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

1. 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

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

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.

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.

8. Linking Values with New
Employees
Safety
Caring
IntegrityFun
Passion

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.

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

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.

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