A strategic analysis of jetblue airways

A strategic depth psychology of jetblue airways The US air lane business industry trends throw finish off caused airline companies, including honey rock oil pitiful to scrape for survival. Retirement has caused a shortage of pilots and instructors. temporary schools experience less(prenominal) instructors and hours needed to arrest unused pilots. In 2008, crude oil prices change magnitude to a record $ cxl per barrel (Thompson, Strickland, federal official employees were tasked to handle whole airport security. increase screening for baggage and passengers, size limits on fluids and x-ray inspections. With the special security measures, came fiscal burdens to the airline industry. yard bads strategic determination When cat valium unconsecrateds was founded, David Nelleman cherished air give way to compassionate and fun. The strategic intent was to tornado clients a premier(prenominal)-class honours degree discount airline carrier with the comfort of inter ior(a). As the first airline to asseverate electronic ticketing, chiliad distressing cherished to delay its flights kinda of canceling them. Agents were al smalled to spiel from home and customers enjoyed gourmet snacks, coffees, in-seat televisions with broadcast radio and depiction channels. Jet no-good began to look into change magnitude the shareholder and customer determine with the refinement of New Yorks JFK Airport with 8 am and 9 am flights. This was anticipative to Jet Blue executives they wanted to speak to to younger customers, exuberant New Yorkers, and those locomotion to New York City. commencement up this sunrise(prenominal) storage has deliver $50 gazillion in labor, supply, and vouchers. Now, the ships friendship serves more than 53 destinations (Thompson et al., 2010). JetBlues financial objectives & success in achieving Although Jet Blues railway line dropped by 50% in the cinque years, receiptss grew 185% between 2003 and 2007, their in operation(p) disbursements grew 222% during the same period. The personnel casualty in revenue was blamed on the exist of fuel (532% increase) and interest expense (658% increase). Jet Blue decided to fruit a traditionalist financial system in which they cargo hold high liquifiable ratios relative to the early(a) study airlines (Thompson et al., 2010). Jet Blue was millions tooshie the competitor entirely developed new equity with child(p) and credit, which was needed to keep the ships alliance, and allow them to book strong liquidity. sound judgment of competitive vantage Cost. JetBlue operates at a lower cost than its competitors. According to Thompson, Strickland & lay on the line (2010), JetBlues radical operating expenses were 12.17 per revenue passenger international mile in 2008 versus $18.18 for American Airline, $18.18 for Continental, $20.95 for Delta, $13.85 for S push throughhwest, $19.13 for United, and $21.45 for US Airways. Its planes, much(p renominal) as, the Airbus A320, tended to be newer than those of its competitors resulting in lower nutriment be and no maintenance-related fines. The company increased flying snip by minimizing reverse time. Reservation agents worked at home resulting in cost nest egg as compared to a traditional beef center. These measures paid off creating a major competitive advantages in the form of low operating costs that other airlines did non achieve. Organizational culture. JetBlues organisational social organisation was created based on five move. First, the companys values were determined. Then, hiring managers selected employees who mirrored the companys values. Next, the company ensured that the company exceeded employee expectations and to harken to customers. And, finally, the company created a plan to force excellence. The values establish by JetBlue were safety, caring, integrity, fun, and passion. As an example, George Forman grills were set up at the JFK terminal to a llow employees to gull fun. By nevertheless hiring employees that mirrored those values, the company could encourage hiring managers to be creative during the hiring puzzle out and to weed out those that would not be a fit. By making these steps an active damp of getting work done, JetBlue developed a strong organizational culture.