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Phase (1)

History:

JetBlue was created by a man born and grew up in a city


called Salt Lake. This man called David Neeleman. Neeleman
enrolled in a university in Utah but he dropped out after his
first year because he was poor. After he dropped out of
university he packed and traveled as a missionary to Brazil
for two years. After the two years ended he returned to the
USA to work in Hawaii as a sales person in real estate.
Neeleman was a real hard worker he used to sell offers to
couples during their wedding.
Neeleman thought that in order to expand his business and
improve it, he should start his own company, and this is
when Neeleman founded his travel agency, his agency used
to offer flights to important people to the Hawaiian Islands.
As the agency improved, one of the biggest business men
was amazed by Neeleman hard work, this man was June
Morris. Morris was the owner of the hugest travel agency in
Utah.

Neeleman and Morris merged together in 1984 to become


Morris Air. Neeleman started improving Morris Air through
ideas taken from Southwest Airlines. One of those ideas was
a strategy that is used to reduce the cost and increasing
profits through turning around the planes quickly and
shifting some of the office work to home to reduce the
renting cost of the offices.
Neeleman also created the industry’s first ticketing system,
using this system Neeleman was able to reduce cost and it is
much easier than the manual system. Morris Air turned into
a regular scheduled airline by the year 1992.

The low cost and huge profits and revenues generated by


Morris Air really impressed Herb Kelleher and gave an offer
of 129 million dollars to buy it. The offer gave by Southwest
Airlines was accepted by Morris Air.

Neeleman gained 22 million dollars from this sale, and after


the sale took place Southwest Airlines offered Neeleman to
work for them as an Executive Vice President. Neeleman
agreed to take the offer but after one year he left Southwest
Airlines because he wasn’t able to work within a team so he
decided to establish his own airline company. Before he left
Southwest Airlines, he signed on a five year non-compete
agreement.

Neeleman then founded an airline company in Canada called


West Jet. He also gained 22 million dollars from the sale
took place in 1999 of a developed online reservation system
to Hewlett-Packard. In 1998 the non-compete agreement
expired, Neeleman started arranging his lawyer for a new
business called JetBlue.

Neeleman used the biggest five investors in Morris Air to


raise a 30 million dollar capital before the first plane take off
he even asked for more money from the investors, the
investors didn’t refuse because they were amazed by the
huge success he achieved in Morris Air.

For him to be able to take strategically decisions he started


viewing and observing the airline business. Neeleman saw
that John F. Kennedy international airport in New York was
the best place to locate his airline, he thought that since
most of the flights arriving to or leaving from JFK is
international then the competition with local flights will be
weak, he also tried to focus on the weak and poor served
location and areas.
He didn’t serve a lot of routes, he focused just on the routes
that had few competitors and tried to serve it, examples of
these areas are Florida, West Coast, and Northeast.
Neeleman was able to cut the cost of the flights through
using the right technology and equipment; he also
performed a study for the industry to be able to cut the
prices of the flights between New York and any location.
For Neeleman to achieve his objectives he had to seek the
help of the professionals, so he started with hiring Dave
Barger as the president and COO who used to work for
Continental Airlines, he also hired two professionals from
Southwest Airlines to manage finance and HR.

JetBlue started with a 160 million dollar capital, by year


2000 the operations began between New York and Florida.
By year 2002 JetBlue offered 5.5 million shares that were
traded between 22 and 24 dollars on the NASDAQ. After
only one day the price of the share jumped from 24 to 45
dollars.

This increase in the capital was used to buy planes. JetBlue


reported profit of 55 million dollars in 2002; this huge profit
was made in a year when it was estimated for the industry
to have huge losses. This profit was used to make an order
of 65 Airbus A-320 planes. During the years of JetBlue
operations it received a lot of awards and flew more than 12
million passengers.
Their Vision:

To create a cost structure that would support low fares


without lowing the service standards, and to become a cost
leader. The CEO vision is to be efficient and effective and
deliver a great experience at the same.

Their Mission:

1. Customers:

• They looked at the passengers as an annoyance


and rudeness without understanding their
importance to the business.

2. Services:

• They presented domestic air transportation


services (planes) with a high quality and low cost
at the same time.

3. Markets:

• Their strength in the market was on a niche


market to North America destinations (New York,
Florida and California), and global opportunities
will be explored.
4. Technology:

• They developed the electronic reservation system,


to be done from home by using the VoIP, to
minimize the time and the cost. Also the electronic
ticketing, to book tickets over the internet.

• They also introduce the paperless cockpit concept


(access electronic flight manuals and make
requisite calculations before take-off, and worked
on minimizing the CASM.

5. Growth & Profitability:

• They concentrated on reducing the turnaround


time of the flights, in order to reduce the time
spent on the ground and to be ready for the next
flight within 35 minutes.

6. Philosophy:

• Their philosophy was to keep the passengers


comfortable and happy with the flight. In order to
do this, the CEO himself flew in his planes once a
week and interacts with the customers.

7. Employees:

• They used to encourage and reward their


attractive employees and give them attractive
bonuses, which motivated them to do all their
best. For the new recruits or trainees, they were
treated as regular employees.

• For example, whenever the CEO flew on his flight,


he used to help clean up the plane and make it
ready for the next flight.

8. Public Image:

• They created the advertisements that were cheap


and bold and affluent seekers.

Policies:

What information do we collect?

By using jetblue.com, your information and site activity data


is collected. When you register with JetBlue's TrueBlue
Customer Appreciation program online; book travel on
jetblue.com, jetblue.com/getaways, or
jetblue.com/companyblue; purchase merchandise through
our website; or sign up for a sweepstakes or other
promotional activity over our website, you will be asked to
provide certain personally identifiable information such as
your name, home address, e-mail address, and telephone
number(s). When you use the online ticketing portion of our
site, which is run by our ticketing agent, Navitaire, Inc. or
the Getaways portion of our site, which is run by our
business partner EzRez Software, Inc., you will also be
asked to provide your travel details. If you book travel,
purchase something from our online store, or purchase in-
flight movies through our LiveTV system, you will also be
asked to provide your credit card number and billing
information.

How do we use the personal information we collect?

We do not sell your information and we use it only in


accordance with this policy. We use the information to
complete transactions, respond to your requests and notify
you of promotions, updates, or special offers that we think
may interest you. We also use your information to provide
you with a more effective customer experience at
jetblue.com and with JetBlue. In order to do this, we may
process your information or combine it with other
information that we have about you or that is publicly
available.

Does this policy cover other sites linked from


jetblue.com?

In order to assist you and provide you as much information


as possible, our site contains links to other websites
including those that offer ancillary travel services, map
functionality, and branded or co-branded JetBlue
merchandise and offers. This policy applies only to websites
and services that are owned and operated by JetBlue,
including jetblue.com, jetblue.com/trueblue,
jetblue.com/companyblue, and the air component of JetBlue
Getaways (jetblue.com/getaways). Sites that are not owned
or operated by JetBlue, including JetBlue Cruises, EzRez (the
non-air component of JetBlue Getaways packages – see
below), and cars and hotels are not covered by this privacy
policy, and we are not responsible for the privacy practices
or the content of these other sites.
What about changes to the privacy policy?

By visiting our site you consent to our collection and use of


your information as described in this policy. We reserve the
right to modify this privacy policy and related business
practices at any time by posting updated text on this site.
Your consent to the various practices described in this policy
does not result in a contractual relationship with JetBlue
Airways Corporation or any of its affiliates.