1990s‚ none of the five largest air carriers in the US earned it cost of capital. Why do such low rates of return on investment persist in the airline industry? 2. Despite the challenging industry environment‚ airlines like Southwest Airlines and JetBlue earn enviable returns. How? 3. Why have all of the subsidiaries of legacy airlines‚ including Delta Express‚ failed? 4. What will happen to Delta Airlines if it continues to respond to low-cost airlines in the way it has in the past? Can you size
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Problem definition There were many problems but the main issue was in the following: The Decision making in both incidents was not rational Lack of planning for unexpected problems‚ although as mentioned in the two cases weather problems can be predicted approximately‚ so a solid plan should have been made. Problem Justification Although Rommel’s decision is a legal and rational decision from his point of view‚ yet it was not an ethical one and it was biased. His decision was utilitarian it
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JetBlue had a fleet of 194 Airbus A320 aircraft and 30 Embraer 190 regional jet aircraft. JetBlue revenue in2007 was $2.6 billion‚ one-quarter the size of Southwest. The company had a net loss in 2005 and 2006but returned to profitability in 2007. A major ice storm that hit New York in early 2007 severely
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competitive edge for the industry. Corporate social responsibility also increases sustainability by assisting the industry in achieving its goals and increasing long-term shareholder value. One company that exhibits this corporate social responsibility is JetBlue. They are dedicated to serving the needs of America’s youth as well as their community. Ian Deason‚ the director of airport operations‚ stated that “Flying is our core business… our core values include caring‚ integrity and passion.” The company
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of two major weather factors‚ winter snowstorms andsummer thunderstorms‚ snowstorms are easier to handle because they are more predictable. Don’t tell tha t toJetBlue‚ however. On February 14‚ 2007‚ JetBlue wasunprepared for a snowstorm that hit the East Coast. Dueto the lack of planning‚ JetBlue held hundreds ofpassengers on its planes‚ at JFK‚ in some cases for aslong as 10 hours (with bathrooms closed!). To the stranded travelers‚ JetBlue’s tepid offer of a refund was just as outrageous.
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difficult to determine years ago. For example‚ in 2007‚ JetBlue experienced unprecedented levels of customer discontent in the wake of a February ice storm that resulted in widespread flight cancellations and planes stranded on Kennedy Airport runways. The airline received 15‚000 e-mails per day from customers during the storm and immediately afterwards‚ up from its usual daily volume of 400. The volume was so much larger than usual that JetBlue had no simple way to read everything its customers
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consideration. It only made decisions by itself as soon as possible and did not think about subsequent information. Q: 2. Review the section on common biases and errors in decision making. For companies such as Nationwide‚ American Airlines and JetBlue that must respond to natural events‚ which biases and errors are relevant and why? A: There are two main biases relevant to Nationwide. The first bias is overconfidence bias. Nationwide is too confident to make the decision correctly by itself
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Checkpoint Week 8 John McManamon IRN: 9048277815 IT/205 4/16/2014 John Gosney 1. How important is the reservation system at airlines such as WestJet and JetBlue? How does it impact operational activities and decision making? As an employee of an oil company‚ I am keenly aware that the price of gulf coast kerosene (jet fuel) is almost $3.00 per gallon. With an estimated 30‚000 flights per day in the US alone‚ there is a tremendous amount of money spent by planes idling at the gate‚ or on
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familiar with the existing airline companies. For these reasons‚ there is a high barrier entrant over new competitors. Rivalry * Delta * JetBlue * Southwest The competition among competitors is extremely intense as all Delta‚ JetBlue‚ Southwest and AirTran are major airlines listed by the U.S. Department of Transportation. Moreover‚ JetBlue‚ Southwest and AirTran are using the same strategy which is low-cost airline. Customers tend to look at the most attractive prices that are offered
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a few that determine the market prices like JetBlue. According to "CNN Travel" (2013) "For the ninth consecutive year‚ JetBlue Airways ranked first for satisfaction among all North American airlines.” JetBlue is one of the leading organizations in the airline industry. The organization keeps the costs low which has a direct impact on the other organizations. To ensure the demand stays high the need to keep the prices low is important. If only JetBlue kept its prices low then the organization would
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