Airline Business : Jet Blue Airways

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Phase 2 Industry Jet Blue Airways is a part of the transportation industry, specifically the airline business. Air travel remains a large and growing industry. It facilitates economic growth, world trade, international investment and tourism and is therefore central to the globalization taking place in many other industries. The commercial aviation industry in the United States alone has grown dramatically since the end of World War II. In the past decade, air travel has become more and more popular and has a growing increase of 7% per year (The Airline Industry). Travel for both business and leisure purposes grew strongly worldwide. Scheduled airlines carried 1.5 billion passengers last year (The Airline Industry). In the recreational…show more content…
Congress passed the Airline Deregulation Act in 1978, lessening the entry of new companies into the business and giving them freedom to set their own fares and fly whatever domestic routes they chose (The Airline Industry). The Department of Transportation (DOT) breaks the airline industry into four categories: regional, international, national and cargo (Investopedia Staff). The regional category of the airline industry is the commuter airlines. Aircraft that are in the regional sector usually have less than 90 seats and have a flight time of two hours or less. In 2005, regional flights carried about 134 million passengers who accounted for one in five domestic travelers, and over 14,000 daily departures, and a combined fleet of 2,700 aircraft machines (Forbes, Lederman). Fast forwarding to 2009, there were five publicly held regional flight providers: SkyWest, Republic, Mesa, Pinnacle and ExpressJet. Today there are two – SkyWest and Republic, who have since returned to profitability but still struggle with obstacles. Mesa filed for bankruptcy, and later combined forces with Trans States, as a privately held carrier. ExpressJet was purchased by SkyWest and merged with Atlantic Southeast Airlines. Pinnacle also filed for bankruptcy, was acquired by Delta, changing its name to Endeavor (CAPA Centre for Aviation). In 2003, JetBlue Airways ordered 100 regional jets for $3 billion from Brazilian aircraft maker, Embraer, in order
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