Transcript of "Jet blue airways starting from the scratch"
Masca Indra Renni RengganisYessie Fransiska L.
JetBlue was incorporated in Delaware in August 1998. David Neeleman (former Southwest Airlines employees( founded the company in February 1999, under the name "NewAir." Initial capital of $ 130 million The top management is veterans of the airlines industry who were looking for chance to start from scratch.
Home Base : New York City – JFK International Airport Type of aircraft : Airbus 320 (less fuel, better cabin technology, has a wider cabin) Market Segment : people who aren’t going travel, people who are disgusted with their current choices, people would drive, or people who wouldn’t go at all Goals : low fares, great services, and to deliver on that promise over time Operation Strategy : o The world’s first paperless airlines o Each pilot was provided with a laptop into which was loaded all the required flight and operation manuals o Almost all maintenance logs were also computer based o E-mail as a media of communication
JetBlue started by following Southwests approach of offering low-cost travel, but sought to distinguish itself by its amenities: ◦ High quality service domestic airline with point to- point service on both short haul and long haul routes. ◦ It offers a differentiated flying experience that includes pre-assigned leather seats and free Direct TV for every passenger. In Neelemans words, JetBlue looks "to bring humanity back to air travel.“
Efficient Utilization & High Yields Per Passenger Mile (Utilization and high yields are key to generating revenues and high profits) in 2001 Aircraft operated an average of 12.6 hours/day, the highest in the industry. Aircraft operated an average of 11.1 hours/day.
Jet Blue Southwest Low costs and high efficiency enable JetBlue to charge lower fares than its competitors. As an example, JetBlue’s New Orleans to New York roundtrip fare is significantly cheaper than that of alternative carriers. JetBlue offers two nonstop flights per day both ways and a roundtrip fare of $177. Southwest offers no nonstop flights and a roundtrip with one stop in each direction costing $321.
Southwest Airlines traces its roots to the March 15, 1967 incorporation of Air Southwest Co. by Rollin King and Herb Kelleher. Slogans include "Just Plane Smart", "The Somebody Else Up There Who Loves You" and "THE Low Fare Airline". The airlines current slogan is "Grab your bag, Its On!".
Base of operations is JFK, an airport that has traditionally attractedconsiderably less attention from competitors for domestic flight activitythan either LaGuardia Airport or Newark International Airport because of an industry perception that JFK is primarily an international airport and that the commuting distance from Manhattan to JFK is too far, as compared to LaGuardia or Newark, to attract domestic travelers.
“Low Fare Airlines With High Quality Service Experience” Vision 1. Used new airplanes, 2. Offer great personal service, 3. Create a state of the art revenue management system, 4. Service fare less than the competition Operation Marketing Business Strategy •Using ICT as operational system Market Segment : people who •Two nonstop flights per day both aren’t going travel, people who are disgusted with their current choices, ways or people who wouldn’t go at all. •operating one type of aircraft People who are price sensitive leisure •offering one class of service, traveler and small business traveler. •supporting a ticketless reservation Not unlike Southwest, JetBlue system enters a market where it believes it can generate new demand Miles Stone Strategy Finance HCM JetBlue took a conservative financial Leveraging Human Resources : strategy in which they maintained high creating esprit the corps liquid ratios relative to the other major Selecting the Right People airlines Customized Employment Packages
CORE COMPETENCE Value-based Customer Concern Achievement Organizational Service Self Controlfor Order Orientation Orientation Commitment According to Spencer Competence Based Model
JetBlue has survived by a focus on bringing humanity back to air travel at low fares. They focused on providing value, customer service, and unique extras for customers. Employees benefit from training and a strong organizational culture. The business benefited from measures to cut costs and form lucrative partnerships. Presently, the financial reports of JetBlue showed that the company was outperforming its competitors in a recession making the company highly likely to be successful over the long term.CORE COMPETENCE Value-based is needed for organization in JetBlue CBHRM to sustain the values
David D. Dubois & William J. Rothwell. Competency-Based Human Recources Management Ganesh. Competency-Based Human Recources Management Competence at Work: Models for Superior Performance (Lyle M. Spencer, Signe M. Spencer) JetBlue. (2009). JetBlues 2009 Annual Report on Form 10-K Jet Blue official website : www.jetblue.com Johnson,Nancy B.2007."LOW-COST COMPETITION TAKING OFF IN THE GLOBAL AIRLINE INDUSTRY ANDIMPLICATIONS FOR EMPLOYMENT RELATIONS".LABOR AND EMPLOYMENT RELATIONS ASSOCIATION SERIES Proceedings of the 58th Annual Meeting.Univerity of kentucky.
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