Jetblue

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.

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 has been one of the most successful airlines since it first entered the industry in December of 1999. Founder, David Neeleman, set out to succeed by offering low-cost air travel in hopes of perpetuating his services to as many people as he could across the US. He was very adamant about having a very customer oriented business that catered to the needs of all. In doing so he wanted to emphatically promote his obligation to safety, caring, integrity, passion, while allowing the customers to have fun while traveling. There motto helps portray Neeleman’s belief stating “You Above All”. His primary goals had been to follow Southwest’s objectives of offering low rates to customers, focusing on customer’s needs and comforts while distinguishing itself with their amenities. Neeleman’s other goal was to establish his low-cost leadership strategy by concentrating his airline in a large popular metropolitan area that already is already correlated with high airfare (Peterson, 2004). He then began operating based out of the New York metropolitan area at John F. Kennedy International airport with his secondary locations in Washington D.C., Boston and Los Angeles.

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

Introduction JetBlue Airways is a passenger airline founded in 1999 by David Neeleman. Neeleman aimed to provide the customer with first-rate service at reasonable prices. In order to ensure this strategy, JetBlue had to recruit and hire the right people to complement its core values. The company encompasses five core values: safety, caring, integrity fun, and passion. JetBlue uses a targeted selection process to identify employees which fit the company values.

With its chosen integration business strategy, one of the challenges that JetBlue is facing not being able to create value anymore for the

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

Jet Blue was built on a strong foundation with experienced and knowledgeable people making decisions. Neeleman felt that certain key employees needed to be put in place to have this organization grow the way it has. So a solid team was put in place and the machine has been oiled. In order for Jet Blue to have obtained such a significant market they needed unique marketing. Jet Blue approached and targeted specific markets which they serviced with certain marketing incentives.

JetBlue is known as the airline that promises, and also delivers. JetBlue delivers Air flight of the future, with new jets and the lowest fares available. JetBlue has proved to the world that one can have it all. JetBlue’s Airways started in 2000 with the mission as stated by the founder Neeleman: “to bring humanity back to air travel by offering passengers low fares, friendly service, and high-quality product” (Ford, 2004, p.139). JetBlue has five core values that they operate by on a daily basis, which includes, safety, caring, integrity, passion and fun. JetBlue continues to adapt to the changing environment, and its community by evaluating the risks and

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.

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

JetBlue started by following Southwest's approach of offering low-cost travel, but sought to distinguish itself by its amenities, such as in-flight entertainment, TV on every seat and Satellite radio. Barely two years after its foundation had the company made profit and decided

For JetBlue there is a need to ensure that the brand is seen as different. The firm has developed differentiation in the way that the service is offered. From the beginning the firm has used the entertainment options as a way of setting themselves apart (JetBlue, 2012). The service level is reflected in the way the brand has been marketed to support differentiation and show the airline in a different light, For example, in one advertisement which starts of as a typical airline the audiece hears

1. Give examples of needs, wants, and demands that JetBlue customers demonstrate, differentiating these three concepts. What are the implications of each for JetBlue’s practices?

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?