JetBlue launched its first ceremonial

Essay add: 28-10-2015, 15:08   /   Views: 349

History and growth of JetBlue.

JetBlue launched its first ceremonial on February 2000, between New York City and Buffalo, making John F. Kennedy (JFK) International Airport its hub. For the first month it start for one way fare set as $ 25, which then went up to $98 round -trip. Later, JetBlue introduced its first commercial flight from JFK to Fort Lauderdale, Florida, with 152 passengers aboard. The one way fare was $159, which was 70% lower than the fares of other carriers. Soon JetBlue would fly to Tampa , Orlando, and West Palm Beach and From Myers. The JetBlue COO, viewed that Florida as the sixth brought of New York. David Neeleman( the founded of the JetBlue) , thought that JetBlue's target market consisted of the 8 million people in a five mile radius around JFK. He later found that his service also appealed to young, affluent professionals with Manhattan zip codes. He said that NY has large population which makes a lot of money per capita and they would like to get out. At the same time everyone outside NY would like to get in. By the end of 2000, JetBlue boarded its millionth passengers. It provided services from JFK to Buffalo and Rochester, New York to Burlington, Vermont to Salt Lake City, Utah and to Oakland and Ontario, California. The average one way fare was $88.84. A $25 fee was charged to passengers who wanted o change their departure times. In 2001, JetBlue boarded its 2 million passengers which added services from JFK to Syracuse, New York ,Seattle , Washington , Denver, Colorado, Long Beach , California and New Orleans , Louisiana More Important it started direct service between Washington , Dulles International Airport and Fort Lauderdale , Florida . In 2002 JetBlue, flew its 5 millionth passengers and raised $ 182 millionth from its first public offering of stock. In 2003 flew its 10 millionth passengers, and launched services JFK and San Diego, Long Beach and Fort Lauderdale. It also ordered a new type plane. In 2004 JetBlue started services outside Boston and out New York. It launched services out of JFK to seven new cities. In 2005 JetBlue added flights from Boston to San Jose, California, Las Vegas, Nevada and Seattle, Washington. In 2006, JetBlue purchase Embraer 190 aircraft and continue to add new destination such as Austin, Taxes to New York's JFK and Boston's Logan airport. In 2007, started providing services to Chicago's O' Hare International Airport and to San Francisco International airport. End of 2007, JetBlue operated more than 550 flights a day and served 53 destinations in 21 states. The flowing table shows JetBlue growth from 2000 to 2007.

Strengths and weakness

David Neeleman's idea was to start a company that would combine the low fares of a discount airline carrier with the comforts of a small cozy den in people's homes. Passengers would be able to save money while they munched on gourmet snacks, sat in leather seats and watched television. To make air travel entertaining, he decided to offer 24- channels live television via satellite for free and individuals' monitors were installed in all seats.

JetBlue was one of the first companies to use information technology to keep cost down. It operated open Skies software to handle electronic tickets, internet booking and revenue management. JetBlue paid attention to the little details that customers found special. It worked with a unit if Bally Total Fitness to offer in flight yoga cards in seat pocket. Passengers received instructions on how they could hold four yoga poses without removing their seatbelts. Than JetBlue partnered with Oasis Day Spa to offer private massage, manicures and hair styling to travelers at JetBlue's JFK Terminal 6. A children's play area and big screen television could be found near its gats. Also it entered a partnership with Google Maps so the fights could be tracked live on the airline's Web site and via in seat satellite television on its aircraft.

Within seven years of services that JetBlue has given to passengers and had won many awards including Best Domestic Airline, Best Domestic Airlines for Value, and Best Overall Airlines for on board service. That Company officials explained JetBlue's philosophy was to delay flights rather than cancel them. The airline was committed to getting its passengers to their destinations despite bad weather. When the ice storm lasted longer than forecasted, flight delays at JFK caused cancellation at other airports. Out bound passengers in New York could not deplane because there were only 21 gates for 52 airplanes and some airplanes had become frozen to the ground at the gets. In addition , Neeleman also announced JetBlue's "Passenger's Bill of Right" the first of its kind among U.S airline carries in which the company disclosed its policies regarding vouchers and refunds in the event in the event of delays , cancellations and other inconveniences . JetBlue's reputation was tarnished and a new senior management team was assembled.

The problem the JetBlue faced.

In 2007 ice storm at JFK that resulted in flight cancellations and delays taught JetBlue's mangers several important lessons and set in motion needed changes. JetBlue Novitaire open Skies reservation system which configured to accommodate up to 650 reservation agents at a time, worked well during normal operations but was inadequate during an emergency. It could not handle a huge volume of telephone calls from stranded passengers who wanted to rebook flights and request compensation. Many passengers waited in the phone for more than an hour and others could not get thought at all. Navitaire managed to expend the system to 950 agents, but JetBlue had difficulty staffing the new lines. Off duty crews and airport personnel volunteered to help but were not trained in how to use the computerized system.

Because the telephone lines were busy, JetBlue pilots and crew members stuck in different cities across the country could not call in the headquarters with their availability and location. It was difficult therefore, for crew schedulers to locate and assign crews to new flights once conditions improved and the airplanes could be redeployed. Crew members waiting out a storm along with passengers could not always fly out when a new schedule was made because the FAA set limits on a crew' s number of hours duty. Baggage was piling up at airports but there was no computerized system to record and track lost bags. JetBlue took several to fix these problems. It worked with Navitaire to double the number of agents who could simultaneously use reservation, flight, and crew scheduling system. JetBlue upgrade its Web site to allow passengers on canceled flights to rebook online and airports. It provides crew members with ability to inform crew schedulers of their availability and location via hand held devices. In addition, it put in place a computerized tracking system.



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