Executive Summary JetBlue was started in 1999 by David Neeleman‚ whose vision is to give high-quality and reliable flying experience in a budget airline. Through sophisticated technology‚ brand new aircrafts‚ impeccable customer service and low fares‚ JetBlue was on its way to achieve this vision. Although the low-fare travel industry was gaining momentum‚ the September 11 attack brought a massive downturn to the already-risky airline industry. However‚ JetBlue was still able to deliver good performance
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JETBLUE AIRLINES OCTOBER 2006 JetBlue started their business in a positive approach‚ by ensuring the main elements were in place prior to starting operations. Compared to JetBlue ’s counterparts that started up their airlines in the 1980 ’s and 1990 ’s‚ JetBlue began with a highly experienced senior management team‚ dedicated core values‚ and plenty of capital to ride out the low times. JetBlue ’s strengths and opportunities compared to the industry are: Strength & Opportunities:
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On Valentine’s Day 2007‚ JetBlue decided to follow its airline policy to ensure most flights are completed and opted out to canceling flights in hopes the weather would past fast. Instead‚ the weather got worse‚ while many were stranded on flights for hours. JetBlue should have just done a massive cancelation of flights for the day rather than a case by case basis when it was too late. To determine the causes of the failure of JetBlue’s CRM system during the crisis on Valentine’s Day 2007‚ we first
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Air Canada and WestJet Operations Management Case September 25‚ 2010 Presented by: Air Canada For an airline‚ what are the advantages of having new modern planes? What are the disadvantages? One advantage of having modern planes is that the new technology can result in subsequent cost savings due to better fuel efficiency‚ faster response times and ease of automated processes. Fuel is the greatest cost for airlines. A further advantage in line with technology is
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Westjet Company’s Business Plan By 2016‚ WestJet aims to be one of the five most successful international airlines in the world‚ based on profitability. WestJet plans to expand business globally at a rapid pace and grow company’s presence all around the world. WestJet plans to retain its existing customers while attracting new customers to build on its strong domestic market position by providing excellent‚ high quality services on an international scale. WestJet wants to be the airline
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Problems at JetBlue On Valentine’s Day 2007‚ a severe winter storm hit the northeastern portion of the United States causing many airlines to cancel many flights that resulted in other airlines to divert other flights to the John F. Kennedy airport in New York. JetBlue Airways decided to wait out the storm and found it impossible and unable to continue flights. JetBlue Airways began receiving irate passengers due to being bumped or routed to New York. As problems progressed‚ passengers found
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SUBJECT: JetBlue Airways Key strategic issues faced by JetBlue Airways JetBlue Airways was established in USA as a low-cost domestic airline carrier. The company started operating as a point-to-point carrier‚ providing quality customer service at competitive prices. Basically‚ the main strategy of JetBlue is to offer its clients a combination of low fares and product differentiation. In terms of strengthening its market positions‚ the following key strategic issues
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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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STRATEGIC MANAGEMENT & POLICY COMM 4005 / SP1 MODULE 3 JETBLUE AIRWAYS: A CADRE OF NEW MANAGERS TAKES CONTROL JETBLUE AIRWAYS Question 1 David Neelman’s original strategic vision was to ‘bring humanity back to air travel’ through combing low fares of a discount airline carrier with the comforts of a small cozy den in people’s homes. David’s strategic vision is a good one‚ but the strategic objectives‚ strategy development‚ and implementation and execution should be modified to
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