Research Paper for Jetblue
JetBlue Strategic Band Management
1. Company Background
JetBlue is a low cost US airline. The firm was founded by former Southwest Airlines employee, David Neeleman, and incorporated in 1998 in Delaware. The firm was not originally known as JetBlue, the initial name was NewAir. The plans for the new airline were announced by Neeleman in February 1999, and in April an order worth $4 billion was given to Airbus for up to 75 new A320 aircraft, at the same time leases were arranged for 8 aircraft. The firm gained exemptions for 75 take off and landing slots at JFK Airport in September, takes delivery of the first aircraft in December, and officially starts flights on 11 February 2000 (JetBlue, 2012). The first was being between JFK and Fort Lauderdale, a week later a route between JFK and Buffalo is added, and as the next few months services to Tampa, Orlando, Ontario, Oakland, West Palm Beach and Fort Myers are added. By the end of the first calendar year of operation the airline has flown 1 million passengers and reported $100 million of revenue (JetBlue, 2012). 2001 was a difficult year for the aviation industry following the 9/11 attacks, despite this JetBlue was one of the few airlines maintained a profit (Zuckerman, 2001). However, in the following years the success of this airline in the low-cost carrier segment resulted in increased competition including the setup of Song by Delta and Ted by United Airlines, both of which are now defunct (Maynard, 2008). In 2002 the airline flew its 5 millionth customer, and undertook its' initial public offering (JetBlue, 2012). The airline has grown, with the concept of a value based low cost service that is differentiated which has included a wide range entertainment channels, including live satellite television and radio (JetBlue, 2012). The introduction of the customer bill of rights has also been a source of differentiation, setting out the way that the airline will deal with customers in a range of
1. Company Background
JetBlue is a low cost US airline. The firm was founded by former Southwest Airlines employee, David Neeleman, and incorporated in 1998 in Delaware. The firm was not originally known as JetBlue, the initial name was NewAir. The plans for the new airline were announced by Neeleman in February 1999, and in April an order worth $4 billion was given to Airbus for up to 75 new A320 aircraft, at the same time leases were arranged for 8 aircraft. The firm gained exemptions for 75 take off and landing slots at JFK Airport in September, takes delivery of the first aircraft in December, and officially starts flights on 11 February 2000 (JetBlue, 2012). The first was being between JFK and Fort Lauderdale, a week later a route between JFK and Buffalo is added, and as the next few months services to Tampa, Orlando, Ontario, Oakland, West Palm Beach and Fort Myers are added. By the end of the first calendar year of operation the airline has flown 1 million passengers and reported $100 million of revenue (JetBlue, 2012). 2001 was a difficult year for the aviation industry following the 9/11 attacks, despite this JetBlue was one of the few airlines maintained a profit (Zuckerman, 2001). However, in the following years the success of this airline in the low-cost carrier segment resulted in increased competition including the setup of Song by Delta and Ted by United Airlines, both of which are now defunct (Maynard, 2008). In 2002 the airline flew its 5 millionth customer, and undertook its' initial public offering (JetBlue, 2012). The airline has grown, with the concept of a value based low cost service that is differentiated which has included a wide range entertainment channels, including live satellite television and radio (JetBlue, 2012). The introduction of the customer bill of rights has also been a source of differentiation, setting out the way that the airline will deal with customers in a range of
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