Jet Blue Airways Case Study

Crafting and Exe thumping Str take ingy feed dirty Airways case study In 2008 linees began to cut approve on lend oneselfee travel, and consumers essay to moreover money and used stay-cations instead of vacations, during a summer the U. S. economy s uttered and inunct prices rose jet displace prices went finished the roof as a result. to graduation exercise the higher fuel costs, skyways began increasing revenues by means such as fuel surcharges, charges for the first checked bag, charging for blankets, p paralyticows, and headphones, and finally expectant wages and grounding airplanes.Some air passages didnt survive, close to decided to form a jointure to try to buoy the rising costs. beyond cost, there was the prospect of increasing competition, shortages in pilots, flying schools lacked instructors, and labor costs. Some companies as a result of the impact of these fresh changes employed a sunrise(prenominal) maneuver of their own large airlines would steal pilo ts from littler companies, luring them with better pay and benefits. JetBlues strategy was to be a come with that would approve the low fares of a discount airline carrier with the comforts similar to a den in peoples homes.Passengers could save money while they ate gourmet snacks, sat in lash seats, and watched television. The goal overall, was to bring humanity back to air travel. 3. Discuss Jet Blues financial objectives and whether or not the connection has been successful in achieving these objectives. JetBlue was a discount airline carrier, offering passengers low fares, point to point systems, and maintained active turnaround times at airports. Its in operation(p) costs were low, e supernumeraryly in semblance to other major airlines.The lodges turnaround time was 20-30 minutes, because they did not go meals, meaning they did not have to time lag for catering function flight attendants stowed carry-on bags in overhead bins, and everyone on staff helped to flummox away the trash after to each one flight. The callers organizational assimilation was a strong one, and it achieved extraordinary results by implementing five locomote defining the company values, hire employees that mirror company values, perish employee xpectations, listen to customers, and create the organizational purification. initial step defining the companys values safety, caring, integrity, fun and passion. These values steer the decision making process for employees. preventive was a number one priority, and to depict their commitment to safety, JetBlue teamed up with Medaire Inc. , so that faction members could immediately consult with land establish physicians anytime a passenger fell ill it was also the first airline to arrange Kevlar cockpit doors and surveillance cameras.Step two was to hire employees that mirrored the companys values. During the hiring process, JetBlue wanted to observe that a candidate had done something special for someone else. The thi rd and fourth steps involved ensuring that the company continued to choke employee expectations and to ensure that it listened to its customers. The final step in creating the companys organizational culture was to create a culture of faithfulness the company had to continually improve its functions and set itself apart from its competitors.Jet Blues strategies for 2008 and beyond included following some(prenominal) new strategies To reevaluate the ways the company was using its assets, reduce cogency and cut costs, raise fares and grow in withdraw markets, offer improved services for corporations and business travelers, form strategic partnerships, and increase supplementary revenues. (Thompson, younger , Strickland, III. , Gamble, 2010). During the deployment of these strategies, Jet Blue hike laid out their plans.To reduce capacity and cut costs, JetBlue agreed to sell 9 used Airbus A320s in 2008, which netted a cash gain of $100 million. The company delayed the delivery of 21 new Airbus A320s, which were scheduled for 2009-2011, to 2014 and 2015. This allowed JetBlue to put off hire for the airplanes, and save on operating expenses. (Thompson, Jr. , et al C-72). The company suspended service in and out of several states, and off plans for service mingled with Los Angeles International airport and Boston and New York.Doing so helped save money on fuel expenses. JetBlue started to employ their plan to grow in selective markets, and raise its fares. In March 2008, JetBlue denote that Orlando would become a focus city, and that it would centripetal service between Orlando and Cancun, Mexico, as intumesce as Orlando and Santo Domingo, Dominican Republic. This would become tentatively approved to be Orlandos and service to South America. Also in March 2008, JetBlues average unidirectional fare reached a high of $138.This was nonetheless very competitive with other airline carriers. According to the U. S. Department of Transportation, the average domestic help fare in 2007 was $331. JetBlue made efforts to collection to business travelers by introducing refundable fares, and allowed corporate meeting planners to receive meeting specific discounts as well as a favorable travel certificate for every 40 customers booked to the same event destination. The company entered into a five-year bargain with Expedia Inc. to reach vacant travelers.The goal of forming strategic partnerships was achieved when it developed an agreement with Aer Lingus that let passengers make a integrity reservation between Ireland and 40 diametric destinations in the U. S, via JetBlues hub John F Kennedy international airport. It also developed a marketing partnership with the Massachusetts establish Cape Air, so passengers could transfer between the two carriers to get to places such as Hyannis, Nantucket, and Marthas Vineyard. References http//www. flightglobal. com/news/articles/interview-jetblue-chief-executive-dave-barger-345289/