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Essay / Jet Blue Airways Review - 1858
JetBlue Airways Corporation is a rapidly growing discount airline and the industry's biggest success story using its strong customer service considerations and low fares to build a base strong and growing customer base. David Neeleman, CEO and Director, launched JetBlue in 1999 and has been flying since 2000 after his previous airline, Morris Air, was created by Herb Kelleher, the founder of Southwest Airline. He signed a 5-year non-compete agreement not to launch another airline. Kelleher hired Neeleman at Southwest but was unhappy with the structured environment he did not control and was fired (Essentials of Entrepreneurship p78). JetBlue's strategy is developed around its core competencies. The company benefited from being able to start with a clean slate. It has a last-mover advantage and its infrastructure and use of information technology have given JetBlue a sustainable competitive advantage. Starting with a clean slate gave Neeleman and President, COO David Barger the advantage of selecting leadership and support staff that reflected their vision. management has many years of experience in the airline industry. Team members have met customer needs, been customers, and have extensive experience in what it takes to succeed in the industry. Early in the planning process, 20 members of JetBlue's leadership team met for two days and agreed on five core values: safety, caring, integrity, fun and passion. These five values translate into a superior customer and crew member experience (Motley Fool). JetBlue is different from other budget airlines. While Southwest and JetBlue use the same type of jet (Boeing 737 for Southwest and Airbus A320 for JetBlue), Jet Blue planes can accommodate 162 passengers compared to Southwest's 135 passengers. The use of this aircraft allows maintenance costs to remain low. This low maintenance cost is lower than any other carrier in the industry. JetBlue also focuses on longer flights (Essentials). Neeleman decided to upholster each seat in leather, which costs an additional $15,000 per plane. Leather surfaces are easier to maintain and last much longer (Essentials). Another advantage is that its workforce is not unionized. Neeleman is not against unionization but he would prefer to avoid it. He believes that if management and employees trust each other and people feel they are being paid fairly, he believes there is no need for a third party..