JetBlue was established in 1998 and began service in 2000 with an initial capital of $130 million and 2 planes. Its goal was to establish itself as a leading low-cost airline offering high quality customer service. By 2003, JetBlue had grown to 40 planes and 5000 employees through an aggressive growth strategy of adding a new plane every 5 weeks while maintaining a values-based, high commitment culture focused on safety, caring, integrity, fun and passion. The key to JetBlue's success was integrating its core competencies into these shared values to drive its development and sustain its rapid growth.

1. L/O/G/O
Case Study:
JetBlue Airways:
Starting From Scratch
Syndicate 5
Muhammad Ridwan – 29112555
Machadi Dhana – 29112303
Mahammad Khadafi – 29112324
Pedro Putu Wirya – 29112565
Seto Kusparyanti – 29112306
Yuliani Dewi Risanti – 29112321
Rahdianto Maulana – 29112554

2. JetBlue: Background
• Established in 1998 and started service in 2000
• Goal: to establish itself as a leading low-fare,
low-cost passenger airline by offering high
quality cutomer service and differentiated
products
• Focus on underserved markets

3. JetBlue: Background
• Initial capital: $130 million from several investors.
• Initial operations: 2 planes
• Top management levels consisted of talented
and reputable veterans, who would like to "create
something new, unencumbered and fun.”
• 0.6 complaints per 100,000 passengers
compared to an average of 2.99 for competitors

4. Case Formulation
• JetBlue was getting bigger everyday:
– The fleet grew from 2 to 10 within 11 months
– Employees grew from 10 to almost 1000, with
additional 100 for each new plane
– In 2003, JetBlue shall had 40 planes and 5000
employees
• How did JetBlue achieve rapid growth while
building a value-based, high commitment
organizational culture?

5. JetBlue Profile
• Product: flight service
• Primary Hub: JFK International Airport –
New York City
• Aircraft: Airbus 320
• Working environment: non-union

6. JetBlue Profile
Business Strategy:
• Aggresive growth strategy, one new plane
was bought every five weeks
• Low cost carrier approcah

7. JetBlue Profile
Functional Strategy:
• Marketing strategy:
– Segmentation: medium - low
– Targeting: people who previously would not
go by plane
– Positioning: low cost carrier
– Customer friendly

8. JetBlue Profile
Functional Strategy:
• Operation strategy:
– Aircraft model, Airbus 320:
• Burns less fuel
• Better and wider cabin technology
• Each seat get an extra inch, relative to Boeing 737
– Paperless
– Single flight service
– Full entertainment flight service

9. JetBlue Profile
Functional Strategy:
• Human capital strategy:
– Customized employment package
– Selecting the right people based on corporate
value
– Keep small company feeling inside the
organization
• 5 values: safety, caring, integrity, fun, passion
• No labor union

10. Industry Competitiveness
• For low fare flight services, JetBlue face
competitions with:
– Southwest Airlines; biggest competitors
– America West
– Midwest Express
– AirTran
– Midway
– Frontier

11. Case Analysis
JetBlue
Performance
Organizational
Capability
Organizational
Culture
Human capital
management of
JetBlue must develop
its employees to
create organizational
culture, alligning with
its business strategy
Business
Strategy
Safety
Caring
Integrity
Fun
Passion
Aggressive
growth
strategy

12. Case Analysis
CO
Safety
CSO
IU
Caring
OA
OC
Integrity
SCT
Fun
ACH
TW
Passion
Core competence integrated in JetBlue’s values

13. Conclusion
• The key success of JetBlue was the focus
to shared corporate values, which drove
all activities and were the basis for the
development of the organization.
• To sustain corporate values, core
competence integrated in the values must
be defined and maintained.

14. L/O/G/O
Thank You!