Jet Blue

MIDTERM – JETBLUE

Case Study – JetBlue – MG 495

by

Group 2

Jason Fu, Justin Burdett, Rena Cann & Zhizhong Feng

A Paper Presented in Partial Fulfillment

Of the Requirements of

MG – 495

Summer 2011-2012

Abstract

JetBlue was once a booming airline with innovative ideas and a strong, loyal customer base. However, due to short-sided planning and simply getting ahead of themselves their success came to a screeching runway halt. This case analysis intends to examine the demise of JetBlue, but also intends to prepare a plan to action for their revitalization. JetBlue can be rejuvenated, and should be invigorated. Before the downfall they offered a great service that is still lacking in today’s airline industry. Moreover, their downfall is not their death and they can bounce back if they return to the basics that they executed so well. The market still has a need and JetBlue can fill that niche. Careful planning and attention to detail, returning to their prosperous roots, JetBlue should have no trouble garnering a full-recovery. The most difficult aspect though, of their re-growth will be convincing the public they will not get ahead of themselves again, and let the lime-light blind them.

Introduction

Primarily designed as a “point to point” flight operation, JetBlue was launched on August 2000. Targeting low-fare business and leisure travelers, they successfully implemented numerous innovative management and marketing strategies. An example of these efficient and effective strategies is JetBlue’s decision to utilize or operate flying only one single type of plane. This kept maintenance and fuel-costs down. They initiated a “paperless cockpit” that increased effective communication and fostered short gate turnaround. Moreover, JetBlue rose rapidly to its fame and profit. What is more astonishing, is after only a few short years, JetBlue’s “stock offering was one of the hottest IPOs of the year,” (Case 3, P. 230)....