Business Administration - Mark
University of
Workshop
1
Jet Blue Airways Case Study
Table of Contents
1.Introducción ...........................................................................................................................................................
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2.Historia ......................................................................................................................................................................
34 ........................................................................................................................................................................
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3.E-marketing integration versus Traditional Market ......................................................................
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4.Éxitos ..........................................................................................................................................................................
78 ........................................................................................................................................................................
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..........................................................................................................................................85.Future
............................................................................................. 8in JetBlue Airways Technology
8 ..........................................................................................................................................................................
810 .....................................................................................................................................................................
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JetBlue Airways Case Study
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6.Conclusión ...............................................................................................................................................................
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7.Referencias ..............................................................................................................................................................
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JetBlue Airways Case Study
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Introduction
Thiscase study will analyze the airline JetBlue, a company that its beginnings
were not seen with good eyes of having a good advance within the field of airlines.
The field of passenger transportation has been growing rapidly since 2003
worldwide, between 4% and 10%. This also depends on the location of the country,
the policy (signing of treaties or agreements), developmentof technology (internet),
airport facilities and others. Some historical events have affected businesses and
some businesses are favorecidos. One of the events that most affected the airline
business was when in 2009 there was an outbreak of swine flu, which peoplewere
restricted from traveling to different places or being in public places so as not to
contaminate other people.
Another event that affected airlines was the terrorist attack of September 11, 2010,
where four planes of two major airlines, American Airline and Continental were
hijacked to carry out terrorist attacks by Muslim groups and killed a large number of
passengers. Fear, worry, and lack of confidence in aircraft greatly affected this
industry, especially in the United States.
The JetBlue company gathered a number of customer concerns and used them
to help them trust the airline while helping them with low-cost tickets compared to
other companies, so the company could continue and thrive. After placing itself in a
position within the airlines, it used the internet tool and the information provided by
its customers to start looking for improvement services for their satisfaction.
1. History
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The Jet Blue company wasfounded in 1999 by David Needleman, but it was not
until 2000 that it had its first domestic flightsbased in New York. In 2003 it ordered
its new fleet of aircraft, theEmbrazer l 90. Then there was an event in which a
snowstorm for Valentine's Day kept many passengers on planes for 6 hours or more
without being able to provide food, since their routes were short and they did not
carry food on the planes. JetBlue wasaccused of negligence by its passengers, for
which JetBlue decided to draft a Declaration of Passenger Rights. This event caused
David Needleman to resign from JetBlue and start a new company in Brazil. Davis
Berger became the newCEO of JetBlue on May 10, 2007. The airline Lufthansa bought
a few hundred JetBlue forthe same year. On March 18, 2008, JetBlue made Orlando,
Florida a base for its flights to the Caribbean and Latin America.
Currently the position it has within theair system in the United States is the
sixth and as an airline in low prices it continues to compete with the main South West.
JetBlue had a fleet of more than 180 Embraer A320s and El90s aircraft and during
2013 it has been receiving new aircraft which has facilitated it to open new routes in
different airports including new routes to other countries.
JetBlue Airways is
currently the main airline in Puerto Rico after American Airline left this location. In
the summer of 2013 the competition of Jet Blue and South West began on the island
of Puerto Rico, but for the moment it has not been able to undertake agood
competition, since Jet Blue has its own area of facilities within the airport and the
prices are not so low, nor other offers of attraction as to take customers to JetBlue.
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2. E-marketing Integration vs. Traditional Market
In the traditional method of the Jet Blue companylike all airlines what was
used was the system of travel agents to make reservations. A person told you the
days of flights, schedules and fares, that person as an intermediary charged for his
work what wasadded tothe plane ticket. To this daythere are still travel agencies and
agents to subdue people who want the traditional method. Many times it was
observed in the different airports the passengers were upset because the
airlineswere oversold plane tickets, so many people had to arrive very early to the
famous lines to ensure that they could travel without any problem. The process to
register each passenger took much longer than it currently takes. Many people who
do not have to check luggage no longer have to queue and go directly to the inspection
area.
By creating a page on the Internet on Twitter the company JetBlue could have
a cyber contact with its customers and in this way it could know what things
displeased its customers, what their clienthought of the company itself and what
suggestions they made so that it could be improved and make the company more
attractive to its customers. With the help of the internet, JetBlue kept the way for its
customers to enter and could see their prices, their schedules and at the same time
they couldcompare with other companies. This put pressure on other airlines to
lower their prices. When you go to the JetBlue internet page where it can be at any
time and from anywhere, you can observe the different rates depending on the day
and time of flight. More than875 million people have purchased airline tickets
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worldwide since 2007. The Jet Blue company dominates the system of being able to
make a direct reservation by the client through its website and choose some facilities
for your flight such as the seat, or some special help that the client needs for medical
reasons or limitation. Between the economic parties there was a horrific in the use
of the traditional ticket that the travel agent gave to one. Currently what is needed is
a confirmation number to arrive at the airport and process the reservation. Also, you
can see the food menus, see the movies that will be offered for the day of flight, know
if the flight will take place in the next 30 days. The useof information technology
allowed JetBlue to save on costs and provide better service to its customers.
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3. Successes
1. Fees are low compared to the current market.
2. Do not have unions in their employees that control the companyin certain aspects
that affect it in image, economically and in the paralysis when there are no
agreements. Unions are good but at the same time they can affect a company to
decrease its business such as American Airline. In Puerto Rico, the main airline
was the American Airline but after the event of September 11, 2001, swine fever
from the Asian country and disagreements with the oneions led it to reduce its
flights, for example in Puerto Rico, American Airline had to reduce bothits flights
that JetBlue was placed as the
Major airline and at the same time has its own
new and modern space with enough space to expand. Many of theroutes that were
dand American Airline, belong to JetBlue today.
3. JetBlue, uses a single airline at the brand level.
4. It uses the same type of aircraft, for its flights.
5. It doesn't have the class divide, but it has designated areas for people who want
to pay for more space when traveling.
6. Dentror comfort system, JetBlue sells you specific foods, pillows and fries, in
addition, the most attractive of the airline has placed a television for each client
to watch 36 free channels by Direct TV, 100 radio channels and some movies that
are offered on flights lasting more than two hours for a price of $ 5.99 on domestic
flights. Thesemovies are offered free on flights outside the United States.
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filmsare in Englishand one of them in Spanish to please Spanish-speaking
passengers.
7. The Jet Blue airline has itsown credit card, which rewards its customers with
accumulated points, which do not expire, which can be exchanged for airline
tickets. Among the banking companies that are linked to Jet Blue are: Chase,
Manhattan Bank in the United States of America (American Express) and Banco
Santander in Puerto Rico with (Master Card).
8. It offers passengers within many of the specials for different destinations offers
for transportation tickets for pets, in addition, it offers the comfort that if the
animal is small in size can travel with the passenger.
9. Among the attractions that the company has towards its customers is that the
other companiescharge for all the largest luggage that goes on the planes, but Jet
Blue allows you an additional free luggage to the two personal pieces that are
carried in your hand. The South West is the only one that allows up to two large
pieces of luggage at no additional cost, an example American Airline charges
$25.00 for the first large luggage.
10. The company JetBlue has security cameras which helps to better secure the
checked baggage system.
4. Future in JetBlue Airways Technology
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A. Social Media
Twitter announced its new pages starting with certain companies and brands,
these will make similar to Facebook and Google+, after it announced its new design.
Among these companies is JetBlue. This new Twitter feature would allow JetBlue to
have its own page with options to customize and differfrom current profiles.
Twitter's new pages allow the company to customize its headerand control the
message your visitors see on your page timeline. These new pages can be viewed
when you have the new version of Twitter.
B. In-flight technology
JetBlue is beginning to install "WiFi" on all of its aircraft. If a person travels is
a traveler and needs to be connected at all times. JetBlue has announced that it will
be equipped with all its aircraft with high technology, itsfast per, ready not to be
affected by the noise generated by the plane. Which means that by the end of2014
JetBlue should have 80 to 85 percent of all its aircraft equipped with Internet
technology.
As a result, social networks such as Facebook and Twitter have to make
changes to their programs and update them for the reason of the use of their means
for airline flights. JetBlue will use the ViaSat WiFi service, which will have a capacity
of 12 megabytes per secondfor each electronic equipment. This is faster than other
internet services to use in the air or in this case on airplanes. And for business
purposes there will be a gaming charger available on JetBlue. The company expects
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to grow revenue to a 7 percent margin through 2014. JetBlue has not yet disclosed
the economic expense it will have in the investment of the system for the WiFi service
on its planes.
It is already implemented on all JetBlue flights to be able to keep certain
electronic equipment on throughout the flight unless for safety reasons it is required
to be turned off. These will remain in airplane or Bluetooth mode for the use of these
equipments in flight, example, of this equipment are cell phones.
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5. Conclusion
You can still improve the companyand at the same time you can cut
moreexpenses as an example, the paperless system throughout the travel process.
You can investigate how to process a flight without using paper nads, but this is part
of a process. As long as Jet Blue lets its consumers be part of its investigative
marketing process and take them into account, the company will remain in progress
or remain in the airline marketthat is so difficult because of the amount of budget
spent in this type of business. The current consumer seeks physical and economic
facilities, in addition, of course muchas security especially to travel in airplanes. The
traditional system hadmany disadvantages, which could not be improved due to the
lack of an advanced technology system that would help evolve it as is the internet
and within it social networks.
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6. References
1. 14, E. (2011, November). Jet Blue case. Retrieved from Good Tasks:
http://www.buenastareas.com/ensayos/Caso-Jet-Blue/3045665.html
2. CheapAir. (2013, Noviembre 5). JetBlue to Begin Placing Wifi on All Aircraft.
Retrieved from CheapAir: http://www.cheapair.com/blog/travel-news/jetblueto-begin-placing-wifi-on-all-aircraft/
3. Companies 2.0. Success stories Web 2.0 Jet Blue. (n.d.). Retrieved November 2013,
from gcia blogspot: http/gciadelainformacion.blogspot.com/p/empresas-20casos-de-exito-html
4. Galeno, L. G. (2011, November). 5 Success Stories with Twitter JetBlue @ Jet Blue.
Retrieved November 2013, from Social Media and Digital Marketing:
http://luisgaleno.com/5-casos-de-exito-con-twitter/
5. Herrera Viedma, E. (2008, April 24). The Impact of the Web on the Development of
Airlines. Retrieved 11 2013, from slideshare:
http://www.slideshare.net/viedma2/calidad-web-y-aerolneas
6. Zavala Trias, S. (2012, 03). Writing guide in APA style. Retrieved 11 2013, from
Suagn. Edu:
www.suagm.edu/umet/biblioteca/pdf/GuiaRevmarzo2012APA6taEd.pdf
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