Jetblue Airways:

Starting from
Scratch
THURSDAY, 16 SEPTEMBER 2021

Syndicate 6
School of Business and Management
Bandung Institute of Technology
Journal Review…1)
Jet Blue Airways is one of the successful
airline services companies in the United
States owned by Neeleman. Jet Blue
provides low-cost airline services and
quality services with the application of
information technology (e-ticket &
Paperless) in running its business.
Journal Review…2)
Jetblue builds a good top management
team. Neeleman recruits qualified and
indeed talented people in their fields
who he has known for a long time to
occupy top management positions
Journal Review…3)
Company values ​are compiled based on
the aspirations of all members of the
company (Safety, Caring, Integrity, Fun,
Passion)  Value is used as a work
culture for all employees.
Neeleman Plans Jet Blue's sustainable
strategic success strategy by:
1.Decide to run a business based on low rates and quality service by
prioritizing customer satisfaction.
2.Take the opportunity of a niche market (niche market) by opening new
flight paths that have not existed before but have good market
opportunities.
3.Using information technology in running their business. Starting from the
recruitment process, ticket reservations using e-tickets, customer service
(all of which are user friendly), the process of carrying out work, aircraft
service, and employee evaluation processes.
4.Do not build a Reservation Center and prefer to use an agency system
(approximately 500 agents).
5.Choosing the Airbus A320 over the Boeing 737 because the A320 has
various superior features both in terms of wider space and the technology
applied to the aircraft and makes passengers more comfortable.
 Strategy of Human Resource
Management:
1. Paying employee salaries higher than the highest standard of average
employee salaries in other airlines.
2. Adjusting salary with dedication and performance of employees, not with
seniority. If the employee works up to 70 hours/week then the employee will
get paid $20/hour, and if the employee works more than 70 hours/week then
the employee will get paid $30/hour.
3. Provide benefit packages for employees. Good for new employees (with no
probation period), for permanent employees (benefits in the form of time off,
health insurance, 2x pay for coming to work on holidays, year-end bonuses,
and others), and benefits for freelance employees who still get health
insurance and bonuses.
4. Offer to own Jet Blue stock options (shares) to its employees. Pilots,
dispatchers, and technicians are passionate about this, they are willing to pay
a premium for it.
Recommendation
The company needs to build an integrated
management system between the management
system outside the HR function and the talent
management system.
Lesson Learned
To build sustainable strategic success, an organization must care for its
employees and focus on managing their talent development. The
recruitment process is directed at finding talented individuals who
match the core values ​of the organization. In recruiting employees,
organizations should not only take new employees who will serve as
contract employees but also recruit many freelance employees.
Thank you
Strength
- Low Operating Cost
- Strong Brand
- Efficient employees
- Consumer satisfaction
- Effective use of technology
Weakness
- New Competitors
- Concentration on middle class
- High maintenance costs
Opportunity
- Industry expansion
- Technology
- Penetrate in US market
- - Route and fleet expansion
Threat
- Strong comptetition
- Security issues
- - Employee unions
- - The price of fuelis unpredictable