Jetblue Airline

1. INTRODUCTION:

1. Background of company

This case discusses about the issue of JetBlue Airways – one of low fares of discount airline carriers. The idea for establish this company made by David Neeleman. He was well versed in customer service and had worked in the travel and airline industry before starting JetBlue. He also worked for Morris Air, a small carrier based in Salt Lake city for many year. He staffed his first senor management team carefully. David Barger was hired as president and COO because he had been the vice president at Continental Airlines. Besides that, Neeleman hired John Owen as executive vice president and CFO. JetBlue made John F.Kennedy (JFK) International Airport its hub. The first flight launched by JetBlue between buffalo and New York City on February 11, 2000. The one-way fare of JetBlue at that time is lower than other carriers. The original target at JetBlue is to focus on market consisted of the 8 million people in five-mile radius around JFK. However, Neeleman realized that JetBlue’s target also appealed to young, affluent profession- population. JetBlue’s development grew rapidly from 2000 to 2007. The number of cities served is 12 in 2000 increase to 53 in 2007. The number of aircraft (owned and leased) also increased from 10 to 134 in 2007. However, JetBlue faced to some difficulties discussed later. JetBlue concentrated on establishment a strong organizational culture. Ann Rhoades, JetBlue’s first executive vice president of human resources believed that “ people can accomplish the extraordinary when they are give the authority and responsibility to succeeded”. JetBlue created friendly environment toward five values known as: safety, caring, integrity, fun, and passion. Moreover, JetBlue was one of the first companies to use information technology to keep costs down. It used Open Skies software to handle electronic ticketing. Most passengers prefer e-ticket than a paper-ticket, as it cost $1 to process...