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this is a case about jet blue.how jet blue change its strategy to recover its sales r customers..what features they revise or how they satisfy their customers

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Mailk Umair Ali Raza Sumaira Munsif Fatima

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C-208 CASE 28 JETBLUE AIRWAYS CORPORATION: GETTING OVER THE “BLUES”? * In 2017 JetBlue faced challenges that included rising fuel prices, troubling technical disruptions, and declining quality of the flying experience. Since the beginning of 2016, JetBlue had enjoyed low fuel prices that helped increase their earnings about 18 percent during the second quarter of 2016,1 but the company experienced technical issues that caused booking problems and resulted in delays, as well as bad publicity. In order to cope with the likelihood of a rise in future fuel prices, JetBlue undertook massive cost reductions by investing in cabin restyling, for instance, adding more seats to JetBlue’s A320 airplanes. However, the shrinking legroom that accompanied the cabin restyling was despised by passengers, which posed a problem for an airline that had once offered customers a captivating (as opposed to a captive) flying experience. To meet the challenges, new CEO Robin Hayes orchestrated various initiatives that the company planned to take through 2017. Those initiatives included wider fare options, enhanced Mint services, cabin restyling, new lines of JetBlue credit cards, and partnerships with other airlines.2 The founding CEO of JetBlue, David Neeleman, had been ousted by the board of directors after a notorious event when an ice storm severely disrupted the airline’s operations.3 In 2007, Dave Barger, an employee since the inception of JetBlue in 1998, became the second CEO of the company. Ultimately Barger was pressured to step down amid constantly depressed stock prices. In February 2015, Robin Hayes took charge of the company as its third chief executive. Hayes was the executive vice president of British Airways for the Americas before joining JetBlue in August 2008. Having worked for about 25 years and having extensive experience in the airline industry, Hayes was considered an optimal choice to become the third chief executive of Jet Blue. The U.S. Airline Industry The U.S. airline industry consists of three primary segments: major airlines, regional airlines, and low-fare airlines. Major U.S. airlines, as defined by the Department of Transportation, are those with annual revenues of over $1 billion. Most major airlines utilize the hub-and-spoke route system. In this system, the operations are concentrated in a limited number of hub cities, while other destinations are served by providing one-stop or connecting service through the hub. Scheduled flights serve most large cities within the United States and abroad and also serve numerous smaller cities. Regional airlines typically operate smaller aircraft on lower-volume routes than do major airlines. They typically enter into relationships with major airlines and carry their passengers on the “spoke”—that is, between a hub or larger city and a smaller city. Unlike the low-fare airlines, the regional airlines do not have an independent route system. Deregulation of the U.S. airline industry in 1978 ushe.

C-208 CASE 28 JETBLUE AIRWAYS CORPORATION GETTING OVER THE BLUES.docx

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STANFORD GRADUATE SCHOOL OF BUSINESS JETBLUE AIRWAYS: A NEW BEGINNING CASE: L-17 DATE: 9/13/10 If we were going to change on this magnitude as quickly as we were trying to, we had to involve everybody that did the work in the work. -Rob Maruster, JetBlue Airways Chief Operating Officer 1 An ice storm bit JFK Airport in New York on February 10, 2010, severely reducing airport capacity for more than 24 hours. The day before the storm hit, JetBlue Airways, based at JFK, had cancelled 386 flights scheduled for the following day, including all 261 flights scheduled to take off from JFK. The cancellation decision was made well in advance, based on weather forecasts-passengers and aircrews were notified up to 36 hours before their flights. Since passengers on cancelled flights did not come to the airport, the level of stress generally experienced when boarding areas were full of people impacted by cancelled or delayed flights was greatly reduced. The airline adjusted plans for airplanes and aircrews so that it could quickly recover once the storm passed. The next day, operations resumed in an orderly way, although another 138 flights were cancelled. 2 The schedule was completely back to normal two days after the storm. This was a far cry from the impact of a six-hour ice storm three years earlier. That event, called by some the "Valentine's Day Massacre," had stranded nine JetBlue planes, full of passengers, on the tarmac for more than six hours. The company had delayed making cancellations, hoping the weather would clear, but eventually had to cancel 1,195 flights over a period of six days, costing about $41 million. 3 JetBlue was pilloried in the press and called before Congress-a shocking turn of events for a company predicated on the idea of "bringing humanity back to air travel," and consistently rated as one of the best (if not the best) airline for passenger service. 1 Quotations are from interviews with the author (Hoyt) unless otherwise specified. 2 Cancellation statistics from JetBlue Airways. 3 John Harvey, JetBlue CFO, in "QI 2007 JetBlue Airways Earnings Conference Call-Final," Voxant FD Wire, A ril 24, 2007. David Hoyt and Professors Charles O'Reilly, Hayagreeva Rao, and Robert Sutton prepared this case as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright © 2010 by the Board of Trustees of the Leland Stanford Junior University. All rights reserved. To order copies or request permission to reproduce materials, e-mail the Case Writing Office at: [email protected] or write: Case Writing Office, Stanford Graduate School of Business, 518 Memorial Way, Stanford University, Stanford, CA 94305-5015. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means - electronic, mechanical, photocopying, recording, or otherw.

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Read Case 10: Southwest Airlines. Answer questions 1-4 in a three to five page APA style paper, and supported with the concepts outlined in your text and from your previous classes. 1. Describe the current state of the airline industry and analyze what an airline can do to be successful in the current industry climate. 2. Perform a SWOT analysis for Southwest Airlines. 3. Assess the competitive position of Southwest Airlines by completing a competitor profile for Southwest airlines and at least two of its major competitors. 4. What alternatives does Southwest Airlines face to address the problem of declining financial performance? Southwest Airlines 2008 1 In 2008, Southwest Airlines (Southwest), the once scrappy underdog in the U.S. airline industry, carried more domestic passengers than any other U.S. airline. The company, unlike all of its major competitors, had been consistently profitable for decades and had weathered recessions, energy crises, and the September 11 terrorist attacks. In the first quarter of 2008, the company was profitable and experienced record first quarter revenue and a record passenger load factor (percentage of available seats sold). However, the earnings release made it clear that the “threat of volatile and unprecedented jet fuel prices” was a major issue that threatened future growth. Operating expenses were rising, and Southwest announced that it would cut 2009 growth in available seats to less than 3%. Over the previous decade, growth had been about 5–10% a year. This cut in planned growth was consistent with previous responses to difficult environments. An insight into Southwest’s operating philosophy can be found in the company’s 2001 Annual Report: Southwest was well poised, financially, to withstand the potentially devastating hammer blow of September 11. Why? Because for several decades our leadership philosophy has been: We manage in good times so that our Company and our People can be job secure and prosper through bad times. . . . Once again, after September 11, our philosophy of managing in good times so as to do well in bad times proved a marvelous prophylactic for our Employees and our Shareholders. THE U.S. AIRLINE INDUSTRY The U.S. commercial airline industry was permanently altered in October 1978 when Presi- dent Carter signed the Airline Deregulation Act. Before deregulation, the Civil Aeronautics Board regulated airline route entry and exit, passenger fares, mergers and acquisitions, aattract and retain the world’s top talent have combined to create a combination of path-dependent resources that are very difficult for even the wealthiest software and Internet companies worldwide to easily emulate, acquire, or accelerate. It will take years for any competitor to develop the expertise, infrastructure, reputation, and capabilities to compete effectively with Google. Coca-Cola’s brand name, Gerber Baby Food’s reputation for quality, and Steinway’s expertise in piano manufacture would ta ...

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Public Relations - Read about the following Public Relations (PR) disaster from Business Insider and then post your comments on how you, as an airport director, would avoid getting involved in this PR nightmare. In early 2007, nine JetBlue flights at JFK airport were delayed for up to 10 hours because of serious inclement weather. Normally, this wouldn't have resulted in much more than a few really irritated travelers, but in this case, JetBlue decided to keep its nearly 1,000 passengers trapped in the runway-bound planes for the entire time. According to CBS News, passengers described the experience as "horrific". As snacks depleted and the bathroom situation grew unpleasant, people on the planes grew more and more upset that they were not being allowed to de-plane and walk to the terminal, which was within sight. They were only permitted to leave the aircraft when official airport vehicles arrived to transport them to the terminal. JetBlue at first defended it's decision, arguing that its passengers' safety in the ice storm was top priority but the incident sparked government debate about passengers' rights. According to Consumer Affairs, a week later, JetBlue announced its own "Passengers' Bill of Rights", which detailed different levels of compensation for varying types of delays, as well as a promise to de-plane passengers after five hours' delay in the future. (Male, 2009) (Links to an external site.) Bill of Rights for Customers - JetBlue (Links to an external site.) - JetBlue is dedicated to bringing humanity back to air travel. We strive to make every part of your experience as simple and pleasant as possible. Read what your classmates have to say and comment on at least one. The format you use in the discussion forum is your choice; however, you are expected to write coherently, in full sentences, while paying close attention to spelling and grammar, and fully addressing the given assignment. Conventions of “online etiquette,” which include courtesy to all users, must be observed. .

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This document gives strategic failure of Delta airlines and how the management did adopted various strategies for the revival of the Airlines .Delta Air Lines, Inc., commonly alluded to as essentially Delta, is a noteworthy United States carrier, with its base camp in Atlanta, Georgia. The carrier, alongside its backups and provincial associates, works more than 5,400 flights day by day and serves a broad local and worldwide system that incorporates 304 goals in 52 nations on six landmasses, as of October 2018.

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