Bagus Anggara Yudha Nangtjik - 041824353016

case Septian Sony Utomo - 0418243530

Qurani Vida - 0418243530
study Rizkika - 0418243530
Waqer Ahmed Mallah - 0418243530
 First Flight Passanger Flight Restructuration
10 jet airbus A320 fleet with 1 Improvements by increasing
mio passanger dan net worth management capacity,
increasing expenses and
$100 mio
increasing costs to only $ 1
million

Company Milestone
1999
Founded by David Neeleman
First route of JBU
were NY, BO, OR,
FLL, LJB
2000 2005 2006 2007
8th Passenger Airlines in US
Financial Problem
Provided 502 flight to 50 cities
$20 mio loss caused
and had 102 fleets
by air fuel cost rose
to 52%

Company Culture

Non union environment -

good working condition

“bring humanity back to

“can-do” attitude
air travel”
David Neeleman
2010, Top Low Cost Airline for
more leg room Customer Satisfaction by J.D.
television facilities Power
reluctant to cancel flight 2010, Best Coach-Class
Experience by SmarterTravel
Editor’s
 Company Problem

Changing the strategy

that originally addressed
Snow Storm in
Connecting flight the problem when the
February 2007 problem has occurred
becomes anticipating
problems that are likely to
occur

changes in air traffic

procedures that cause Delay flight
operations chaotic

Understanding that early flight

Impact of problem cancellations can benefit both Company Recovery Appointed Russel Chew as
passengers and companies chief operating officer in
Valentine’s Day Massacre - 14 Februari 2007 March

356 flights cancelled

(70% of flights) 6 days after snow storm
839 flights were canceled

Issued $24 mio worth voucher

for passanger as compensation
and $17 mio loss due to flight Russel Chew
cancelation Former COO of FAA
Managing Director of American
Issuing bill of right Airlines SOC
 Case Discussion
What made the IROP change effort successful?

Through the IROP integration project,

From Strategy to the way crew can serve can improve
Execution their processes, even with technological
(Chapter 6) limitations. Integration projects are not
only limited to technology but can also
be carried out through improved
Resources &
processes, policies and internal training.
Capabilities (Chapter 5)
relatively low cost.
Dynamic Competition : Game Theory (Chapter 4)

IROP enhances synergy between crew.

Through the method of cross-
departmental and cross-functional
relationships between teams. Develop
internal capabilities for project
management and process quality
improvement performance with Lean
Tools to identify sources of waste and
inefficiency.
How Would You Have Organized The Change Effort Differently
Threat of substitute products
Bargaining power of Suppliers
• Alternate Travel Services
• Aircraft Manufacturers
• Private Transportation
• Aircraft Leasing Companies
• Video conferencing
• Food Service Companies
• Groupware
• Fuel Companies
• Airports
• Local Transportation Service
• FAA
Competitive rivalry within
the industry Sustain Create
Bargaining power of customers Threats of new entrants accelerati Sense of
• Travels Agents •Foreign Carriers on Urgency
• Business Travelers •Regional Carrier Starts Up
• Pleasure Travelers • Cargo Carrier Business Strategy Change
• Charter Service
• Federal Government
• U.S. Military
• Cargo and Mail Build a
Generate short-term wins guiding
coalition

Form a
• SBU : American Airlines Enable action by strategic
• Traditional Rivals : United, Delta, removing barriers vision and
initiatives
Northwest, US Air
• Low Cost Rivals : Southwest, ATA Enlist a
volunteer
army