Macro and Micro Problems Faced by JetBlue, Alternatives, and Recommendations - Case Study Example

Jetblue Airways Introduction JetBlue Airways is an American low-cost airline. It was founded in August 1998 and its operating bases are John F. Kennedy (JKF) International Airport in New York City. The headquarters are in Brewster Building in Long Island City. It has a several destinations- 87 in total, and has fleet size of about 205. The slogan of the corporation is “You Above All”. As an Airways Corporation, JetBlue has faced a lot of problems since it was established and the causes should be established. On top of that, solutions and recommendations have been put across to help it be profitable and most important achieve its long term goals. (Randell, 2014). Several structures are affected as the corporation faces those problems and they should be identified to be able to attend to them accordingly. Macro and Micro problems faced by JetBlue JetBlue Airways just like any other company or industry has faced a lot of problems. Some are small but others have almost led to its closure. Some of the problems it has faced include the following. The fast changes in technological world. The fast internet services that are needed in the flights have not been fully installed in all flights of JetBlue. Even when fully installed, there is the problem of power outlets where passengers will need to charge their iPhones, laptops and tablets. The inconveniences associated with the free Wi-Fi and email services due to poor internet connectivity has led to increased complaints from customers because they have been promised good services and may even want refunding. Poor weather conditions have adversely the flights of JetBlue. Snow, cold and storm has led to cancellation of many flights. Pilots and the crew members get to be paid despite doing nothing. The company has incurred such costs. Some snow has formed for long time leading to cancellation of flights. The passengers have always demanded for compensation and this has led to increased losses of revenue and unnecessary expenditures on the side of the corporation. The passengers have been inconvenienced and sometimes have been forced to change their destinations or their flights. Other times, they have been transferred to other flights or get inbound flights. This has led to decrease of loyalty by its passengers. Poor handling of passengers by crew members and the customer care of JetBlue has been challenge for the management. Most passengers have taken to online to complain of the poor quality of services provided by the employees of JetBlue Corporation. Some of the incidents of rudeness, poor or lack of responses on queries of the Airways has been a great challenge. Other times the passengers have complained on the delays by customer care to answer to calls. Some have been even told to hold calls for about thirty minutes. This has annoyed a lot of people and has led them to change their bookings with JetBlue. The management has found it hard to control the behavior of some employees and have been forced to deploy them. This has been leading to recruitment of new crew which takes time to adjust to the new working environment (Randell 2014) Under booking of the flights. In some cases especially off-peak periods most of the flights are not booked. This has reduced their revenues and led to losses. JetBlue airways has always experienced large turnout of passengers during peak period. For example, during festive seasons and summer seasons many people are travelling. However, during off peak periods like winter season, there are many people who are not travelling and this been a great challenge for them. Increased cost of fuel. The increasing fuel costs have increased operating costs of the corporation. The overall effect is decrease in revenue and huge losses. The introduction of laws of going green has been a major problem for it. Taxes have been imposed according to the rate at which the company emits carbon to air. Security has been a major problem for JetBlue airlines. Considering the increased terrorism in some countries, the airline has invested heavily on security to ensure there are no dangerous weapons being transported. It has also taken keen note of increased smuggling of drugs across the globe. The introduction of full body scanners has been of great criticism since most passengers have viewed it as violation of their secrecy. Safety has also been of major concern. JetBlue has had accidents involving their flights which have risked the lives of their passengers. For example, on September 2005, the Flight 292 had to make an emergency landing at Los Angeles. Considering the high concern by the passengers for their safety, the corporation has continued to assure the passengers on their safety through advertising. Advertising costs are also costly to the airline (Kondalkar, 2009). Finding well qualified staff to handle the passengers has been difficulty. It has been even more problematic for the airline to find and train their own pilots. This has led to shortage and in the next coming years it will be a great issue to issue (Jennifer, 2012). The stiff competition from the other low-cost airline. JetBlue has faces a lot of competition even from the well-established airlines like Qatar airways. The competition has been majored on the quality of services provided and prices. Structures affected by JetBlue problems These problems have involved some structures which are being affected. Some of the airplanes have been sold and other have been reduced their weights. This has been a measure to reduce their costs of burning fuel. The free Wi-Fi has increased the number of people using laptops. These laptops have led to destruction of tray tables. The corporation has to purchase new ones frequently and in large quantities. This is a costly project to undertake. The headquarters of JetBlue airlines were transferred from Forest Hills, Queens in New York. The headquarters were only located in New York because the relocation costs would be so high. Alternatives and Recommendations They should come up with a marketing strategy. This involves the advertisement through full page newspapers. The flat screens that have been put at the back seat of each passenger can be a means of advertising for their products. This is can through the customization of the programs. Advertisements can be done through print, online, television and websites like Hulu.com, Youtube.com and JetBlue.com. The personalized in –flight entertainment has attracted many passengers and increased the revenues of the organization and also profits will later increase too (Randell 2014) Partnership with other professional sports teams and venues. The partnership is a major sign of increasing its diversity. The introduction of comfortable legroom and free and snack offering will give them an added advantage over their competitors and thus attracting more customers. Their advertisements can also be through slogans and campaigns. The slogans should be well structured to attract the potential public ( Schermerhorn, 2012). Formation of customer bill of rights. This will protect the passengers against flight cancelations, poor services offered, inbound of flights and un-communicated delays. The passengers will have their rights and be respected by the employees. (Kondalkar, 2009). Building of power sources (sockets) besides the seat of each passenger will ensure that even after a customer has a phone or laptop, can be able to charge it easily. This is very necessary considering that there is free Wi-Fi and many of their phones can easily shut down if the distance to be covered is long ( Schermerhorn, 2012). Outsourcing. This is to reduce the losses from under booking. The company can partner with another airline so that if the flight is not fully booked then they can transfer the passengers to another airline which is not fully booked. They should have a well-structured risk management system. This will help them to curb the unexpected accidents like fire. Therefore they will be able to cover themselves in case of emergency and the losses if any will be few. Through government intervention, the airline can be able to get financial assistance in case of financial crisis. This helps the airline not to get bankrupt and even after losses it can be able to continue. The JetBlue Corporation needs compete favorably so as to keep its loyal customers and also attract new passengers. This can be done through lowering prices of the tickets in comparison with its competitors. However, the corporation should not reduce it to an extent of incurring losses. Conclusion JetBlue has faced several problems. If well handled, they can help to reduce the resulting negative effects. If not well handled JetBlue will lose a lot of revenue and incur losses. Consequently, it can lead to its breakdown. The breakdown is not the best option neither the last resort for such established airline. Therefore, the alternatives and suggestions are the best option for the corporation to adopt. References Bill R. (2006). FlyORH: JetBlue is thinking long term for ORH. New York: New York Prints. Denison Consulting. (2006). JetBlue Airways & Organizational Development: Partners for Change, Jennifer M. George, G. R. (2012). Understanding and Managing Organizational Behavior. Saddle River: Pearson. John R. Schermerhorn, J. G.-B. (2012). Organizational Behavior. Danvers: John Wiley & Sons. Kondalkar, V. (2009). Organization Development. New Delhi: New Age International. Schein, E. H. (2010). Organizational Culture and Leadership. San Francisco: John Wiley & Sons. Read More