Jet Blue Case Study

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History3
Analysis of JetBlue Airways3
Trends and Strategic Intent3
SWOT analysis3-4
Alternatives4
Recommendations4-5
Implementation5
Conclusion6
References7
History3
Analysis of JetBlue Airways3
Trends and Strategic Intent3
SWOT analysis3-4
Alternatives4
Recommendations4-5
Implementation5
Conclusion6
References7
Table of Contents
JET BLUE AIRWAYS
JetBlue Airways exists to provide superior service in every aspect of our customer’s air travel experience (JetBlue Airways). Our History
David Neeleman founded JetBlue in 1999, under the name “NewAir.” JetBlue offers low-cost travel with on board amenities, such as in-flight entertainment, TV on every seat and Satellite radio. The company is headquartered in the Long Island, New York at the John F. Kennedy International Airport (Wikipedia). Analysis of Jet Blue Airways

JetBlue operates under the constraints of the airline industry and its unique dynamics: intense federal regulation, customers driven mainly by price and route with low brand loyalty, heavy capital costs, and monopolistic conditions amount its suppliers (Doug Bennett). Trends in the U.S. Airlines

Today’s U.S. airline trends continue to grow drastically. With the increasing cost of conducting business, airlines are seeking alternative methods to increase revenue and profit. Passengers are now being charged for baggage, carry-on bags, beverages or food on board, Wi-Fi, and any other amenities offered during a flight, and passengers should expect this trend to continue throughout the industry. Airlines have been cutting the cost of flights, rescheduling routes, and seeking alternative revenue routes. For example, passengers are being charged for aisle seats due to increased fuel costs, and some airlines have outsourced their reservations services (Grabianowski). Strategic Intent

Low-cost airlines establish a viable strategic position in the market by finding an appropriate strategy that acts as a mediating force between them and the environment in which they operate (Flouris, 2005). SWOT Analysis

JetBlue’s strategy is to combine common sense with strategic and operational innovation through the use of the most appropriate technology to “bring humanity back to air travel” (Jody H. Gittell, 2001)To accomplish this, JetBlue aimed to be one of the first completely paperless airlines, deploying information technology for every single aspect of its operations from flight and maintenance to ticketing and reservations (Flouris, 2005). Strengths

Low operating costs (cost per available seat mile, excluding fuel, is lowest reported) High aircraft utilization, low distribution costs (all workforce) (Doug Bennett) Youngest fleet of any major U.S. airline

High brand awareness; rated as top low cost airline for customer satisfaction by J.D. Power and Associates for six straight years (Doug Bennett) Weaknesses
Fix obligations: leases related to aircraft, airport terminal space, other airport facilities and office space Financing costs to support growth. Limited ability to obtain additional equity (Doug Bennett) Opportunities

Increase promotions in business travelers
Further develop social media marketing
Expand in underserved markets and increase flight connections (Doug Bennett) Threats
Price and availability of fuel, U.S. economic conditions
Limited number of suppliers for aircraft, engines and components of in-flight entertainment (Doug Bennett) Alternatives
According to Dave Barger, CEO of JetBlue Airways, “We are focused on optimizing our schedule and balancing our network to service a diversified customer mix of leisure travelers, business travelers and traffic from visiting friends and relatives.” JetBlue entered a new market; the fares are designed to stimulate demand, particularly from fare-conscious leisure and business travelers. In...
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