The founding of JetBlue Airline in 2000 by David Neelam introduced a new era of discounted travelling costs in America; this would later progress to other countries such as United Kingdom and Mexico. The company started routes in unexploited routes and was very popular due to reduced air tickets costs; it also made a huge investment and tapped the best talent from experienced managers. JetBlue has continued to grow financially and regionally regardless of the major economic challenges; however the airline industry is very volatile and the Company ought to find new strategies to deal with its problems caused by reorganization of the industry, debts and competition from key industry players.
Potential Ethical Issues
There has always been a notion that cheap is expensive, and the branding of JetBlue Airways has basically relied on low costs. This is a potential PR issue where the company must assure and win the confidence of the customers in the international markets on quality even with low costs (Murphy, 1999). In countries like Mexico the low costs will work for them; since the country is not well economically developed and most are low income earners (Bennett, et al. 2010). This means there are large markets that are unexploited by other companies that charge high prices. If they are able to break the cultural trends in the country of road transport it can have a large market share (Sele, 2006). The prices cuts may however not be welcome by the existing companies who might protests that foreign companies are impacting on local business but through explaining liberalization they can win the case. Through social media campaigns the culture of air transport should be advocated and encouraged.
In United Kingdom the low cost strategy may not very well for JetBlue since the country is economically developed. The market is already dominated and shared by airline companies in the country and investing in the industry is a tall order. However since there is a culture of air transport the company may find it easy in tapping those in the low income levels and get a market share (Bennett, et al. 2010). In UK the main ethical issue is the assurance of quality in view of the fact that quality is very essential to win the customers confidence (Sele, 2006). In case any case of inefficiency occurs the company should be very quick to react and solve the issue and apologize to the customers.
Customers are very price sensitive and they tend to believe that the higher the price the better the service. To tackle this, the company should start media campaigns to encourage them to test their services. There should be customer satisfaction campaigns where customers will get a platform to express their satisfaction or experience with the company (Sele, 2006). This may be through a social platform to ensure that other customers get the urge to test the company’s services.
The governments in both countries may also be very wary of the company trying to destabilize the industry and leading to fall of local companies (Stiglitz, 2002). However, this may be handled by explaining the economic impacts to the country such as increased tourism and the benefits that are attained with better transport networks. In addition the employment opportunities to the local citizens should be explained to quell down the concerns. This could be through a press conference and meetings with officials.
The issue of bankruptcy is also very sensitive and JetBlue needs to be cautious in this factor in that the management needs to refocus on the goal of providing low air ticket prices (Murphy, 1999). Other companies like Northwest and Delta had filed for bankruptcy since they were unable to make profits from the venture. The company must have a public relations campaign to assure the investors of the performance and strategy to ensure profitability, given that they have not received any dividend.
In conclusion, it is possible for JetBlue to venture in foreign markets and profit with its low price air ticket strategy, through an effective and efficient public relations strategy.
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