Jetblue Swot Analysis

Topics: Southwest Airlines, Low-cost carrier, JetBlue Airways Pages: 7 (2104 words) Published: February 5, 2011
SWOT Analysis: JetBlue Airways

DeVry University Online
Keith Escher

Organizational History

Known as one of the very few airlines which has actually managed to make a profit since the downturn in the travel business, which was a result of the September 11th attacks, JetBlue Airways continues to pride itself by living up to its dedication of “bringing humanity back to air travel”(JetBlue Bill of Rights). JetBlue was incorporated in Delaware in August 1998 and was founded by David Neeleman, a former Southwest Airlines employee and practicing Mormon man with nine children in February of 1999(JetBlue Airways). The vision of the airline was to provide low cost air travel with certain amenities, including TV’s on every seat of the plane and a Satellite radio system. “JetBlue was given 75 initial takeoff and landing slots at JFK Airport and was provided with their authorization to take to the skies in February of 2000. Flight operations began on February 11, 2000, with their charter service of JFK to Buffalo and to Fort Lauderdale”(JetBlue Airways Information). Now, the airline “serves 46 destinations with over 400 flights daily operating with a fleet of 107 Airbus A320 aircraft and 35 EMBRAER 190 aircraft”(JetBlue Airways). “JetBlue has the following cities as their operating bases: JFK Airport(NYC), Logan Int’l(Boston), Orlando Int’l, Hollywood Int’l(Fort Lauderdale), Long Beach Airport and Luis Munoz Marin Int’l(San Juan, Puerto Rico). The headquarters of JetBlue are located in the Forest Hills neighborhood of Queens, New York with nearly 12,532 employed. For the year of 2009, the airline incurred $3.286 billion in revenue, had an operating income of $279 million, a net income of $58.0 million, total assets of $6.554 billion and a total equity of $1.539 billion. JetBlue Airways announced its initial public offering on April 11, 2002 and is traded on the NASDAQ as JBLU”(JetBlue Airways). JetBlue offers to its airline passengers innovative and strategic services, such entertainment and food and drinks on flight, with the intent of attracting more travelers by providing affordable airline fares. In addition, JetBlue makes it a #1 priority to assure the fun and comfort level of its passengers, which assures that it remains one of the highly regarded airlines in the friendly skies today.

Organizational Strengths and Weaknesses

To begin with, “JetBlue was named by Conde Nast Traveler Magazine’s “Readers’ Choice Awards” as the number one U.S. domestic airline for six years”(JetBlue Airways Information). JetBlue is known as the low cost airline which has low operating costs and also which makes effective use of technology and advertising. The airline tends to focus on serving those markets which have been underserved and markets which have average fares that are on the high side. Considering the fact that many of JetBlue’s top management has migrated from Southwest Airlines, they follow the low cost strategy which Southwest has established, but JetBlue tends to differentiate itself by providing their customers with certain perk incentives such as offering a “live TV at every seat with 36 Direct TV channels and XM Radio with over 100 channels”(JetBlue Airways Summary). And don’t forget free wireless Internet and movies. In addition to the entertainment options, JetBlue also offers complimentary snacks to everyone.
Another strength of JetBlue is the “unique relationship which the company has maintained since the beginning with its employees”(JetBlue Airways Info). The manner in which they acquire new personnel through their hiring and talent acquisition process, to perform their unique job functions in such a manner which they service their customers in a positive and pleasing way. During their hiring process of new talent, JetBlue not only relies on and looks at the skills of a potential candidate, but they also take a close look at...
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