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1. JetBlue Airways: Starting from Scratch

2. Histroy Time Events February-1999 Founder David Neeleman announces plans for his new airline April-1999 JetBlue (then known as "New Air") places a $4 billion order with Airbus Industrie for up 75 new A320 aircraft, and commences leasing arrangements for another eight aircraft July-1999 JetBlue reveals that all its aircraft will offer 24 channels of live satellite television at every seat, a first for the airline industry September-1999 JetBlue receives an unprecedented exemption for 75 take-off and landing slots at John F. Kennedy International Airport (JFK) 4-Dec-1999 JetBlue takes delivery of its first Airbus A320 aircraft 3-Feb-2000 The United States Department of Transport (DOT) issues JetBlue with a Certificate of Public Convenience and Necessity, representing the successful completion of the airline's application processes before both the DOT and the Federal Aviation Administration 17-Feb-2000 JetBlue adds service between JFK and Buffalo NY 21-Jun-2000 JetBlue begins flights between JFK and Orlando , FL 23-Jun-2000 JetBlue takes delivery of its 5th Airbus A320 aircraft 21-Jul-2000 JetBlue commences flights between JFK and Ontario, CA, near Los Angeles

3. History 7-Sep-2000 JetBlue adds service between JFK and Burlington, VT 18-Oct-2000 JetBlue commences flights between JFK and West Palm Beach, FL 10-Nov-2000 JetBlue takes delivery of its 10th Airbus A320 aircraft 17-Nov-2000 JetBlue inaugurates service between JFK and Salt Lake City, UT 18-Nov-2000 JetBlue adds service between JFK and Fort Myers, FL 1-May-2001 JetBlue inaugurates service between JFK and Seattle, WA and adds a daytime flight to Oakland, CA 7-May-2001 JetBlue inaugurates service between JFK and Syracuse, NY, its third upstate city 17-May-2001 JetBlue inaugurates service between JFK and Denver, CO and adds a daytime flight to Ontario, CA 18-Jul-2001 JetBlue orders up to 48 more Airbus A320 aircraft valued at $2.5 billion. The airline's fleet order now totals up to 131 new A320 aircraft 26-Jul-2001 JetBlue starts twice daily service between JFK and New Orleans, LA 29-Aug-2001 JetBlue launches second focus city in Long Beach, CA with two daily flights to JFK 9-Nov-2001 JetBlue takes delivery of its 20th Airbus A320 aircraft 19-Dec-2001 JetBlue expands service between JFK and Fort Lauderdale, FL to ten daily flights

4. David Neeleman Background JetBlue Airline Morris Airline South West Airline In 1993, he sold to South West Airline and joined top management team . He was bringing new technology to South West (e-ticket), but he didn’t fit the culture Open Skies ( in 1998, sold to Hewlett Packard)

10. Mainsteam Approach vs. Multistream Approach Mainsteam Multistream 1.Identify opportunity Offer a product or service that meets a need that people are willing to pay for Offer a product or service that meets or eliminates a needs that people have 2. Show entrepreneurial initiative ♦ Personality traits--- ♦ Need for accomplishment ♦ Sense of confidence ♦ Life-path circumstances ♦ Need for achievement ♦ Self-confidence ♦ Transition, push, pull ♦ Need to help others ♦ Confidence in community ♦ Transition, push, pull 3. Develop plans for the new venture Have plans in place prior to start-up highlight financial costs and benefits Focus on flexible ongoing learning; highlight financial, social, and ecological costs and benefits 4. Mobilize resources Attract financial resources and get started Establish community support and get started

21. Four steps of Strategic Management

22. Step 1. Review mission and vision Mainstream: Maximizing organizational competitiveness Increasing shareholders’ well-being Multistream: Mutually beneficial cooperation Multiple stakeholders’ well-being “ Values drove all other activities and were the basis for the development of an organization.” ~ Ann Rhoades. Safety, Caring, Integrity, Fun and Passion

24. http://www.excelsia.ch/htmlgb/blog/images/swot-analysis-image.png

25. Mainstream Multistream Physical Resources Material assets Ecological friendly Human Resources Member competency Seeking work-life balance Infrastructural Resources Organization structure and system Developing nurture work

26. Five forces model—Michael Porter Mainstream Multistream Supplier power Welcome new supplier Customer power Welcome specific buyer Threats of substitutes Enhance overall community well-being Threat of entrants Removing Barriers Intensity of rivalry Raising Beneficial interdependence

27. No sell snacks during flights • relatively new airline company that the reason it still not have complete market hold on 50 states. • In year 2005 it had faced Aircrafts problems which reduced the profits. • Airline is operating in 12 countries. The airline industry growth is not up to the mark but still JetBlue profits are on higher side. • Increase the number of flights. • Penetrate in US market. 911 crisis increases the security threat for airline industry • Recession in US may lower the revenues. • unpredictable fuel price • facing Strong competition in US and International market. The low cost Airline of America. • Strong people on top management • Strong Brand widely known among the people of US. • continually hiring talented and experience people

28. Mainstream Multistream Finical cost leadership - Minimizing Overall cost leadership - Minimizing Differentiation Minimizer strategy Focus Transformer strategy

29. BCG Portfolio Matrix

30. Mainstream Multistream Content school (rational- analytic, top-down, linear strategy) Emergent strategy (central nervous system and unexpected signal) Process school (bottom-up, emergent, egalitarian approach) Strategy learning from stockholders and members

33. The growth of JetBlue JetBlue Revenue In 2009 Fleet:151 Employees:>10,000

40. Fuel price Reference:http://www.airlines.org/economics/energy/Annual+Crude+Oil+and+Jet+Fuel+Prices.htm Year Price( ￠ /gal) -2001( ￠ /gal) 2001 74.7 -- 2002 70.9 -3.8 2003 85.7 11.0 2004 120.8 46.1 2005 172.7 98.0 2006 197.0 122.3 2007 216.5 141.8 2008 298.0 223.3 2009 169.1 94.4

47. Blue Betty

52. Jet Blue vs. South West Strategies: Jet Blue South West 1. Human Resources Customized Humanity 2. Operation E-systems Paper work 3. Innovation High Low 4. Facility Low High 5. Service High High 6. Cabin crew Plentiful Fun