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JET BLUE AIRLINE START UP

 David Neeleman – C. E. O  Launch of Jet blues : Feb 11, 2000

 Full service carrier

 Low cost carrier Jet blue airline is the low cost carrier on.

Serve 20 cities around the country

Initially because of inadequate funds, they secure capital from several high profile firm, started with initial capital of $130 million

HISTORY
David Neeleman :
 A Man fired from SOUTHWEST AIRLINES.  Became C.E.O of JET BLUE’S.  Sold his first airline salt lake city based Morris Air, low fare flights between salt lake city and Hawaii, to southwest airline.  After leaving southwest, he launched WEST JET to develop eticketing to implement at Morris Air into open skies.

CREATING A “DIFFERENT KIND OF AIRLINE”
Along with charging low fare, offering unique experience that delight them on every flight.  Jet blue’s operation at JFK  “ Talk the talk and Walk the walk”  added long beach municipal Airport

Jet blue’s experience :

 “Ideal airline” by offering new aircraft, simple and low fare, leather seats, free live TV, “pre - assigned seating”, reliable performance and high quality customer service, channels of FM radio  Airbus A320 aircraft.

 Online customer survey.
 Offering $159 vouchers a flight whenever delayed for more then four hours for reason other then weather or air traffic, receiving $ 25 on a lost or mishandled bag

STRATEGIES
1. Market segmentation

 People who are disgusted with their current choice.  People who have never used airline before.

2. Focus on point to point service

3. Increased frequency of service to existing market & it entered attractive new market as well

4. Added long beach Municipal Airport

FEATURES
 Simplicity, Technology, Design, Entertainment, Friendly people

 New aircraft, Simple and low fare, leather seats, free live TV, “Pre- assigned seating”,
 Low operating cost

 Technology as competitive advantage
 Productive people  customer service

 service recovery

UNIQUE SELLING PREPOSITION

1. “ PUNCTUALITY”
 Ontime service  Reliability  Stand by there.

 Words

UNIQUE BUYING PREPOSITION

 Customer satisfaction  Happy with the services  Less complaints

STATISTICAL ANALYSIS

REVENUE COMPARISON
Jet Blue Airlines Year launched Employees First quarter revenue Fleet Daily departure City serviced 2000 2116 $133 Million 27 A320S 103 19 Southwest Airline 1971 35000 $1.26 Billion 366 B737S 2800 58

COMPARISON
Jet blue’s Airline Southwest airline

1. 5 central values Safety, carrying, integrity, fun and passion
2. Salaries provided was lower then others but provide job security, promotion to pilots after every 3 yrs

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Salary provide was better than jet blue’s but no job security

3. design flight attended positions to encourage employees to stay short term rather than long term.

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4. operated without unions

Operated with union

AMBITIOUS PLAN’S
• Plans to serve Turks & caicos Island

• Goal to have 290 planes and 25,000 employees
• Has started adding frequent flights to 21 cities • Planned international service to santiago, chile and santo Domingo, Dominican Replublic • Expect to hire between 100 to 1800 employees

CONCLUSION

THANK YOU