Jetblue Airways -- Challenges of Delivering Customer Value

JetBlue Airways – the Value Adding Relationship Between Crewmembers and Customers & the Challenges of Delivering Customer Value in the Airline Industry

Introduction

This paper will examine JetBlue Airways and how the relationship between its crewmembers and its customers add value for this company. The author will also examine the challenges faced by the airline industry in delivering superior customer value. Customer value can have many definitions. Johnson & Weinsten (2004) asserts that “value may best be defined from the customer’s perspective as a tradeoff between the benefits received from the offer vs. the sacrifices to obtain it” (p.5). In the competitive environment that companies operate in now, they have to ensure that they know what their customers want and can deliver it better and less expensive than their counterparts thus creating value added services to their customers. As Johnson & Weinstein (2004), stated “progressive companies that create maximum value for their customers will survive and thrive; they will be able to carve sustainable competitive advantages in the marketplace. Firms that do not provide adequate value to customers will struggle or disappear” (p.4).

JetBlue is one such company that operates in a very competitive airline industry where companies are competing for customer dollar amid air travelers who are expecting excellent customer service, quality and superb customer value.

JetBlue Airways Company Background

JetBlue Airways is one of several airlines operating in the United States. It was incorporated in Delaware in August 1998 and commenced service on February 11, 2000. According to the company’s 2010 Annual Report, for the year ended December 31, 2010 JetBlue was the 6th largest passenger carrier in the United States based on revenue passenger miles, serving 63 destinations in 21 states and Puerto Rico, and eleven countries in the Caribbean and Latin America, operating an average of 650 flights daily....