Jetblue Negative Issues

September 11, 2001, was a horrific event that rocked the world and the way people viewed the safety of airline travel. The airline industry was hit the hardest after that day and it was uncertain if they could regain their customer’s

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

Only two years in existence, Jet Blue decided to become a public company and issue an initial public offering. Jet Blue’s decision came in 2002, just as the airline industry experienced a substantial downturn following the terrorist attacks of September 2011. Despite these challenges, Jet Blue remained profitable and experienced aggressive growth. In order to support this enormous growth and offset portfolio losses, the public offering seemed to be best course of action.

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.

JetBlue had made significant progress in establishing a strong brand by seeking to be identified as a safe, reliable, low-fare airline that was highly focused on customer service and by providing an enjoyable flying

September 11th was the worst day for airline companies around the world. There was close to a 20% drop off in airline traffic in the fourth quarter of 2001. The U.S. commercial airline industry was in turmoil and

New technology: Internet (60% of seats were booked on-line), paperless operation, computerized, Reservation operation (not using call center)

Within case analysis assignment, the JetBlue case is analyzed strategically in this document to set answers for following basic questions:

JetBlue has always identified itself as a customer service company first, focused on providing customers a unique experience on every flight and with every interaction with JetBlue. (Annual report, 2005)

Neelman, understanding the next steps in growing the organization, brought together a highly skilled management team to run the company. Neelman providing the necessary strong leadership, along with the talented management team formulated clear operative goals and directions based on his vision. Decisions that were made emphasized the need to provide a better passenger experience such as choosing New York JFK as the home base of the airlines. Customer interaction (external environment) and employee satisfaction (internal) were the important factors in formulating the mission. The Mission statement included Safety, Caring and Integrity that can be attributed to the customers and the mission statement also included fun and passion that can be attributed to the employee satisfaction.

JetBlue is an American airline company whose headquarter is located in the New York City. They are a low-cost airline who is rapidly growing in the Unites States. According to Wikipedia, “David Neeleman founded the company in February 1999, under the name "NewAir.” Many of their approach come from Southwest Airlines include low prices airfares. However, they differ in the amenities offered to the customers.

JetBlue Airways has been affected by key external factors. The political factor that has affected JetBlue is the resentment towards union formation. Currently, JetBlue is a non-union company. This helps it keep its fixed costs low. Further, there are positive

JetBlue’s product can be considered innovate in terms some of their products are unique and new. They exchanged new experience among their flights and the relationship with their customer’s. They adapt their products with the customer’s wants and demands, this means that their products exceptionally implement to make customers happy but also to distinguish them for the competitors. For example the new seats or the foods and beverage that are full time serve to the customer’s. Another exchanged is customer’s feed-back and the improvement of their services by having a strategy to become more popular.

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