Jet Blue Airways Case Study

Crafting and Executing scheme Jet dreary Airways case study In 2008 cable enterprisees began to cut back on employee travel, and consumers tried to salve money and used stay-cations instead of vacations, during a pass the U. S. economy slowed and oil prices rose jet render prices went through the roof as a result. to start expose the higher dismiss costs, airlines began increasing revenues by heart and soul such as fuel surcharges, charges for the first canvas bag, charging for blankets, pillows, and headphones, and finally lowering wages and grounding airplanes.Some airlines didnt survive, some decided to form a nuclear fusion to try to buoy the rising costs. Beyond cost, at that place was the prospect of increasing competition, shortages in pilots, flying schools lacked instructors, and tote costs. Some companies as a result of the adjoin of these bare-ass changes employed a new tactics of their own large airlines would steal pilots from smaller companies, luring them with better(p) pay and benefits. JetBlues strategy was to be a caller that would combine the low fares of a send packing airline carrier with the comforts similar to a den in peoples homes.Passengers could ease money while they ate gourmet snacks, sit down in leather seats, and watched television. The goal overall, was to bring kind-heartedness back to air travel. 3. Discuss Jet Blues financial objectives and whether or not the federation has been successful in achieving these objectives. JetBlue was a discount airline carrier, offering passengers low fares, point to point systems, and maintain quick turnaround beats at airports. Its in operation(p) costs were low, especially in comparison to new(prenominal) major airlines.The societys turnaround time was 20-30 minutes, because they did not serve meals, meaning they did not stool to wait for catering serve wells flight attendants stowed carry-on bags in overhead bins, and everyone on staff helped to throw away th e trash after each flight. The alliances organizational culture was a strong one, and it achieved eccentric results by implementing five steps define the company set, hire employees that mirrored company values, extend employee xpectations, try to customers, and create the organizational culture. First step defining the companys values safety, caring, integrity, fun and passion. These values guided the decision making process for employees. arctic was a number one priority, and to exhibit their allegiance to safety, JetBlue teamed up with Medaire Inc. , so that crew members could immediately touch with land based physicians anytime a passenger venomous ill it was also the first airline to entrap Kevlar cockpit doors and surveillance cameras.Step two was to hire employees that mirrored the companys values. During the hiring process, JetBlue wanted to hear that a panorama had done something special for someone else. The third and tail steps involved ensuring that the comp any continued to exceed employee expectations and to ensure that it listened to its customers. The final step in creating the companys organizational culture was to create a culture of excellence the company had to continually emend its suffices and set itself apart from its competitors.Jet Blues strategies for 2008 and beyond included following several new strategies To reevaluate the ways the company was using its assets, burn capacity and cut costs, raise fares and grow in select markets, offer improved services for corporations and business travelers, form strategical partnerships, and increase ancillary revenues. (Thompson, jr. , Strickland, III. , Gamble, 2010). During the deployment of these strategies, Jet Blue further laid out their plans.To reduce capacity and cut costs, JetBlue agreed to make out nine used Airbus A320s in 2008, which netted a cash gain of $100 million. The company delay the delivery of 21 new Airbus A320s, which were scheduled for 2009-2011, to 201 4 and 2015. This allowed JetBlue to cast off off payment for the airplanes, and save on operating(a) expenses. (Thompson, Jr. , et al C-72). The company suspended service in and out of several states, and cancelled plans for service mingled with Los Angeles International Airport and Boston and tender York.Doing so helped save money on fuel expenses. JetBlue started to employ their plan to grow in discriminating markets, and raise its fares. In frame in 2008, JetBlue announced that Orlando would make up a focus city, and that it would open service between Orlando and Cancun, Mexico, as well as Orlando and Santo Domingo, Dominican Republic. This would dumbfound tentatively approved to be Orlandos save service to South America. Also in March 2008, JetBlues average one-way fare reached a high of $138.This was still very competitive with early(a) airline carriers. According to the U. S. Department of Transportation, the average domestic help fare in 2007 was $331. JetBlue made efforts to appeal to business travelers by introducing refundable fares, and allowed corporate group meeting planners to receive meeting specific discounts as well as a complimentary travel certificate for every 40 customers booked to the same event destination. The company entered into a five-year agreement with Expedia Inc. to reach leisure travelers.The goal of forming strategic partnerships was achieved when it developed an agreement with Aer Lingus that let passengers make a single reservation between Ireland and 40 diverse destinations in the U. S, via JetBlues hub John F Kennedy world-wide airport. It also developed a marketing partnership with the Massachusetts based Cape Air, so passengers could transportation between the two carriers to get to places such as Hyannis, Nantucket, and Marthas Vineyard. References http//www. flightglobal. com/news/articles/interview-jetblue-chief-executive-dave-barger-345289/