Jet blue airline_combin-2[1]
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JetBlue Airways was founded in 1999 by David Neeleman with a goal of providing low-cost, high quality air travel. The airline placed a large initial order for Airbus aircraft and began service in 2000 between New York and several cities. JetBlue utilized new technologies, an all-coach cabin configuration, and excellent customer service to differentiate itself from competitors. While successful initially, by the mid-2000s JetBlue faced challenges including operational issues, rising fuel costs, and increased competition that required changes to its business model and fleet.
Jet blue airline_combin-2[1]
- 1. JetBlue Airways: Starting from Scratch
- 2. Histroy Time Events February-1999 Founder David Neeleman announces plans for his new airline April-1999 JetBlue (then known as "New Air") places a $4 billion order with Airbus Industrie for up 75 new A320 aircraft, and commences leasing arrangements for another eight aircraft July-1999 JetBlue reveals that all its aircraft will offer 24 channels of live satellite television at every seat, a first for the airline industry September-1999 JetBlue receives an unprecedented exemption for 75 take-off and landing slots at John F. Kennedy International Airport (JFK) 4-Dec-1999 JetBlue takes delivery of its first Airbus A320 aircraft 3-Feb-2000 The United States Department of Transport (DOT) issues JetBlue with a Certificate of Public Convenience and Necessity, representing the successful completion of the airline's application processes before both the DOT and the Federal Aviation Administration 17-Feb-2000 JetBlue adds service between JFK and Buffalo NY 21-Jun-2000 JetBlue begins flights between JFK and Orlando , FL 23-Jun-2000 JetBlue takes delivery of its 5th Airbus A320 aircraft 21-Jul-2000 JetBlue commences flights between JFK and Ontario, CA, near Los Angeles
- 3. History 7-Sep-2000 JetBlue adds service between JFK and Burlington, VT 18-Oct-2000 JetBlue commences flights between JFK and West Palm Beach, FL 10-Nov-2000 JetBlue takes delivery of its 10th Airbus A320 aircraft 17-Nov-2000 JetBlue inaugurates service between JFK and Salt Lake City, UT 18-Nov-2000 JetBlue adds service between JFK and Fort Myers, FL 1-May-2001 JetBlue inaugurates service between JFK and Seattle, WA and adds a daytime flight to Oakland, CA 7-May-2001 JetBlue inaugurates service between JFK and Syracuse, NY, its third upstate city 17-May-2001 JetBlue inaugurates service between JFK and Denver, CO and adds a daytime flight to Ontario, CA 18-Jul-2001 JetBlue orders up to 48 more Airbus A320 aircraft valued at $2.5 billion. The airline's fleet order now totals up to 131 new A320 aircraft 26-Jul-2001 JetBlue starts twice daily service between JFK and New Orleans, LA 29-Aug-2001 JetBlue launches second focus city in Long Beach, CA with two daily flights to JFK 9-Nov-2001 JetBlue takes delivery of its 20th Airbus A320 aircraft 19-Dec-2001 JetBlue expands service between JFK and Fort Lauderdale, FL to ten daily flights
- 4. David Neeleman Background JetBlue Airline Morris Airline South West Airline In 1993, he sold to South West Airline and joined top management team . He was bringing new technology to South West (e-ticket), but he didnt fit the culture Open Skies ( in 1998, sold to Hewlett Packard)
- 5. Top Management Team Thomas Kelly -executive vice president and general counsel (really old friend of Neeleman) Dave Barger -president and chief operating officer (New York Air and Continental Airlines Newark experience) John Owens - chief financial officer (South West 14years experience) Ann Rhoades - executive vice president of human resources (30years of experience in service based businesses)
- 6. Initial Strategies Base Home: New York (population, central location and JFK airport-T5) http://www.youtube.com/watch?v=BvD5Hx9T94s&NR=1 Aircraft: A320s (less fuel, better cabin technology and wider cabin) Paperless: pilot communication, e-ticket and A320 highly computerized increase performance
- 7. Entrepreneurship Refers to conceiving an opportunity to offer new or improved goods or services, showing the initiative to pursue that opportunity, making plans, and mobilizing the resources necessary to convert the opportunity into reality.
- 8. Social Entrepreneurship Refers to the conceiving of an opportunity to provide social value, relentlessly pursuing that opportunity while being accountable to relevant stakeholders, continuously learning from and improving upon plans, and mobilizing the resources necessary to sustainably convert the opportunity into reality.
- 9. Four Steps of Entrepreneurial Process Step 1: Identify Opportunity Step 2: Show Entrepreneurial Initiative Step 3: Develop a Plan for the New Venture Step 4: Mobilize Resources
- 10. Mainsteam Approach vs. Multistream Approach Mainsteam Multistream 1.Identify opportunity Offer a product or service that meets a need that people are willing to pay for Offer a product or service that meets or eliminates a needs that people have 2. Show entrepreneurial initiative Personality traits--- Need for accomplishment Sense of confidence Life-path circumstances Need for achievement Self-confidence Transition, push, pull Need to help others Confidence in community Transition, push, pull 3. Develop plans for the new venture Have plans in place prior to start-up highlight financial costs and benefits Focus on flexible ongoing learning; highlight financial, social, and ecological costs and benefits 4. Mobilize resources Attract financial resources and get started Establish community support and get started
- 11. The Entrepreneurship of JetBlue Step 1: Identify Opportunity 鐚 Low fares 鐚 Highly productivity 鐚 Advanced technology 鐚 Safety 鐚 Customers expectation 鐚 Efficiency Financial Well-being Ecological Well-being Social Well-being Sweet Spot
- 12. The Entrepreneurship of JetBlue Step 2: Show Entrepreneurial Initiative Personality traits--- Need to help others Confidence in community Life-path circumstances Transitions Push Pull
- 13. The Entrepreneurship of JetBlue Step 3: Develop a Plan for the New Venture Summary Concept of the new venture Management team Operations Timeline, projected performance, and contingency plans
- 14. The Top Management team of JetBlue David Neeleman the founder, chairman and CEO of JetBlue Thomas Kelly Executive vice president and general counsel Dave Barger president and chief operating officer John Owens chief financial officer Ann Rhoades executive vice president of human resources
- 15. The Entrepreneurship of JetBlue Step 3: Develop a Plan for the New Venture Summary Concept of the new venture Management team Operations Timeline, projected performance, and contingency plans
- 16. Flight Operations in JetBlue Paperless highly computerized (computer based) the perfect 30-minutes turnaround
- 17. Human Resources in JetBlue hold the same values A non-union environment customized employment package other HR practices - 320-degree performance management process -communication (one-on-one conversations)
- 18. The Entrepreneurship of JetBlue Step 3: Develop a Plan for the New Venture Summary Concept of the new venture Management team Operations Timeline, projected performance, and contingency plans
- 19. The Entrepreneurship of JetBlue Step 4: Mobilize Resources --Attracting the support from community and get started Resources Finical resources, physical resources, and social resources
- 20. Shareholders wealth Competitive advantage Stakeholder well-being Nurturing community and ecological sustainability
- 21. Four steps of Strategic Management
- 22. Step 1. Review mission and vision Mainstream: Maximizing organizational competitiveness Increasing shareholders well-being Multistream: Mutually beneficial cooperation Multiple stakeholders well-being Values drove all other activities and were the basis for the development of an organization. ~ Ann Rhoades. Safety, Caring, Integrity, Fun and Passion
- 23. 油
- 25. Mainstream Multistream Physical Resources Material assets Ecological friendly Human Resources Member competency Seeking work-life balance Infrastructural Resources Organization structure and system Developing nurture work
- 26. Five forces modelMichael Porter Mainstream Multistream Supplier power Welcome new supplier Customer power Welcome specific buyer Threats of substitutes Enhance overall community well-being Threat of entrants Removing Barriers Intensity of rivalry Raising Beneficial interdependence
- 27. No sell snacks during flights relatively new airline company that the reason it still not have complete market hold on 50 states. In year 2005 it had faced Aircrafts problems which reduced the profits. Airline is operating in 12 countries. The airline industry growth is not up to the mark but still JetBlue profits are on higher side. Increase the number of flights. Penetrate in US market. 911 crisis increases the security threat for airline industry Recession in US may lower the revenues. unpredictable fuel price facing Strong competition in US and International market. The low cost Airline of America. Strong people on top management 油Strong Brand widely known among the people of US. continually hiring talented and experience people
- 28. Mainstream Multistream Finical cost leadership - Minimizing Overall cost leadership - Minimizing Differentiation Minimizer strategy Focus Transformer strategy
- 30. Mainstream Multistream Content school (rational- analytic, top-down, linear strategy) Emergent strategy (central nervous system and unexpected signal) Process school (bottom-up, emergent, egalitarian approach) Strategy learning from stockholders and members
- 31. JetBlue s Challenges and Present Day
- 32. Challenges How to maintain the success?
- 33. The growth of JetBlue JetBlue Revenue In 2009 Fleet:151 Employees:>10,000
- 34. JetBlue University Opened in 2005 3 Major Training Centers (Orlando, Forest Hills, and Salt Lake City)
- 35. New Challenges The significant Challenges in 2005 -- The first quarterly loss in 4th quarter 2005 ($42.4 million)
- 36. New Challenges --Operation issue --Fuel price --Fleet costs
- 37. New Aircraft Begined Embraer 190 serves In 2005
- 38. New Aircraft 156 passenger seat configuration 2,700 nautical mile range 100 passenger seat configuration 2,000 nautical mile range
- 39. SWOT of ERJ 190 Strength and Opportunities Serve both large-and mid-sized markets Enter new markets Reduce fuel costs Weaknesses and Threats Against one model aircraft strategy operation experience Maintenance issue
- 40. Fuel price Reference:http://www.airlines.org/economics/energy/Annual+Crude+Oil+and+Jet+Fuel+Prices.htm Year Price( 鐃 /gal) -2001( 鐃 /gal) 2001 74.7 -- 2002 70.9 -3.8 2003 85.7 11.0 2004 120.8 46.1 2005 172.7 98.0 2006 197.0 122.3 2007 216.5 141.8 2008 298.0 223.3 2009 169.1 94.4
- 41. Fleet costs Fleet: 2001: 21 A320 2002: 37 A320 2003: 53 A320 2004: 69 A320 2005: 85 A320 and 7 ERJ 190 Reference:http://www.planespotters.net/Airline/JetBlue-Airways
- 42. Incidents and Accidents 2005.09.21 Emergency landing 2007.02.14 Snowstorm ( $ 30 million compensation)
- 43. RTP( Retune to Profitability) Cut costs and improve revenue to regain profitability Slowed growth by deferring ERJ 190 deliveries Increasing revenue by Selling 5 A320 Reducing fuel costs by removed a row of seats off (156 to 150) to lighten the aircraft by 910 lb ( 410 kg) Reducing labor costs by decreasing the in-flight crew size from 4 to 3 Increasing revenue by selling legroom seats which increased the seats pitch by removed seats
- 44. Innovations In 2002 LiveTV, LLC In 2004 36 DIRECT TV channels In 2007 Free, limited Wi-Fi
- 45. Interesting Promotions In 2005 Blue Betty In 2009 All you can fly
- 46. Blue Betty Blue Betty since 2005 Designed to take the JetBlue Experience to the streets
- 47. Blue Betty
- 48. All You Can Fly passengers can book an unlimited amount of flights over a month for $599.
- 49. JetBlue 2009 Report JetBlue 2009 report Revenue: $3.29 billion Net income: $58million/$-85million(2008) Fleet: 150 aircrafts/ 112 A320 &38 ERJ-190 Serve 60 cities with 600 daily flights in 11 countries
- 50. Conclusion David Neeleman Entrepreneurship *Identify opportunity *Show entrepreneurial initiative *Development a plan for the new venture *Mobilize resources JetBlue Strategies *Review mission and vision *Analyze external and internal factors (SWOT) *Formulate strategies *Implement strategies
- 51. Conclusion JetBlue Challenges *fuel prices continue raise *delivery new aircraft (Embraer190) *crisis resolve Successful key element *sensitive strategies making *customized human resources management *effective operation about e-systems *innovation *forecasting ability
- 52. Jet Blue vs. South West Strategies: Jet Blue South West 1. Human Resources Customized Humanity 2. Operation E-systems Paper work 3. Innovation High Low 4. Facility Low High 5. Service High High 6. Cabin crew Plentiful Fun