JetBlue Essay - 1709 Words

Imagine how you would create an airline if you were building it from scratch. That is what Dave Neeleman set off to create with the inception of JetBlue in 1999. JetBlue is a bright, young startup airline. Why has JetBlue succeeded where most have failed? Is Daves strategy as simple as bringing humanity back to air travel? The billion dollar question is: can JetBlue really stand out in an industry known for its negligible if not absent profitability (over the life of the industry), an industry fret with failure and infamously known for its horrendous labor-management relations? The Airline Industry is a fascinating market. It has been one of the few industries to reach astounding milestones. For example, over 200 airlines†¦show more content†¦But further analysis does provide some evidence as to why it is so difficult to build a profitable airline. This is an industry with very high fixed costs. A Boeing 737 costs between $45.5 - $77 million (dependent on the options and configuration). If that is not convincing enough, add airport landing fees and slots, reservation systems, pilots, mechanics, flight attendants, gate agents, reservation agents, baggage handlers, and all the equipment required for all these different people to perform their jobs correctly. These expenses must be paid even before the first flight happens. Although the fixed costs are very high, the marginal costs are surprisingly minimal. Because all the costs are upfront, each additional ticket incurs almost nothing to the total cost. So we end up back to the same question. How d o airlines make money in this industry? The airline industry is a very competitive marketplace. We are constantly exposed to extremes with price wars for routes serviced by multiple carriers, and price gauging for less than popular routes. Aside, to make money in this industry the following criteria should be met. Planes should be full. If a plane has empty seats, inventory is lost forever. The costs have already been incurred to make that seat available. Planes should be highly utilized. A plane on the ground does not make money. The longer a plane is on the ground, the fewer flights it will make during the business day. This also requires quickShow MoreRelatedJetblue596 Words   |  3 PagesJetBlue Airways Corporation (NASDAQ: JBLU) is an American low-cost airline with its main base John F. Kennedy International Airport, also in Queens. In 2001, JetBlue began a focus city operation at Long Beach Airport in Long Beach, California, and another at Bostons Logan International Airport, in 2004. It also has focus city operations at Fort Lauderdale – Hollywood International Airport and Orlando International Airport. The airline mainly serves destinations in the United States, along withRead MoreJetblue3939 Words   |  16 PagesJetBlue Questions for Discussion 1. Give examples of needs, wants, and demands that JetBlue customers demonstrate, differentiating these three concepts. What are the implications of each for JetBlue’s practices? * First of all people who go to an airline are because they have the need to travel, which the main feature is. Inducing the consumer or person, as their main need. * JetBlue customers to contract your travel company this time JetBlue, wanted a good service duringRead MoreJetblue Airways Corporation ( Jetblue ) Essay789 Words   |  4 PagesJetBlue Airways Corporation (JetBlue), often called â€Å"New York’s Hometown Airline,† operates in the airline industry. It was incorporated in August 1998, began service in February 2000 and by the end of 2013 had grown to become the fifth largest passenger carrier in the United States based on revenue passenger miles. According to the JetBlue website (2014) in 1999, David Neeleman announced his plans to launch a new airline, â€Å"New Air.† By the end of 2000 JetBlue had reported $100 million in revenueRead MoreJetblue Airways1854 Words   |  8 PagesSTRATEGIC MANAGEMENT amp; POLICY COMM 4005 / SP1 MODULE 3 JETBLUE AIRWAYS: A CADRE OF NEW MANAGERS TAKES CONTROL JETBLUE AIRWAYS Question 1 David Neelman’s original strategic vision was to ‘bring humanity back to air travel’ through combing low fares of a discount airline carrier with the comforts of a small cozy den in people’s homes. David’s strategic vision is a good one, but the strategic objectives, strategy development, and implementation and execution should be modified toRead MoreJetblue Organizational Plan761 Words   |  4 PagesOrganizational Plan Introduction JetBlue is known as the airline that promises, and also delivers. JetBlue delivers Air flight of the future, with new jets and the lowest fares available. JetBlue has proved to the world that one can have it all. JetBlue’s Airways started in 2000 with the mission as stated by the founder Neeleman: â€Å"to bring humanity back to air travel by offering passengers low fares, friendly service, and high-quality product† (Ford, 2004, p.139). JetBlue has five core values that theyRead MoreJetblue Case Analysis1111 Words   |  5 PagesJetBlue Airways airline was established by David Neeleman as a low-fare airline with high-quality customer service. His goal was to create an airline that was innovative for the current market. Their main focus was to provide service to areas that were underserved as well as to large cities with overpriced fares. He aimed to establish a strong brand that differentiated itself from its competitors by being a safe, reliable and low cost-airline . Neeleman managed to achieve this partially by hiringRead MoreJetblue-Case Study3327 Words   |  14 Pages2001, p.5).   Overall, Jet Blue Airways has lived up to its mission of caring for its people. JetBlue Airway is an airline industry. Founder is David Neeleman, a Salt Lake City entrepreneur. The eighth largest passenger carrier in United State. Have won many awards including â€Å"Best Domestic Airline†, â€Å"Best Domestic Airline Value† and â€Å" Best Overall Airline†. The case study discuss on the JetBlue Corporation emphasize on its founder, on its financial performance, human resource management practicesRead MoreJetblue Case Study2073 Words   |  9 PagesJetBlue and Song: Competitive Rivalry between Low-Cost Carriers Case Analysis 2 Kathleen Quicho Prof. Rosalinda B. Lacerona Faculty, MGE 11A Time Context 2013 (Present) JetBlue is a United States domestic airline company who operates on a  low-cost principle which translates into cheaper airfares to its customers. In February 2007 JetBlue underwent a  particular event that could have been its last. Since its beginning in 1998 JetBlue became the 11th  largest company in the industryRead MoreJetblue Bmgt 364 Essay1465 Words   |  6 PagesBrockunier Abstract This paper outlines the formation of a vision statement, the mission and the values that JetBlue and Southwest airlines embrace. A firm can initiate strategic management once it forms a mission statement. That statement allows forms to aspire to its potential while bearing in mind what it wants to avoid as it successfully grows. JetBlue and Southwest airlines mission has been primarily to govern the way they conduct business and the desire to serve customersRead MoreJetblue Swot Analysis2110 Words   |  9 PagesSWOT Analysis: JetBlue Airways DeVry University Online by Keith Escher Organizational History Known as one of the very few airlines which has actually managed to make a profit since the downturn in the travel business, which was a result of the September 11th attacks, JetBlue Airways continues to pride itself by living up to its dedication of â€Å"bringing humanity back to air travel†(JetBlue Bill of Rights). JetBlue was incorporated in Delaware in August 1998 and was founded