JetBlue is walking a fine line between adjusting the inflight service offerings to control costs and keeping its unique, happy passenger experience flying," Miller says. Blue fights back. JetBlue is waiting on 60 Airbus A jetliners -- seen here in a rendering. Knowing that past performance is no guarantee of future results, JetBlue is staking its claim in the air for the next 20 years.
The airline has 70 next-generation Airbus As on order with delivery beginning this year, and it has already received the first seven of 85 new Airbus Aneos. All these aircraft are much more fuel-efficient and environmentally friendly. Twenty-six longer-range As on order will permit the airline to operate more distant international routes, beginning with the highly anticipated New York and Boston to London flights beginning in Hayes promises to disrupt the most valuable international route in the world much the same way JetBlue did between New York and California with a substantially upgraded Mint and economy product and lower fares.
Hayes isn't disclosing which London airport, "but, you can assume we'll be flying to more than one London airport.
JetBlue's Core economy product, which was revolutionary in , had become stale by the mid s. Those seats will, however, offer slightly reduced legroom. Beside its new fleet, JetBlue has announced that it will offset carbon dioxide emissions for all domestic flights beginning in July Making efforts to go green is not a purely altruistic move, according to Hayes. It's going to become an increasing awareness with customers. And frankly, I think they're going to stop booking airlines that don't offer it.
From a fare and revenue perspective, JetBlue has become more like its legacy and low-cost competition in seeking top-line revenue with a program called Fares 2. This included adding fare segments ranging from Blue Flex, with its fully flexible reservations and free bags, to more restricted tickets such as Blue Basic, which charges for checked bags and allows no reservation changes. Blue and Blue Plus are more akin to the original fares with pre-reserved seating, a free checked bag and less restrictive change policies.
JetBlue has matched its competitors by raising the price for additional checked bags. They also slightly reduced passenger legroom by one inch with the restyling in economy to add more seats. In spite of this, JetBlue's brand value has actually increased among airlines in the world from number 23 in to number 19 in , according to BrandFinance. On the ground. JetBlue is coloring outside the box with ventures on the ground too.
They're even funding a Silicon Valley-based investment incubator, JetBlue Ventures, which is looking at -- among other things -- electric planes.
Will all these initiatives futureproof JetBlue for the next 20 years? Hard to say, but it's the only US airline startup this millennium that's still operating and remains the most recent truly successful startup airline in America. Despite the industry seemingly collapsing around it, JetBlue was able to successfully navigate the cloudy skies of the early s and emerge as a major player in US aviation. Now flying with a fleet of over aircraft, the airline can be seen at major airports across the country and going toe-to-toe with the nation's top carriers.
Source: JetBlue Airways. Source: Business Insider. Source: New York Times. Source: Planespotters. Source: USA Today. Source: Airbus. Unlike other low-cost or start-up airlines of the time, JetBlue Airways became a household brand with its status as a major carrier in the US. When it expands to Europe in , JetBlue will be the only low-cost carrier based in the US to operate on three continents. Though JetBlue's founder, David Neeleman, has moved on from the airline and can now be found between Portugal, Brazil, and the US, his name can now be found immortalized on the side of one of JetBlue's newest Airbus Aneo aircraft.
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Good Subscriber Account active since Shortcuts. Account icon An icon in the shape of a person's head and shoulders. It often indicates a user profile. Log out. US Markets Loading H M S In the news. Thomas Pallini. JetBlue Airways is celebrating 20 years of operations, having had its first flight on February 11, To support its decision to become a cost leader, JetBlue adopted a number of innovative measures on its flights.
Jetblue decided not to serve meals on its flights, no matter what the distance or duration. Neeleman identified food as an area in which major cost cutting was possible JetBlue succeeded where a number of other airlines failed.
The primary reason for this success was that the airline tried to be different. It built its success on low cost and high standards, which attracted and kept passengers, and at the same time helped the airline remain solvent in times when the majors were crumbling to dust.
You can change your cookie settings at any time but parts of our site will not function correctly without them. JetBlue Airline's Success Story. Subject category: Strategy and General Management. Authors: Sanjib Dutta ; Shirisha Regani. Length: 15 pages. You must be logged in to access preview copies.
Write a review No reviews for this item. Login to add to your basket. View our pricing guide or login to see prices. 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 and modelled 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.
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