Verified Document

Strategy The Airline Industry -- Case Study

g. Lufthansa); partners with Blackberry and Yahoo for in flight conveniences. Early aggressive additions to fleet and service did, as analysts predicted, negatively impact the company.

Company will need to carefully evaluate routes, new service, new equipment, and new technology in order to maintain growth potential.

Management

Fairly stable and industry respected; replaced CEO in May 2007.

Needed a new managerial focus after 2004.

Optimistic, keep tight rein on overly aggressive expansion.

Human Resources

Jet Blue University, compensates better than most airlines, rewards loyalty for service

Unsuccessful attempt at unionizing

Ensure mission is translated to consumers; empower local employees to make better decisions so clients are not left sitting on tarmac.

Market Share

Huge and rapid growth spurt in early 21st century

Became a model for other carriers; major carriers copied model and took away share

Continued energy and fiscal focus on consumers and next generation of airline ideas.

Marketing Focus

Focus on consumer; what can be different about Jet Blue, but still cover costs?

May have cut too many services in 2002-4; now charges for leg room.

Strategic partnerships with entertainment and other organizations to promote the business aggressively.

(Wynbrandt, 2004)

Jet Blue seemed undaunted by the losses in 2006. Instead of hanging its head, though, Jet Blue pulled out not one, but two strategic profitability plans. This not only included some tough decisions about routes and equipment, but a rethinking of the entire flight experience. Since fuel was the highest expenditure, Jet Blue decided to remove some seats -- lighten the load, provide more legroom for passengers (at a fee, of course), reduce crew size, and save on fuel. David Barger, the new CEO said that he "will focus on developing Jet Blue's long-term vision and strategy, and how we can continue to be a preferred product in a commodity business" (Jet Blue Press Release - Names Dave Barger President and CEO, 2007).

Realizing that the airline market is both highly competitive and fickle, the company is doing some extremely innovating things with marketing and strategic partnerships. For instance, selling 19% of the company to Lufthansa now opens up the longer range European routes; partnering with Hollywood and "The Simpsons"...

It has experienced, however, some rather major and rapid changes over time. In an era of numerous "no-frills" carriers, Jet Blue continues to differentiate itself from others in the market by offering reserved seating, little meal service depending on the distance of the flight, a television in every seat, and a more traditional hub-and-spoke route structure that combines both long and short-term flights. As it continues to find new destinations for its client base, it may continue to grow, never requiring Saturday stays, or all the complexities of the major airlines. Jet Blue remains poised for the future, with its target market continuing to be, "people who aren't going to travel, people who are disgusted with their current choices, people who would drive, or people who wouldn't got at all" (Gittell, 2003, 225).
REFERENCES

Air Transportation Safety and System Stabilization Act, Public Law 107-42. (2001, September 22). Retrieved October 2010, from Office of Transportation - U.S. Government: http://ostpxweb.ost.dot.gov/aviation/Data/stabilizationact.pdf

Jet Blue Press Release - Names Dave Barger President and CEO. (2007, May 10). Retrieved October 2010, from JetBlue.com: http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irol-newsArticle&ID=998672&highlight=))

Air Travel Report: Dip in Delays, Spike in Complaints. (2010, October 12). Retrieved October 2010, from CNN Travel: http://www.cnn.com/2010/TRAVEL/10/12/air.travel.consumer.report

Jet Blue Shareholder Information. (2010, October 12). Retrieved October 2010, from Jet Blue: http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irol-irhome

Fisk, P. (2009). Marketing Genius. New York: Wiley.

Gittell, J. (2003). The Soutwest Airlines Way. New York: McGraw Hill Professional.

Globe Newswire. (2010, June). Flying: It's Why JetBlue Created Jetting. Retrieved October 2010, from NASDAQ OMX Global Newswire: http://www.globenewswire.com/newsroom/news.html?d=142150

Mill and Morriston. (2002). The Tourism System. DuBuque, IA: Kendall Hunt.

Wynbrandt, J. (2004). Flying High- How Jet Blue Founder and CEO David Neelean Beats the Competition. New York: Wiley.

Sources used in this document:
REFERENCES

Air Transportation Safety and System Stabilization Act, Public Law 107-42. (2001, September 22). Retrieved October 2010, from Office of Transportation - U.S. Government: http://ostpxweb.ost.dot.gov/aviation/Data/stabilizationact.pdf

Jet Blue Press Release - Names Dave Barger President and CEO. (2007, May 10). Retrieved October 2010, from JetBlue.com: http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irol-newsArticle&ID=998672&highlight=))

Air Travel Report: Dip in Delays, Spike in Complaints. (2010, October 12). Retrieved October 2010, from CNN Travel: http://www.cnn.com/2010/TRAVEL/10/12/air.travel.consumer.report

Jet Blue Shareholder Information. (2010, October 12). Retrieved October 2010, from Jet Blue: http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irol-irhome
Globe Newswire. (2010, June). Flying: It's Why JetBlue Created Jetting. Retrieved October 2010, from NASDAQ OMX Global Newswire: http://www.globenewswire.com/newsroom/news.html?d=142150
Cite this Document:
Copy Bibliography Citation

Related Documents

Lufthansa Structure and Governance. Performance and Competition.
Words: 6658 Length: 26 Document Type: Essay

Lufthansa Structure and Governance. Performance and Competition. Five-force analysis. Lufthansa is one of the oldest and most successful commercial airlines in the world, and is the fourth-largest in terms of passengers. However, the company has not always been so successful, and in fact was teetering on the brink of bankruptcy just a short while ago. By examining Lufthansa's history, structure, governance, and contemporary strategies and goals, one is able to see how the company

Lufthansa Describe the Type of
Words: 1992 Length: 7 Document Type: Essay

There is no evidence to support the notion that Lufthansa requires an entrepreneurial mindset. There is no discernable purpose that an entrepreneurial culture would serve that is sorely needed by Lufthansa and an entrepreneurial culture would not address the company's most pressing strategic needs. The company has been able to demonstrate entrepreneurial skill in the past with the Star Alliance, but it is in a mature industry that is

Lufthansa 2003 Analyze the Case
Words: 1056 Length: 3 Document Type: Term Paper

Out of company total fixed assets estimated at €10,002 billion, €3,273 billion is in aircraft and €63 mln. A more in other tangible assets. The company has extensive fleet and is currently devoted to improving it in all the business segments, including passenger and freight services. 5. Apply the value chain model to Lufthansa. Based on this model, in which activities does Lufthansa have its main competencies? In 2005, the biggest company

Lufthansa Cargo
Words: 1818 Length: 6 Document Type: Research Paper

Air Cargo Management Lufthansa Cargo Lufthansa Cargo is a cargo airline company that is based in Germany. The company provides airline cargo, air freight, and logistic services. Lufthansa transports cargo and mail from airport-airport. Lufthansa is the largest airline in Germany and is amongst the leading airlines in the world. The company is headquartered at the Frankfurt Airport in building 451. Lufthansa Cargo has access to other cargo capacities in their Lufthansa

Financial Analysis for Lufthansa Financial
Words: 1535 Length: 6 Document Type: Research Paper

7. Overall Performance Lufthansa is one of the strongest corporations of the globe and a major player on the European airline market. Its success is obvious in the satisfaction of their customers or the fact that their employees love working for the company, and it often materializes in opportunities for growth and development. Throughout the past recent years, the German airline organization has managed to increase its customer base, its fleet

Southwest Vs. Lufthansa Quality Management Creating Value
Words: 894 Length: 3 Document Type: Essay

Southwest vs. Lufthansa quality management Creating value through quality management Southwest Airlines is famed for having one of the most unique business models and philosophies of any airline. It began as a ground-breaking organization that offered bare-bones, low-cost services to passengers. Flight crews were entertaining and responsive to passenger needs, and even though no in-flight meals were served, customers flocked to Southwest. The company openly advertises that it selects its employees because they

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now