The Hands-On CEO of

The Company

• JetBlue is a rather new company which in order to maintain safety uses old aircrafts.

• Neeleman appeals to travelers with electronic tickets and in-cabin satellite TV.

• JetBlue has achieved high customer satisfaction.

• It is very particular when to comes to hiring employees. • The company is doing an extremely profitable business• And hopes to continue and grow in the future.

Products and Services• Jet Blue has stepped up a great deal compared to

the other airways.• Neeleman is constantly in touch with the

Technological Environment.• Its innovation can be seen since:

It has introduces live cable

T.Vs separately for

every passenger.

It has introduced E-Ticketing which has increased convenience on part of the customers. It makes boarding a lot easier.

• It uses 25-year old, factory fresh, state-of-the-art A320s. Neeleman has fitted each with 162 seats – versus the A320s 180-seat maximum.

The Employees

• The employees or the crew members are trained to be polite, patient and calm in case of panic.

• JetBlue has high standards when hiring and recruiting its employees because the management realizes that employees are the ones who are serving the customers.

• Neeleman, the C.E.O, is aware of the fact that employee satisfaction ultimately leads to customer satisfaction.

• The pilots at JetBlue are calm and do not panic under stressful situations. They effectively communicate with the passengers in case of any troubled situation.

• Neeleman stresses heavily on keeping its employees happy and giving them an enjoyable work environment.

• The employees are given a share in the companies stocks so as to promote a sense of belonging.

SWOT ANALYSIS

• Strengths

• Weaknesses

• Opportunities

• Threats

STRENGTHS

Low Operating costStrong brand Efficient employees Single fleet of aircrafts i.e Airbus A320s Consumer satisfactionEffective use of technologyHighest in customers satisfactionSustained successConfident and well-trained employeesGood process of recruitment and selection

Low fares compared to other airlines. Superior customer service. More efficient and reliable planes. Only airline to offer live TV and cable in-flight. High commitment to hiring better employees. Through their current workings, they are able to build good brand loyalty. Friendly customer service. Offering e-ticketing -- a convenience for the passengers and customers.

WEAKNESSESJetBlue has not been able to expand into some of the

major routes across the U.S. Not gained enough influence in the airline industry. Major routes that JetBlue does not have access to

include flights to Atlanta, Chicago, and Dallas/Ft. Worth. This is important because these routes are in more centralized locations in the U.S., which would open a whole new demographic of customers to JetBlue.

Increased costs of security, which the airlines must absorb due to Terrorist activities.

Low fares could mean less money being made, less profits. Much higher average airborne time and higher % of diverted flights. Not being able to find the right pace of

expansion while maintaining profitability and company identity.

Smaller and more unheard of, than any airline. Fuel consumption, as a % of expenses, is rising rapidly. Very low percentage of full-time employees. Extra bells and whistles could cost company $$.

OPPORTUNITIES

Increasing demand for air travel.Untapped international market that JetBlue

could penetrate in.All other airlines that have much higher fares,

giving JetBlue the opportunity to be the Cost Leader.

Increasing use of the Internet -- Online booking and ticketing.

Potential use of luggage-tracking technology.Route & fleet expansion.Expanding in National and international markets.

Creation of Airlines Alliances.Technological Improvements in Airplane

design, operation and maintenance.Deregulation of international air travel. Increased internet advertising.Leisure travel.

THREATS

Terrorism and accidents Increase in Fuel prices Strong Competition Global crisis New regulations by FAA Labor Union Increase in annual airline security costs Decline of leisure travel due to economy and

terrorism

Many airlines including JetBlue face union labor contracts.

Unions can strike whenever no agreements are made.

Fuel costs are high and are a HUGE part of airline expenses.Breakeven load factor is rising.Higher security required at airports is causing Higher fees on tickets and more customer

dissatisfaction. Competing online ticket reservation systems

MISSION STATEMENT• Jet Blue’s mission is to be the leading low-fare, low-

cost passenger airline offering high quality customer service to underserved markets and customer who are looking for the best value in their flight.

• “We have the newest most advanced planes that are reliable, fuel efficient, utilizes paperless cockpit technology, live in-flight satellite TV and security cameras. Our philosophy is to give customers the best price value for their ticket, offering things our competitors don’t offer. At JetBlue we feel that hiring educated employees that are highly motivated and well trained will provide a better experience to the customers. We feel that our high-value, high quality service philosophy will lead the way to our becoming the number one in the industry.”

Demonstration of an Understanding of Organizational

Behavior by Management at JETBLUE

• Flight attendants have a high level of self-esteem and feel good about themselves.

• All attendants are made to learn how to strut proudly.

• JetBlue attendants are given the kind of environment that they enjoy their job.

• The employees are extremely courteous with the passengers and address the public in case of any unforeseen problem.

• Employees have the ability to remain calm and patient during a crisis as employees need to be motivated during that period

• Conduct public relations as the whole company depends on it.

• Management realizes that the employees are someone who are serving the customers so they need to be well taken care of.

• Pay their people well. The average crew member at JetBlue makes over $50,000.

• Neeleman obsesses over keeping employees happy, and with good reason.

• Resolving employees issues by the management resulting in a Union Free environment.

• JetBlue employees get profit-sharing checks, amounting to 17 percent of their salary in recent years.

• The constant appreciation of the employees cooperation makes the workforce feel valued.

• The crash of September 2005 is an example of the concern for employees by JetBlue management.

Things JetBlue Looks For In A Pilot

• Flying- not the only skill a pilot needs to have• Pilots should have skills concerning

Following Regulations. Security. Crew harmony and Cooperation. Customer service and On-time

performance. They may step out of the cockpit to make

announcements to passengers face-to-face

• If there’s a delay, the pilot might loan his or her own cell phone to a passenger to call and alert friends or family.

• At the end of the flight, the pilot is likely to be out of the cockpit again, saying goodbye to passengers and thanking them for flying JetBlue.

• Lending a hand to clean the place and preparing for the next flight.

• Teaching somebody to fly is easy but it is much harder to teach someone to think. Therefore, people that are able to think spontaneously are more feasible.

• Intangibles such as: keeping their aircraft and their customers out of potential problems are what companies need to ensure that their flight crews possess.

• Pilots should know the aircraft thoroughly and follow and know company SOPs.

• For example, an ordinary flight suddenly experiences an emergency or problem, The employer should know before hand

Does this person know the aircraft and its systems? How will this pilot cope? Does this person know the emergency procedures

thoroughly enough to be able to deal with the situation? Will the pilots work smartly as a crew or work against each

other?

• A good pilot should continue to strive for excellence and knowledge.

• Pilots need to know when to say “No” and mean it; they need to step up and take responsible and intelligent action when required

• Taking care of the crew members• Being ever ready to share work load.

Use of OB to Increase Chances of JETBLUE Airlines Staying Successful

• Fulfill needs of employees so that they can effectively contribute to the organization.

• Employees must be rewarded for their good work both through monetary and verbal benefits.

• He can learn new ways of managing for long term profitability.

• Training leaders to become conduits of the organizational values.

• Introducing a training and development program for the employees.

• He can improve his personality as well as of his employees.

• It may help Neeleman to interact with different departments within the organization.

• He can share power with his employees to increase their confidence level and it will also enable employees to learn new things.