Jet Blue Case Analsis
Jet Blue Business Analysis
Introduction
JetBlue Airways Corporation has established itself as a low-fare passenger airline with a differentiated product and a high-quality customer service. They focus on serving underserved markets and large metropolitan areas that have high average fares. They offer both short-haul and long-haul routes that are point-to-point rather than the 'hub and spoke" route system that has been adopted by most major U.S. airlines.
JetBlue was incorporated in Delaware in August 1998 and started operations in February 2000. On April 11, 2002 they announced their initial public offering of its common stock. Their base of operations is at New York John F. Kennedy International Airport (JFK). On February 14, 2003, JetBlue began their West Coast base of operations at Long Beach Municipal Airport, which serves the Los Angeles area. JetBlue currently operates 180 flights per day.
Profile and Mission
JetBlue 's goal is to be the leading low-fare passenger airline by offering customers a differentiated product and high-quality customer service.
JetBlue can offer low-fares due to its low operating costs. Cost per available seat mile was 6.2 cents as compared to the reported average cost per available seat mile of 9.58 cents offered by other major U.S. airlines. JetBlue attributes the low unit costs to the high productivity of its assets and employees. Some of the factors that lead to the low unit costs are the efficient utilization of the aircraft, the operation of only one type of aircraft, which is the Airbus A320, with a single class of service, a productive workforce, and low distribution costs.
JetBlue has acquired an all-new fleet of aircraft, the Airbus A320. They currently operate 45 (53 by the end of 2003), with plans to order 100 more. These planes are expected to start arriving in mid-2005 with scheduled completion set for 2011. Each airplane has a single class layout with a wider cabin space than the competitor 's airplanes.
Introduction
JetBlue Airways Corporation has established itself as a low-fare passenger airline with a differentiated product and a high-quality customer service. They focus on serving underserved markets and large metropolitan areas that have high average fares. They offer both short-haul and long-haul routes that are point-to-point rather than the 'hub and spoke" route system that has been adopted by most major U.S. airlines.
JetBlue was incorporated in Delaware in August 1998 and started operations in February 2000. On April 11, 2002 they announced their initial public offering of its common stock. Their base of operations is at New York John F. Kennedy International Airport (JFK). On February 14, 2003, JetBlue began their West Coast base of operations at Long Beach Municipal Airport, which serves the Los Angeles area. JetBlue currently operates 180 flights per day.
Profile and Mission
JetBlue 's goal is to be the leading low-fare passenger airline by offering customers a differentiated product and high-quality customer service.
JetBlue can offer low-fares due to its low operating costs. Cost per available seat mile was 6.2 cents as compared to the reported average cost per available seat mile of 9.58 cents offered by other major U.S. airlines. JetBlue attributes the low unit costs to the high productivity of its assets and employees. Some of the factors that lead to the low unit costs are the efficient utilization of the aircraft, the operation of only one type of aircraft, which is the Airbus A320, with a single class of service, a productive workforce, and low distribution costs.
JetBlue has acquired an all-new fleet of aircraft, the Airbus A320. They currently operate 45 (53 by the end of 2003), with plans to order 100 more. These planes are expected to start arriving in mid-2005 with scheduled completion set for 2011. Each airplane has a single class layout with a wider cabin space than the competitor 's airplanes.
Bibliography: http://www.bts.gov. BTS Releases First-Quarter 2003 Airline Financial Data; Many Passenger Airline 's Domestic Operations Below Break-Even. June 27, 2003. http://www.fool.com. "JetBlue 's Challenges (Commentary)", September 19, 2003. Slides 7-10, 31-37: Southwest Air and AirTran Holdings, Inc. 2002 Annual Report. Slide 11: http://www.bts.gov. BTS Releases First-Quarter 2003 Airline Financial Data; Many Passenger Airline 's Domestic Operations Below Break-Even. June 27, 2003. Slides 63-68: http://www.fool.com. JetBlue 's Challenges (Commentary), September 19, 2003.