Case Summary and Important facts Despite the fact the airline industry had 87 new-airline failures in the US over the past 20 years. David Neeleman convinced a group of investors and quickly raised $130 million from venture-capital community. With its strong capital base, JetBlue acquired a fleet of new Airbus A320 aircraft and focused on innovation, providing the most valuable and the most excellent travel experience, low-cost, point-to-point service to large metropolitan areas with high average fares or highly traveled markets that were underserved, mainly on central and Western routes in the US. During 2001 and 2006, the airline industry was facing a number of external stress, such as the 911 terrorist attacks, Iraq War, SARS, high price of petroleum, ect. The airline industry in US has been challenged and many of firms were bankrupt.
Management Planning - Boeing For an organization to become a leader in a global market, it must have a strong tradition of innovation and leadership. The Boeing Corporation is not just a company; it is a multibillion dollar, global enterprise. Their ability to offer customers a wide variety of solutions keeps their business the top in its class. Visionaries and strong planning methods keep Boeing in the forefront, but the leaders of this organization know that they must constantly forge ahead and step up their game. With over 160,000 employees in 70 countries, Boeing offers a wide range of products and advanced technological and financial solutions.
Needleman’s impact on JetBlue is understandable having a vision he implemented his dream and started the award winning airlines, which spreaded to international ports. Through time like most airlines JetBlue encountered set backs, but after refining and implementing its new strategies, JetBlue has become a business whose industry is a leader in low-cost air travel. 1. Discuss the
As of June 30, 2010, SWA is the largest domestic U.S. carrier for passengers. It operates 547 Boeing 737’s to 73 destinations. Communicating a positive image to the public, while maintaining customer service and efficiency are the most important aspects in his vision. Kelley, an inspirational leader, also explains his rationale in decision-making plans. Kelly and other executives will lunch with new employees just to determine if the expectations are
bmibaby pays a lot of attention to the way they design their product and services manifested in their flight schedule. The construction of flying programmes is of high value. The company satisfies both, business and leisure customers and achieves this by operating their aircrafts from 7am to 8pm. The management gets as much value as possible from their aircraft assets. In terms of utilization, the costs of ownership are identical if aircrafts are operated one hour or 12 hours a day.
Boeing has customers in more than 90 countries world-wide and is one of the largest U.S. exporters in terms of sales. The company values innovation and is continually expanding their product line and services to meet emerging customer needs (About Us). Boeing generates $66 billion in revenues from their global aerospace and defense markets and conducts business through three operating segments. Boeing Commercial Aircraft (BCA; 50% of revenues and 49% of operating profits in 2007) and EADS's 80%-owned Airbus division are the world's only makers of 130-plus seat passenger jets. Integrated Defense Systems (IDS; 48%, 48%) is the world's second largest military contractor behind Lockheed Martin Corp. Boeing Capital Corp. (2%, 3%) primarily finances commercial aircraft for airlines (Business).
Marriott Jr. has more than 50 years of leadership experience and throughout his tenure he realized that a healthy business is not just knowing your product but caring for your employees and customers. When the question was put to Mr. Marriott on what it takes to succeed in the hospitality industry, his response according to Marriott (1997), “It takes a corporate culture that says people are important. Service is going to be the ultimate determining factor on what businesses should do, and
It has also developed a strong brand based on a high quality of customer service and low-fare air tickets. Management was able to keeps its operating costs low (fuel efficient fleet and only one model of aircraft) and profits high. The strong financial performance caught investors’ attention leading an excess of demand for the 5.5 million shares planned for the IPO. Analysis: Despite all the problems in the US airline industry, JetBlue managed to significantly increase its profits. JetBlue was able to grow its revenues to over 320 million in 2001, compared with a $21.2 million operating loss on $104.6 million in revenue the year before.
In 1988, UPS was granted permission to operate its own aircraft, they became an official airline company and UPS Airlines was launched. Within the span of 1 year, UPS had expanded its operations to more than 175 countries around the globe. In 1992 it added electronic package tracking and was delivering 11.5 million packages to more than one million customers in over 200 countries. Two years later UPS launched its own website as part of the worldwide growth in internet-based companies and services. UPS became a public company on November 10, 1999 and sold 10% of its stock as part of its initial public offering.
GM has led in global sales for 77 years in a row (1911-2009) longer than any other automaker and does business in more than 130 countries. They employ well over 200 thousand people in all parts of the world. Making suck models as Cadillac, GMC, Buick, and many other models. After, filing Chapter 11 we will see if GM still remains a top 10 Fortune 500 company(currently ranked 6 as of 2009) because of the recent economic conditions that the United States are facing. He is the rightful person that stirred the company in the right way so that the company could out of the filing of Chapter 11.