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Jet Blue Airlines

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Jet Blue Airlines
Strategic Management (Bus 599)
October 16, 2011

In today’s society there are very few things that are limited in number. There are an immense number of companies that provide goods and services; those companies include but are not limited to wireless telephone companies, grocery stores, clothing stores, car dealerships, and airline companies. There are many different airline companies used daily for both national and international travel. JetBlue Airways is one amongst a number of airline companies. At one point JetBlue Airways was a discount airline carrier; which offered customer’s low fares, operated point-to-point systems, used two types of aircraft, served only snacks, and maintained quick turnaround times at airports. One of the airline company’s focal goals was for their customers to feel as if they were in a small cozy den in someone’s home. However, in the first six months of the year 2008 the US economy slowed and crude oil prices rose to a record of $140 per barrel. By this happening businesses had to cut back on employee travel and this rise in crude oil prices also stopped consumers from going on vacations. The rise in oil prices made air travel more expensive. There operating costs were low, especially compared to those of other major US airline companies (Thompson, Strickland & Gamble, 2010).
Discuss Jet Blue’s strategic Intent
Being affected by the increase in oil prices, Jet Blue decided to invest in the new airbus A320 which offered thirty additional seats, better fuel efficiency, and was less costly in regards to operating cost than a Boeing 737. Since these planes were new, repairs and maintenance costs were low for the first couple of years of operations. By investing it secured them from the problems that American Airlines and Southwest Airlines encountered. Of course, American Airlines and Southwest Airlines aircraft…...

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