Essay by chao8378University, Bachelor's March 2006

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JetBlue truly is a creative genius and a leader in its innovativeness in understanding its target market. With CEO and founder David Neeleman at helm it has had the right idea from the start, giving value to every customer by providing the best service and doing it while keeping the cost low. Since they started operating as of February 2000, JetBlue were able to offer attractive fare price, high frills services and frequent flights to various domestic points through embracing new technologies and operation practices. The purchase of Airbus A320 was clearly a wise investment as they are much more advanced, more fuel efficient, taking less training time and much more comfortable. JetBlue's human resource practices were, no doubt, another crucial advantage to its success. JetBlue were unique in that they did not unionized their employees therefore was able to keep their labour cost low. Overall, JetBlue were able to achieve such success mainly through its acquisition of many experts with insightful knowledge about the existing airline industry.

Industry Analysis & Recommendation

Although JetBlue was one of the profitable airlines in the US it faces many challenges ahead. The challenge lies with the rise of competition, the increase in fuel, insurance and maintenance cost, these poses a serious threat to JetBlue's survival. Its current service attributes, although unique, can easily be duplicated by its many competitions. The few advantages that JetBlue has are in its cost saving strategies. The use of technology has allowed JetBlue to move towards a 100% paper-less e-ticket which has, on average, saved 20% of cost on ticketing prices. Their unique practices of human resources were allowing them to move away from the expensive traditional downtown office, while not affecting the productivities through incentive programs. By flying red eyes they were able to...