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Jet Bue

In: Business and Management

Submitted By newman1linda
Words 1438
Pages 6
Jet Blue Airways

Linda Newman

Bus 599

Dr. Romuel “Roy” B. Nafarrete

Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy. The U.S. airlines is started to see improvement demand for air travel in beginning 2010 after being affected by the economic downturn. Business travel, is directly affected by economic environment, to an all time low 2009 as many corporations slashed their travel budget (www.jetblueairway.com). The airline industry is facing most difficult times in history. There was a worldwide recession with terrorist attack September 11, 2001 that led to decrease in passenger traffic, reduction in revenue and rising fuel prices. Following the September 11 attack, the president signed into law the stabilization act which provided compensation to U.S. Passengers, and cargo for losses that incurred by the airline industry as a result of terrorist attack(www.jetblue.com). Passenger’s confidence in air travel was damage greatly after the 911 attack. Airlines were forced to cutback on flight and reschedule existing routes, and forced to charge for extra baggage Consumers are constantly searching for ways to save money, and the airlines industry has tried to adjust to the increasing demand and by cutting and controlling costs (Thompson, Strickland, Gamble, 2009.pg c-53). David Neeleman founded jet Blue, after working for two other airlines (Morris Air and Southwest) in which he was not satisfied with their way of doing business to connect with customers needs. Neeleman was born in Sao Paulo Brazil in 1959 and has been customer focused. He wanted to lead an airline that would combine the low fares of a discount airline carrier, with the comforts of a cozy den in people homes, offer gourmet snacks, leather seat, and television. Neeleman never wanted to disappoint customers he wanted customers to...

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