Jetblue Case Study Essay

1736 Words Dec 3rd, 2009 7 Pages
INTRODUCTION

JetBlue Airways is a low-cost passenger airline that provides customer service primarily on point-to-point routes. JetBlue offers its customers a quality product with young, fuel-efficient aircraft, leather seats, free in-flight-- (24-Channel live television via satellite Direct TV, Thompson et al. p C-53)--entertainment at every seat, pre-assigned seating and reliable performance. JetBlue. . As of Dec 31 2008, serves 52 destinations in 19 states, Puerto Rico, Mexico, and five countries in the Caribbean and Latin America. JetBlues fully owned corporate subsidiary, LiveTV, LLC, or LiveTV provides in-flight entertainment systems for commercial aircraft, including live in-seat satellite television, digital satellite radio,
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Problems and Issues that Management Needs to Address Makeshift Solutions My Timeframe Recommendations in Industry:
Some of the Pressing Issues Facing Management Included
1. How to raise JetBlue’s Spiraling Stock Price From $12.99 Feb 13, 2007, to $3.97 May 30, 2008 per share to $3.14 July 11, 2008 to its Current October22,2009 $5.38 to prevent takeover target
2. How to account for rising Fuel Costs.
3. How Prevent a possible Bankruptcy: and failing airlines. Or Takeover
4. Consolidation and Merging surged by rising operating costs and fees. Reaction Solutions: Raise Airfares
5. High Cost Of Doing Business through Energy Conservation: Employee Salaries and Oil prices affecting cost of Jet Fuel& Ticket prices Reaction Solution: Hedge on GAS; Buy fuel efficient Planes
6. Increase Competition from New Entrants: Newair and Tours and Virgin America to make a all saturated market moreso
7. How to replace aging baby-boomer Airline Pilots going into retirement.

8. Specific Operational Discrepancies that affect Jet Blue
A. How to avoid Bumped passengers: operational margin: filling customer seats
B. How to increase On-time arrival: Delays and cancellations
C. How to avoid Lost baggage: no computerized system to record and track lost bags.
D. How to improve Customer Service 9. Profitability and Growth: cutting cost by lowering wages, and grounding aircraft

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