Background of JetBlue Airways JetBlue Airways Corp. is one of the major American low-cost airline and one of the best examples of a succeeding business because of excellent customer service based on low operating cost relative to the superior product offering (offer a product superior to competitors at affordable prices). JetBlue is established in 1999 by David Needleman and commenced operation only February 11‚ 2000 with new Airbus A320 aircraft operating between Buffalo and Ft. Lauderdale (Nasdaq
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Case study—JetBlue airways IPO valuation Introduction: As a leader of airways industries‚ JetBlue is successful because of professional services and a good management team. In 2002‚ JetBlue became a public company. Despite the fact that US airline industry had witness 87 new airline failures over the previous 20 years‚ Jetblue overcame difficulties and expressed confidence in the bright future. Before going public Before going public in 2002‚ JetBlue has outstanding advantage in the whole
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Summary This report discusses whether and how JetBlue should list its shares on public from several angles. Two principal incentives prove that the IPO process could be inevitable‚ even without an optimal offering price‚ and valuation models including multiples comparison and income analysis imply the firm may be underpriced. Given the situation and all assumptions‚ an increment in either offering size or price is suggested. 2 SWOT and Background JetBlue started by following Southwest’s approach of
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Jet Blue Airways; Managing Growth 1. Jet Blue´s Business- level strategy; value and cost drivers Jet Blue uses to create and maintain ist competitive position Founded by the discount airline veteran David Neeleman in 2000‚ JetBlue Airways has quickly become one of the largest discount airlines in the United States. Starting primarily by serving the East Coast‚ the airline has since expanded throughout the country and entered the international market. The reasons for its early success are
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JetBlue Airways IPO Valuation Summary In July 1999‚ David Neeleman announced his plan to launch a new airline that would bring “humanity back to air travel.” Despite the fact the airline industry had 87 new-airline failures in U.S. over the past 20 years. Neeleman’s plan convinced a group of investors and quickly raised $130 million from venture-capital community. This is the way JetBlue Airways established. With its strong capital base‚ JetBlue acquired a fleet of new Airbus A320 aircraft and focused
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H B R CAS E ST U D Y AND COMMENTARY Should Maher give his star performer star rewards—or risk her leaving? Six commentators offer expert advice. Growing Pains by Robert D. Nicoson • Reprint 96408 Waterway’s CEO is rethinking his compensation policies. Maybe he should be rethinking his business strategy. H B R CAS E ST U D Y Growing Pains by Robert D. Nicoson COPYRIGHT © 1996 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. “I’m challenged and motivated where I am‚
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04-78-651-03 Business Strategy Case Analysis: JetBlue Airways: Managing Growth Major issue JetBlue‚ already a successful airline company‚ is considering a proper way to allocate its existing resources between the long-haul and short-haul routes in order to control or even reduce the costs within its capability. To be specific‚ how to reduce costs across E190 and A320 without damaging the stakeholders’ interests
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To evaluate the external environment of JetBlue airways we will use the PESTEL analysis. PESTEL analysis stands for “Political‚ Economic‚ Social‚ Technological‚ Environment and Legal analysis”. Political Factors How and to what extent the government does intervenes in the economy. Political factors can be tax policy‚ labor law‚ environmental law‚ trade restrictions‚ tariffs‚ and political stability. Political factors that are found in the JetBlue case are: Government monitors the airline industry
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Growing Pains In Harper Lee’s To Kill a Mockingbird‚ there are several characters who are thrown into various different situations‚ which force them to grow up in multiple ways. This essay will show some of the ways some of these characters change and grow. This novel’s main character is Jean Lousie Finch‚ nicknamed Scout‚ who is the narrator of this story. Now‚ Scout shows a developing maturity several times in the book‚ such as when she says‚ “Atticus had promised me he would wear me out
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JetBlue Airways airline was established by David Neeleman as a low-fare airline with high-quality customer service. His goal was to create an airline that was innovative for the current market. Their main focus was to provide service to areas that were underserved as well as to large cities with overpriced fares. He aimed to establish a strong brand that differentiated itself from its competitors by being a safe‚ reliable and low cost-airline. Neeleman managed to achieve this partially by hiring
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