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8/2/2019 Jet Blues (1)
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JET BLUE AIRLINE START UP
David Neeleman C. E. O
Launch of Jet blues : Feb 11, 2000
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Full service carrier
Low cost carrier
Jet blue airline is the low cost carrier on.
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Serve 20 cities around the country
Initially because of inadequate funds, theysecure capital from several high profile firm,
started with initial capital of $130 million
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HISTORY
David Neeleman :
A Man fired from SOUTHWEST AIRLINES.
Became C.E.O of JET BLUES.
Sold his first airline salt lake city based Morris Air, low fareflights between salt lake city and Hawaii, to southwest airline.
After leaving southwest, he launched WEST JET to develop e-
ticketing to implement at Morris Air into open skies.
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CREATING A DIFFERENT KIND OF AIRLINE
Jet blues experience : Along with charging low fare,offering unique experience that delight them on every flight.
Jet blues operation at JFK
Talk the talk and Walk the walk
added long beach municipal Airport
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Ideal airline by offering new aircraft, simple and low fare, leather
seats, free live TV, pre - assigned seating, reliable performanceand high quality customer service, channels of FM radio
Airbus A320 aircraft.
Online customer survey.
Offering $159 vouchers a flight whenever delayed for more then
four hours for reason other then weather or air traffic, receiving$ 25 on a lost or mishandled bag
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STRATEGIES
1. Market segmentation
People who are disgusted with their current choice.
People who have never used airline before.
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2. Focus on point to point service
3. Increased frequency of service to existingmarket & it entered attractive new market as well
4. Added long beach Municipal Airport
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FEATURES
Simplicity, Technology, Design, Entertainment, Friendly people
New aircraft, Simple and low fare, leather seats, free live TV,Pre- assigned seating,
Low operating cost
Technology as competitive advantage
Productive people
customer service service recovery
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UNIQUE SELLING PREPOSITION
1. PUNCTUALITY Ontime service
Reliability
Stand by there.
Words
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UNIQUE BUYING PREPOSITION
Customer satisfaction
Happy with the services
Less complaints
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STATISTICAL ANALYSIS
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REVENUE COMPARISON
Jet Blue Airlines Southwest Airline
Year launched 2000 1971
Employees 2116 35000
First quarter revenue $133 Million $1.26 Billion
Fleet 27 A320S 366 B737S
Daily departure 103 2800
City serviced 19 58
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COMPARISON
Jet blues Airline Southwest airline
1. 5 central valuesSafety, carrying, integrity, fun andpassion
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2. Salaries provided was lower thenothers but provide job security,promotion to pilots after every 3 yrs
Salary provide was better than jetblues but no job security
3. design flight attended positions toencourage employees to stay shortterm rather than long term.
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4. operated without unions Operated with union
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AMBITIOUS PLANS
Plans to serve Turks & caicos Island
Goal to have 290 planes and 25,000 employees
Has started adding frequent flights to 21 cities
Planned international service to santiago, chile and santoDomingo, Dominican Replublic
Expect to hire between 100 to 1800 employees
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CONCLUSION
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THANK YOU
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