Abstract

The case describes the reasons for the success of JetBlue, a three-year-old, low-cost airline, operating in the USA. JetBlue was set up by David Neeleman, who earlier founded a very successful discount airline called Morris Air in Utah. He also helped found West Jet, another discount airline in Canada. Neeleman set up JetBlue in 2000 and modeled it on the lines of the most well known of discounters- Southwest Airlines. JetBlue adopted a strategy for effective cost control by identifying and eliminating all unnecessary expenses and concentrating on providing high quality services to its passengers. Towards this end, it adopted a number of innovative measures on the planes such as: not serving food, point-to-point flights, and quick turnarounds. It also made effective use of advertising to position itself as a fun airline. JetBlue's innovative operational model helped it succeed at a time when the major players of the airline industry were crumbling.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Low cost airlines
• cost cutting
• innovative business strategies.

Keywords

JetBlue, low-cost airline, operating, USA, David Neeleman, discount airline, Morris Air, Utah, West Jet, Southwest Airlines, effective cost, high quality services, passengers, not serving food, point-to-point, flights, turnarounds, advertising, fun airline, operational model, airline industry, crumbling