Jet blue case study

This project on the basis of ''JET BLUE AIRWAYS''

1. Case Study Jet Blue Airways : Starting from Scratch Presented By : Ajit Gupta PGDM PIBM,PUNE

2. Introduction Established in 1999 by David Neeleman and started service in 2000. Goal : to establish itself as a leading low fare, low cost passenger airline by offering high quality customer service and differentiated products. Mainly focused on underserved markets. Initial capital : $130 million from several investors. Initial operations : 2 planes 0.6 complaints per 100000 passengers compared to an average 2.99 for competitors. Top management levels consisted of talented and reputable veterans.

3. Case Analysis Jet Blue was getting bigger everyday : -The fleet grew from 2 to 10 within 11 months. - Employees grew from 10 to almost 1000, with additional 100 for each new plane. How did Jet Blue achieve rapid growth while building a value-based, high commitment organizational culture ? How it linked technology with customer satisfaction ? How it build non-union environment and what its top management recruitment process ? What about the offering compensation to the different employees.

4. Linking technology with customer satisfaction To provide paperless transactions like e-ticket. Service and amenities like direct T.V. Telecommunication Services. Paperless cockpit. Use of e-manuals by the crew. Better and wider cabin Technology.

5. Strategies Leather seats instead of cloth seats. Use of new aircrafts. Use of more fuel-efficient and less maintenance cost airbus. Point to Point flights. Low fare and low-cost carrier. Use of secondary airports which do not handle too much traffic. Reduction in the Turnaround time by efficient ground staff. Customer oriented approach. Full entertainment flight service. Targeting : people who previously would not go by plane.

6. Decisions for new startup Business Plan Adequate capital Funding and its sources. Where would the new airline be based. What type of aircraft would it fly. How could JET BLUE deliver on the vision of leveraging technology and low cost high service experience. How to Build the Top Mgt. Team. What will be the operations Strategy. How to maximize aircraft utilisation .

7. Top Management Recruitment Process Drew upon Veterans of the industry who were looking for a chance to start from scratch. Like Thomas Kelly, Dave Barger, John Owens, Ann rhodes . Recruiting method based on culture fit. Superior HR packages Diverse life style and preferences like geographical dispersion Telephone conference calls. Off-site meetings. Orientation programs.

8. Linking Values with New Employees

9. How to build non-union environment ? Giving them different activities in different groups. Different employees should get different pay and benefits according to their performance. Example- $20/hour who worked up to 70 hours /month. $30/hour who worked more than 70 hours/month. Flat Hierarchy. Working without rules as a preference. Creating positive environment to keep the workplace union free. Providing equal opportunities to work together to keep them busy, so that they become union free.

10. Offering compensation to different kind of employees Pay and benefits packages to the distinct needs of different employees group but should be intended to ensure overall equity in treatment. Different kind of benefits to Full-time employees like medical benefits, personal time off and double pay. Three distinct job options for flight attendants. One year employment contract for college students. like medical coverage plus $500 per month. Job sharing offered to two people this option for who want to seek the balance b/w work and family. Full time flight attendant. Increasing pays and benefits on evaluating different parameters like sincerity, dedication and job standardization.

11. Challenges Ahead 40 self owned planes with 5000 employees by 2004. Expanding number of cities served. Opening new facilities including a second hub city.

12. Recommendations Learning and development - build the awareness of corporate culture & values. - e-training resources. Employee Engagement for certain duration. Using IT System for data record.

13. Conclusion The key success of the company was the focus to shared corporate values, which drove all activities and were the basis for the development of the organization. To sustain corporate values, core competence integrated in the values must be defined and maintained. Less hierarchical organization aligned with their innovative customer oriented service strategy. Managing talented executive people with their diversity to create shared values. Building solid teamwork through innovative culture result into competitive environment.

14. Thank you…!!! A single thread of hope is still a very powerful thing.