Jetblue Ipo Valuation, By Megan Ensminger

JetBlue is an American low-cost airline and the 5th largest airline in the United States. The airline carries over 30 million customers a year to 86 cities in the U.S, Caribbean and Latin America with an average of 850 flights daily. JetBlue Airlines was founded in 1999 by David Neeleman, the company was formerly known as New Air which Neeleman started in 1998. The company was incorporated in Delaware in August 1998, with the headquarters in Long Island City and its main base at John F. Kennedy International Airport. David Neeleman started the company with a specific vision in mind “To bring humanity back to air travel and to make flying more enjoyable”. He did however step down from his position as CEO due to a disruption of operations at JFK airport during an ice storm. He turned over the position to Dave Barger who served as CEO from 2007 to 2015 until the current CEO Robin Hayes took over in February 2015. As an entrepreneurial leader, Neeleman is persistent, independent and action oriented. This made it difficult for him to step down, as his board of directors urged him to do so. However, he demonstrated humility and handled this major conflict by utilizing the compromising style, Neeleman did, however, stay on as the chairman of the company.

David Neelman realized his vision of creating an airlines company that is focused on customer service by starting JetBlue. During

JetBlue Airways, based in Forest Hills, New York, was founded in February, 1999, by David Neeleman, the son of Mormon missionaries. He was born in Sao Paolo, Brazil, but raised in a tightly-knit Mormon family (Gajilan, 2003). After serving as a Brazilian missionary during college, Neeleman returned to his family’s base in Salt Lake City and began an enterprising condominium rental business.

Before David Neeleman’s non-compete agreement with Southwest Airlines expired, he envisioned the concept of starting a low-fare airline that would combine common sense, innovation, and technology and bring the humanity back into air travel (Gittel & O’Reilly, 2001). In 1998, JetBlue was born. In order for David to fulfill his goal of a “do-it-right” kind of airline, he needed to recruit superior industry veterans who were willing to start from scratch and place an emphasis on employees and customers. Each of these individuals, from the President, General Counsel, CFO, and the HR director, wanted to create an airline that was fun, had

JetBlue is an American airline company whose headquarter is located in the New York City. They are a low-cost airline who is rapidly growing in the Unites States. According to Wikipedia, “David Neeleman founded the company in February 1999, under the name "NewAir.” Many of their approach come from Southwest Airlines include low prices airfares. However, they differ in the amenities offered to the customers.

5. What recommendations would you make to JetBlue on how to allocate their aircraft purchases between the E190 and the A320? Defend your recommendations.

David Neeleman, CEO of JetBlue Airways and his management team have realized that JetBlue is still making profit despite the many challenges facing the airline industry after the September 11th 2001 terrorist attacks. Despite these positive returns; JetBlue plans on raising capital through an Initial Public Offering (IPO) to support its aggressive growth and to also offset portfolio losses to their venture capital

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.

JetBlue Airways is a low-cost passenger airline that provides customer service primarily on point-to-point routes. They strive to make every aspect of travels as stress free as possible. To do this they offer the lowest fares, some of the best in-flight amenities and top of the line customer

JetBlue Airways Corporation was formed in August 1998 as a low-fare, low-cost but high service passenger airline serving select United States market. JetBlue's operations strategy was designed to achieve a low cost, whilst offering customers a pleasing and differentiated flying experience. JetBlue has had a successful business model and strong financial results during that period, and performed well in comparison to other airline companies in the US during the period between 2000 and 2003. It had been the only other airline apart from Southwest airlines, to have been profitable during the aftermath of the September 11, 2001

JetBlue is known as the airline that promises, and also delivers. JetBlue delivers Air flight of the future, with new jets and the lowest fares available. JetBlue has proved to the world that one can have it all. JetBlue’s Airways started in 2000 with the mission as stated by the founder Neeleman: “to bring humanity back to air travel by offering passengers low fares, friendly service, and high-quality product” (Ford, 2004, p.139). JetBlue has five core values that they operate by on a daily basis, which includes, safety, caring, integrity, passion and fun. JetBlue continues to adapt to the changing environment, and its community by evaluating the risks and

JetBlue had made significant progress in establishing a strong brand by seeking to be identified as a safe, reliable, low-fare airline that was highly focused on customer service and by providing an enjoyable flying

The future of the industry is in JetBlue’s “cheap chic” style. Airlines need to maintain a cost effective price point while also not appearing cheap. Small

JetBlue was established in 1999, and was the third airline start-up for founder and CEO David Neeleman. Neeleman managed to gather $130 million, the most ever raised for a start-up airline, from investors that included Chase Capital and financier George Soros. With the large start-up capital he purchased new Airbus A320 jets equipped with satellite TV, a first in the industry. In 2004 the company ordered an additional 30 new A320 aircrafts from Airbus. The airlines first flight was from New York to Fort Lauderdale in 2000. During the year, the airline added nine more destinations in California, Florida, New York, Utah, and

JetBlue is related to three types of the management concepts in my personal understand, they are: product and marketing. First of all, in product concepts the company focuses on offer the best to fulfill their customer’s expectation “holds that consumers will favor products that offer the most in quality,