JetBlue Airways Case
JetBlue Airways Case
04-75-498-01
Submitted To: Professor T. Mao
November 15, 2013
Dustin Barnier 103168582
David Gudalj 103450148
Christina Longo 103141910
Audrey Xue Weng 103699389 longof@uwindsor.ca Table of Contents
Problem Identification 1
External Analysis
PESTLE Analysis 1
Industry Analysis 2
Porters Five Forces Analysis 2
Market Analysis 3
Key Success Factors 3
Internal Analysis
VRINE Analysis 4
Value Chain Analysis 4
Financial Analysis 5
Alternatives for JetBlue Alternative 1: Stop buying airplanes 6
Alternative 2: Scrap the A320 6
Alternative 3: Scrap the E190 6
Decision Criteria 6
Recommendation 6
Implementation Plan 7
Contingency Plan 7
Problem Identification
Presently, David Barger, former COO elected CEO of JetBlue Airways (JetBlue), faces a key issue of slowing down their growth. The issue at hand is:
What is the best path for JetBlue slow down their growth in the future airline industry?
External Analysis
Macro Economics Analysis
For an analysis of the Macro Economics of the JetBlue, a PESTEL analysis is shown below for the United States.
PESTEL Analysis
Political: N/A
Economic: The United Sates was hit hard economically from the terrorist attacks on September 11, 2001. This caused fare wars amongst competitors in the airline industry and domestic airline yields to drop twenty percent. These yields wouldn 't recover from pre attack rates until 2006. In fact, as of October 2006, five major United States airlines were operating under Chapter 11 bankruptcy protection. Fuel costs in the United States have seen a dramatic increase since the terror attacks in 2001.
Social: The airline industry, like every other industry, has been affected by the introduction of the internet and its users. People have made it the
04-75-498-01
Submitted To: Professor T. Mao
November 15, 2013
Dustin Barnier 103168582
David Gudalj 103450148
Christina Longo 103141910
Audrey Xue Weng 103699389 longof@uwindsor.ca Table of Contents
Problem Identification 1
External Analysis
PESTLE Analysis 1
Industry Analysis 2
Porters Five Forces Analysis 2
Market Analysis 3
Key Success Factors 3
Internal Analysis
VRINE Analysis 4
Value Chain Analysis 4
Financial Analysis 5
Alternatives for JetBlue Alternative 1: Stop buying airplanes 6
Alternative 2: Scrap the A320 6
Alternative 3: Scrap the E190 6
Decision Criteria 6
Recommendation 6
Implementation Plan 7
Contingency Plan 7
Problem Identification
Presently, David Barger, former COO elected CEO of JetBlue Airways (JetBlue), faces a key issue of slowing down their growth. The issue at hand is:
What is the best path for JetBlue slow down their growth in the future airline industry?
External Analysis
Macro Economics Analysis
For an analysis of the Macro Economics of the JetBlue, a PESTEL analysis is shown below for the United States.
PESTEL Analysis
Political: N/A
Economic: The United Sates was hit hard economically from the terrorist attacks on September 11, 2001. This caused fare wars amongst competitors in the airline industry and domestic airline yields to drop twenty percent. These yields wouldn 't recover from pre attack rates until 2006. In fact, as of October 2006, five major United States airlines were operating under Chapter 11 bankruptcy protection. Fuel costs in the United States have seen a dramatic increase since the terror attacks in 2001.
Social: The airline industry, like every other industry, has been affected by the introduction of the internet and its users. People have made it the