JetBlue Airways: Starting from

ScratchMasca Indra

Renni RengganisYessie Fransiska L.

JetBlue was incorporated in Delaware in August 1998.

David Neeleman (former Southwest Airlines employees( founded the company in February 1999, under the name "NewAir."

Initial capital of $ 130 million The top management is veterans of the airlines

industry who were looking for chance to start from scratch.

Birth of an Airlines

Home Base : New York City – JFK International Airport Type of aircraft : Airbus 320 (less fuel, better cabin technology,

has a wider cabin) Market Segment : people who aren’t going travel, people who

are disgusted with their current choices, people would drive, or people who wouldn’t go at all

Goals : low fares, great services, and to deliver on that promise over time

Operation Strategy : oThe world’s first paperless airlines

o Each pilot was provided with a laptop into which was loaded all the required flight and operation manuals

o Almost all maintenance logs were also computer basedo E-mail as a media of communication

Introduction to JetBlue

JetBlue started by following Southwest's approach of offering low-cost travel, but sought to distinguish \ itself by its amenities: ◦ High quality service domestic airline with point to-

point service on both short haul and long haul routes.

◦ It offers a differentiated flying experience that includes pre-assigned leather seats and free Direct TV for every passenger.

In Neeleman's words, JetBlue looks "to bring humanity back to air travel.“

JetBlue Business Overview and Strategy

Company’s Core Values

Safety

Caring

IntegrityFun

Passion

Efficient Utilization & High Yields Per Passenger Mile (Utilization and high yields are key to generating revenues and high profits)

in 2001

Degree of Competition

Aircraft operated an average of 12.6

hours/day, the highest in the industry.

Aircraft operated an average of 11.1

hours/day.

Degree of Competition

Low costs and high efficiency enable JetBlue to charge lower fares than its competitors.

As an example, JetBlue’s New Orleans to New York roundtrip fare is significantly cheaper than

that of alternative carriers. JetBlue offers two nonstop flights per day both ways and a roundtrip

fare of $177. Southwest offers no nonstop flights and a roundtrip with one stop in each direction

costing $321.

Degree of CompetitionJet Blue Southwest

Southwest Airlines traces its roots to the March 15, 1967 incorporation of Air Southwest Co. by Rollin King and Herb Kelleher.

Slogans include "Just Plane Smart", "The Somebody Else Up There Who Loves You" and "THE Low Fare Airline". The airline's current slogan is "Grab your bag, It's On!".

Degree of Competition

Degree of Competition

Base of operations is JFK, an airport that has traditionally attractedconsiderably less attention from competitors for domestic flight

activity than either LaGuardia Airport or Newark International Airport because of an industry perception that JFK is primarily an international airport and that the commuting distance from Manhattan to JFK is too

far, as compared to LaGuardia or Newark, to attract domestic travelers.

Vision

Business Strategy

Miles Stone Strategy

“Low Fare Airlines With High Quality Service Experience”

Operation

HCMFinance

Marketing

Leveraging Human

Resources : creating esprit

the corps

Selecting the Right People

Customized Employment

Packages

Market Segment : people who aren’t going travel, people who are disgusted with their current choices, or people who wouldn’t go at all. People who are price sensitive leisure traveler and small business traveler.Not unlike Southwest, JetBlue enters a market where it believes it can generate new demand

• Using ICT as operational system•Two nonstop flights per day both ways•operating one type of aircraft•offering one class of service,•supporting a ticketless reservation system

1. Used new airplanes,

2. Offer great personal service,

3. Create a state of the art revenue management

system,

4. Service fare less than the competition

JetBlue took a conservative financial strategy in which they maintained high liquid ratios relative to the other major

airlines

CORE COMPETENCE Value-based

Concern for Order

Customer Service

OrientationSelf Control Achievement

OrientationOrganizational Commitment

According to Spencer Competence Based Model

JetBlue has survived by a focus on bringing humanity back to air travel at low fares. They focused on

providing value, customer service, and unique extras for customers.

 Employees benefit from training and a strong organizational culture. 

The business benefited from measures to cut costs and form lucrative partnerships. Presently, the financial reports of JetBlue showed that the company was outperforming its competitors in a recession making the company highly

likely to be successful over the long term.CORE COMPETENCE Value-based is needed for organization in

JetBlue CBHRM to sustain the values

Conclusions

David D. Dubois & William J. Rothwell. Competency-Based Human Recources Management

Ganesh. Competency-Based Human Recources Management Competence at Work: Models for Superior Performance (Lyle M.

Spencer, Signe M. Spencer) JetBlue. (2009). JetBlue's 2009 Annual Report on Form 10-K Jet Blue official website : www.jetblue.com Johnson,Nancy B.2007."LOW-COST COMPETITION TAKING OFF IN

THE GLOBAL AIRLINE INDUSTRY ANDIMPLICATIONS FOR EMPLOYMENT RELATIONS".LABOR AND EMPLOYMENT RELATIONS ASSOCIATION SERIES Proceedings of the 58th Annual Meeting.Univerity of kentucky.

References