JetBlue Airways: Starting from Scratch Summary Introduction (Exhibit 1) • JetBlue’s service had grown from 9 departures per day at launch in February 2000 to more than 50 per day in the past 11 months. The fleet had grown from 2 planes to 10 with the arrival of one new Airbus A320 every five weeks. The business plan called for adding 10 new planes every year through the end of 2003‚ bringing the fleet to 40. • Ann Rhoades‚ Executive Vice President for People‚ had been extremely busy – growing
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Proceedings of the 13th Asia Pacific Management Conference‚ Melbourne‚ Australia‚ 2007‚ 431-436 Competitive Strategy for Low Cost Airlines Hongwei Jiang RMIT University‚ Australia Abstract The aim of this paper is to identify challenge faced to Low-Cost Carriers (LCCs) or Low-Cost Airlines and provide new insights into the development and competitive strategy for LCCs. LCCs are still a relatively new phenomenon in Australia since Virgin Blue and Jetstar came to the market. There are over 30 LCCs
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JetBlue Airways is a low cost American airline that has its main base in JF Kennedy International Airport (New York). It was the best funded start-up company in aviation history‚ and it was founded it 1999 by David Neelman. The airline distinguished itself by offering superior customer service at low prices. It gave its customers an exclusive experience which included new airplanes‚ leather seats‚ and a “paperless” flight. JetBlue Airlines has grown since they started operating‚ and now the plan
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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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