Jet Blue Airlines Case Analysis

781 words - 4 pages

GROWING PAINS

Introduction:
The case provides an analysis of the strategies and operations of JetBlue Airways as a new entrant in the U.S airline industry.

Company profile
JetBlue Airways, an American low-cost airline, headquartered in Forest Hills, New York started flying out of John F. Kennedy Airport in February of 2000.
Industry situation
During a time where Airlines were losing money and going bankrupt a small airlines rose and basically grab the market. While the industry was less concerned about the comfort and satisfaction of the passengers the Jet Blue concentrated on convenience of the customers. It’s business model was to provide a comfortable and cost efficient form of ...view middle of the document...

Threat
• Price of fuel- the price of jet fuel has also raised up
• September 11th
• Security- Due to the attacks of September 11th airlines have had to increase security

internal situation and external environment

External
New Competition, Rising fuel costs, Economy is down which is causing people to fly less, Some major airports are increasing the number of offered flights which are causing traffic and added expenses. Southwest has much lower fuel costs which enable them to be a low cost leader by having lower operational costs.

Internal
Inefficient operations are costing the company a lot of money, the companies hedging practices are causing their fuel costs to be higher. The companies long term debt is getting way too high. The companies cash is low.

What I have seen?

By the case and analysis provided upward, I have clearly seen the essence of it. It provides tips and clues where the main problems lies and gives us chance to discover and find proper solutions for them.
 the case of JetBlue, I believe a combination of both the management and the technological part of the company was the main causes...

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