Airline and Jetblue Essay

Submitted By kewlwalter
Words: 7803
Pages: 32

Executive Summary
In 1998, David Neeleman determined there was a niche in the airline industry that he could successfully fill. David Neeleman had years of experience in the airline industry and borrowed some of the ideas from his previous employer Southwest Airlines. A “value priced” airline with a touch of class was his vision. Starting in 1998 and completing by 2000, Mr. Neeleman successfully financed and acquired planes and completed the regulatory and application process for his new airline. Mr. Neeleman wanted to focus on a low fare travel experience with a few perks to set it above a cut above the rest of competing cost conscious carriers.
JetBlue is the only airline to start with over $100 million in capital. The company truly started out at an advantage with this type of capital and was going to prove their idea could work in the already crowded airline industry. Although they are a low-cost carrier, comfort and service is the major focus of this carrier. JetBlue focuses on making their customer comfortable through the whole process. They have adopted a hassle free purchase, seating, refund and rewards programs all while providing the best in customer service. Their planes are equipped with roomy, leather seating and all the perks of a relaxing flight. Without charging an additional fee, their passengers can kick back and read a book, tune into their favorite XM Satellite radio station or choose from a variety of DirecTV or Fox Film programs while flying to their favorite destination.
JetBlue began its journey by traveling to a limited number of destinations from their air base in New York City’s, John F. Kennedy Airport. In February 2000, JetBlue flew its inaugural flight from New York, New York to Fort Lauderdale, Florida. By the end of 2000, JetBlue transported customers to ten different locations. Each year, JetBlue gradually added a number of destinations to its roster, building a larger nest each year. Within its first ten years of existence, JetBlue flew to 63 destinations from the United States to 11 other countries. They have invested in their product and their personnel. They set themselves apart from other airlines by purchasing new aircraft. Constantly reevaluating themselves, listening to customer concerns and proper budgeting has allowed JetBlue to add to their Airbus A320 and 23 EMBRAER fleet nearly every year. They are routinely screening and training their personnel. Their number one priority is customer satisfaction.
JetBlue is the only air carrier that has not entered into any type of bankruptcy protection, or merger or acquisition to allow for its own growth and development. JetBlue has been successful due to its overall strategic plan and budget. The cost conscious carrier has made wise decisions in the overall implementation of such plans. JetBlue has been able to remain on top due to its commitment to its focus on products and service. Another lower operating cost tactic utilized by JetBlue is the use of technology that allows agents to work directly from their homes, providing the company with better scheduling flexibility and saving both time and money.
JetBlue has invested in the newest and most fuel efficient airplanes of modern times. On average the majority of their aircraft are less than six years old. By operating only two types of planes, the airline has been able to minimize its fuel costs; a limited fleet minimizes the number of repair and maintenance problems, and maximizing scheduling and air time operations. By combining efficiency in these areas, JetBlue is able to keep operations costs as low as possible.
Success is in this company’s blood. Efficiency is seen in many aspects throughout the company. Whether it is managing the paperless booking process, greeting each customer with a personal touch or quality, on time flights, JetBlue has got it covered. In 2009, JetBlue was ranked number five in the industry for the most on-time