Strategic Challenges
)etBlue faces many challenges it .CUUlmUCS' ‘1" 0P9.“
ate in the highly competitive airline industry. l‘he mam
challenges are maintaining letBlue‘s col-ture as it grows,
dealing with the surfacing complexrties of two fleet
types, managing maintenance expenses as airplanes and
engines begin to age, and dealing with an increasmgly
senior labor pool. Although fuel prices are a concern,
they affect the industry in the same way, and airlines
have opportunities to mitigate these risks. Southwest
hedged its fuel position more effectively than other
airlines, but these hedges will expire and everyone will
have a more level playing field when it comes to fuel
prices.‘°'
Maintaining the IetBlue culture will be difficult to
do as the airline grows. The explosive increase in em—
ployees may hinder the ability to sustain high utiliza-
tion and maintain a positive work environment. The
time that top management has to interact with individ-
ual crewmembers will decrease. Neeleman stated that
he would no longer be able to respond to every crew-
member’s email.102 This change will hinder a popular