David | Fernandez | Ng | Ong | Sarayba | BA 152 Case: JetBlue Airways

Case Problem. How can JetBlue sustain their growth?

Analysis. JetBlues strengths lie in being able to recruit efficient employees, offering Airbus
A320 and making effective use of technology to achieve operational efficiency and increase
consumer satisfaction. Meanwhile, their weaknesses lie in being a relatively new airline, as
customers would look for more established carriers with a reputation for safety. JetBlues
weakness could also be attributed to their use of Airbus A320s which were not in popular use at
the time, however more efficient and beneficial to the customer. And due to their company
philosophy to provide low cost high service flights, they limit their service offering to cater to the
middle class. As a result of trying to provide high service at a low cost, JetBlue sustains high
maintenance costs.
Due to the deregulation of the industry, airlines were given more discretion in pricing
their services. The failure of other start-up low-cost carriers led to higher ticket prices.This gave
JetBlue an opportunity for industry expansion, by providing low price to consumers. This
allowed JetBlue to proceed with route & fleet expansion at the JFK airport. With a focus on
serving the customer needs, they opened more routes at a lower price and they recruited more
staff to man the increasing number of planes. JetBlue was facing strong competition from more
established airlines, but built on their core competencies in order to gain a hold of their customer
base.
JetBlue acts on the vision of leveraging on technology and people to deliver a low-cost
high service experience. JetBlue innovated their service to provide customer satisfaction and
sustained momentum by practicing employee-oriented HR practices. Some of their efforts
include:
Recruitment. In recruiting pilots, mechanics and other technical personnel, they hired highly
talented and committed people who fit with the JetBlues culture and philosophy. Although it
means increased costs with the company, especially with customized benefits packages,
JetBlue wanted to leverage on a people-centered approach as a competitive advantage. In
recruiting other employees such as reservation agents, Neelman made use of Rhoades
expertise as former HR executive of Southwest airlines.
Selection. In recruitment for the most vital positions, JetBlue looked for applicants who were fit
with the companys espoused values of safety, caring, integrity, fun and passion. With integrity
and safety placed above all, JetBlue had to make sure that for example, the pilot would prioritize
customer safety despite any ethical dilemmas he may face.
Performance Appraisal & Employee Benefits. The system must be nondiscriminatory, in line with
company values and philosophy, and used in the formulation of benefits packages. To do this
the use of 360 performance management was introduced, in order to provide a steady source of
feedback. This way, JetBlue can gauge the appropriate benefits fitting for the employee
Conclusion. While their current systems prove to be effective, the firm must adopt a strategic
long term plan in order to maintain its success in light of its expansion.
In terms of their HR practices, emphasis should be placed on developing its existing
talent. They should be able to formalize their 360 performance evaluations and standardize it in
order to effectively use it to make decisions when the need arises as well as maintain the quality
of their service. Given the context of recurring a lot more employees in the future, the firm will
need to be able to identify which employees will be part of involuntary turnovers. JetBlues
different departments should be able to support the current practices of HR. HR should ensure
that managers are cooperative in performance evaluations. When JetBlues employee base
expands, the Finance Department should ensure that it can still accommodate the benefits
packages regardless of its operational performance.

Since its emphasis on shared corporate values drove all activities and became the foundation
for the development of the organization, core competencies integrated in these values must be
defined and maintained.