Jet Blue Case Essay

919 Words Nov 26th, 2015 4 Pages
OB713: Individual Case Analysis - JetBlue

“Bring Humanity back to air travel” was the founding concept for the creation of JetBlue by CEO David Neeleman back in 1999. JetBlue commenced service in February of 2000 and was a success ever since. The company was run by an experienced management team with industry veterans who were able to translate their vision of the company into a reality customers experienced. High quality service, low cost carrier coupled with an efficient organization that operated a low cost structure and invested staff led to one of the most profitable airlines in the US. JetBlue was not just another low fare carrier. One of the main reasons for their success is innovation. Their aircrafts were the first to
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The company used its own crewmembers in its advertising and promotional activities. As a result, JetBlue provided a single customers experience and controlled who, what and how customers interacted with the airline. This holistic customer experience was key to its success. However, running a low cost high service airline could not be profitable without an efficient operational model. JetBlue was able to be profitable from year one up to now due to its low cost structure. With online purchases reaching 68% of all ticketing compared to 45% to the next highest airline, JetBlue reduced ticketing costs. Also, by removing the middlemen it saved on travel agent commission fees. In addition, operating one type of aircraft with a single class led to increased cost savings on maintenance and training cost. Finally investments in airline technology reduced its ground time which led to higher than average aircraft utilization and was able to spread its fixed cost over a greater number of flights. Such innovation and excellence cannot be achieved without an efficient organization. Looking at the 7-S model discovered by Tomas Peters and Robert Waterman I believe there are four main aspects of the organization that explains how JetBlue achieved high performance. First, we look at Strategy. Before entering the airline market, JetBlue had a clear

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