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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Strategic Analysis Of JetBlue Airways Executive Summary This report on JetBlue identifies how they have become an innovator in the airline industry by targeting customers who value a low-cost‚ customer conscious airline. They have formulated strategies that have enabled them to operate in a highly efficient and effective manner while realizing the importance of aligning their strategies with their environment. The report thoroughly discusses the strengths and weaknesses that the company
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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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JETBLUE AIRWAYS Paper 1: Crafting & Executing Strategy Strayer University BUSS 599: Strategic Business Table of Contents Introduction…………………………………………………………………..….…….p. 3 Trends in the Airline Industry……..……………………………….………..…….......p. 4 Jet Blue’s Strategic Intent………..……………..…………………..……..……..........p. 4 Jet Blue’s Financial Objectives and Related Success………………..…..…….....…...p. 5 Strategic Elements…………………………………………..……….…..……........…p.5 Jet Blue’s Strategies for the Future…………………………………………
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Industry Profile: Market Size: Approximately $95 billion Market growth rate: Domestic 2.9%‚ International 5.0% (forecasted to 2017) Stage in life cycle: mature for domestic‚ growth for international Number of companies in industry: 43 mainline carriers and 79 regional airlines Scope of competitive rivalry: primarily major carriers (revenue more than $1 billion). Legacy carriers developing low-cost offshoots Customers: 661 million domestic passengers. Expected growth in business customers
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start with a billion dollars and launch a new airline: -Richard Branson‚ Founder‚ Virgin Analyst Atlantic Airways Keep an eye on ]etBlue. That could prove to be a successful operation.3 -Herb Kelleher‚ Co-founder‚ CEO‚ Southwest Airlines Ann Rhoades looked up from the stack of papers in front of her and gazed out the window. She watched with pride as a JetBlue plane lifted off from Kennedy Airport. She knew from the departure time that this one was bound for Buffalo. She paused
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JetBlue Airways: Starting from Scratch Case Study Analysis This case illustrates how an entrepreneurial venture can use human resource management – and specifically a values-centered approach to management – as a source of competitive advantage. The major challenge faced by Ann Roades is to grow this people-intensive organization at a rapid rate‚ while retaining high standards for employee selection‚ and while building a strong organizational culture. Strengths Weaknesses Clear niche JFK –
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Porter 5 forces Analysis for JetBlue Airway Potential Competitors: Low - Rivalry among existing firms is intense‚ which affect the profits to be low. It¡¦s unattractive to the potential competitors. - High initial investments and fixed costs such as lease a fleet of safe and reliable aircraft‚ negotiate reasonable gate access and landing fees as well as high labor and fuel costs. - There are the price competitions in the airline industry‚ which some major airlines offer the low-price fares that
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At the beginning‚ JetBlue management set the tone for themselves that they would be different then other airlines. To do that they set values for all employees from top to bottom to follow and they set up an attractive pay and a unique benefits package that would allow for successful recruitment and retention of employees‚ while significantly reducing the chance of a union moving into the organization. Equal Employment Opportunity Laws There are certain Equal Employment Opportunity laws that
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