FEU MBA 209 Case Study Jetblue Airways: A Cadre of New Managers Takes Control Case Background JetBlue is a low-cost domestic airline in the United States following a rather interesting combination of ‘low-cost and differentiation’ as its strategy. From its inception in 1998, the airline grew to become the 11th largest player in the airline industry in a short span of 6 years. It had been the only other airline apart from Southwest airlines, to have been profitable during the aftermath
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JetBlue IPO – Case Study IPO Process An initial public offering (IPO) is selling traded equity to the public on a securities exchange for the first time. The initial public offerings are used by companied to raise additional capital, and to transform from a private company into a public company. The IPO process is as follows. 1. Selecting an underwriter 2. Due diligence 3. Preliminary registration 4. SEC review 5. Road show and book building 6. The offering settlement
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Introduction In the April 1st, 2002 edition of Barron’s, a tag line in the “Marketweek” column reads, “Airlines and other money-losing companies.” 1 This tag line reflects the intense rivalry and the massive financial losses undergone in the airline industry in the past few months due to the economic recession and the 9/11 terrorists attacks. Amidst this airline industry malaise, however, JetBlue Airlines (”JetBlue”) launched service in February 2000 and generated over $41 million in profits in 2001.2 In this
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Jet Blue our vision is to be the best regional air carrier by providing low-fare, low-cost, enjoyable and safe flight experiences to our passenger. Proposed mission statement Jet Blue’s mission is to be the leading low-fare, low-cost passenger airline offering high quality customer service to underserved markets and customer who are looking for the best value in their flight. We have the newest most advanced planes that are reliable, safe, fuel efficient, utilizing advanced technologies, and unique
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JetBlue Airway, Inc. was a low-cost carrier (LLC) airline company that began operations in early 200. With a unique “anti-establishment” business model and “value player” positioning strategy, JetBlue established itself as a low cost, hardworking, and dependable airlines company. After the 2001 September terrorist attacks, JetBlue seized the opportunity to expand by launching an initial public offering. When other airlines were slow to resume operations, JetBlue tool advantage of the situation by
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JetBlue case study Strategic Objectives A strategic objective of an organization is a broadly defined objective which the company has to reach to make its strategy success. We can distinguish eight major groups of these goals: Financial resources Physical resources, Human resources, Market standing, Innovation, Productivity, Profit requirements and Social responsibility.1 Although JetBlue had some issues during their operations they mostly succeeded in reaching its strategic goals
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To get a proper range for JetBlue‟s offering price we will look at market multiples for the Low-Cost Airline Industry and come up with a number that makes sense, once we compare those other financials to JetBlue‟s. Below is a chart describing some of JetBlue‟s competitors and the multiples that they carried at the end of 2001. We’ve calculated what their price should be based upon these multiples and can now apply the same technique for JetBlue. Based upon the information above we can f
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are the advantages and disadvantages to a firm from going public? List at least three of each. The advantages of an IPO are: it raises capital for the company, it also creates a type of currency in its stock that can be used in acquisitions, and it creates an allure that allows the ability to better promote the company and attract better personnel. The disadvantages of an IPO are: it is an expensive process, it reveals a lot of information about the company that some businesses may not want public
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JetBlue Case Study Just 2 years after its inception in April 2002, JetBlue Airways remained profitable and was growing aggressively despite the terrorist attacks that occurred in September 2001. Together with co-lead manager Morgan Stanley, the JetBlue board was ready to set a price range, which they initially decided should be $22-$24, but facing excess demand, they increased the price range from $25 to $26. However, most of the group anticipated huge demand. In 1999, CEO David Neeleman announced
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JetBlue Airways: Growing Pains A case report prepared for MG 495 Business Policy Spring II 2014 Paige Pence Jamie Neidholdt Tyler Slayton Ja-ir Gooden Jacob Miller May 4, 2014 JETBLUE AIRWAYS: GROWING PAINS I. Introduction A. Executive Summary 1. Summary statement of the problem: JetBlue Airways was a fairly new airline that was going up against such airlines like Southwest, AirTran, and Delta. Started in 1999, JetBlue Airway was able to turn profits fairly quickly;
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