Jetblue Airlines' Success Story


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:

Case Code : BSTR045 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges

Themes

Cost Leadership
Case Length : 15 Pages
Period : 2003
Organization : JetBlue Airways
Pub Date : 2003
Teaching Note : Available
Countries : USA
Industry : Airlines

Abstract:

The case describes the reasons for the success of JetBlue, a three-year-old, low-cost airline, operating in the USA. JetBlue was set up by David Neeleman, who earlier founded a very successful discount airline called Morris Air in Utah. He also helped found West Jet, another discount airline in Canada. Neeleman set up JetBlue in 2000 and modeled it on the lines of the most well known of discounters- Southwest Airlines. JetBlue adopted a strategy for effective cost control by identifying and eliminating all unnecessary expenses and concentrating on providing high quality services to its passengers. Towards this end, it adopted a number of innovative measures on the planes such as: not serving food, point-to-point flights, and quick turnarounds. It also made effective use of advertising to position itself as a fun airline. JetBlue's innovative operational model helped it succeed at a time when the major players of the airline industry were crumbling.

Issues:

Analyze the measures adopted by a firm effectively cutting costs and at the same time maintaining a high standard of service

Contents:

  Page No.
Jetblue Beats the Biggies 1
Background 2
Jetblue's Success Model 3
Looking Ahead 8
Exhibits 10

Keywords:

JetBlue, three-year-old, low-cost airline, operating, USA, David Neeleman, discount airline, Morris Air, Utah, West Jet, Canada, 2000, modeled, Southwest Airlines, effective cost, high quality services, passengers, not serving food, point-to-point, flights, turnarounds, advertising, fun airline, operational model, airline industry, crumbling

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