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JetBlue Airways: Starting from
ScratchMasca Indra
Renni RengganisYessie Fransiska L.
JetBlue was incorporated in Delaware in August 1998.
David Neeleman (former Southwest Airlines employees( founded the company in February 1999, under the name "NewAir."
Initial capital of $ 130 million The top management is veterans of the airlines
industry who were looking for chance to start from scratch.
Birth of an Airlines
Home Base : New York City – JFK International Airport Type of aircraft : Airbus 320 (less fuel, better cabin technology,
has a wider cabin) Market Segment : people who aren’t going travel, people who
are disgusted with their current choices, people would drive, or people who wouldn’t go at all
Goals : low fares, great services, and to deliver on that promise over time
Operation Strategy : oThe world’s first paperless airlines
o Each pilot was provided with a laptop into which was loaded all the required flight and operation manuals
o Almost all maintenance logs were also computer basedo E-mail as a media of communication
Introduction to JetBlue
JetBlue started by following Southwest's approach of offering low-cost travel, but sought to distinguish \ itself by its amenities: ◦ High quality service domestic airline with point to-
point service on both short haul and long haul routes.
◦ It offers a differentiated flying experience that includes pre-assigned leather seats and free Direct TV for every passenger.
In Neeleman's words, JetBlue looks "to bring humanity back to air travel.“
JetBlue Business Overview and Strategy
Company’s Core Values
Safety
Caring
IntegrityFun
Passion
Efficient Utilization & High Yields Per Passenger Mile (Utilization and high yields are key to generating revenues and high profits)
in 2001
Degree of Competition
Aircraft operated an average of 12.6
hours/day, the highest in the industry.
Aircraft operated an average of 11.1
hours/day.
Degree of Competition
Low costs and high efficiency enable JetBlue to charge lower fares than its competitors.
As an example, JetBlue’s New Orleans to New York roundtrip fare is significantly cheaper than
that of alternative carriers. JetBlue offers two nonstop flights per day both ways and a roundtrip
fare of $177. Southwest offers no nonstop flights and a roundtrip with one stop in each direction
costing $321.
Degree of CompetitionJet Blue Southwest
Southwest Airlines traces its roots to the March 15, 1967 incorporation of Air Southwest Co. by Rollin King and Herb Kelleher.
Slogans include "Just Plane Smart", "The Somebody Else Up There Who Loves You" and "THE Low Fare Airline". The airline's current slogan is "Grab your bag, It's On!".
Degree of Competition
Degree of Competition
Base of operations is JFK, an airport that has traditionally attractedconsiderably less attention from competitors for domestic flight
activity than either LaGuardia Airport or Newark International Airport because of an industry perception that JFK is primarily an international airport and that the commuting distance from Manhattan to JFK is too
far, as compared to LaGuardia or Newark, to attract domestic travelers.
Vision
Business Strategy
Miles Stone Strategy
“Low Fare Airlines With High Quality Service Experience”
Operation
HCMFinance
Marketing
Leveraging Human
Resources : creating esprit
the corps
Selecting the Right People
Customized Employment
Packages
Market Segment : people who aren’t going travel, people who are disgusted with their current choices, or people who wouldn’t go at all. People who are price sensitive leisure traveler and small business traveler.Not unlike Southwest, JetBlue enters a market where it believes it can generate new demand
• Using ICT as operational system•Two nonstop flights per day both ways•operating one type of aircraft•offering one class of service,•supporting a ticketless reservation system
1. Used new airplanes,
2. Offer great personal service,
3. Create a state of the art revenue management
system,
4. Service fare less than the competition
JetBlue took a conservative financial strategy in which they maintained high liquid ratios relative to the other major
airlines
CORE COMPETENCE Value-based
Concern for Order
Customer Service
OrientationSelf Control Achievement
OrientationOrganizational Commitment
According to Spencer Competence Based Model
JetBlue has survived by a focus on bringing humanity back to air travel at low fares. They focused on
providing value, customer service, and unique extras for customers.
Employees benefit from training and a strong organizational culture.
The business benefited from measures to cut costs and form lucrative partnerships. Presently, the financial reports of JetBlue showed that the company was outperforming its competitors in a recession making the company highly
likely to be successful over the long term.CORE COMPETENCE Value-based is needed for organization in
JetBlue CBHRM to sustain the values
Conclusions
David D. Dubois & William J. Rothwell. Competency-Based Human Recources Management
Ganesh. Competency-Based Human Recources Management Competence at Work: Models for Superior Performance (Lyle M.
Spencer, Signe M. Spencer) JetBlue. (2009). JetBlue's 2009 Annual Report on Form 10-K Jet Blue official website : www.jetblue.com Johnson,Nancy B.2007."LOW-COST COMPETITION TAKING OFF IN
THE GLOBAL AIRLINE INDUSTRY ANDIMPLICATIONS FOR EMPLOYMENT RELATIONS".LABOR AND EMPLOYMENT RELATIONS ASSOCIATION SERIES Proceedings of the 58th Annual Meeting.Univerity of kentucky.
References