Case Study Analysis Of Jetblue Airlines's ' Ice Storm '
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Case Analysis of JetBlue Airlines 2007’s Ice Storm
JetBlue Airlines today is known for their low-cost flights and many in-flight perks, such as free TV channels, and overall has become a favorite of many travelers because of the more pleasant flight experience JetBlue can provide. In 2007, about 9 years from when they started, an ice storm in New York tested JetBlue’s mission to be a different kind of airline when the weather caused many delays and a bottleneck of troubles at the gates of the airport. Hereinafter is an analysis of the JetBlue’s strategic plan and how it was affected by this system failure (Brennan & Morgan, 2007).
Background of the Airline Industry and JetBlue’s Beginnings
JetBlue was founded in 1998 by David Neeleman, who had a vision to bring humanity back to air travel and make the experience of flying happier and easier for everyone (Brennan & Morgan, 2007). Since the industry was deregulated in 1978, over 100 airlines have been launched, with only a few becoming successful (Stalter, 2007). This was due to the highly competitive nature of the airline industry, with high capital requirements, high fixed operating costs and limited access to routes (Dalavagas, 2015). By 2005, JetBlue was one of the few successful airline start-ups and had begun to establish brand recognition and a following while beginning to carve out a distinct and profitable position as a low-cost airline and offered a high level of service. During the same year, the four major