This came as result of the firm's cost-cutting efforts after it lost $85 million in 2008 amid the start of the downturn and skyrocketing fuel prices. The company had also turned a profit in 2007 (MSN Moneycentral, 2010). Clearly, the company has been able to adapt to its circumstances and meet its financial objectives. Revenues, however, shrunk in 2009, no doubt as the result of cutting routes in order to trim costs.
JetBlue does not derive a competitive advantage from its cost structure. The reason is not that JetBlue has poor control over its costs, because it does. The reason is that other discount airlines follow the same policies and achieve the same results -- the competitive advantage JetBlue may once of have on cost was not sustainable and now other airlines match their cost-cutting efforts. Organizational structure does provide JetBlue with some advantages. The firm is able to control its costs well, and make route adjustments where necessary as the result of its organizational structure. These advantages are also not sustainable.
The most sustainable element of JetBlue's competitive advantages is the corporate culture. JetBlue aims to provide a high level of service along with the discount flight cost. Both a low cost strategy and a high customer service tactic require a strong corporate culture. The company's employees need to be jointly committed to cost cutting as a way of life and the delivery of high levels of customer service. It is too easy to sacrifice service in the name of cost-cutting, but JetBlue has not taken this approach. An example would be the JetBlue Customers' Bill of Rights, which is a significant statement of intent from the company that compels its employees to live up to the high service standards set therein.
JetBlue has set relatively modest...
Clearly the collaboration lessons learned from employee training and development, also used to create a more cohesive financial reporting system, did not get implemented within customer service. As a result, JetBlue in 2007 had the worst financial year of performance ever and eventually replaced their CEO (Carey, 2007). The implications from the Valentine's Day 20007 fiasco for JetBlue at La Guardia Airport shows that when systems, processes and people
JetBlue is an airline based in New York City, operating both domestic and international routes. JetBlue was founded in 1999 by David Neeleman, a former Southwest Airlines executive, using much the same business model. The company received 75 landing slots at JFK later that year, and by December had taken delivery of its first aircraft from Airbus. The first flight was on February 11th between JFK and FLL (JetBlue.com, 2015).
Economics of NAFTA There have been a number of changes in the global economy of the world over the past decade. It is important to examine the North American Free Trade Agreement (NAFTA) and determine if it has helped and/or hindered the economies of all three countries, if it has accomplished what it was established to do, and if over the past ten years it has resulted in additional trade agreements
Jet Blue Airways Theoretical Framework to Crisis Management Approach in Business Continuity Jet Blue Airways Valentine's Day crisis 2007 Jet Blue Airways BCM Crisis management Stakeholder Analysis Invocation and escalation Management and recovery Closure and review Enterprise Management Jet Blue Airways Business continuity management (BCM) is defined by the Business Continuity Institute as 'holistic management process that identifies potential impacts that threaten an organization and provides a framework for building resilience and capability for an effective response that safeguards the interests
Jetstar also now gives customers with more expensive tickets priority boarding, although it plans to retain unallocated seating for reasons of efficiency. The airline buys the points from its parent but strategically recovers costs by prompting people to buy more expensive tickets and attracting back customers (Creedy, 2005). The carrier's frequent-flyer scheme has produced a revenue gain that offset its cost, such as big business routes, an immense amount
session long project. Thank ! Case 1 Let's start assignments class examining structure passenger airline market. Market structure analysis requires a supply demand side market, case, airline passengers airline companies. Airline industry Identify key external factors that affect the passenger airline industry and explain how that impact occurs The airline industry is affected by a number of cultural and economic factors. The price of fuel has an obvious impact upon the input
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