Jetblue Case Analysis

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JetBlue Case Analysis

Executive Summary

JetBlue airline was founded by David Neeleman who is a Brazilian born entrepreneur. His goal was to single handedly create a unique airline that was innovative for the current market. The low fare airline was designed for customers who needed to travel at affordable prices, and which would essentially create a new strand of business. Named JetBlue, Neeleman’s airline originally traveled to various cities around the United States, but has recently entered the international market by offering flights that reach countries such as Puerto Rico and the Dominican Republic. Since it is a customer oriented company, JetBlue makes ordinary flights into an extraordinary experience for its customers. With
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Increased fares and develop in particular markets

4. Offer better services for companies and business travelers

5. Form strategic partnerships

6. Grow additional revenues

The company implemented these strategies not through a one-strategy one-action method, but instead combined several strategies into one action, or vice versa. For example, JetBlue established a new terminal at JFK airport which facilitated an improvement in respects to on-time departure and arrival averages at one of the nation’s busiest airports. Furthermore JetBlue had sold a stake of its shares to Lufthansa which not only improved JetBlue’s revenues, but it allowed JetBlue’s customers to fly on Lufthansa flights to Germany. JetBlue scheduled to reduce capacity and cut costs by selling nine A-320 aircrafts along with postponing the purchase or lease of numerous other aircrafts. Furthermore, the company reduced its aircraft utilization rate from 13 hours per day to 12.5 hours, halting service in three cities and canceling future services.

JetBlue started to grow in selective markets and raised its fares. In March 2008, JetBlue declared that Orlando would become its seventh focus city, which would provide service to Cancun, Mexico and Santo Domingo, Dominican Republic. JetBlue also attracted business travelers by announcing refundable fares and discounts for company meeting planners for every 40 customers who reserved to an identical destination. The company was also interested in

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