JetBlue Airlines: Strategy, Growth, and Market Position
This paper examines JetBlue Airlines as a case study within the broader context of the U.S. airline industry's evolution from post–World War II expansion through deregulation, the aftermath of 9/11, and the economic pressures of the early 21st century. The paper traces JetBlue's founding in 1998, its rapid growth as a low-cost carrier, the financial difficulties it encountered in the mid-2000s, and the strategic responses it employed to return to profitability. Key topics include the airline's marketing innovations, strategic partnerships, human resources practices, and its distinctive positioning in a highly competitive, commodity-driven market.
- The Airline Industry: Historical Background: Post-WWII growth and rise of commercial aviation
- Deregulation, 9/11, and Industry Transformation: Deregulation, terrorism impacts, and industry consolidation
- JetBlue Airlines: Founding and Business Model: JetBlue's 1998 founding and low-cost strategy
- Financial Performance and Strategic Challenges: Revenue swings and Return to Profitability plan
- Strategic Partnerships and Marketing Innovation: Lufthansa, Yahoo, and Hollywood marketing partnerships
- JetBlue's Competitive Differentiation and Future Outlook: Differentiation strategy and long-term positioning
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What makes this paper effective
- Provides useful historical framing of the U.S. airline industry before narrowing to the JetBlue case study, giving readers context for understanding competitive pressures.
- Incorporates a structured SWOT-style table that clearly organizes JetBlue's strengths, weaknesses, and future strategic directions across multiple business dimensions.
- Balances quantitative evidence (revenue figures, profit changes, fleet size) with qualitative strategic analysis, grounding claims in specific data points.
Key academic technique demonstrated
The paper demonstrates effective use of the case study method: it moves from macro-level industry context to a specific company example, using the broader background to explain why JetBlue's strategies were necessary and how they responded to real market forces. Direct executive quotations are used to anchor strategic claims in primary source material.
Structure breakdown
The paper opens with an industry background section covering aviation history, deregulation, and post-9/11 policy changes. It then transitions to a focused case study of JetBlue, covering its founding, business model, financial trajectory, and strategic responses. A structured comparative table organizes key business dimensions, followed by a narrative discussion of partnerships, marketing, and future positioning. The paper concludes with an assessment of JetBlue's differentiated market stance.
The Airline Industry: Historical Background
After World War I, many of the pioneers in the airline industry recognized the enormous potential for consumer travel, business transportation, and mail and parcel delivery. This potential evolved further following the technological advances of World War II, giving rise to a massive global industry. Companies such as Pan American, TWA, and others increased production, expanded destinations, reduced costs, and improved safety standards. Manufacturers like Boeing, Lockheed, and McDonnell Douglas had tooled up for wartime production and were now seeking lucrative ways to translate that technology to civilian use. What followed was a slow but steady growth in airport construction, expanded flight schedules, and greater consumer accessibility.
In the 1970s, the industry received a new boost as technological advances made wide-body jumbo jets and longer-range flights possible. Demand for air travel burgeoned, and by the 1980s, over 50 percent of all airline travel took place in the United States (Mill and Morriston, 2002, pp. 355–393).
References
Air Transportation Safety and System Stabilization Act, Public Law 107-42. (2001, September 22). Retrieved October 2010, from Office of Transportation — U.S. Government:
Air Travel Report: Dip in Delays, Spike in Complaints. (2010, October 12). Retrieved October 2010, from CNN Travel: http://www.cnn.com/2010/TRAVEL/10/12/air.travel.consumer.report
Fisk, P. (2009). Marketing Genius. New York: Wiley.
Gittell, J. (2003). The Southwest Airlines Way. New York: McGraw-Hill Professional.
Globe Newswire. (2010, June). Flying: It's Why JetBlue Created Jetting. Retrieved October 2010, from NASDAQ OMX Global Newswire:
JetBlue Press Release — Names Dave Barger President and CEO. (2007, May 10). Retrieved October 2010, from JetBlue.com:
JetBlue Shareholder Information. (2010, October 12). Retrieved October 2010, from JetBlue:
Mill, R., & Morriston, A. (2002). The Tourism System. Dubuque, IA: Kendall Hunt.
Wynbrandt, J. (2004). Flying High: How JetBlue Founder and CEO David Neeleman Beats the Competition. New York: Wiley.
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