Strategic Management Case Analysis For Jetblue. Daniel’S:
1482 WordsJan 26, 20176 Pages
Strategic Management Case Analysis for JetBlue
Founder David Neeleman, in February 1999, announced plans for a new airline under the name "NewAir. In April of the same year, NewAir places an order for 75 new A320 aircraft with Airbus Industry, and leasing arrangements for another eight aircraft. This approach was in line with other domestic airlines for low-cost air travel, but he wanted it be unique in its services.
These services included in-flight entertainment, such as 24 channels of live satellite television at every seat and Satellite radio. David Neeleman vision was “To bring humanity back to air travel”
(Zuckerman, 2001). With JetBlue headquartered in Long Island City a borough of Queens, Long
Island, New…show more content…
Creating healthy work-life balances and having fun is emphasized among employees. JetBlue has chosen to focus on a few select objectives and strategies. JetBlue continues to show success in maintaining increasing PRASM due to domestic operations. PRASM is the revenue per unit or passenger revenue per available seat mile (Trefis Team, 2015). Changes in the US dollar and how it relates to international currencies has negatively affected in the airline industry. Because JetBlue has chosen to stay domestic, the company has not experienced the negative effects and experienced positive revenues. Experiencing positive revenues allows JetBlue to preserve the low-cost advantage. The lower prices offered enabled the airline to expand its margins and boost profits with the recent fall in crude oil prices (Trefis Team, 2015). In another effort to boost profits and expand margins, JetBlue has chosen to focus on high value markets by offer transcontinental routes through premium services called the “Mint” (Trefis Team, 2015). The Mint targets corporate flyers travelling to common geographies, such as Los Angeles and San Francisco.
Paulette’s develop an industry analysis by describing the competitors,
JetBlue Airways Corporation offers luxury in the sky, “...counting on more than low fares to make its ledgers jet-black. The carrier offers one-class service, with