Jetblue Case Study

JetBlue Airways: Growing Pains

A case report prepared for MG 495 Business Policy

Spring 1 2012

28 February 2012

I. INTRODUCTION A. EXECUTIVE SUMMARY 1. Summary statement of the problem: The services at Jet Blue were acclaimed by industry experts and customers alike. In 2005 and 2006, the company began experiencing internal and external problems. Then in 2007 a winter storm plunged the airlines into an operational catastrophe that saw customers stranded on the tarmac at JFK airport for hours without the care that they had become accustomed. CEO David Neeleman and his executive were challenged with finding a way to restore the airlines once stellar reputation amidst concerns of rising oil prices and increasing operating expenses. One of JetBlue’s main issues is redesigning their website. JetBlue when first starting their airline business were posting a profit when the U.S. Airline industry announced losses of around $2 billion. JetBlue Airways was doing everything appropriately to keep an authentic operation and while remaining loyal to their customers. To solve the web design issue, JetBlue Airways held a meeting with HUGE to help redesign their website. 2. Summary statement of the recommended solution: Like all other companies, JetBlue is always striving for ways to increase their customer base and maximize profits. JetBlue offered discounts when the individual used a travel agent, which caused customers to book reservations online. Neeleman, the CEO of JetBue Airway’s developed an electronic reservation system, which helped in lowering the cost of JetBlue’s daily operations. JetBlue tasked HUGE with the redesign of their online website with the intentions to bring JetBlue’s legendary friendliness and brand to the web. Leaders had to create a solution that both made the company profitable again and that would restore the company’s outstanding reputation. Among other concerns were an aging fleet of plans and plans to expand operations. Analysts believed...