Jetblue Case Study
JetBlue and Song: Competitive Rivalry between Low-Cost Carriers
Case Analysis 2
Kathleen Quicho
Prof. Rosalinda B. Lacerona
Faculty, MGE 11A
Time Context
2013 (Present)
JetBlue is a United States domestic airline company who operates on a low-cost principle which translates into cheaper airfares to its customers. In February 2007 JetBlue underwent a particular event that could have been its last. Since its beginning in 1998 JetBlue became the 11th largest company in the industry within six years. Aside from Southwest airlines, JetBlue was the only company who had been able to keep its books positive while the United States had undergone a terrorist attack and all other companies were reporting loses.
Song airline was a low cost carrier subsidiary of Delta airlines that started in 2003. It was formed to compete with JetBlue and other low cost airlines for the Florida market.
Summary of the Case
Low-Cost Carriers have changed the way people fly and altered their expectations for air travel. Most followed the same Low-Cost Carriers’ formula: “high quality, low-fare air travel” whose target market is “Price conscious-leisure travelers”.
Like many businesses, competitive rivalry is a normal situation. JetBlue and Song are one of those many. Since both are Low-Cost Carriers with the same goal, they almost offer the same thing to their market. What makes them different from each other is how they step up their game. Both JetBlue and Song offer additional commodity to their flights along with their low-fare air travel. For instance, JetBlue offers free live satellite with 24 channels at each seat. And as a response, Song offers personal touchscreen video monitors at each seat.
As direct competitors, JetBlue and Song are expected to closely monitor each other and continuously give responses to each other’s advances in an attempt to outcompete the other.
Current Performance
In 2010, JetBlue reported net income of $97 million and an
Case Analysis 2
Kathleen Quicho
Prof. Rosalinda B. Lacerona
Faculty, MGE 11A
Time Context
2013 (Present)
JetBlue is a United States domestic airline company who operates on a low-cost principle which translates into cheaper airfares to its customers. In February 2007 JetBlue underwent a particular event that could have been its last. Since its beginning in 1998 JetBlue became the 11th largest company in the industry within six years. Aside from Southwest airlines, JetBlue was the only company who had been able to keep its books positive while the United States had undergone a terrorist attack and all other companies were reporting loses.
Song airline was a low cost carrier subsidiary of Delta airlines that started in 2003. It was formed to compete with JetBlue and other low cost airlines for the Florida market.
Summary of the Case
Low-Cost Carriers have changed the way people fly and altered their expectations for air travel. Most followed the same Low-Cost Carriers’ formula: “high quality, low-fare air travel” whose target market is “Price conscious-leisure travelers”.
Like many businesses, competitive rivalry is a normal situation. JetBlue and Song are one of those many. Since both are Low-Cost Carriers with the same goal, they almost offer the same thing to their market. What makes them different from each other is how they step up their game. Both JetBlue and Song offer additional commodity to their flights along with their low-fare air travel. For instance, JetBlue offers free live satellite with 24 channels at each seat. And as a response, Song offers personal touchscreen video monitors at each seat.
As direct competitors, JetBlue and Song are expected to closely monitor each other and continuously give responses to each other’s advances in an attempt to outcompete the other.
Current Performance
In 2010, JetBlue reported net income of $97 million and an