JetBlue Airlines Case Analysis
JetBlue Airlines
Strategic Management Case Analysis
Introduction to the Company
History of the Firm JetBlue was established in 1999, and was the third airline start-up for founder and CEO David Neeleman. Neeleman managed to gather $130 million, the most ever raised for a start-up airline, from investors that included Chase Capital and financier George Soros. With the large start-up capital he purchased new Airbus A320 jets equipped with satellite TV, a first in the industry. In 2004 the company ordered an additional 30 new A320 aircrafts from Airbus. The airlines first flight was from New York to Fort Lauderdale in 2000. During the year, the airline added nine more destinations in California, Florida, New York, Utah, and Vermont. By 2001 the airline was operating 20 new A320s with an ambitious 131 on order (JetBlue Airways Corporation, n.d.). The terrorist attack of September 11, 2001 crippled the airline industry, however, JetBlue continued to expand its network, and it went public in 2002. JetBlue added nine new destinations in 2004, including Boston. They further expanded in 2005 offering the company’s first non-stop coast-to-coast route from Burbank, California to JFK. In 2007, the company partnered with Yahoo, Research in Motion, and LiveTV to provide complementary in-flight email and instant messaging services. The same year, JetBlue and Lufthansa entered into an agreement by which Lufthansa purchased 19% of JetBlue.
Mission Statement and Vision Statement JetBlue’s “mission of bringing humanity back to air travel” (Jetblue Airways 2006 Annual Report, n.d.) is supported by their core values of safety, caring, integrity, fun, and passion. JetBlue’s vision is to establish itself as the leading U.S. low-fare carrier. Since their first official flight on February 11, 2000, their primary goal has been to grow enough to be successful, but to remain small enough to preserve their original strategic direction.
Corporate Governance & Key Players Key
Strategic Management Case Analysis
Introduction to the Company
History of the Firm JetBlue was established in 1999, and was the third airline start-up for founder and CEO David Neeleman. Neeleman managed to gather $130 million, the most ever raised for a start-up airline, from investors that included Chase Capital and financier George Soros. With the large start-up capital he purchased new Airbus A320 jets equipped with satellite TV, a first in the industry. In 2004 the company ordered an additional 30 new A320 aircrafts from Airbus. The airlines first flight was from New York to Fort Lauderdale in 2000. During the year, the airline added nine more destinations in California, Florida, New York, Utah, and Vermont. By 2001 the airline was operating 20 new A320s with an ambitious 131 on order (JetBlue Airways Corporation, n.d.). The terrorist attack of September 11, 2001 crippled the airline industry, however, JetBlue continued to expand its network, and it went public in 2002. JetBlue added nine new destinations in 2004, including Boston. They further expanded in 2005 offering the company’s first non-stop coast-to-coast route from Burbank, California to JFK. In 2007, the company partnered with Yahoo, Research in Motion, and LiveTV to provide complementary in-flight email and instant messaging services. The same year, JetBlue and Lufthansa entered into an agreement by which Lufthansa purchased 19% of JetBlue.
Mission Statement and Vision Statement JetBlue’s “mission of bringing humanity back to air travel” (Jetblue Airways 2006 Annual Report, n.d.) is supported by their core values of safety, caring, integrity, fun, and passion. JetBlue’s vision is to establish itself as the leading U.S. low-fare carrier. Since their first official flight on February 11, 2000, their primary goal has been to grow enough to be successful, but to remain small enough to preserve their original strategic direction.
Corporate Governance & Key Players Key
References: About JetBlue. (n.d.). JetBlue Airways Corporation. Retrieved February 10, 2008, from http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irol-governance Annual Report on Form 10-K Field, D. (2007, June). JetBlue feels the heat. Airline Business, 23(6), 13-13. Retrieved February 14, 2008, from Business Source Complete database. Flint, Perry (2005, April). Southwest keeps it simple. Air Transport World, 42(4), 26-27,30,32. Retrieved February 15, 2008, from ABI/INFORM Global database. (Document ID: 819342931). Flouris, T., & Walker, T. (2005, March). The Financial Performance of Low-Cost and Full-Service Airlines in Times of Crisis. Canadian Journal of Administrative Sciences, 22(1), 3-20. Retrieved February 14, 2008, from Business Source Complete database. Ford, R. (2004, May). David Neeleman, CEO of JetBlue Airways, on people + strategy = growth. Academy of Management Executive, 18(2), 139-143. Retrieved February 14, 2008, from Business Source Complete database. Gajilan, Tobias, A. (2003, May). The amazing JetBlue. (Cover story). FSB: Fortune Small Business, 13(4), 51. Retrieved February 14, 2008, from Business Source Complete database. Gudmundsson, S. (2002). Airline distress prediction using non-financial indicators. Journal of Air Transportation, 7(2), 3-24. Retrieved February 14, 2008, from Business Source Complete database. Higgins, K. (2005, November). Come Fly With Me. Marketing Management, 14(6), 14-17. Retrieved February 14, 2008, from Business Source Complete database. JetBlue Airways 2006 Annual Report (n.d.). Retrieved February 10, 2008, from http://library .corporateir.net/library/13/131/131045/items/238155/JetBlue_2006AnnualReport.pdf JetBlue Airways Corporation (n.d.), Retrieved February 10, 2008, from http://proxy.tamu-commerce.edu:8099/subscribe/co/overview.xhtml?ID=ffffssjkcfxsfftkss Jet Blue Airways Corporation Major Holders (n.d.) JetBlue Airways Corporation Overview (n.d.). Yahoo! Finance. Retrieved February 10, 2008, from http://finance.yahoo.com/q/pr?s=JBLU Parnell, John Sprayregen, J., Kieselstein, M., & Seligman, D. (2006, June). Undoing Chapter 11: Learning From the United Airlines Deal. (Cover story). Financial Executive, 22(5), 24-27. Retrieved February 14, 2008, from Business Source Complete database. Trottman, Melanie (2006, April 17). Airline CEO 's Novel Strategy: No Bankruptcy. Wall Street Journal (Eastern Edition), p. B.1. Retrieved February 15, 2008, from ABI/INFORM Global database. (Document ID: 1021826621). Trottman, Melanie (2007, October 8). AMR 's Long-Term Solution Needs to Gain Some Altitude. Wall Street Journal (Eastern Edition), p. C.1. Retrieved February 15, 2008, from ABI/INFORM Global database. (Document ID: 1360109031). Trottman, Melanie (2007, November 29). AMR to Shed American Eagle Business. Wall Street Journal (Eastern Edition), p. A.3. Retrieved February 15, 2008, from ABI/INFORM Global database. (Document ID: 1390118901). Trottman, Melanie (2008, January 10). Fuel Costs, Vacancies Spur Southwest Changes. Wall Street Journal (Eastern Edition), p. A.12. Retrieved February 15, 2008, from ABI/INFORM Global database. (Document ID: 1410412911). Winning Airlines, Winning Strategies. (2007, April). Air Transport World, Retrieved February 14, 2008, from Business Source Complete database Appendix 1- Jet Blue Airways Board of Directors