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¶ … JetBlue's attempts manage strategic change. 2) I'm APPLICATION theory company. Therefore, advised start answer definitions/theories/concepts/models apply company concerned. This work referenced a .
JetBlue's attempts to manage strategic change
JetBlue's business model was innovative from its inception. It was a budget airline which streamlined virtually all conventional amenities from flights. The airline chose to focus on the U.S., rather than challenge the major existing premium international airlines' routes. "The airline mainly serves destinations in the United States, along with flights to the Caribbean, the Bahamas, Bermuda, and Mexico" (Jet Blue Airlines, 2011, Aviation Explorer). JetBlue, partially because of its willingness to break the mold but also because of demographic changes in the U.S., became extremely successful as a result of its business model. Its low-cost, high-volume, specialized, yet broad-ranging target demographic matched the profile of an increasingly cost-conscious recessionary America. The Internet also allowed budget-conscious travelers to have more autonomy in choosing the cheapest flights available. "JetBlue was one of only a few U.S. airlines that made a profit during the sharp downturn in airline travel following the September...
However, JetBlue offered in-flight entertainment and entertainment amenities that Southwest lacked. It was the first carrier to offer satellite TV to all passengers. JetBlue did not sell snacks, but it did advertise the availability of flight attendants for advice only 'a call away.' (Again, this kept costs low but passenger good will at a high level). However, naysayers to the airline's business model predicted that unlike Southwest (particularly during its early stages of development), JetBlue offered too many amenities and pursued too aggressive a growth strategy to be sustainable. As fuel costs began to rise, JetBlue posted its first loss in 2005 (Jet Blue Airlines, 2011, Aviation Explorer).
JetBlue decided to embark upon a unique strategy to cut costs and return to profitability. It decided to a remove a row of seats from its major carriers, lightening the aircrafts…
References
Bomkamp, Samantha. (2011). JetBlue brings back 'All You Can Jet' passes. AP. Retrieved
August 18, 2011 at http://travel.yahoo.com/p-interests-35555827
JetBlue Airlines. (2011). Aviation Explorer. Retrieved August 18, 2011 at http://www.aviationexplorer.com/jet_blue_airways.htm
By the turn of the century, though, these low-costs carriers had become profitable or at least had significantly reduced their losses due in large part to concomitant increases by major carriers that were increasing their prices in response to decreasing yields and higher energy prices (Doganis 2001). By and large, passenger traffic across the board increased significantly prior to September 11, 2001 and all signs indicated it was continue to
Southwest Airlines began as an ambitious company by offering flights from Love Field Airport Dallas to Houston and San Antonio. It began modestly with just three planes and three Texan destinations and currently owns hundreds of planes and flies millions of people to many cities. Even though Southwest was operating in a sector of the economy that was known at that time for its bankruptcies and huge financial losses, the