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A Study of Jetblue and the Airline Industry

In: Business and Management

Submitted By zoegirl15
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JetBlue Case Study JetBlue is not the airline that everyone thinks of when they consider low cost airlines. Yet it stands as one of the more profitable airlines. This is due to a variety of factors, but it also faces some issues. The company has to adapt to the departure of the founding CEO. Depending on the organizational view of leadership that the firm has this could be problematic. If the view they take is external and most decisions are made based on market conditions, external environmental analysis, etc. this is not as much of an issue. Less demand and expectations rest on the CEO to be the force behind the entire company. If they take a romantic approach, however, then there could be more difficulty with the change. This would lead to more emphasis placed on the leader to run the company and possibly some hostility or excess pressure placed on whoever fills his shoes (Dess, Lumpkin, Eisner, Mcnamara, 2014). The firm has to have faith in the leaders of the organization regardless of the view of leadership. This leads to the new CEO having to inspire faith in his ability to lead the organization. Potentially a major operational challenge anytime that there is a shift in leadership and certainly one the JetBlue was forced to face. While they handle the leadership shift they must also acknowledge the changes in the segment to which they appeal. They have placed an emphasis on the economic segment and appealed to those who cannot afford to fly with the traditional airlines (Dess, et al. 2014). This has helped them tremendously during the recession while other airlines may not have fared so well. In an attempt to handle things like rising costs they have stopped offering things like free bag checks. Instead they are now switching over to the staggered offerings offered by other airlines. Meaning that people can now purchase tickets based on the...

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