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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describe JetBlue’s operations strategy prior to the November 2005 adoption of the E190? (b) Compare the economics of the E190 and A320 for JetBlue. What are the key drivers of profitability for each type of plane? (c) Do you agree with JetBlue’s decision to add the E190 to its fleet? Be prepared to state the retionale for your decision. (d)How should JetBlue slow down the growth of its fleet? Should it cut growth in A320 capacity‚ E190 capacity‚ or both? New Balance Athletic Shoe‚ Inc. Assignment
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Delta Air Lines (A): The Low-Cost Carrier Threat Problem: Delta Airlines didn’t have a comprehensive response to low-cost carriers across functions. Option: Delta should launch its own low-cost carrier. Problems: Nearly all major airlines had done this unsuccessfully‚ proved unsustainable over time‚ never had a high-cost carrier transformed into a low-cost carrier. Since deregulation (1978) the average return on investment below cost of capital for the 5 largest carriers. Due to 9/11 the demand
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Founder & CEO‚ David Neeleman couldn’t handle the situation‚ and responded to the media in an improper way. Justification for Problem Definition The most relevant error and bias for companies like Nationwide Insurance‚ American Airlines‚ and JetBlue company is the overconfidence bias‚ they thought they are always making the right decisions and they believed too much in their own ability to make good decisions‚ just as Rommel’s quote about making a “Sound business decision.’’ Alternatives
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Business-Level Strategy of Air Asia Introduction: Aviation‚ an industry where it is full of fluctuations‚ has always been affected by various factors. It is not uncommon to see aviation-related companies keep changing their own strategies to make ends meet. Overall the air industry in Asia has continuously growth recently and maintains a high level of ranking. Among the explosive growth in budget airlines market‚ Air Asia is obviously the typical example for further study with the most fleet sizes
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a year‚ and handling 30.2 million passengers in 2013 alone‚ Boston is the 19th busiest airport within the United States. Presently‚ Boston serves as a focus city for JetBlue airways‚ a low-cost carrier‚ and a hub for a number of airlines‚ such as Delta Airlines‚ regional airline Cape Air‚ and commuter airline PenAir. U.S Airways carries out many operations from this airport as well‚ and all major airlines fly to Boston from all or the majority of their primary and secondary hubs. Presently‚ Boston
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Jet Star Marketing Objective Jet Star is a subsidiary airline of Qantas‚ it is founded in Melbourne‚ Australia in 2004 starting with 400 employees and up to date they have 7‚000 employees under them. Jet Star is one of the largest low- cost airline carrier in the Asia Pacific by revenue Jet Star objective is to offer all day‚ everyday low fares to allow more people to fly to different places more often. From the advertising slogan of Jet star “All day everyday low fares” we are able to know their
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Alaska Airline & Corporate Culture A unique cultural characteristic of Alaska Airline would be the benefits they allot their employees. After 90 days of working with Alaska Airline‚ an employee earns benefits which allows him or her to fly anywhere at anytime with 1 other individual. In addition to this‚ the employee is given 6 “buddy passes” each year which allows the employee to give 6 roundtrip tickets to people other than himself or the 1 person he chooses to travel with. The best part
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Delta Song Case Analysis Possible cost drivers that will allow us to estimate a salary cost function for Delta are: available seat miles‚ number of departures‚ available ton miles‚ revenue passenger miles‚ and revenue ton miles. The two cost drivers we chose were revenue passenger miles and available ton miles. The salaries consist of payments to pilots‚ flight attendants and ticket agents. Their salaries are determined by the number of passengers and cargoes and the miles or hours flown. This is
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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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