JetBlue IPO WACC The estimation of cost of capital for JetBlue proved to be a difficult process. Considering the company has an unfavorable capital structure‚ due to the fact that they are acquiring a large number of aircrafts‚ simply taking the weights of debt and equity are not acceptable. In order to accurately judge the discount rate the multiples method is necessary. The comparison was to a leading low-fare airline company‚ Southwest. Another critical point is that taking the book
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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
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blue 1-Give examples of needs‚ wants‚ and demands JetBlue customers demonstrate‚ differentiating these three concepts. What are the implications of each for JetBlue’s practices? Needs‚ wants and demands are three basic things that each company must have in mind in order to produce a valuable “market offering” that will bring the so called “long-lasting and valued relationships” to their table‚ and JetBlue is not the exception. JetBlue like any other business is competing at the market by offering
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JetBlue Case Analysis Executive Summary JetBlue airline was founded by David Neeleman who is a Brazilian born entrepreneur. His goal was to single handedly create a unique airline that was innovative for the current market. The low fare airline was designed for customers who needed to travel at affordable prices‚ and which would essentially create a new strand of business. Named JetBlue‚ Neeleman’s airline originally traveled to various cities around the United States‚ but has recently entered
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JETBLUE INTRODUCTION JetBlue was founded in 1998‚ by 38-year-old David Neelman as an upstart low-fare airline which had enjoyed unprecedented acclaim from costumers and industry observers. Unfortunately‚ on February 14‚ 2007 the enterprise‚ suffered one of the most severe service disruptions ever. Something that started as a controllable situation caused by a snow storm‚ turned into a nightmare for most of the passengers in the JFK International Airport in New York. and then‚ the nightmare
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Introduction The purpose of this paper is to evaluate the business strategy of JetBlue Airways. JetBlue was founded by David Neeleman in 2000 and quickly became one of the largest discount airlines in the United States. It was started in the east coast primarily and expanded throughout the country and entered the international market soon after that. JetBlue received the “#1 Airline Brand” rating10 even while keeping its advertising costs significantly lower than Southwest Airlines. Jet Blue’s
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380-01 Dr. William Brent February 3rd 2009 JetBlue Airways: IPO Valuation Table of Content I. Statement of Problem II. Alternative Solutions III. Analysis of the Alternatives IV. Final Recommendation V. Appendix I. STATEMENT OF THE PROBLEM David Neeleman‚ CEO of JetBlue Airways and his management team have realized that JetBlue is still making profit despite the many challenges facing the airline industry after the September 11th 2001 terrorist attacks
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External Environment: Opportunities and Threats for JetBlue Airway Societal environment After September 2001‚ air travel decreased sharply and major airline companies had lost the money. This makes those airline companies to increase the debt by tapping their credit lines and/or issuing bonds. These actions were vital to help the carriers survive the dramatic decline in passenger levels and fares‚ and the sharp increase in losses‚ but left most of the major airlines burdened with huge debt
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implications of each for JetBlue`s practices? A Need is states of felt deprivation. A Want is the form human needs take as they are shaped by culture and individual personality. A Demand is human wants that are backed by buying power. Jet Blue Needs‚ Wants and Demands: • NEEDS Get to the place you payed for. • WANTS To be comfortable‚ to have good service . • DEMANDS Food and beverages‚ to be entertained somehow. Knowign the exact definition of each concept we can talk about the way
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2007‚ David Barger‚ President and CEO of JetBlue Airways‚ expressed the great need to slow down the airline’s growth in response to increasing fuel costs and the consequences stemmed from the Valentine’s Day crisis. As an LCC‚ JetBlue had to decrease its growth rate by reducing deliveries of E190 and A320 due to its weak financial position and the market’s softening demand. Considering the performance of JetBlue after the addition of E190 to its fleet‚ JetBlue overestimated its capacity of handling
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