Essay about Jetblue Ipo Case

Group Case: JetBlue IPO Valuation
Finance 6806, Fall 2014

Abrar Khayyat
Rajesh Maraj
Veronica Paez

November 10, 2014
 Problem Statement Only two years in existence, Jet Blue decided to become a public company and issue an initial public offering. Jet Blue’s decision came in 2002, just as the airline industry experienced a substantial downturn following the terrorist attacks of September 2011. Despite these challenges, Jet Blue remained profitable and experienced aggressive growth…

Group Case: JetBlue IPO Valuation
Finance 6806, Fall 2014

Abrar Khayyat
Rajesh Maraj
Veronica Paez

November 10, 2014
 Problem Statement Only two years in existence, Jet Blue decided to become a public company and issue an initial public offering. Jet Blue’s decision came in 2002, just as the airline industry experienced a substantial downturn following the terrorist attacks of September 2011. Despite these challenges, Jet Blue remained profitable and experienced aggressive growth…

Summary This report discusses whether and how JetBlue should list its shares on public from several angles. Two principal incentives prove that the IPO process could be inevitable, even without an optimal offering price, and valuation models including multiples comparison and income analysis imply the firm may be underpriced. Given the situation and all assumptions, an increment in either offering size or price is suggested. 2 SWOT and Background JetBlue started by following Southwest's approach of…

JetBlue Airways IPO Valuation Summary In July 1999, David Neeleman announced his plan to launch a new airline that would bring “humanity back to air travel.” Despite the fact the airline industry had 87 new-airline failures in U.S. over the past 20 years. Neeleman’s plan convinced a group of investors and quickly raised $130 million from venture-capital community. This is the way JetBlue Airways established. With its strong capital base, JetBlue acquired a fleet of new Airbus A320 aircraft and focused…

jetBlue® IPO Valuation By: Megan Ensminger Company History New Air In Delaware,1999, a new low-cost airline was founded in Delaware by David Neeleman and a team of several Southwest Airlines employees. This corporation was JetBlue® Airways Corporation. The company was under the name NewAir. Following the business model of Southwest, now JetBlue® offered low-cost flights, but differentiated itself by offering premium amenities such as leather seats, TVs and satellite radio at each seat in an effort…

Case study—JetBlue airways IPO valuation Introduction: As a leader of airways industries, JetBlue is successful because of professional services and a good management team. In 2002, JetBlue became a public company. Despite the fact that US airline industry had witness 87 new airline failures over the previous 20 years, Jetblue overcame difficulties and expressed confidence in the bright future. Before going public Before going public in 2002, JetBlue has outstanding advantage in the whole…

JetBlue Airlines, a low-fare commercial airline, has planned to go public towards the end of 2001. During the process the firm had restructured their initial price from $22- 24 per share to $26 – 28 per share. Advantages / Disadvantages of the IPO Decision There are considerable advantages with obtaining equity through the IPO process. There are, however, some drawbacks that also need to be taken into consideration. Some of the advantages and disadvantages are: Advantages | Disadvantages…

UVA-F-1415-SSRN v 1.2 JETBLUE AIRWAYS IPO VALUATION My neighbor called me the other day and she said, 'You have an interesting little boy. ' Turns out, the other day, she asked my son Daniel what he wanted for Christmas. And he said, 'I want some stock. ' 'Stock? ' she said. 'Don 't you want video games or anything? ' 'Nope, ' he said, 'I just want stock. JetBlue stock. ' --David Neeleman, CEO and Founder, JetBlue Airways It was the first week of April 2002, barely two years since the first…

JetBlue Airways IPO In April 2000, JetBlue first started in New York City’s John F. Kennedy Airport. Even after the 2001 terrorist attacks, company remained profitable and was growing aggressively. To support their growth and offset portfolio losses by their venture capital investors, management was ready to raise additional…

Running Header: JetBlue Airways IPO Valuation JetBlue Airways IPO Valuation Borislav Belenov, Wade Brashear, Jamie Clausen, Paul Collier, Nicole Hagan and Melissa Lein Managerial Finance Chadron State College Professor Steve Stoner May 2009 David Neeleman is the founder of JetBlue Airways, which began under the name of “New Air” in 1999. Many JetBlue executives were previously employed by Southwest Airlines, a competitor in the area of low cost travel. However, Mr. Neeleman’s vision was…