Business / Jetblue Airlines

Jetblue Airlines

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Autor:  anton  19 December 2010
Tags:  Jetblue,  Airlines
Words: 1011   |   Pages: 5
Views: 418

JETBLUE AIRLINES

OCTOBER 2006

JetBlue started their business in a positive approach, by ensuring the main elements were in place prior to starting operations. Compared to JetBlue’s counterparts that started up their airlines in the 1980’s and 1990’s, JetBlue began with a highly experienced senior management team, dedicated core values, and plenty of capital to ride out the low times.

JetBlue’s strengths and opportunities compared to the industry are:

Strength & Opportunities:

• Highly experienced leadership team

• Above industry level wage compensation and benefits

• Customized employee compensation packages

• Fun, caring work environment

Weaknesses & Threats:

• As with any new startup companies, the unknown syndrome

• Will they attract the ‘right people’ to work and will they attract enough business

• Will the economy take a turn for the worse, such as fuel prices rocketing out of control

• Will the employees automatically ask for the unions to take over

CSFs:

• Must get the minimum amount, $130 million, for financing prior to starting operations

• Must have key elements of senior and top management teams in place

• Must obtain key location for first hub for operations

• No unions

David Neeleman, JetBlue CEO and owner, had the right idea for starting up his JetBlue airline. With this idea firmly in mind, he began by selecting highly experienced individuals with like-minded values to the senior management team. Each individual brought in their expertise in their particular areas, and each wanted to start a company from scratch and do everything in the “right way.”

Before starting the hiring process, Ann Rhoades, Executive Vice President of Human Resources, wanted to take the best parts of human resources and incorporate them into JetBlue. She surveyed the top management team to define the core values they wanted for the organization. The results are the five core values for JetBlue: Safety, Caring, Integrity, Fun, and Passion.

The only value that stands above the rest as a priority is safety. Without safety, any organization would have a very difficult journey to success. The remaining four values are equals amongst themselves and are caring, integrity, fun, and passion. By incorporating these values, JetBlue created a new airline category – an airline that offers value, service, and style (Staff Writer, “JetBlue Airways Celebrates Significant Construction Milestone at JFK's Terminal Five,” JetBlueAirways.com, 17 October 2006. URL: http://investor.jetblue.com/phoenix.zhtml?c =131045&p=irol-newsArticle&ID=917707&highlight=, accessed 16 October 2006.)

The leadership strove to provide the employees a fun and caring work environment. They wanted to ensure their employees received as fair treatment as possible, just like the customers of JetBlue. The organization provided above average compensation/benefits, excellent training, career opportunities, and a great environment to work. By providing an employee friendly environment, there was no need to bring unions into the organization. Rhoades set up a customized employee package for their compensation and benefits. The choice of packages allowed the employees to pick the package that aligned best with their individual preferences. Highly trained and happy employees teamed with technologically equipped aircraft, provided first class accommodations at coach fares. Passengers from all types of backgrounds flew JetBlue for the service, price, and pleasure. Michael Eisner, formerly the CEO of Disney, flew to New York City on JetBlue (Harvey Levin, “Michael Eisner is Blue -- Jet Blue,” TMZ.com. URL: http://www.tmz.com/2006/08/23/michael-eisner-is-blue-jet-blue/, accessed 18 October 2006.)

Human Resources provided customized employee compensation/benefits packages. By giving each employee their choice of benefits, they supported the value of caring. Customized compensation packages were unheard of within the industry because it made the Human Resources Departments work too hard. This process gave the employees some say in their compensation packages and served as an incentive to future recruiting periods.

The recruiting process was a deliberate process to ensure each member of JetBlue had the same core values and personality to make the perfect “fit” within their organization. By scrutinizing each applicant as carefully, the company came very close to retaining all of their first year employees. Only a handful did not hold up to the values that JetBlue fostered. This deliberate and methodical process ensured the employees were compatible with the core values, and inherently, with each other while making the working environment more enjoyable.

JetBlue gave prospective applicants a promise of great training. Employees received excellent training prior to performing their duties, ensuring that JetBlue maintained a well-tuned work force at all times. The outstanding training ensured JetBlue maintained a safe working environment for their employees. JetBlue provides their employees a fun and caring work environment and leads the industry in safety (Mike Davidson, “Jet Blue’s Masterful Approach,” Mike Davidson.com, 22 September 2005. URL: http://www.mikeindustries.com/blog/archive /2005/09/jet-blue, accessed 17 October 2006.)

Growth was the greatest challenge that faced JetBlue in the future. Growth is a natural development of a successful organization. However, unplanned growth could cause their initial success take a turn for the worse, as employees come in with the wrong values, improper or incomplete training, or both.

Recommendation: Strategic human resource planning would continue the recruitment of highly qualified individuals with the same core values and personality JetBlue desired. While the costs of selective recruitment and superb training are expensive, the costs of these two processes will pay off with dividends as the employees are prepared to perform their duties immediately at their peak performance once the new aircraft arrives.

Update (October 2006): JetBlue named the “Best Domestic Airline” for the fifth consecutive year by Conde Nast Traveler's Readers Choice Awards on 17 October 2006. Five years ago, JetBlue served 20 destinations with 3,700 crewmembers. Today, they serve 47 destinations with nearly 11,000 crewmembers, yet they claim to have remained true to their core promise to deliver the most value for the lowest fare.

BIBLIOGRAPHY

1. Staff Writer. “JetBlue Airways Celebrates Significant Construction Milestone at JFK's Terminal Five.” JetBlue Airways.com, 17 October 2006. URL: http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irolnewsArticle&ID=91 7707&highlight=. Accessed 16 October 2006.

2. Levin, Harvey, “Michael Eisner is Blue -- Jet Blue.” TMZ.com. URL: http://www.tmz.com/2006/08/23/michael-eisner-is-blue-jet-blue/. Accessed 18 October 2006.

3. Davidson, Mike. “Jet Blue’s Masterful Approach.” MikeDavidson.com, 22 September 2005. URL: http://www.mikeindustries.com/blog/archive /2005/09/jet-blue. Accessed 17 October 2006.



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