Jet Blue Airways Case Study Summary
JetBlue Airways: Starting from Scratch
Summary
Introduction (Exhibit 1)
• JetBlue’s service had grown from 9 departures per day at launch in February 2000 to more than 50 per day in the past 11 months. The fleet had grown from 2 planes to 10 with the arrival of one new Airbus A320 every five weeks. The business plan called for adding 10 new planes every year through the end of 2003, bringing the fleet to 40.
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Ann Rhoades, Executive Vice President for People, had been extremely busy – growing the JetBlue team from the original 10 people to almost 1000. She would continue to add approximately 100 new “crew members” with the arrival of every new airplane and, if they hit their plan, JetBlue would employ nearly 5000 people within the next 4 years. She was charged with achieving this rapid growth while building a values-based, high commitment organizational culture. Her experience as head of human resources for Southwest Airlines from 1988 to 1994 provided her with both appreciation for the challenge and expertise to meet it. She was committed to attracting, developing and retaining outstanding people who could make the JetBlue concept a reality. Still, she recognized that JetBlue’s expansion goals were more aggressive than any she had met before.
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Birth of an Airline
• JetBlue was the best-funded start-up in U.S. aviation history, founded in early 1999 with an initial capitalization of $130 million.
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JetBlue’s strategy was to combine common sense with innovation and technology to “bring humanity back to air travel”.
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JetBlue aimed to be the first “paperless” airline, substituting computers and information technology for everything from flight planning to aircraft maintenance to the sole use of etickets. The company was also focused on service: “We believe that all travelers should have access to high quality airline service at affordable fares.” – David Neeleman, founder of JetBlue Of the 51 U.S. airlines founded during the 1980s, only 2 were still
Summary
Introduction (Exhibit 1)
• JetBlue’s service had grown from 9 departures per day at launch in February 2000 to more than 50 per day in the past 11 months. The fleet had grown from 2 planes to 10 with the arrival of one new Airbus A320 every five weeks. The business plan called for adding 10 new planes every year through the end of 2003, bringing the fleet to 40.
•
Ann Rhoades, Executive Vice President for People, had been extremely busy – growing the JetBlue team from the original 10 people to almost 1000. She would continue to add approximately 100 new “crew members” with the arrival of every new airplane and, if they hit their plan, JetBlue would employ nearly 5000 people within the next 4 years. She was charged with achieving this rapid growth while building a values-based, high commitment organizational culture. Her experience as head of human resources for Southwest Airlines from 1988 to 1994 provided her with both appreciation for the challenge and expertise to meet it. She was committed to attracting, developing and retaining outstanding people who could make the JetBlue concept a reality. Still, she recognized that JetBlue’s expansion goals were more aggressive than any she had met before.
•
•
•
Birth of an Airline
• JetBlue was the best-funded start-up in U.S. aviation history, founded in early 1999 with an initial capitalization of $130 million.
•
JetBlue’s strategy was to combine common sense with innovation and technology to “bring humanity back to air travel”.
•
JetBlue aimed to be the first “paperless” airline, substituting computers and information technology for everything from flight planning to aircraft maintenance to the sole use of etickets. The company was also focused on service: “We believe that all travelers should have access to high quality airline service at affordable fares.” – David Neeleman, founder of JetBlue Of the 51 U.S. airlines founded during the 1980s, only 2 were still