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Abstract

The case describes the reasons for the success of JetBlue, a three-year-old, low cost airline, operating in the USA. JetBlue was set up by David Neeleman, who earlier founded a very successful discount airline called Morris Air in Utah. He also helped found West Jet, another discount airline in Canada. Neeleman set up JetBlue in 2000 and modelled it on the lines of the most well-known of discounters: Southwest Airlines. JetBlue adopted a strategy for effective cost control by identifying and eliminating all unnecessary expenses and concentrating on providing high quality services to its passengers. Towards this end, it adopted a number of innovative measures on the planes such as: not serving food, point-to-point flights, and quick turnarounds. It also made effective use of advertising to position itself as a fun airline. JetBlue's innovative operational model helped it succeed at a time when the major players of the airline industry were crumbling. The case discusses how a low cost, start-up airline was able to succeed at a time when the big names in the industry were suffering losses.

Teaching and learning

This item is suitable for postgraduate courses.
Location:
Industry:
Size:
Large
Other setting(s):
1998-2003

About

Abstract

The case describes the reasons for the success of JetBlue, a three-year-old, low cost airline, operating in the USA. JetBlue was set up by David Neeleman, who earlier founded a very successful discount airline called Morris Air in Utah. He also helped found West Jet, another discount airline in Canada. Neeleman set up JetBlue in 2000 and modelled it on the lines of the most well-known of discounters: Southwest Airlines. JetBlue adopted a strategy for effective cost control by identifying and eliminating all unnecessary expenses and concentrating on providing high quality services to its passengers. Towards this end, it adopted a number of innovative measures on the planes such as: not serving food, point-to-point flights, and quick turnarounds. It also made effective use of advertising to position itself as a fun airline. JetBlue's innovative operational model helped it succeed at a time when the major players of the airline industry were crumbling. The case discusses how a low cost, start-up airline was able to succeed at a time when the big names in the industry were suffering losses.

Teaching and learning

This item is suitable for postgraduate courses.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
1998-2003

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