Preview

JetBlue Airways Case

Powerful Essays
Open Document
Open Document
3217 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
JetBlue Airways Case
JetBlue Airways Case
04-75-498-01
Submitted To: Professor T. Mao
November 15, 2013
Dustin Barnier 103168582
David Gudalj 103450148
Christina Longo 103141910
Audrey Xue Weng 103699389 longof@uwindsor.ca Table of Contents

Problem Identification 1

External Analysis

PESTLE Analysis 1

Industry Analysis 2

Porters Five Forces Analysis 2

Market Analysis 3

Key Success Factors 3

Internal Analysis

VRINE Analysis 4

Value Chain Analysis 4

Financial Analysis 5

Alternatives for JetBlue Alternative 1: Stop buying airplanes 6

Alternative 2: Scrap the A320 6

Alternative 3: Scrap the E190 6

Decision Criteria 6

Recommendation 6

Implementation Plan 7

Contingency Plan 7

Problem Identification
Presently, David Barger, former COO elected CEO of JetBlue Airways (JetBlue), faces a key issue of slowing down their growth. The issue at hand is:
What is the best path for JetBlue slow down their growth in the future airline industry?
External Analysis
Macro Economics Analysis
For an analysis of the Macro Economics of the JetBlue, a PESTEL analysis is shown below for the United States.
PESTEL Analysis
Political: N/A
Economic: The United Sates was hit hard economically from the terrorist attacks on September 11, 2001. This caused fare wars amongst competitors in the airline industry and domestic airline yields to drop twenty percent. These yields wouldn 't recover from pre attack rates until 2006. In fact, as of October 2006, five major United States airlines were operating under Chapter 11 bankruptcy protection. Fuel costs in the United States have seen a dramatic increase since the terror attacks in 2001.
Social: The airline industry, like every other industry, has been affected by the introduction of the internet and its users. People have made it the

You May Also Find These Documents Helpful

  • Better Essays

    HMP1 000305944 Task 1 2

    • 4618 Words
    • 12 Pages

    Before David Neeleman’s non-compete agreement with Southwest Airlines expired, he envisioned the concept of starting a low-fare airline that would combine common sense, innovation, and technology and bring the humanity back into air travel (Gittel & O’Reilly, 2001). In 1998, JetBlue was born. In order for David to fulfill his goal of a “do-it-right” kind of airline, he needed to recruit superior industry veterans who were willing to start from scratch and place an emphasis on employees and customers. Each of these individuals, from the President, General Counsel, CFO, and the HR director, wanted to create an airline that was fun, had integrity, was safe, and cared for their employees, plus had a passion to get it right (Gittel & O’Reilly, 2001).…

    • 4618 Words
    • 12 Pages
    Better Essays
  • Good Essays

    Problems at Jetblue

    • 524 Words
    • 3 Pages

    JetBlue marketed themselves as the inexpensive alternative to other airlines. Therefore, the company had to eliminate all of the bells and whistles its competitors offered in an effort to keep costs down. This also meant that its operations staff and IT systems were significantly limited. As a result, the company was not prepared for an emergency situation of such a large scale. The bad weather on February 14, 2007 caught them off-guard; their IT systems in place were not capable of handling the overload of required information. Also, JetBlue’s staff was limited and not properly cross-trained in handling reservation, flight and crew applications. Additionally, poor policies and procedure in place, like the airlines policy to do whatever it could to ensure a flight was completed, even if it meant waiting for a few hours, contributed to the downward spiral that took place in 2007 for JetBlue. Management took a risk that the weather would improve and hoped that the decision they had taken would pay off with huge profits.…

    • 524 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Jetblue Case Analysis

    • 1125 Words
    • 5 Pages

    However, the airline industry has been exposed to many external threats, and therefore, JetBlue has been facing financial problems which were mainly caused by fuel prices. The rising fuel costs have impacted the airline’s financial performance and affected its customers by increasing ticket prices. Another threat for JetBlue is terrorism which has impacted the industry as whole after 9/11. There is also strong competition from other low-cost airlines such as…

    • 1125 Words
    • 5 Pages
    Good Essays
  • Good Essays

    In an attempt to generally identify the airlines and travel industry this analysis will examine the "key players" in these industries. Whenever we think of the airline industry by definition the key players in this industry include commercial/private airline companies, employees, aircraft manufacturers, customers/consumers of flight service, travel agencies and government entities responsible for regulation of the industry.…

    • 5553 Words
    • 23 Pages
    Good Essays
  • Powerful Essays

    Jetblue Case Analysis

    • 4169 Words
    • 17 Pages

    Using the information provided by the case study "JetBlue Airways: A Cadre of New Managers Takes Control," this case study analysis will provide a detailed overview of all the positive and negative aspects of JetBlue airline. Furthermore, it will review the strategic vision and implementations of JetBlue, the airline industry, JetBlue’s financial performance, and future recommendations for the company’s strategy.…

    • 4169 Words
    • 17 Pages
    Powerful Essays
  • Good Essays

    Jetblue Case Study

    • 1027 Words
    • 5 Pages

    2000. In this case we will analyze the competitive strengths of JetBlue that helped it…

    • 1027 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    • The fuel price has been steadily increasing over the last years and therefore affects the profit of airline industry.…

    • 2194 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    JetBlue went from startup company to powerhouse of the sky in 2007 with overall growth…

    • 2984 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    References: Hoffer, J.G and O’Reilly, C. (2001). JetBlue Airways: Starting from Scratch. Boston: Harvard Business School Publishing. Pp. 58-77 (Hoffer, 2001)…

    • 1995 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Jet Blue Case Analsis

    • 4881 Words
    • 20 Pages

    JetBlue Airways Corporation has established itself as a low-fare passenger airline with a differentiated product and a high-quality customer service. They focus on serving underserved markets and large metropolitan areas that have high average fares. They offer both short-haul and long-haul routes that are point-to-point rather than the 'hub and spoke" route system that has been adopted by most major U.S. airlines.…

    • 4881 Words
    • 20 Pages
    Powerful Essays
  • Better Essays

    Jetblue

    • 1905 Words
    • 8 Pages

    Sellers, P. (2010, July 26). The Next JetBlue. Fortune, 162(2), 97-100. Retrieved from Business Source Complete.…

    • 1905 Words
    • 8 Pages
    Better Essays
  • Best Essays

    Research Paper for Jetblue

    • 2674 Words
    • 11 Pages

    JetBlue is a low cost US airline. The firm was founded by former Southwest Airlines employee, David Neeleman, and incorporated in 1998 in Delaware. The firm was not originally known as JetBlue, the initial name was NewAir. The plans for the new airline were announced by Neeleman in February 1999, and in April an order worth $4 billion was given to Airbus for up to 75 new A320 aircraft, at the same time leases were arranged for 8 aircraft. The firm gained exemptions for 75 take off and landing slots at JFK Airport in September, takes delivery of the first aircraft in December, and officially starts flights on 11 February 2000 (JetBlue, 2012). The first was being between JFK and Fort Lauderdale, a week later a route between JFK and Buffalo is added, and as the next few months services to Tampa, Orlando, Ontario, Oakland, West Palm Beach and Fort Myers are added. By the end of the first calendar year of operation the airline has flown 1 million passengers and reported $100 million of revenue (JetBlue, 2012).…

    • 2674 Words
    • 11 Pages
    Best Essays
  • Powerful Essays

    JetBlue Airways was created with the primary purpose to provide low cost American flights with “top-notch customer service” at budget prices. On the stormy day of February 14, 2007, their airline service was tested to the extreme. JetBlue initially serviced passengers between New York and Florida and then expanded rapidly. By the end of 2006, the airline had 500 flights operating in 50 different cities providing each passenger with (luxury) amenities such as TV, and leather seats (Laudon, pg. 72). This rapid expansion brought challenges the airline had not prepared for.…

    • 1784 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    The paper will further identify and analyze the key internal strengths and weaknesses of JetBlue Airways. When addressing the internal environment it speaks to the key factors and forces within the organization affecting its operation. The internal strength and weaknesses will cover an assessment of the JetBlue Airway’s resources, their competitive position and possibilities within. Lastly the following will analyze the structure of JetBlue and how this affects organizational performance.…

    • 1120 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    JetBlue's culture is to differentiate itself through a customer-and employee-centric culture. Leadership would not tolerate any declines in employee or customer perceptions of the airline as a good place to work or a good flying experience. The changes started with a plan for improving employee engagement results as the thinking was, if the company improved those metrics, customers would receive great experiences (Spillover Effect).…

    • 279 Words
    • 2 Pages
    Satisfactory Essays