Jet Blue

Bringing humanity
back to Air Travel?
Submitted to:
Dr. Nilanjan Sengupta
Professor
Chairperson Academic enhancement
Sdm-imd, Mysuru

Submitted by:
Nithin Srinivas (2111)
Mohammed Rayyan (2112)
Ronak S (2113)
Industry Background
 The American aviation corp. the first air transport company
 The world war 2 which helped them support in their research and development of the aircraft
 The dismantle of the economic regulatory systems that allowed the airlines to operate under the
market forces
 Low cost carriers
Jet blue Summary
 Founded in feb 1999 with a multitude of advantages that even the South west did’t have
 With the home base as JFK, it started its operations out of California’s long beach airport in
2001
 The terrorists attack that proved most profitable for the company in September 11, 2001
 The “Valentine’s Day Nightmare”
Inception
Low cost carrier market was dominated by South west Airlines for over 20 years until 1999.

1999 market the entry of Jet Blue in the market.

Major US carriers had launched many low cost subsidiaries like United Express,Delta
Express,etc.

Jet Blue started with multitude of advantages over South west.

 Started with the largest initial capital of any
airline of about $160 million.

Powerful lobbying by NY politicians who were

upset with high fares of exiting airlines provided
them with 75 slots at JFK.
Advantages
Business model similar to already successful
Of Jet Blue South West. Additionally had satellite tv’s for
every leather seat.

Did not have labour issues as the work force was

ununionized.
Fiasco
Despite fall in profits, they kept on adding new aircrafts and adding new routes which led to markets
questioning their Customer rights and ethics .it led to what was famously known as Valentine’s Day
nightmare.

When their planes were stranded on runways due to a storm and passengers suffered inside the planes
and at the airports.

Jet Blue staff was not capable of taking queries which led to a miserable situation.

As a result losses amounted to $30 million,plus a loss in reputation.

Turnaround

With losses and loss of reputation on its New Policies and Operations were Reviewed and published its code for
head their CEO took the responsibility improved. ethics.
and apologized.
 Investors

Employees

Airports

Stakeholder Competitors
analysis Lenders

Passengers

Policy Makers
Conclusion
Continuous evaluation for every move is very necessary.

Every disaster shows its signs of coming.

Ethics create a value which is unparalleled

Better late than never.

 Questions
 Q1. Were there any pre-crisis signs that the
company would respond the way it did? If
so, what were the indicators of a potential
crisis?
 Q2. Evaluate JetBlue’s handling of the
‘aftermath’ of the event. What actions
would you take as CEO of the firm if you
were to handle the situation for containing
the crisis from the stakeholders’
perspective?

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