UVA-F-1415-SSRN v 1.2 JETBLUE AIRWAYS IPO VALUATION My neighbor called me the other day and she said‚ ’You have an interesting little boy. ’ Turns out‚ the other day‚ she asked my son Daniel what he wanted for Christmas. And he said‚ ’I want some stock. ’ ’Stock? ’ she said. ’Don ’t you want video games or anything? ’ ’Nope‚ ’ he said‚ ’I just want stock. JetBlue stock. ’ --David Neeleman‚ CEO and Founder‚ JetBlue Airways It was the first week of April 2002‚ barely two years since the first
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Airline for the People JetBlue Airlines has a short but overall successful history in air travel. According to the “Customer Protection” page of their website (2012)‚ their goal is‚ and always has been‚ “bringing humanity back to air travel.” JetBlue values its strong company culture‚ as described on their “Work Here” website page (n.d.)‚ and its communication structure encourages upward and downward communication‚ which lessens the power gap within the organization. JetBlue works with many different
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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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cancellation of almost 1‚900 flights. This in turn caused JetBlue to lose a decent amount of money. Additionally‚ this incident jeopardized JetBlue’s image that previously was stellar. In order for JetBlue to regain their image they would need to take necessary steps beyond refunds and vouchers. I would recommend that JetBlue first assess their leadership and make sure the problems didn’t come from the core decision makers. Also‚ JetBlue should slightly reduce their airfare rates and perhaps their
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Clearly‚ people in India have considerably less disposable income and are still willing to pay extra so as to travel with an airline with better customer service. So‚ I think more people in America will be willing to switch from Spirit to airlines like JetBlue and Southwest that are customer-friendly and offer way better amenities. Conclusion Given the customer complaints‚ I don’t think everyone will be willing to fly with Spirit Airlines. I don’t think price is the only factor that people consider before
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airlines‚ especially major carriers‚ are adapting the concept of “doing less with more.” One low-cost carrier‚ JetBlue‚ is changing the domestic aviation landscape in this regard and is defying the odds. Here is a company that has examined each marketing mix elements carefully‚ has adapted them to its customer’s needs‚ and is succeeding because of this approach. With regard to Product‚ JetBlue is cornering the marketplace with its productivity‚ in-flight features‚ and customer service. Due to the
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* Growth and increased profitability * Make competition irrelevant * International growth Threats * Airport security causing travelers to use other means * Unpredictable fuel prices * Terrorism * Competitors using JetBlue strategies to provide similar service * New competition * Recession / Depression * Unsustainable growth rate * Weather / Natural disasters 2. What are the dangers of rapid growth? Or not growing fast enough? Rapid Growth
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David Neeleman Reinvents Airlines MAN 3303 March 21‚ 2012 Abstract The founder of JetBlue‚ David Neeleman started the company with the vision of “bringing humanity back to air travelâ€. (Neeleman 2003) His main mission was to establish a low cost airline that offered first class comfort and services to their customers at an economic price that everyone could afford. He believed in having everyone in the organization to focus on the main objectives which are to work as a team. He also
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CASE STUDY JetBlue: High-Flying Airline Melts Down in Ice Storm Joe Brennan‚ Ph.D. ‚ Ohio University Felicia Morgan‚ Ph.D.‚ University of West Florida Introduction On Wednesday‚ February 14‚ 2007‚ JetBlue Airways Corp. (NYSE:JBLU) suffered the most severe service disruption in its seven-year history. A winter storm snarled operations at the regional carrier‟s JFK International Airport in New York‚ its main East Coast hub‚ forcing the airline to cancel more than half of its flights. Ten planes sat
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commercial organizations in mind‚ it is of most value to JetBlue. 2. What internal resources and assets does JetBlue have that may give it a competitive advantage? JetBlue was able to lobby for exemptions for additional 75 slots at John F. Kennedy (JFK) airport. With this strategy‚ JetBlue was able to avoid the hubs for major players and at the same time‚ was able to target nineteen million New Yorkers who lived within a sixty mile radius. JetBlue was able to maximize and take advantage of the current
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