JetBlue IPO WACC The estimation of cost of capital for JetBlue proved to be a difficult process. Considering the company has an unfavorable capital structure‚ due to the fact that they are acquiring a large number of aircrafts‚ simply taking the weights of debt and equity are not acceptable. In order to accurately judge the discount rate the multiples method is necessary. The comparison was to a leading low-fare airline company‚ Southwest. Another critical point is that taking the book
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Problems at JetBlue On February 14‚ 2007‚ JetBlue’s lack of preparation and poor management decisions caught up with them. They faced a disastrous turn of events that most businesses anticipate and prepare for. Most businesses plan for worse case scenarios and have contingency plans in place to address those problems should they arise. It is imperative‚ for airlines in particular‚ to have contingency plans and be well prepared in case of any and all emergencies. JetBlue’s operations and policies
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Solutions to Case Study Ans1: The competitive advantages that West Jet has are: ➢ Unique Corporate Culture: The main competitive advantage that WestJet had was their unique culture. Even the executives and pilots help the customer whenever necessary; encourage employees to share suggestions for improvement. They maintained the policy of Care for People. ➢ Low operating cost: They have low prices to attract more customers‚ who would otherwise take train or bus. ➢ No union
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and services: WestJet started its services in 1996 with just 3 aircrafts and landing rights to five destinations in Canada. By the end of 2011‚ WestJet had become one of the leading airlines in Canada‚ by providing services to a total of 76 destinations within continent North America. The airline currently offers scheduled services‚ international charter services and Trans-border services to the United States‚ the Caribbean‚ Mexico and Canada. As per the annual report of 2011‚ WestJet currently operates
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companies from the great ones. As WestJet continues its goal of becoming a low fare international airline‚ it will face numerous obstacles. The problem addressed here deals with the people aspect. How can WestJet maintain its current people culture as the company expands? How can WestJet instill the culture into its new people? And how will WestJet meet the cultural differences in other markets? Answering these questions is essential to the future success of WestJet. Analysis In order for us to
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Case Analysis WestJet is a Canadian low-cost carrier that provides scheduled and charter air service. Beddoe‚ Bell‚ Hill Morgan and David Neelman believed that there was not only a market for a low-fare carrier in Canada‚ but that they could succeed at bringing this service to the country. They became the founding team of the concept that became WestJet Airlines. WestJet has been very successful with their low-fare strategy. They believe that their culture was the key that helps their
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a SWOT analysis for a WestJet Airlines Ltd. “SWOT is an acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.” These factors will determine the success or failure of any company. This WestJet SWOT analysis is done at the level of the entire organization and is a useful tool for understanding‚ decision-making and achieving company’s corporate goals and objectives. Based in Calgary‚ Alberta WestJet was founded in 1996 by
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Summary David Neeleman founded JetBlue in 1999. David Barger was previously president and COO of JetBlue‚ and then was promoted to the CEO role. Steven Predmore‚ was the vice president and chief safety officer. Vicky stennes was the vice president of in-flight service. Tom Anderson was senior vice president of Fleet Programs. Scott Green was vice president of flight operations. Russ Chew was the new COO of JetBlue. JetBlue was one of low-cost carriers (LCC)‚ serving by mainly two models of airplanes:
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Analysis of JetBlue Airlines JFK Hub The JFK Airport hub in New York City is a tangible physical resource of JetBlue. This hub provides significant size and location capabilities. The airport is a large population center‚ with 19 million people within the 60-mile radius. The hub is also at the heart of some underserved markets‚ including upstate New York and the New England region. This resource also has political support from the state government. This support allowed JetBlue to be exempt
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companies’ operation and strategic growth. WestJet‚ as one of the most competitive international airline has invested much to the improvement of technological development. However‚ it now faces a great challenge during the transition into codeshare that they have no idea whether they have a great IT‚ if not‚ how to improve it to bring this company to where it need to be. This assignment is going to illustrate the key strengths and challenges of WestJet‚ the IT management condition and some of personal
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