Jetblue Airways - Problem Solving Models

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- Fun and productive environment

Fun and passion were 2 of the 5 core values of the company, which it seriously followed. It aimed to be the first “paperless” airline with use of e tickets. The airline founder David Neeleman believed that all travellers should have access to high quality airline service at affordable fares. Low fares, new planes, leather seats with more legroom, good food made a productive environment, full of fun and flexibility. JetBlue also maximized aircraft utilization to 13.5 hours a day, compared to an industry average of about 10 hours.

- 360 degree performance management process

It was a belief at JetBlue that as they grew, more formal training and development processes would be needed. So they introduced a 360-degree performance management process, called a “320- degree” process to reflect their use of A320 aircraft. The dimensions rated in this process reflected the five core values of the company- Safety, Caring, Integrity, Fun and Passion.

- Quick pre-flight checks

The process of checking in, obtaining boarding pass and occupying seats was a seamless process with optimum use of technology and innovation. Secondly, each pilot was provided with a laptop computer into which was loaded all the required flight and operations manuals, software to do the load and flight planning, and communications software, which made the process automated and very quick.

5. What will it take to execute on the success factors of JetBlue?

- Low fare- The effective and maximum utilization of aircraft hours which was 13.5 hours as compare to industry average of 10 hours

- New planes- Airbus A320s instead because of various advantages. Airbus 320s burned less fuel. It had wider cabin compared to Boeing. It also used better cabin technology. Each seat in Airbus had an extra space of 1 inch as compared to Boeing. Both the airways also differed in their turn-around times

- Convenience in ticketing- without having to stand in line

- Compensation- $159 for delay of more than 4 hours and 25$ for misplaced bags

6. As a VC, would you invest in this company? Would you invest if it went public today? Why or why not?

- The prominent success venture of Air Morris under leadership of David Neeleman who had immense experience in airline industry and under his leadership company was valued at $139 million from $59 in just one year.

- Adoption of Southwest Airlines model which has been growing at rate 12 to 18 % & capitalization on Technology & being Customer oriented reflects effective strategy.

- Management team consisted of talented people with established reputation in the industry

- The growth rate & value proposition record of the company reflects future potential and investment worthy

- Thus investment in JetBlue Airline Stock upon public listing is feasible.