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"...
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