JetBlue Airways: Growing Pains?

            
 
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Case Details:

Case Code : BSTR277
Case Length : 18 Pages
Period : 2000-2007
Pub Date : 2008
Teaching Note : Available
Themes: Business Strategy
Organization : JetBlue
Industry: Aviation
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts Contd...

The Customer Service Fiasco

Even as its financial performance started showing signs of improvement, JetBlue faced another crisis in February 2007, when a snowstorm hit the Northeast and Midwest regions of the US, throwing the airline's operations into chaos.

Because JetBlue followed the practice of never canceling flights, even when the ice storm hit and the airline was forced to keep several flights on the ground, it desisted from calling them off.

Because of this, passengers were kept waiting at the airports for their flights to take off...

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More Turbulence Ahead?

Analysts felt that the appointment of Barger as the new CEO was likely to benefit JetBlue. According to them, the fresh leadership was likely to help JetBlue through its growing pains and provide it with a positive direction for the future.

They also pointed out that Barger differed considerably from Neeleman in his leadership style (Barger was thought to be more organized than Neeleman, and much more focused on operational issues than the latter who enjoyed strategizing).

However, JetBlue was likely to face many more challenges in the future than it had faced during its first few years of operations.

Exhibits

Exhibit I: Annual Income Statements
Exhibit II: JetBlue's Operating Statistics
Exhibit III: JetBlue's Growth
Exhibit IV: Break-up of an Airline's Operating Costs (as of 1Q 2007)
Exhibit V: Increases in Fuel Price - Jet Fuel
Exhibit VI: JetBlue's Fuel Price History
Exhibit VII: JetBlue's A-320 Order Adjustments
Exhibit VIII: A Snapshot of JetBlue's Quarterly Performance
Exhibit IX: JetBlue's Customer Bill of Rights


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