JetBlue Airways, founded in 1999 by David Neeleman, aimed to become a leading low-fare airline with a focus on high-quality customer service and innovative operations. The airline implemented unique human resources practices and aimed for employee satisfaction while maintaining low operating costs and efficiency. Key challenges include competition, fluctuating fuel prices, and overall industry expansion as JetBlue seeks to grow and enhance its market presence.

1. JetBlue Airways: Starting from Scratch
Presented by:
Dhroov Sharma

2. • Founded by David Neeleman in early 1999 and started service in
February 2000.
• Goal: To establish itself as a leading low fair, low cost passenger
airline by offering high quality customer service.
• CEO’s vision “to bring humanity back to air travel.”
• USD130 million for initial capital with 2 planes.
• Various veterans from the industry with a common objective of
innovation were brought in the organization.
• Its first base was at John F. Kennedy International airport.
• The owning of aircrafts and Airbus 320 over Boeing 737.

3. • They implemented Innovative Operations Strategies like hiring of Al
Spain.
• Providing Gizmo’s to the pilots.
• Leveraging Human Resources practices in the organization.
• Linking values with the employees of the organization.
• Values- Passion, Caring, Integrity, Safety and Fun.
• They moved towards an Non-union environment.
• JetBlue offered various employment packages, resulting in employee
satisfaction and better work environment.
• They also focused on recruiting on the right kind of people that
support and help in building the values of the organization.
• Planning for the future and increased productivity.

4. •Low operating cost
•Strong brand
•Efficient employees
•Consumer satisfaction
•Effective use of
technology
STRENGTH
• New Competitors
• Two types of aircrafts i.e.
Airbus and Boeing
• Concentration on middle class
• High maintenance costs
WEAKNESS
• Industry expansion
• Route & fleet
expansion
• Technology
• Penetrate in US market
OPPORTUNITY
•The price of fuel is
unpredictable
•Strong competition
•Security issues
•Employee unions
THREAT

5. Threat of new
Entrants
LOW
Profit margins are low
High labor
High operation cost
High fuel cost
MEDIUM
Car
Train
HIGH
Same route,
target market,
price
Rivalry
Competition
Threat of
Substitutes
Buyer
Power
Supplier
Power
HIGH
Boeing and Airbus
the only suppliers of
aircraft for commercial
HIGH
Price sensitivity

6. How to make decision in New Startup
• Keep our core values intact
• Startup should be well capitalized
• Decisions should meet the demand of the customers
• Avoid conflict management
• Decisions should lead to efficient productivity
How to build non-union environment
• No probation period
• Positive Team Environment
• Employees satisfaction
• Customize employment packages

7. Top Management Recruitment process
Head Hunting and Poaching
• Thomas Kelly, Executive vice president from Morris Air
• Dave Barger, president and chief operating officer form
Continental Airlines’ Newark Hub
• John Owens, chief financial officer from Southwest Airlines
• Ann Rhoades, executive vice president of human resources
from Southwest Airlines
Manpower
Requirement
Search for
suitable
candidate
Lateral
Hiring
Head
Hunting
Best Select

8. Linking values with recruitment of new Employees
Offer Compensation to different kinds of Employees
• Passion
• Safety
• Caring
• Integrity
• Fun
• Incentives
• Over time and Part time
• Health Benefits
• Employee stock option
• Work from home

9. Linking Technology with customer satisfaction
• Substituting technology and sole use of E-Ticketing
• Airbus A320 over Boeing 737
• Issued laptop’s to the Pilots
Importance of strategy and why to stick with strategy
• Incentive given to the employees if they work more than
70hours/month i.e. $30/hour
• Laptops provided to the pilots so that they can connect
to the HQ easily
• E-tickets and rotatable computers for customers
• Compensation of $159 voucher was provide to the
customers if the flight delayed for more than 4hours

10. • Leveraging Innovations
• Proper Research on market segment & destinations is
important for company growth.
• New and better HR policies lead to the growth of the
company.
• The Company Strategy plays an important role in
development of a organization.
• Flat and open learning – taking good of others and learning
from their mistakes.
• Location benefits also plays an essential part in the growth
of a company.
• Non-union environment leads to better working
environment.
• Dual satisfaction : Employees satisfaction is as important as
customer satisfaction.

12. THANK YOU
For flying with
us.