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many of its rivals. Its high debt load contributes to its cost disadvantage. The corporate culture does not give it a competitive advantage. JetBlue's culture is easily replicated by any other airline and provides no particular benefit that the customer appreciates. They lag Southwest in this regard. The human resource practices work to make the firm functional, but again JetBlue does not do anything unique that adds sustainable value to the firm.
JetBlue's six strategies for 2008 were to "reevaluate the ways the company was using its assets; reduce capacity and cut costs; raise fares and grow in select markets; offer improved service to corporate travelers; form strategic partnerships; and increase ancillary revenues.
The company was able to make ground in strategic partnerships via its equity sale to Lufthansa, which required them to bring a Lufthansa executive on their board. This also represented a move towards redeploying key assets, including the JFK hub. The firm also was able to utilize its LiveTV asset better as well. The company reduced its routes and began to focus on Orlando and other vacation cities. Fares increased as well, although in the early part of the year the cost of jet fuel rose significantly as well. Other new service fees were introduced.
JetBlue has successfully implemented most of its six strategies. Whether these strategies will have a positive impact on the firm or not remains to be seen. The changes bring JetBlue's operations more in line with those of a legacy...
Beyond the massive increase in fuel prices, the company was unable to contain other costs in early 2008. Marketing, maintenance and "other" operating expenses all skyrocketed. This reduced their operating margin. Operating expenses overall increased 28% while revenues only increased 25%. The company's move towards a higher cost structure was met with lower load factors. The airline industry is subject to high price elasticity of demand, which makes it difficult for airlines to increase their prices, even when they themselves are subject to higher fuel costs.
Over the long-term, it seems that JetBlue will have difficulty sustaining their success. The company does not appear to have the pricing power that its management believed it to have. This means that margins will continue to be squeezed. The airline's poor performance in 2008 was also a direct result of their lack of fuel hedging for that year. The financial figures for late 2008, however, will show a declining fuel price environment and therefore may be healthier. However, JetBlue's overall strategy is that of a differentiated provider and they are finding it difficult to maintain either that or a low cost strategy. They appear to have committed the mistake -- especially with their 2008 strategic changes -- of being neither differentiated nor low cost. Their partnership with Lufthansa marks a move towards the former but not a particularly definitive…
The company was able to make ground in strategic partnerships via its equity sale to Lufthansa, which required them to bring a Lufthansa executive on their board. This also represented a move towards redeploying key assets, including the JFK hub. The firm also was able to utilize its LiveTV asset better as well. The company reduced its routes and began to focus on Orlando and other vacation cities. Fares increased as well, although in the early part of the year the cost of jet fuel rose significantly as well. Other new service fees were introduced.
JetBlue has successfully implemented most of its six strategies. Whether these strategies will have a positive impact on the firm or not remains to be seen. The changes bring JetBlue's operations more in line with those of a legacy carrier, especially with regards to increasing both fares and ancillary costs to the customer. Beyond the massive increase in fuel prices, the company was unable to contain other costs in early 2008. Marketing, maintenance and "other" operating expenses all skyrocketed. This reduced their operating margin. Operating expenses overall increased 28% while revenues only increased 25%. The company's move towards a higher cost structure was met with lower load factors. The airline industry is subject to high price elasticity of demand, which makes it difficult for airlines to increase their prices, even when they themselves are subject to higher fuel costs.
Over the long-term, it seems that JetBlue will have difficulty sustaining their success. The company does not appear to have the pricing power that its management believed it to have. This means that margins will continue to be squeezed. The airline's poor performance in 2008 was also a direct result of their lack of fuel hedging for that year. The financial figures for late 2008, however, will show a declining fuel price environment and therefore may be healthier. However, JetBlue's overall strategy is that of a differentiated provider and they are finding it difficult to maintain either that or a low cost strategy. They appear to have committed the mistake -- especially with their 2008 strategic changes -- of being neither differentiated nor low cost. Their partnership with Lufthansa marks a move towards the former but not a particularly definitive move. JetBlue's strategies failed in part because the firm is unwilling to choose a definitive strategic direction.
It is clear that when busy employees and weary travelers are treated with respect, dignity and courtesy, it can make a profound difference in how the company operates and is perceived by customers - and potential customers -- and this is how JetBlue has succeeded in adding value through these simple but important techniques. "These guiding principles have been extended to all levels of JetBlue's operation, internally and externally, and
Business Plan OutlineCustomer AnalysisYolo Airlines was set up with an aim to offer a service that had not been adequately exploited by the competition. The company sought to offer an environment that is not only welcoming but also accommodating to fun-loving young urban professionals made up of upwardly mobile business professionals travelling to attend business meetings or unwind after a weeklong of work. The Airline has since added another demographic
Jet Blue Airways Theoretical Framework to Crisis Management Approach in Business Continuity Jet Blue Airways Valentine's Day crisis 2007 Jet Blue Airways BCM Crisis management Stakeholder Analysis Invocation and escalation Management and recovery Closure and review Enterprise Management Jet Blue Airways Business continuity management (BCM) is defined by the Business Continuity Institute as 'holistic management process that identifies potential impacts that threaten an organization and provides a framework for building resilience and capability for an effective response that safeguards the interests
Social Media Retailing Applications: Opportunities and Threats How Has Social Media Developed and What are the Benefits and Downsides of Using Social Media for Retailers Today? This study examines social business in general, how it developed and the benefits of using social media in particular. Second, this study provides a discussion concerning the potential positive as well as the effects of social business in the retail sector which is followed by a
JetBlue is an airline based in New York City, operating both domestic and international routes. JetBlue was founded in 1999 by David Neeleman, a former Southwest Airlines executive, using much the same business model. The company received 75 landing slots at JFK later that year, and by December had taken delivery of its first aircraft from Airbus. The first flight was on February 11th between JFK and FLL (JetBlue.com, 2015).
EXECUTIVE SUMMARY Yolo Airlines is a low-cost airline carrier that conducts its airline operations in the United States. The business operations are based on a low-cost structure and the airline is able to generate high returns as a result of the unique business model and efficacy in its strategic operation. The vision of the company is to become the most superior low-cost carrier airline in the United States market that provides