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Jet Blue Case Study
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.
Business Risks and Controls- Airlines, particularly smaller airlines, are faced with a larger number of competitors and sensitivity to economic conditions. With the global economic downturn, increased fuel prices, and weak travel demand, all airlines face stresses. This is especially true when one looks at fuel prices. Additional, the market...
Most analysts are predicting that high oil prices, natural disasters, and political unrest, as well as the worsening economic situation in the EU will continue to degrade air travel. To mitigate these threats, Jet Blue can take a few steps to ensure that the competitive issues, prices, and consumer demand will be less critical: 1) Hire and retain the right employees- reduction of turnover can save the company as much as 30 per cent on wages and salaries; 2) Continue to ensure that only the most profitable routes are serviced; 3) Partner with other travel oriented businesses in promotional activities; 4) Continue high levels of upkeep on fleet to reduce down-time and/or replacement costs; 5) Increase automation wherever possible (reservations, etc.) to reduce labor expenditures that are about 1/3 of operating costs; 6) Integrate new aircraft already ordered into prime routes and remain competitive…
Jet Blue Case Study Synthesis Jet Blue alternative solutions The aviation industry within the U.S.A. is facing a tough time and has been since the 9/11 event that brought the entire industry to a standstill for a considerable number of days. The recovery has been slow and the trends inconsistent since then. Coupled with the stiff competition that the local airlines have, the American market in terms of the air passengers need
This came as result of the firm's cost-cutting efforts after it lost $85 million in 2008 amid the start of the downturn and skyrocketing fuel prices. The company had also turned a profit in 2007 (MSN Moneycentral, 2010). Clearly, the company has been able to adapt to its circumstances and meet its financial objectives. Revenues, however, shrunk in 2009, no doubt as the result of cutting routes in order
Jet Blue Airlines: Cost Management The objective of this work in writing is to review the case study on Jet Blue Airlines and to analyze their system of cost management. Price variance of fuel is noted by Jet Blue Airlines to be a critical matter in business operations as it was reported in 2007 that fuel costs were the largest operating expense for Jet Blue Airlines due to high average prices of
Jet Blue Vincent One can call Jet Blue an airline with a vision, and in terms of pricing, the only airline that it can be compared with is Southwest Airlines. The founder of this airline had the confidence to take on the entrenched airlines and he had only one desire to prepare and that was to create a low-cost, high-service airline that passengers wanted to fly in. One of the aims of
Corporate Level Strategy Corporate level strategy is the decisions made at the corporate level that can affect the operations of the entire company. Typically, decisions related to the selection of new businesses, mergers, business environment and competition are corporate level strategies. These strategies will have a reach across the entire company. The aim is to improve the overall profitability of the company and tap any possible future niche besides tackling competition.
JetBlue's main competitors can be considered Southwest in the United States, together with Ryanair and Easyjet in Europe and AirAsia in Asia. However, we need to mention from the very beginning that the international issues we need to address are at most continental or regional. Indeed, the most important low-cost flyers have split the influence zones between them, with Easyjet being the market leader in Europe and covering exclusively this zone