JetBlue Case Study What does it take to make money in this industry? - High load factor per Available Seat Mile (ASM) - High fuel usage - Low fuel cost - Labor utilization - On-time arrivals - Maximize Revenue per ASM - Reduce Cost per ASM - Minimize DOT (complaints) - Minimize Bags lost - # customer JVD - Be in the top JD Power or other customer surveys/reviews - Maintain a excellent Airline safety record: # of flights/safe landings - Be profitable - Maintain a high Stock Price
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JetBlue 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 during
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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
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STRATEGIC MANAGEMENT (EBS5103) CASE STUDY INSTRUCTOR: Dr. Ahmet Beşkese BAHÇEŞEHİR UNIVERSITY May 2015 1. INTRODUCTION This report is based on strategic analysis of JetBlue from it’s the establishment date to year 2003. In order to the analysis, a precise strategy is decided upon for JetBlue Company. 2. HISTORY David Neeleman was born in Brazil, Sao Paulo in 16 October 1959. He attended the University of Utah for three years then he dropped out university and served a mission
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period: |Probability |0.3 |0.1 |0.2 |0.3 |0.1 | |Price |$40 |$45 |$55 |$62 |$70 | The return on comparable stocks is 8%. 2. (15 points) JetBlue Airways Corporation (JBLU) reports the following in its latest quarterly report: Authorized shares 500,000,000 Shares issued 317,391,718 Shares outstanding 290,305,387 a. (5 points) How many shares are in the
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Consumer Behavior Consumer Behavior: Contrast Jet Blue vs. Southwest Airlines Trident University MKT501 CS1 Identify key external factors that affect the passenger airline industry and explain how that impact occurs There are several external factors that affect the passenger airline industry. Some of the factors that affect the industry are economic crisis, instability in aviation fuel price, and environmental factors. I will elaborate more in detail in
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Problems at JetBlue JetBlue’s problems were caused by both management as well as technological issues. If JetBlue’s management team would have been better prepared or made different decisions then many problems could have been avoided. One of the things that airlines know is that bad weather can never be predicted or controlled no matter what the circumstance and any airlines should be prepared for the worst, especially during the off season when bad weather occurs the most. From my experience,
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Jet Blue Airways: Analysis of a Company The airline industry serves not only as a means of transportation to millions of people on a daily basis, but also a huge customer service industry. Customers analyze every aspect of air travel from the food services offered and convenience of completing business transactions, to the airline’s safety results and ratio of on-time departures. Many customers become brand loyal, where others will do business simply based on price. It is also vital to note
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1. Evaluate the composition of the top executive team at JetBlue: a. Is the team appropriately composed for starting a successful airline and running it successfully over time, respectively? i. I believe they are appropriately composed to start a successful airline. Neelman is the CEO and he had previously been a part of a successful start up. Additionally he went and recruited top talent that he had personally done business with or had been very successful with similar airlines such
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only offer drinks and snacks such as cookies or crackers. “The inculcation of this set of core values within the jetBlue organization is best summarized as delivery of “the jetBlue experience”. The depth of delivery of the jetBlue experience is best measured by the level of customer satisfaction. The J.D. Powers and Associates 2007 North American Airline Satisfaction Study ranks jetBlue the highest airline in customer satisfaction, both among low-cost and traditional carriers. The study ranks, in
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