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JetBlue Airways Corporation (NASDAQ: JBLU) is an American low-cost airline with its main base John F. Kennedy International Airport, also in Queens.
In 2001, JetBlue began a focus city operation at Long Beach Airport in Long Beach, California, and another at Boston's Logan International Airport, in 2004. It also has focus city operations at Fort Lauderdale – Hollywood International Airport and Orlando International Airport. The airline mainly serves destinations in the United States, along with flights to the Caribbean, The Bahamas, Bermuda, Colombia, Costa Rica, Dominican Republic, Jamaica, and Mexico. As of November 8, 2010 JetBlue serves 62 destinations in 21 states (including Puerto Rico), and eleven countries in the Caribbean and
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On April 19, 2010, JetBlue announced new service from Bradley International Airport in Hartford, Connecticut starting on November 17, 2010. They will offer twice daily non-stops (four daily departures) to Fort Lauderdale and Orlando.

The case evaluation aims to achieve the following:
1. To determine the best stock valuation model applicable to JetBlue’s IPO shares
2. To distinguish the difference of using different stock valuation models
3. To calculate the offering price of the new IPO shares
4. To confirm if the share price suggested by management is reasonable or not
5. To identify the risks involved in oversubscribed shares

Based from the stated objectives above, the following were defined for the case:
MAIN PROBLEM TO BE RESOLVED: What would be the appropriate offering price for the new IPO shares of JetBlue Airways Corporation listed in NASDAQ which would not only help the firm raise short-term capital requirements but would also provide positive returns to its shareholders in the future?
1. What should be the best stock valuation model applicable to JetBlue’s IPO shares?
2. What would be the impact of these valuation models on the calculated offering price for its IPO shares?
3. Is the

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