Submitted by: Submitted by j39mcdonald
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Category: Business and Industry
Date Submitted: 01/08/2015 08:53 AM
Business policy
JetBlue Airways
JETBLUE AIRWAYS
INTRODUCTION
JetBlue Airways Inc. (LLC) was founded by David Neeleman in February 1999. In
September 1999, JetBlue was offered 75 landing and takeoff slots at the John F. Kennedy
International Airport (JFK) in New York. On February 11, 2000 JetBlue Airways started its
commercial operations with an inaugural flight from JFK to the Fort Lauderdale airport in
Florida. JetBlue Airways was one of the top airlines in the United States, beating out
competitors like Southwest Airlines in profitability and growth. JetBlue’s business was
guided by five key values--safety, caring, integrity, fun, and passion. (Wheelen & Hunger
Pg. 20-2).
In May 2007, Neeleman was asked to step down as CEO and was replaced by David
Barger. Once Neeleman stepped down he was assigned as the non-executive Chairman of
the Board. Neeleman claims that this decision had nothing to with the severe storm that
took place February 2007 which caused the airline to have a service breakdown and
serious financial repercussions, which jeopardized JetBlue’s image as a customer-friendly
airline and tarnished its reliability.
BACKGROUND
From the start, JetBlue although it was a LCC, it was considered to be a “value
player”, JetBlue aircraft were furnished with leather seats, which cost more, but would last
longer. The airline served light snacks instead of regular food. It estimated it saved about
$3 per passenger. The key to JetBlue’s operation was low costs, it did not purchase older
planes, but instead they were outfitted with new A-320 aircraft, which require less
maintenance, more fuel efficient and had a five year warranty. By operating the same
aircraft reduced the cost of pilot training, maintenance, and spare parts.
JetBlue only flew...