JetBlue Value Chain

Essay by jmariano November 2006

download word file, 1 pages 5.0

- Primary Activities

Inbound Logistics/Outbound Logistics:

Focus on underserved markets and large metropolitan areas, utilizing underutilized airports with less congestion adding to the ability to remain on the ground in less time.

Point-to-Point routing system, unlike low-cost competitors that utilize hub-and-spoke system, partnering with larger airlines to provide connecting flights.


Use of a single-type aircraft fleet. The A320 Airbus has an increased seating capacity of 30 seats (24 after additional seating reconfigurations), is cheaper to maintain, fuel efficient and reduces training costs, relative to other aircraft models used in the industry.

Ticketless travel (e-ticket).

At-Home Reservation Agents reduces office space and infrastructure costs.

Paperless Cockpit (reduces paperwork and results in faster take-offs, quicker turnarounds, and higher aircraft utilization.


Does not overbook flights, therefore, customers are never concerned with the possibility of being

bumped, i.e. no standbys. No passenger is ever left behind.

Layout and design of planes and reduced seating capacity to increase customers' legroom and comfort.

DIRECTV satellite television. A television at each seat (24 channels controlled at the hands of each individual customer).

Long and short hauls, unlike low-cost competitors that focus on short hauls.

True-Blue points program that allows customers to receive a free round-trip ticket based upon points earned.

Its superior operational performance, i.e. more flight hours per day, better completion factor and on-time performance, fewer mishandled bags and customer complaints, translates to exceptional customer service.

- Support Services

General Administration:

Key employees of the management staff were veterans highly experienced in the airline industry, complementing the knowledge and expertise of its founder.

Management's hands on approach in assisting crewmembers with carrying out work activities supports its culture as a service company striving for an environment that encourages safety, caring, integrity, fun and passion.

Management's visibility with both employees and customers, and...