Jet Blue Hits Turbulence

Group Members.
 History of the Company
•Started in February 2000 with promising top-notch
customer Service.

•The airline featured new Airbus A320 planes with leather

seats, each equipped with personal TV screen, and average
on-way fares of only 99$.

•At that time it was able to provide relatively luxurious

Flying experience by using information systems to automate
key process such as ticket Sales and baggage handling.

•Jet Blue prided itself on its paperless processs.

Continue
•CIO(Chief Information officer)- Jef Cohen. He depended
almost exclusively on Microsoft software products and using
a single vendor provided a technology frame work where he
keep small staff and favor in house development of systems
over outsourcing and relying on consultants

•Jet Blue spent only 1.5 percent of its revenue on IT as

opposed to the 5 percent spent by the competitors.

•Al most it was running fine at that time.

Growth and Problem Faced by the
Company
•By the end of 2006 the company was operating 500 flights
daily in 50 cites and $2.4 billion in annual revenue.

•Along the way JetBlue committed to purchasing a new plane

every five weeks through 2007.

•Feb. 14 2007 most of Flights cancelled due to A fierce ice

storm stock.

•Due to this the company faced a lots of problems. Like did

not have a system in place for the rested crews to call in and
have their assignments.
 Growth and Problem Faced by the
Company
•The airline industry is marked by low profit margins and high
fixed costs.

•The company had lacked systems to keep track of off-duty flight

crews and lost baggage.

•The reservations system could not expand enough to meet the

high customer call volume.

•Moreover JetBlue could not find enough qualified employees to

staff its phones.

•The company employs about 1500 reservation agents who work

primarily from their homes,linking to its navitair open skies
reservation system using
 Contd…
•An internet based voice communication system.

•Many ticketholders were unable to determine the status of

their flights. Because the phone lines were jammed. Some
callers received a recording that directed them to Jetblue’s
web site, which is not working properly.

•So the total process became unmanageable.

Solutions.
•The company promised to train 100 employees from
airline’s corporate office to serve as backups for the
departments that were stretched too thin by the effects of
storm.

•The website and reservation system must be able to

accommodate a high volume of traffic.
Solutions Contd...
•The company had implemented security measures, change
control procedures and disaster recovery plans.
Conclusion

•Finally When business conditions improve and jetblue is

able to expand again.

•JetBlue demonstrated that it’s an adolescent in the airline

industry and that it has a lot of learning and growing up to
do.
Question