconsidered as proven plane that had succeededover past 6 years. Most of the airline industries were using hub-and-spoke system and point-to-point services. Due to this service, South West Airlines showed consistent profits. After September 11th, the airline industry experienced trouble due to attack. Looking at the history of Jet-blue, it started with just 10airplanes in 2000 and by 2011 the company planned to have 290 planes in service. To support customers, Jet Blueprovided
The second major strategic issue facing JetBlue is that it needs to attract customers. Initial customer response has been strong, a function of low fares, strong customer service and new airplanes. The company's first year growth objectives have it trying to go from none-existence to filling fifty-three flights per day. This will require an extensive marketing effort for each new market in which it operates, especially as the company is not affiliated with any airline groupings that might drive business from other carriers.
Moreover, according to John Owen, JetBlue had prepared the initial registration statement with security and exchange commission (SEC) for the IPO on September 11, 2001. However, based on the September 11 attacks, they delayed IPO before it came into force. In fact, not only the terrorist attacks on September 11, 2001, but several events happened negatively affected the global economy during the period of going public for JetBlue. For example, the contagion of bird flu was quite severe during taking flights, which definitely influenced the demand of flights. The increasing oil price also raised the basic cost in any transportation industry. Another negative condition could be the economic downturn, including crash of the dot-com bubble and financial crisis in Asia. From this point
JetBlue Airways, the latest entrant in the airlines industry has gone through the initial stages (entrepreneurial and collectivity) of the organizational life cycle rapidly under the successful leadership of David Neelman. JetBlue Airways is currently in the formalization stage of the life cycle where in it needs to create procedures and control systems to effectively manage its growth. Also as it proceeds to grow further to reach the elaboration stage, JetBlue needs to continue to align itself with the environment in order to maintain its sustained growth.
The best strategies that can be enforced by JetBlue are the SO strategies, WO strategies & ST strategies. The strategies might differ based on the business unit needs. Marketing teams should concentrate on offering holiday bundle or other relevant services & products amid the low demand period or may also market its latest services & products in order to maintain new and old customers. Operations should concentrate on enhancing yields & scheduling more flights during the day with a minimal turn around time per aircraft. Finance must concentrate on buying of latest aircrafts.
This paper hopes to delve into the Jetblue Customer Service delivery breakdown, from February 14, 2007, that nearly caused the company to collapse. It will look at the customer service aspect and compare the expectations of what the customer had come to expect and what the company actually delivered. It will look into the customer service, that lead to JetBlue’s early success and competitive edge against other airlines. It will examine if the Low-Cost Airline can continue to maintain its High-Frills Status. It will look at the impact the breakdown had on the customers, stakeholders, the role ambiguity on how the employees and managers used to handle situations with their wait and see mentality, and the lack of perceived situational control from its employees. We will attempt to predict what JetBlue should try and prepare for and I will give my personal opinion on JetBlue’s response to the breakdown in service in regards to the customer service communication gap and my recommendations with moving forward.
I wrote this concerns on behalf of my relatives. This is the third time they were informed that the flight was canceled and delayed. Not only does the JetBlue have any other available flights for them but also doesn't understand that the flight cancellation means they still have to pay for the hotel and the car rental that they already reserved for and not to mention their seminar that they had paid for and would and will have to miss the entire day. It should have a law or something to hold JetBlue accountable for cancellation the flight meaning JetBlue needs to take responsibility for their hotel and car rental on the day that the cancelled flight has caused them all this trouble.
result in a discrepancy in their IT system. They experienced a severe information technology outage which resulted in these numerous delays. In 2013, JetBlue only had an on-time performance record of 72.66%, in which 27.34% of flights were either delayed or canceled (Hopewell). American Eagle Airlines is another example of an airline company that unsuccessfully implements IT systems throughout their services. On September 17th, 2015, American Eagle Airlines experienced significant flight delays as a result of an unidentified computer error that caused network connectivity issues that affected various computer systems such as the American Eagle Airlines website and airport check-in counters in major cities. 6 flights were canceled on this day,
Within case analysis assignment, the JetBlue case is analyzed strategically in this document to set answers for following basic questions:
in February that led to the cancellation of over 1,100 JetBlue flights and adversely affected the travel
Given the time and weather, the airline crew would have been under lot of stress and might be very eager to move on to their next task and also we need to consider operational expenses of a foreign airline. There are multiple issues here:
JetBlue is a pro at utilizing its resources and structure. As such, JetBlue has proven to be efficient in its internal environment. Out of the physical and human aspects of the internal environment JetBlue focuses on human as the key factor. JetBlue views its employees and their skills as the key to a successful structure by emphasizing elements of loyalty, satisfaction, service quality, productivity, capability, and output quality. JetBlue reflects a culture of employees that understand how to retain customers and can perform under various situations with an equally varied consumer base. In addition to human capital, JetBlue uses physical assets to set them apart from the rest. The airline fleet of JetBlue is very precisely selected. From its new Airbus A321 to its Airbus 320, JetBlue prides itself on comfort and luxury. Other perks offered by JetBlue include lower priced airfare compared to that of its competitors and in-flight entertainment options that succeed its competition. Internal weaknesses include a