JetBlue Airlines

JetBlue was created by David Neeleman. He had previously worked for Morris Air, which he and Morris co-founded. He introduced the first online ticketing system while he was president, greatly simplifying the reservation process. Neeleman obtained a great deal of managerial expertise through his later employment with Southwest Airlines and other roles in the aviation sector (Ford, R. C. (2004).

Neeleman had the idea to turn JetBlue Airlines into a low-cost, low-fare airline with excellent customer service. He then hired managers from Southwest Airlines who were well educated and screened. This has made decision making in the organization a very effective and a highly-structured process.

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Low fare charges

JetBlue airlines is built on the principle of low fare so as to promote flying with them. This is attractive to the customers. This has made JetBlue more favourable to customers. As long as the airline maintains the low fare charges the customers will remain loyal.

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Attractive customer service

A happy customer is a loyal customer. JetBlue airlines have invested a lot in the comfortability of their aircrafts. The passengers are offered DIRECTV which includes live stream televised programmes, unlike other airlines with recorded television programmes. It has ensured that every passenger has their own screen at the back of their seats.

These services are attractive to a customer and can be used to retain loyal passengers especially when it comes to traveling families with little children.

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Low operation costs

As of 2017 October 1st, JetBlue Airlines decided to stop using agents for flight bookings. Customers can now book their flights online. This has reduced the cost of paying the agents or third parties and instead of making it more convenient for the potential customer to view the offers and book the seats that they desire.

Low fuel costs have also enabled JetBlue to maintain reduced operational costs. This, therefore, enables the airline to make profits since it has reduced costs and even though the fares are low there are still profits attained at the end of the financial year (Griffin, R. W. (2007).

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Strong brand

JetBlue Airlines have a strong brand name associated to them. It was ranked number 1 domestic airline by Coned Nast traveller magazine.

This then makes it possible for the potential customer to be acquainted with it. The management must, therefore, invest in advertising so as to popularize the brand.

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Weaknesses

1)Operating in few countries

JetBlue has not yet diversified its operations to other countries. This is why it is known as a domestic airline.

It operates only in US, Central America, Mexico and South America. This makes it have a limited source of supply for customers (Weiss, J. W. (2009).

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2)Unexpected fuel price rise

In the case where fuel costs may increase, JetBlue is likely to have an increase in costs which therefore makes the profit turnout to be low.

This unpredictability makes JetBlue airlines a risky enterprise to engage in.

With these, we get to know that JetBlue just like any other company has to work on their strengths to enhance the growth of the company and to curb the weaknesses.

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3)Competition from other competitors

Other rising companies are setting pace that is for sure unpredictable in the aviation industry. This leads to low outcome in the passengers.

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4)Unfavorable aviation rules that may affect business operations

FAA have set too much rules that govern the aviation industry which some are so harsh that discourage some internal progress in the company.

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5)Rise of costs for example replacing agents with a software

With the changing of technology each day, it has become hard for the company to cope with the much money that is used daily.

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TOTAL:

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1.71

References

Ford, R. C. (2004). David Neeleman, CEO of JetBlue Airways, on people strategy = growth. Academy of Management Executive, 18(2), 139-143. doi:10.5465/ame.2004.13836034

Griffin, R. W. (2007). Fundamentals of management: Core concepts and applications. Boston, Mass: Houghton Mifflin.

Weiss, J. W. (2009). Business ethics: A stakeholders and issues management approach. Australia: South-Western Cengage Learning.