Potential Analysis of Jet Blue: A Case Study

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Part 1 Overview and Fiscal Analysis - One of the prime examples of the new paradigm in the airline industry is Jet Blue, an American low-cost, no-frills airline. Its main base is JFK international airport in Queens, NY. The airline's main destinations are U.S. hubs, flights to the Caribbean and Bahamas, and some to Central and South America. It is a non-union airline with a fleet of just under 200 craft, with another 50 ordered. The primary strategy for Jet Blue is the customer value proposition. The airline is not fancy, does not try to offer a number of amenities, only has a few routes, and is primarily trying to base ridership on low-cost fares. Revenue for 2011 was $4.5 billion, with operating income of $322 million and net income of $86 million. The company has a total of over $7 billion in assets showing that 2011 was a good year for the airline, even though revenues were slightly lower than the previous year (Jet Blue Annouces 2011 Annual Profit, 2012). Part 2 Resource Analysis- The company uses unit level activities and manages these by choosing to maintain high aircraft utilization (operating a single aircraft type with a single class of service) and direct booking services save computer reservation fees (use of www.jetblue.com) which lowers operating costs. It uses batch level resources by using a uniform type of aircraft, in which the staff need only become an expert once not many times over. Part 3 External Environment - Airlines, particularly smaller

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