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Internet Price Research

In: Business and Management

Submitted By anyandoro
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JetBlue Airways Yields from JFK, LGA and EWR MGMT 642 M7-Written Assignment 4 Alois Nyandoro Embry Riddle Aeronautical University

This mini research analyzed fares for JetBlue Airways flights from New York metropolitan airports [New York Kennedy (JFK), Newark (EWR) and LaGuardia(LGA)] to four selected destinations; Orlando (MCO), Fort Lauderdale (FLL), Austin (AUS) and San Francisco (SFO). The objective was to establish if JetBlue enjoys higher yields for flights from JFK than LGA or EWR. The result was that fares for flights from JFK and LGA are similar and consistently lower than flights from EWR. The reason could be that JFK is JetBlue Airways hub and by proximity LGA could be considered to have similar hub factors. This research explored the hub effect on fares. However, other factors should be explored and analyzed to establish and pin down the specific reasons behind the fare differences between the NY metropolitan airports.
JetBlue is a low cost carrier with its headquarters in Long Island City. It uses JFK as its hub and operates to 75 destinations in multiple cities. It is the largest airline in the Northeast of United States. It flies to different destinations out of the three major airports (JFK, EWR and LGA) serving New York/New Jersey metropolitan area. Given the relative proximity of these airports, one would assume that JetBlue has similar fares to same destinations. After deregulation of 1978, airline pricing increasingly became complicated as opposed to the CAB pricing system based on cost per available seat mile. Factors affecting airline pricing strategies can be grouped into five factors; costs, demand, supply, competition and rates and taxes. Therefore any factors affecting this group of factors can potentially affect the fares of a particular flight or the pricing in a specific market.


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