2. 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.
3. 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
4. JetBlue started by following Southwest's
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 Neeleman's words, JetBlue looks "to bring
humanity back to air travel.“
6. 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.
7.
8. 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.
9. 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 airline's current
slogan is "Grab your bag, It's On!".
10.
11. Base of operations is JFK, an airport that has traditionally attracted
considerably less attention from competitors for domestic flight activity
than 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.
12. “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
13. CORE COMPETENCE Value-based
Customer
Concern Achievement Organizational
Service Self Control
for Order Orientation
Orientation Commitment
According to Spencer Competence Based Model
14. 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
15. 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). JetBlue's 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.