Introduction JetBlue Airways is an American low-cost airline based in New York It was founded in 1998 by David Neeleman It uses one of the youngest fleets in the skies A notable incident that happened was the February14th,2007 ice story As a result, they created the “Customer Bill of Rights” David retired after the incident in 2007
Swot Analysis STRENGTH Weakness Low operating cost Relatively new company Efficient employees Weak financial reporting Good customer service It has been using a single fleet Effective use of technology
Swot Analysis Opportunities Threats JetBlue financial position Terrorism is strong so it can think of Rise in fuel prices expanding nationally and Strong competition internationally Employee unions Add up more services for passengers Increase number of flights Joint ventures
Key Success Factors Attracting Customers Managing Managing its fleet its People Managing its Finances
Jetblue Strategy (2008) Re-evaluate the ways the company was using its asset Reduce capacity and cut cost Raise fares and grow in certain market Offer improved services for corporation and business travellers Form strategic partnership Increase ancillary revenues
Factors driving change in the airline industry Fuel prices Aircraft and Routes The airports and geographical regions served The market share Consumer demands regarding air travel
PESTEL Analysis POLITICAL FACTORS ECONOMIC FACTORS September 11, terrorists Improved purchasing attack. power. Political stability. Rise in Inflation. Competitive Airline Rise in oil prices industry. Regulatory factors.
PESTEL Analysis SOCIAL FACTORS TECHNOLOGICAL FACTORS Greater customer awareness. Beginning of e-ticketing. Increased entertainment Automated systems level. (cockpits). Security level of Advertisements (newly customers. introduced animated). Bad services & lost baggage.
Key Issues Faced By JetBlue andSolutions 14th Feb Valentine’s Day weather related incident in 2007 . Lead to destroy reputation and step down of David Neeleman as CEO. Incorporating new technologies. Best practices and providing comprehensive cross- training to all employees. Making JetBlue’s Vision more solid and famous.
Key Issues Faced By JetBlue andSolutions Cont.. Increase in Fuel prices and customer demand for air travel. it affected the industry’s profitability and each air carrier responded differently. Charge for things that used to be free such as checked and carry-on baggage, meals, seat assignments, etc Using one engine for taxing to take-off runways, flying at higher altitudes where oxygen quality is lower resulting in less fuel being burned. Aircraft flying without full fuel tanks and topping off at airports with less expensive fuel.