JetBlue’s cost-saving initiative includes electronic ticketing,
paperless cockpits, and online check-in.In order
to achieve paperless cockpits, JetBlue supplied pilots and
first officers with laptops to retrieve electronic flight manuals
and make preflight load and balance calculations. In
the year following implementation of paperless cockpits,
the company saved approximately 4,800 hours of labor.
One of JetBlue’s more original strategies to cut costs is itstelephone reservation system. Reservation agents work
from their homes in Salt Lake City, using personal computers
equipped with VoIP technology. VoIP stands for
Voice over Internet Protocol and utilizes the Internet to
make free phone calls.This system gives JetBlue flexibility
to handle varying call volumes without needing a
costly call center.
JetBlue also uses technology to manage its marketing
costs. JetBlue employs Omniture software to increase efficiency
of Internet searches, decreasing associated search
conversion costs by 94 percent. By using animation in
its television ads with its advertising agency, JetBlue produced
eight ads for the standard price of one.
Another value-adding initiative is BlueTurn, the name
for JetBlue’s ground operations. In an effort to improve the
overall on-time performance statistics, BlueTurn allows
crewmembers to minimize ground time and decrease the
turnaround time for aircraft.
JetBlue operates two aircraft types and a single travel
class. This simplicity reduces training, maintenance, and
operating costs relative to competitors that operate multiple
aircraft types.
These cost-cutting strategies follow the standard lowcost,
low-fare business model, without sacrificing the ultimate
strategy of providing superior customer service
with happy employees.
In order to best market its services, JetBlue has carefully
considered its marketing approach.