BUSINESS

Crafting and Executing Strategy of Jet Blue Airways



Crafting and Executing Strategy of Jet Blue Airways

Answer -1

The trends apparent in the airline industry of USA have had a massive impact on the industry hence leading to a change in a strategic direction. In the year of 2008, the price of the fuel had risen up to the level of $140/barrel. Record breaking price of airlines initiated a struggling phase for JetBlue. Higher fuel prices resulted in a higher price of tickets. The cost price constituted of fuel surcharge along with baggage fee, edibles. It also included the price of utilizing pillows and blankets which previously was absent. The price continues to fluctuate with fuel prices and inflation.

Currently the airline industry is facing a shortage in terms of qualified pilots. According to the International Air transport Association approximately 3000 pilots are required annually and currently the flying schools are not producing enough qualified pilots to meet the demand. The premise behind the lack of qualified flyers is the fact that there aren't qualified instructors to produce qualified pilots. Second reason behind the shortage of labor is the fact that the baby boomers have reached their retirement age leading to a shortage. The strategy made use by the airline industry is raising the monetary value of the salary to ensure that it attracts pilots. This strategy, however, has had a negative impact on air industries with respect to increasing labor costs.

After the twin tower attack, the congress established an act whereby it was decided that employees at a federal level should be thoroughly involved with security screening conducted at the airport. Approval of the act made the airline industry introduce security at numerous levels. Security checks were further intensified in the form of x-ray inspection, limiting the access of fluids on the plane and intense screening procedures of passengers as well as the baggage they carry in hand. Furthermore, The airlines also introduced Secure Flight program which involved Registered Traveler Program. This program had background information provided by the passenger along with biometrics in the case of frequent flyers. Other checks involved the introduction of undercover officers and pilots who are armed and compact cockpits. Such safety precautions are effective but simultaneously result in higher expenses (Kaplan, 2006).

After the twin tower, attack approximately $6 billion has been invested to avoid similar instance. The strategy implemented by JetBlue aided in eradicating the hindrances (Schneier, 2008).

Answer- 2

The premise of JetBlue upon introducing was to bring the concept of humanity to air travel. The concept was introduced by David Nelleman who was a JetBlue's founder. The premise was to have a discounted airline carrier and simultaneously providing quality comfort and quality service to its consumers. The philosophy of JetBlue included providing utmost convenience to customers in the form of having delayed flights rather than cancelled flights. Furthermore, JetBlue was the very first airline to establish a Bill of rights for the travelers. It was a pioneer in introducing electronic ticketing aided in providing convenience and ease ...