Starting from Scratch
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• Heber Manurung 29109322
• Itca Istia Wahyuni 29109319
• La Ode M. Arief Akbar 29109367
• Lea Kusumawati 29109342
• Muhammad Rumeizy 29109379
• Pitra Adhi Pamungkas 29109380
Life is just about past, present, and future..
for our beloved friend..
Alm. Muhammad Rumeizy
Background
Ann Rhoades growing the JetBlue team from the original 10
people to almost 1000.
She would continue to add approximately 100 new crew
member with the arrival of every new airplane.
JetBlue would employ nearly 5000 people within the next 4
years
She was charged with achieving this rapid growth while
building a values based and high commitment organizational
culture
Case Problem
Jet Blue Airways was established to adhere to corporate
values of safety, caring, integrity, fun, and passion
Jet Blue Airways shows how an entrepreneurial venture
can use human resource management, specifically a
values-centered approach to managing people, as a source
of competitive advantage.
The major challenge faced by Ann Rhoades is to grow this
people-centered organization at a rapid rate, while
retaining high standards for employee selection and a
small company culture.
Company Profile
JetBlue Airways is a major American low-
Background cost airline owned by JetBlue Airways
Corporation (NASDAQ: JBLU).
The company is headquartered in the Forest Hills
neighborhood of the borough of Queens in New York City
JetBlue home airport is John F. Kennedy International
Airport.
In September 1999 the airline was awarded 75 initial take
off/landing slots at John F. Kennedy International Airport, and
received formal U.S. authorization in February 2000.
It started operations on 11 February 2000.
JetBlue Route Map
In 2001, JetBlue began a
focus city operation at
Long Beach in Los Angeles
County, and another at
Logan International
Airport, Boston in 2004
It also has focus city
operations at Fort
Lauderdale, Oakland
International Airport, and
at Washington-Dulles
The airline mainly serves
destinations in the United
States, along with flights
to the Caribbean, the
Bahamas, Bermuda, and
Mexico
JetBlue Service had grown from 9 departure
per day at launch in February 2000 to more Resources
than 50 per day in the past 11 months
The fleet had grown from 2 planes to 10 with the arrival of one new
Airbus A320 every five weeks.
The business plan called for adding 10 new planes every year through
the end of 2003, and bringing the fleet to 40.
Operations Paperless cockpit, no meals served, no
Strategy papers tickets to reduce time and cost
In 2002, JetBlue acquired LiveTV, LLC for $41 million in cash and the
retirement of $39 million of LiveTV debt.
LiveTV equips JetBlue with 36 channels of live DirecTV satellite TV
programming at every seat.
Two years later, JetBlue announced it would add 100 channels of XM
Satellite Radio, Fox TV programs and 20th Century Fox movies to its in-
flight entertainment.
JetBlue Aircraft Inventory
JetBlue Aircraft
Human Resources Non-unionized Workforce
Above industry compensation Recruitment
medical benefit (internal and external)
Performance Management Process with Profit sharing
360 degree feedback evaluation
JetBlue principal activity is providing
Market passenger air transportation service
Segment with focus on underserved markets
and large metropolitan areas that have
high average fares.
The revenue is earned
from passenger The Passenger air transportation
transportation and segment provides low-fare
other components passenger air transportation service
Degree of Competition
JetBlue competes against many low-cost carriers or low-cost
subsidiaries of larger carriers.
JetBlue's main low-cost carrier competitors are AirTran Holdings
(AAI) and Southwest Airlines Company (LUV).
Its other competitors include American Airlines (AMR), Continental
(CAL), United (UAUA), and U.S. Air (LCC).
Competitor
Annual Passengers Operating
Fleet
Airline Departures Enplaned Revenue
Size (Thousand) (Millions) ($ Millions)
Airtran Holdings 136 260 24.6 2,552
American Airlines 625 736 92.8 23,696
Continental Airlines 350 389 46.9 15,033
Delta Airlines Inc 755 939 120.4 35,068
JetBlue Airlines 142 205 21.8 3,390
Southwest Airlines
537 1,192 101.9 11,023
Company
United Airlines 409 510 63.1 20,237
US Airways Group 354 496 54.8 12,459
The strategies are provide low fares and
great service, and another thing to deliver
on that promise as the airline scaled up
Key success:
1. Leveraging Human Resources
Five core values
A Non-Union Environment
Customized Employment Packages
Selecting the right people
2. Operating strategy
“Paperless” airlines
Airbus
Maximize aircraft utilization
Problem Solving & Analysis
The company leadership expects employees to commit to values
and philosophy of the organization and they are assessed as to
how well they live to the company credo. Employees are rated in
terms of how well they nurture safety, integrity, a caring attitude,
passion and fun in the work place.
Weakness
had not fully developed all the formal HR system
What needs to be added:
• Recruitment and selection system
• Remuneration standard
• HR system
Conclusion
JetBlue is a small airlines company that want to growth in a high
competitive situation in U.S.
They build their position as "low fares, great services” airline
company which is shown by the high quality services work of the
whole employees in the company.
Their key success are leveraging human resources and
improvement in operation strategy.
JetBlue was still a small company and had not fully developed all
the formal HR practices typically seen in a larger firm.
References
http://profiles.portfolio.com/company/us/ny/forest_hills/jetblue_airways/117
633
/
http://www.answers.com/topic/jetblue-airways-corporation
http://
www.hoovers.com/company/JetBlue_Airways_Corporation/ssjkci-1.html
http://
investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?t
icker=JBLU:US
http://www.linkedin.com/companies/jetblue-airways
http://www.aviationexplorer.com/jet_blue_airways.htm
http://hubpages.com/hub/analysis_of_business_organizations
http://www.wikinvest.com/stock/JetBlue_Airways_(JBLU)
