JetBlue's strategy was to combine technology and innovation to improve the air travel experience. It aimed to be the first paperless airline using computers for all operations. JetBlue targeted customers dissatisfied with existing airlines and offered low fares and quality service. It was heavily funded as a startup. Choosing New York as its base was strategic due to the large population. JetBlue established the world's first paperless airline using laptops for pilots and aimed for quick 30 minute turnarounds to maximize aircraft utilization. It adopted a low-cost carrier strategy and achieved success through cost reduction and revenue growth.
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JetBlue Summary
1. Question No 1: Describe the JetBlue strategy?
Answer:
JetBlue strategy was to combine common sense with innovation and technology to “bring humanity
back to air travel”. To accomplish this, JetBlue aimed to be the first “paperless” airline, substituting
computers and information technology for everything from flight planning to aircraft maintenance to
the sole use of e-tickets. But the company was not only about efficiency it was also focused on services.
After startup, the business management was done very successfully. The target market of JetBlue was
the people who do not go to travel but those people who are disgusted with the current choices. JetBlue
was funded with heavy capital, as it was a startup. JetBlue had not taken any item on lease, instead it
was funded heavily.
In this case study, it was also mentioned that JetBlue took the effective decisions when they was
deciding that what type of air craft they must have to fly. They took the decision on time as it was also
one of the positive impacts. JetBlue did Cost benefit analysis and made plans according to that analysis.
Their aim was to provide low faired tickets but quality services. They offered low cost accessible air
services. Choosing New York as a home base was a good strategy because New York was enormous
population center. Southwest airline was the most important success story in industry of U.S.A airline as
it was growing successfully. It was a basic source of motivation for David Neeleman for merger. He
wanted to apply the successful examples of Southwest in his own airline.
Question No 2: What is the JetBlue’s operations strategy that supports the business strategy?
Answer:
JetBlue business operational strategy was to establish world’s first “paperless” airline. At jetBlue each
pilot was provided with a laptop into which were loaded all the required flight and operational manuals
and communication softwares. JetBlue also worked for develop the perfect “30 minute turn around” so
that they could maximize air crafts utilization. The main strategy used by the airline is cost reduction by
improving revenue i-e CASK and RASK. CASK includes reducing cost via economy of scale;
benchmarking and optimization while RASK includes improving revenue through expand regionally,
2. hub strategy and ancillary revenue. They use LCC i-e Low Cost Carriers strategy. This strategy is widely
adopted in airlines.
Question No 3: What are the specific ways in which operations management
decisions have helped JetBlue be so successful?
Answer:
JetBlue achieved the demographic advantage as their offices were split over the different regions
country wide. They let the top management work from their home without move them. This
advantage helped them to communicate the customers easily and according to their regions. It in
returns also satisfied the customers. When jetBlue started to establish their airline “paperless”
it reduces the labor cost as the other filled office floors with people to do this work. Cost
was also reduced by making the turnaround “perfect 30 minutes”. When expenses were
reduced automatically airline becomes more economical and comfortable for the passengers and this
thing makes the success of jetBlue easier.
Question No 4: What is the culture of JetBlue? What role does leadership play in
this culture?
Answer:
JetBlue have the culture of non-union Environment. According to HR department head
Rahoades “we prefer to operate without union. If I have the opportunity to be a leader
without work rules I strangely prefer that”. COO Barger also prefer this this environment said
”We need to daily create the positive environment to keep the place union free”. In an Union free
environment where you are not depending upon each other gives you more opportunity to become a
leader.
Question No 5: What are JetBlue’s key success factors? What do they have to do
to execute on these? What are the human resource (HR) practices that make these
factors work? How? Discuss each. What needs to be added?
Answer:
In order to make the Human resource more productive, JetBlue made teams. JetBlue success values
are characterized by 5 things 1-Safety, 2-Caring, 3-Integrity, 4-Fun and Passion. Importance of these
values was emphasized in the Blue Book which was given to all the crew members. All the crew
members should keep them in mind for running them successfully. Hiring the very best people and train
exactly in the same manner in which customers expect them to behave.
Human resource practices which are helpful for making these factors work should be 1- employees have
to show up and productive, 2- they have to be safe which mean no use of any kind of drugs or alcohol
and the third one they have to be customer oriented.
3. JetBlue made a team named Tiger Team in order to solve the customer’s problems and to provide
them a quick solution.
Customized employment packages were also one of the competitive edges. Employees were allowed
to choose the appropriate group of benefits for him/her self. If every employee tries to become
productive and competent to his/her fellow it will create a competent environment in which everyone
will try to become the leader, this could be helpful to do the work more efficiently and effectively.
No use of drugs and alcohol can prevent unexpected accidents and miss happens could the beneficent
for both the customers and employees.
When employees are more customer oriented, starts behaving in the same way in which their
customers expect them to behave it could please each and every customer and they become loyal with
your airline. They were trained to be productive, to be safe and to be customer oriented. For
performance management system JetBlue used 320 degree performance management system. Now,
the challenge for the JetBlue is to sustain the business as there are some new companies which are
going to start in the same industry.
Question No 6: Discuss the pros and cons of working for JetBlue as a a) pilot, and
as a b) flight attendant.
Answer:
In jetBlue air lines many flight attendants considered their jobs as relatively short term. There was one
year employment contracts designed for college students. A second option was job-sharing offered to
those two people who want to share their jobs. Company also offered a standard full-time flight
attendant position. Pilots were paid the industry average for similar sizes carriers and were entitled to
20 days per week. Unlike the other employees groups jetBlue pilots, dispatchers and technicians got
stock options. But they also have to see one disadvantage to work with jetBlue they have to plan their
retirements because contract with jet blue is for only five years.
Question No 7: Why is JetBlue’s management so committed to being non-union?
Are they right? Evaluate this from both pro-union and anti-union viewpoints.
Answer:Management thinks that a nonunion environment gives more opportunity to become a
leader because it doesn’t allow people to depend each other.
In pro-union environment it brings better wages and benefits for all the workers equally they can get
equal opportunities to grow but on the other hand in anti-union concept you don’t need to relay on
others and make your own ways to success.