jet blue airways case study with respect to HRM

1. CASE STUDY
Efforts by
PGDM - 3
KOMAL KUMARI
DEBRUP BERA
DIPESH GUPTA
MONOLINA
AKASH KUMAR

2. CONTENT
SYNOPSIS
Vision & MISSION & value
STRATEGIES
SWOT ANALYSIS
POSITION MAP
INSIGHT QUESTIONS

3. SYNOPSIS
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Low cost domestic airline in United States .
Grew as 11th largest player within 6 year of inception
Only airline profitable during the aftermath of the 11 September 2001 attack
on WTC
core strategy :- automated processes; better use of technology; use of brand new
single model planes that reduced maintenance costs and training costs at the
same time

4. content
SYNOPSIS
Target customer :- underserved and people looking for best value in the flight at
low cost.
David Neeleman , the founder was able to raise $130 million as initial capital
Service grew from 9 departure per day to more than 50 departure per day
Fleet grew from 2 planes to 40 fleet with arrival of new Airbus A320 till 2003
The team started with 10 members which has increased 100 folds adding 100 new
member each year

5. VISION & MISSION & VALUE
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VISION
TO PROVIDE THE BEST, MOST AFFORDABLE FLIGHT EXPERIENCE OF ANY
AIR CARRIER WHILE PROVIDING SUPERIOR SERVICE.
MISSION
TO BE THE LEADING LOW FARE, LOW COST PASSENGER AIRLINE
OFFERING HIGH QUALITY CUSTOMER SERVICE TO UNDER SERVED
MARKET AND CUSTOMER.

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VALUE
VALUE
SAFETY
CARE
FUN
PASSION

7. STRATEGIES
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NO MEAL TO BE SERVED
PROVIDING PERSONAL TELEVISION
USE OF LEATHER SEATS
USE OF MORE FUEL EFFICIENT AIRBUS
USE OF SECONDARY AIRPORTS
USE OF ELECTRONIC TICKETING ; PAPERLESS COCKPIT
CUSTOMER ORIENTED PROCESS
BACK

8. SWOT ANALYSIS
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STRENGHTH
 LOW OPERATING COST
 STRONG BRAND
 FUEL EFFICIENT AIRCRAFT
 EFFECTIVE TECHNOLOGY
 ADVERTISEMENT
 SATISFIED CUSTOMER
 EFFICIENTMANAGEMENT
WEAKNESS
 RELATIVE NEW COMPANY
 SHIFTING CUSTOMER’S NEED
 HIGH MAINTENANCE COST
 ONLY TWO TYPE OF AIRCRAFT
 ADVERTISEMENT
 SATISFIED CUSTOMER
 EFFICIENTMANAGEMENT

9. SWOT ANALYSIS
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OPPORTUNITY
 INDUSRTY EXPANSION
 CREATION OF ALLIANCE
 TECHNOLOGY
 DEREGULATED SECTOR
THREAT
 SECURITY ISSUES
 INCREASE IN FULE PRICE
 STRONG COMPETITION
 GLOBAL CRISIS
BACK

10. MARKETPOSITION MAP
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HIGH PRICE
LOW PRICE
LOW
QUALITY
HIGH
QUALITYDELTA
AIR TRAN
UNITED AIRLINES
AMERICAN AIRLINES
JET BLUE
SOUTH WEST

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INSIGHT QUESTIONS
1. LINKING TECHNOLOGY WITH CUSTOMER SATISFACTION
2. IMPORTANCE OF STRATEGY AND WHY TO STICK WITH IT
3.HOW TO MAKE DECISION IN NEW STARTUP
4. TOP MANAGEMENT RECRUITMENT PROCESS

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INSIGHT QUESTIONS
5. HEAD HUNTING AND POACHING
6. LINKING VALUES WITH RECRUITMENT PROCESS OF NEW EMPLOYEES
7. HOW TO BUILD NONUNION ENVIRONMENT
8.HOW TO OFFER COMPENSATION TO DIFFERENT KIND OF EMPLOYEES

13. • To provide paperless transactions like e-ticket.
• Service and amenities like direct T.V.
• Telecommunication Services.
• Paperless cockpit.
• Use of e-manuals by the crew.
• Better and wider cabin Technology.
SOLUTIONS
contentBACK

14. STRATEGIES
• Leather seats instead of cloth seats.
• Use of new aircrafts.
• Use of more fuel-efficient and less maintenance cost airbus.
• Point to Point flights.
• Low fare and low-cost carrier.
• Use of secondary airports which do not handle too much traffic.
• Reduction in the Turnaround time by efficient ground staff.
• Customer oriented approach
SOLUTIONS
contentBACK

15. SOLUTIONS
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HOW TO MAKE DECISION IN NEW STARTUP
• Business Plan
• Adequate capital Funding and its sources.
• Where would the new airline be based.
• What type of aircraft would it fly.
• How could JET BLUE deliver on the vision of leveraging
technology and low cost high service experience.
• How to Build the Top Mgt. Team.
• What will be the operations Strategy.
• How to maximize aircraft utilization
BACK

16. TOP MANAGEMENT RECRUITMENT PROCESS
• David Neelman, the founder realized his vision of creating an airlines company
that is focused on customer service by starting JetBlue.
• When he started this aviation company, he was focused on his vision i.e. "to bring
humanity back to aircraft” and his mission to provide low-fare, low-cost
passenger airline offering high quality customer service to underserved markets
and customer who are looking for the best value in their flight.
• His decisions were based on his Vision and mission and ultimately for the
customer.
• Thus decision making involves in following our passion, Embrace the reality.
• Process :
• Identifying the decision, Identifying your options, Gathering information,
Implement the decision and Evaluating the decision.
SOLUTIONS
contentBACK

17. HEAD HUNTING AND POACHING
• Thomas Kelly, executive vic president and general counsel
• Dave Barger , president and chief operating officer
• John Owens ,chief financial officer of Southwest Airlines for 14 years
• Ann Rhodes, executive vic peiden of human resource with more than
30 years of experience
SOLUTIONS
contentBACK

18. LINKING VALUES WITH RECRUITMENT OF NEW
EMPLOYEES
• When it comes to crewmembers hired under the new process, JetBlue found a
solid relationship between assessment scores and eventual success in training.
• After introducing the assessment, training failure-based attrition fell by 75%, and
overall training attrition fell by 25%.
• Candidates who score highest on the assessment are more likely to pass the first
training evaluation at a rate of 90% or higher, compared to 76% for those with
lower assessment scores.
• The first evaluation in the training program is the highest hurdle and candidates
who pass this training evaluation are likely to complete the entire program.
• As a result of these positive outcomes, JetBlue has been working to apply a
similar process to hiring for all customer-facing positions. Already, the team is
seeing similar success with its new flight attendant staffing process.
SOLUTIONS
contentBACK

19. HOW TO BUILD NONUNION ENVIRONMENT
Start at the beginning: From the very beginning of the employee
relation let your employees know your opinions on unions an d why
unions will not be right for your organisation.
Be Pro-worker not Anti-union: if employees feel that they have a
voice at work, hey are unlikely to look to look to an outsider (i.e.
Union) to provide them one
• Different employees should get different pay and benefits according
to their performance.
Example- $20/hour who worked up to 70 hours /month.
$30/hour who worked more than 70 hours/month
SOLUTIONS
contentBACK

20. HOW TO OFFER COMPENSATION TO DIFFERENT KINDS
OF EMPLOYEES
• We can offer compensation to different kind of employees by the following methods. i.e. We can offer direct or indirect
form of compensation.
Direct:
• Salary
• Hourly
• Commission
• Bonuses
Indirect :
• Benefits.
• Equity based program.
• One year employment contract for college students.
like medical coverage plus $500 per month
SOLUTIONS
contentBACK

21. THANK YOU