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HOW IT STARTED
Founder: David Neeleman Founded in early 1999. Initial capitalization of $130
million. Main base as JFK Airport. Paperless airlines Motive: Bring humanity back to
air travel.
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CASE SYNOPSIS Low Cost Leader Top management of JetBlue Aircraft 320 Strategies - Paperless airline - Selling Tickets online or through Salt lake city reservation HR Practices - Core Vales - Non Union environment - Customised employment packages
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Not having enough capital and equity to start jet blue from the roots
Targeting airports which were not obvious choice for start up airline
Attrition rate was high even after investing heavily on pilot training
ISSUES / CHALLENGES 3
JetBlue Strategies Cost leadership Strategy Paperless Airlines Building of top management Allowing laptops to pilots Supervisors as coaches No union Buying new planes instead of leasing them 65% less fares than the competition Customized employee packages
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STRENGTHS
Low OPERATING costPaper less “e-tickets”Strong employeesEmployee and customer satisfactionDifferentiated employee packagesIn-Flight Entertainment SystemHighly experienced Top Management
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WEAKNESSES
Low brand awarenessTargeting people who do not prefer
travelingLess plane and less employees in the
beginningLess experienceToo much dependency on IT
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OPPORTUNITIES
Vast industryInternational alliancesCapitalise on domestic routeTechnological improvements in
operation maintenance and design
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THREATS
Competition from established brandsPossibility of rise in fuel priceNew Regulations by FAACompetition by other low price
airlines Eg. WestJet
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New advertising campaign to raise awareness among the target group.
Start a Website which will be user friendly and attract new people.
Start flying Internationally.
RECOMMENDATIONS8
Low fares than others Attractive packages for their employeesRevising routes from 10 – 16 from 2000-012 forces it focused on – stay focused on your strategies and
adaptable to change in taste of customersCompensation for loss or inconvenience50 departures/day from 9 departures; 950 employees in 11
months; 10 airbusesHigh quality airline service @ affordable prices
INFERENCE3
RESULTS
3,60,000+Engagements
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