Jet Blue Essay

Jet Blue Essay
JetBlue Airways Corporation (JetBlue), often called "New York's Hometown Airline," operates in the airline industry. It was incorporated in August
1998, began service in February 2000 and by the end of 2013 had grown to become the fifth largest passenger carrier in the United States based on
revenue passenger miles. According to the JetBlue website (2014) in 1999, David Neeleman announced his plans to launch a new airline, "New Air." By
the end of 2000 JetBlue had reported $100 million in revenue and by 2001 it posted a profit (JetBlue.com, 2014). Headquartered in Long Island City,
New York, JetBlue is one of the leading carriers in Boston, Fort Lauderdale, Los Angeles, Orlando, and San Juan (JetBlue.com, 2014). With over 30
million passengers and more than 300,000 flights reported in 2013, JetBlue is one of the only two airlines that have reported increasing numbers in
flight and passenger volumes year after year despite the adversities that exist in the airline industry (Bureau of Transportation, 2014). JetBlue is a
low–cost carrier airline with high–end amenities. There are many airline companies around the world and in the United State. In fact, there are nine
major low–cost carrier competitors that currently exist and operate in the United States: Spirit Airlines, Southwest Airlines, US Airways/American
Airlines, Delta, United, Frontier, Alaska Airlines and Virgin America.
Since inception, JetBlue has aimed to develop a differentiated product and service for its
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Jetblue Airways And The Airline Industry
Jetblue has many legal issues with the airline since they launched it. The Airlines industry is one of the most important part of the country's economy,
and many other factors which can make the possible to success of any airline industry. Legal issues can effects on the staff, financing, competitors,
government regulations and climatic conditions. Jetblue airways, was founded in 1999 but made it maiden flight in 2001, and since then Jetblue is
one of the most profitable companies in America. Jetblue is one of the most successful and profitable, and when big airlines was losing in industry.
Jetblue Airways been in all kind of issues whether it's an airplane or any other case. Jetblue Airways, been lawsuit many times in airline career, such ...
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Clayton F. Osbon restrictively discharged after he was assessed in an elected mental wellbeing office in North Carolina. When U.S. District Judge
Mary Lou Robinson reviewed his reports, he was agreed to allow Capt. Clayton F. Osbon will be free, but provided that he will continues for his
mental health treatment, participates in a treatment program like alcohol and drug, and abstains from drugs and alcohol. There were other conditions
to such as not contacting JetBlue passengers which were on that flight, and Capt. Osbon will not be board a private and commercial aircrafts without
permission, and other conditions too. "moved through the aircraft and was disruptive and had to be subdued and forcibly restrained from re– entering
the cockpit." (block 15).
U.S. District Judge Mary Lou Robinson found in July, that Capt. Osbon was not guilty, the reason that Capt. Osbon co–pilot Jason Dowd locked Capt.
Osbon out from the cockpit and landed the plane in Amarillo. As indicated by the judge 's request, Osbon experienced a serious mental sickness or
abandon that disabled his capacity to comprehend his activities when he hustled inside a Jetblue lodge shouting about the Sept. 11, 2001, terrorist
assaults and beat on the cockpit entryway, provoking the preoccupation of a March 27, 2012, flight bound from New York to Las Vegas. "A
neuropsychologist testified Osbon's psychotic disorder at the time of flight lasted for about a week afterward, according to a hearing transcript"

JetBlue Airlines Case Analysis
JetBlue Airlines
Strategic Management Case Analysis
Introduction to the Company
History of the Firm JetBlue was established in 1999, and was the third airline start–up for founder and CEO David Neeleman. Neeleman managed to
gather $130 million, the most ever raised for a start–up airline, from investors that included Chase Capital and financier George Soros. With the large
start–up capital he purchased new Airbus A320 jets equipped with satellite TV, a first in the industry. In 2004 the company ordered an additional 30
new A320 aircrafts from Airbus. The airlines first flight was from New York to Fort Lauderdale in 2000. During the year, the airline added nine more
destinations in California, Florida, New York, Utah, and... Show more content on Helpwriting.net ...
Regional airlines such as SkyWest and Mesa generally operate smaller aircraft on lower volume routes. These airlines generally form alliances with
the major carriers and provide service from their hubs to smaller cities in the region. Low cost carriers such as Southwest developed after deregulation
in 1978. Southwest pioneered the low cost airline model, which many other airlines have tried to copy. Although there are currently four low cost
major U.S. carriers (JetBlue Airways 2006 Annual Report, n.d.), major competitors according to market share include (Figures 1 and 2; JetBlue
Airways Corporation Overview, n.d.):
AMR Corporation
Southwest Airlines, and
UAL Corporation.
Industry Profitability
Intensity of Rivalry The airline industry can be considered an imperfect oligopoly. There are several large carriers that dominate long distance
flights, and many small carriers that compete for short distance flights. Competition is fierce, and the return for most carriers is very low. Some
airlines are trying to differentiate themselves, like JetBlue for example, by offering superior services at low prices. Other low cost airlines, like
Southwest, offer low costs with no frills. Most airlines offer a frequent flyer programs in order to develop brand loyalty. In recent years there has also
been several alliances formed between airlines. These alliances enable

Jetblue Airways: Starting From Scratch
Executive Summary
JetBlue Airways, the latest entrant in the airlines industry has gone through the initial stages (entrepreneurial and collectivity) of the organizational life
cycle rapidly under the successful leadership of David Neelman. JetBlue Airways is currently in the formalization stage of the life cycle where in it
needs to create procedures and control systems to effectively manage its growth. Also as it proceeds to grow further to reach the elaboration stage,
JetBlue needs to continue to align itself with the environment in order to maintain its sustained growth.
JetBlue: Entrepreneurial Stage
David Neelman realized his vision of creating an airlines company that is focused on customer service by starting JetBlue. During ... Show more content
on Helpwriting.net ...
JetBlue: Collectivity Stage
Neelman, understanding the next steps in growing the organization, brought together a highly skilled management team to run the company. Neelman
providing the necessary strong leadership, along with the talented management team formulated clear operative goals and directions based on his
vision. Decisions that were made emphasized the need to provide a better passenger experience such as choosing New York JFK as the home base of
the airlines. Customer interaction (external environment) and employee satisfaction (internal) were the important factors in formulating the mission.
The Mission statement included Safety, Caring and Integrity that can be attributed to the customers and the mission statement also included fun and
passion that can be attributed to the employee satisfaction.
The skill emphasis needed in a service industry such as airlines is mostly interpersonal. Recognizing the need for interpersonal skills, JetBlue designed
the employee selection process to make sure the hired crew members fit into the culture and understood the values and mission. Decision making is
another important characteristic of the service industry and the crew members were also identified and selected on their decision making capabilities
as the customer related decisions are made at the lowest

Jetblue Airways Ipo Valuation
JetBlue Airways IPO Valuation
Summary
In July 1999, David Neeleman announced his plan to launch a new airline that would bring "humanity back to air travel." Despite the fact the airline
industry had 87 new–airline failures in U.S. over the past 20 years. Neeleman's plan convinced a group of investors and quickly raised $130 million
from venture–capital community. This is the way JetBlue Airways established. With its strong capital base, JetBlue acquired a fleet of new Airbus
A320 aircraft and focused on low–cost, point–to–point service to large metropolitan areas with high average fares or highly traveled markets that were
underserved. This strategy brought JetBlue Airways an excellent position in the beginning phase. JetBlue Airways... Show more content on
Helpwriting.net ...
Most of each production run is manufactured for such national brands as GE and Maytag, although the company distributes its own line of appliances
for selected discount stores under the brand "Royal Flush". There are two major manufacturing plants–in Phoenix AZ and Roanoke VA. Over 60% of
sales are to chains like Wal–Mart.
Appliance Station must now raise $75 million to modernize the two plants and expand the Phoenix facility in order to accommodate expected sales
increases in Appliance Station's business in the housing market in the Nevada and Arizona markets. There are three possible financing alternatives to
raise the needed $75 million: 1) a stock issue, 4 million new common shares at a price of $20 per share. Appliance Station would net $75 million after
$5 million cost. 2) a bond issue, ten–year debentures bearing an interest rate of 8%. 3) a combination of stock issue and a bond issue.
Questions
What is the risk of issuing bond?
First, debentures means without any security, it's paid back up on company's earning. Appliance Station needs to get rating for its bond. If the rating is
not good such as BB, then it's not easy to sell the bond and the interest rate will be higher, so the company might not raise enough money. Second,
Appliance station needs to pay interest for the bond. (AAA rating's interest is the lowest around 1%). If the company cannot pay the

Jetblue Airways And Azul Brazilian Airlines
David Neeleman founded the Jetblue Airline Company in February 1999, under the name "NewAir." David G. Neeleman is a Brazilian–American
entrepreneur who has founded three commercial airlines; Morris Air, JetBlue Airways and Azul Brazilian Airlines. In April, JetBlue placed a $4
billion order with Airbus Industries for up 75 new A320 aircraft, and commences leasing arrangements for another eight aircraft. In July, JetBlue
reveals that all its aircraft will offer 24 channels of live satellite television at every seat, a first for the airline industry. In September, JetBlue receives an
unprecedented exemption for 75 take–off and landing slots at John F. Kennedy International Airport (JFK). On December 4th 1999 JetBlue takes
delivery of its first Airbus A320 aircraft. Several of JetBlue 's executives, including Neeleman, are former Southwest Airlines employees. JetBlue
started by following Southwest 's approach of offering low–cost travel, but sought to distinguish itself by its amenities, such as in–flight entertainment,
TV at every seat and Sirius satellite radio. JetBlue was one of only a few U.S. airlines that made a profit during the sharp downturn in airline travel
following the September 11, 2001 attacks. In October 2005, JetBlue 's quarterly profit had plunged from US$8.1 million to $2.7 million largely due to
rising fuel costs. Operational issues, fuel prices and low fares, JetBlue 's hallmark, were bringing its financial performance down. In addition, with

Jetblue Airlines Strategy Audit Report
JetBlue Airlines Strategy Audit Report
Embry–Riddle Aeronautical University
MGMT–436
May 2016
1.History of the Company
JetBlue was founded by David Neeleman which was a former employee of Southwest in February of 1999. The original name for the new low cost
airline was "NewAir" most of the original members to create the airlines all were former employees of southwest. JetBlue 's founders wanted to
originally call the airline "Taxi" and have a yellow paint scheme on the aircraft to associate the airline with New York. But for all of our sakes the
ideas was drop by the major benefactor JP Morgan to pull its share ($20 million of the total $128 million) of the airline 's initial funding unless the
name was changed. JetBlue ... Show more content on Helpwriting.net ...
High Value Geography– We operate from six focus cities in some of the largest travel markets in the United States. We plan to continue to grow our
network, with most of our flights touching at least one of these focus cities (JetBlue, 2016).
3.Financial Overview
The JetBlue Airways Corporation (JBLU), incorporated in Delaware in 1998, is the fifth largest passenger carrier in the U.S. based on revenue
passenger miles. With an average of 800 daily flights, it serves more than 30 million passengers and provides flights to 82 destinations in the U.S.,
Caribbean, and Latin America (JetBlue, 2016). JetBlue's operations are concentrated in the domestic market and generates 28% revenues from
international routes. Its passenger revenues accounted for 91% of its total operating revenue. During 2013, JetBlue added seven new cities to its
network. It also recorded operating revenue of $5.4 billion(Marketrealist,2016). Plus, it reached its highest net income of $168 million by increasing its
diluted earnings per share by 30%, from $0.40 to $0.52, in 2012(Marketrealist,2016). The following chart below shows the current stock information on
JetBlue.
Fig, 2 (YahooFinance, 2016)
JetBlue's unique selling proposition is providing high–class services to its customers at an affordable price. It ranks first among low–cost carriers for
the ninth consecutive year in J.D. Power's customer satisfaction survey. JetBlue is also the first airline in the

The Laws That Impact Hiring Practices
Three Laws that Impact Hiring Practices
After reading "JetBlue Airways: Starting from Scratch" I considered different aspects of the case and realized there are certain employment laws that
JetBlue should be aware of to guarantee that they are following state and government laws that were enacted to protect the rights of others. The three
laws identified are the Civil Rights Act of 1964, the AgeDiscrimination in Employment Act of 1967, and American with Disabilities Act. These
detailed laws contain information to assist JetBlue tremulously in their hiring practices and eliminate the possibility of a lawsuit being bought against
them. In the meanwhile, compliance with these laws are obligatory and heavy penalties can be imposed if they are not observed by JetBlue. It will
affect their image and caused them to be viewed as a company with faulty hiring practices and one who does not comply with the laws set in place
therefore felonious charges may be bought upon them.
The law with the highest influence on opportunity employment equality for JetBlue is Title VII of the Civil Rights Act of 1964. Therefore, under
Civil Rights Act, it will be unlawful for JetBlue to differentiate during the process of hiring, firing, promoting, or rewarding an employee in areas based
on certain things such as race, religion, or national origin. Per the Civil Rights Act retaliation is prohibited against any employee who participates in an
investigation against a company. JetBlue would need to

Case Study : Jetblue Airlines ' Three National Employment...
CASES: JETBLUE AIRWAYS ERICA YOUNG CASES IN ADVANCED HUMAN RESOURCE MANAGEMENT WESTERN GOVERNORS
UNIVERSITY FEBRUARY 4, 2016 CASES: JETBLUE AIRWAYS Three National Employment Opportunities Laws JetBlue Airways was
established to be built on five core values of safety, caring, integrity, fun and passion. "JetBlue is a value based company built on the principle that to
be extraordinary on the outside you must first be extraordinary on the inside" (Gittel & O'Reilly, 2001). Three national employment opportunities that
influenced the hiring process of JetBlue with the first being the Age Discrimination Act of 1967. The Age Discrimination Act of 1967 "is a federal
law that protect workers and job applicants age 40 and over from age–based discrimination in all aspects of employment" (AARP, 2014). JetBlue
choose to make sure they avoided any chance of age discrimination by hiring people based on several attributes and one being there attitudes. By
selecting individuals, this way it created diversity in the workplace. The second law identified would be the Title VII of the Civil Rights Act of
1964. This law makes it illegal for employers to discriminate against an employee or applicant basis on race, color, religion, national origin, or sex
(EEOC, 2009). One key policy that JetBlue has to ensure compliance to Title VII is the customized employment packages. Rhoades designed the policy
to ensure the oval equity in treatment of employee groups. Another example of

JetBlue airways IPO valuation
Case study–JetBlue airways IPO valuation Introduction: As a leader of airways industries, JetBlue is successful because of professional services and
a good management team. In 2002, JetBlue became a public company. Despite the fact that US airline industry had witness 87 new airline failures
over the previous 20 years, Jetblue overcame difficulties and expressed confidence in the bright future. Before going public Before going public in
2002, JetBlue has outstanding advantage in the whole industries. Because of the good performance by management team (CEO: David
Neelman,President and COO: David Barger ,CFO: John Owen), JetBlue provided good services which include new aircraft, leather seat, free live TV
at every seat and high... Show more content on Helpwriting.net ...
It is proved what Jonathan Schrader said is right. Due to the large investment, the company will decrease the cash in hand for next coming years. The
table 1.3 shown the NPV and discount cash flow in the next 10 years. Discount Cash Flow 2002 2003 2004 2005 2006 2007 2008 2009 2010 NOPAT
53 89 119 149 181 195 248 270 292 NWC –29 –31 –32 –31 –34 –36 –34 –24 –24 CapX –290 –328 –325 –310 –326 –342 –299 –157 –133 FCFE –266
–270 –238 –192 –179 –183 –85 89 135 DCF –242 –232 –193 –131 –111 –103 –45 42 59 NPV –950 From the table, it can be seen that for each year,
JetBlue has an increase in both NOPAT and net working capital which means the company continue to invest in the future. So we use the next 10
years data and information to calculate the value of NPV. After that we use the WACC to calculate the share price, the table 1.4 shows the
calculation of share price. per sahre value FCFE in 2010 135 WACC 10.09% Growth rate 7.07% Terminal value $4,850 PV TV $2,060 Enterprise
value $1,100 share outstanding $41 per share $28.58 The result of

JetBlue Airways IPO Essay
JetBlue Airways IPO
In April 2000, JetBlue first started in New York City's John F. Kennedy Airport.
Even after the 2001 terrorist attacks, company remained profitable and was growing aggressively.
To support their growth and offset portfolio losses by theirventure capital investors, management was ready to raise additional capital through a public
equity offering.
With representatives of co–lead manager Morgan Stanley and the JetBlue board ... Show more content on Helpwriting.net ...
As a University of Utah student in his early 20's, he began managing low–fare flights between Salt Lake City and Hawaii. His company, Morris Air,
became a pioneer in ticketless travel and was later acquired by low–fare leader Southwest Airlines. Neeleman also developed the e–ticketing system,
Open skies, which was acquired by Hewlett–Packard in 1999.
Neeleman offered passengers a unique flying experience by providing new aircrafts, simple and low fares, leather seats, free Live TV at every seat,
pre–assigned seating, reliable performance, and high–quality customer service. JetBlue focused on point–to–point service to large metropolitan areas
with high average fares or highly traveled markets that were underserved. JetBlue's operating strategy had produced the lowest cost per available seat
mile of any of the major U.S. airlines in 2001–6.98 cents vs. 10.08 cents.
JetBlue was the first U.S. airline to secure cockpits with bulletproof Kevlar doors and security cameras in response to the Sept. 11 hijackings.
JetBlue had made significant progress in establishing a strong brand by seeking to be identified as a safe, reliable, low–fare airline that was highly
focused on customer service and by providing an enjoyable flying

Jetblue Airways Starting from Scratch
HARVARD
BUSINESS
SCHOOL
9–801–354 REV: OCTOBER 29. 2001
JODY HOPPER GITTELL CHARLES O'REILL Y
Where have you heard this before? We're starting tickets and go to the big cities.'
a new low–fare airline.
We're going to offer low–fare
–Financial
If you want to be a millionaire, start with a billion dollars and launch a new airline: –Richard Branson, Founder, Virgin
Analyst
Atlantic
Airways
Keep an eye on ]etBlue.

That could prove to be a successful operation.3 –Herb Kelleher, Co–founder,
CEO, Southwest
Airlines
Ann Rhoades looked up from the stack of papers in front of her and gazed out the window. She watched with pride as a JetBlue plane lifted off from
Kennedy Airport. She knew from the ... Show more content on Helpwriting.net ...
In 2000,only 17 of theseremained in operation. Experts were mixed in their outlook for the company. One airline analyst who was positive,
commented that "When the big boys do as terrible a job as they've been doing, of course guys like ]etBlue have a chance.1I another airline But
observer was less sanguine. lIlt's a really risky business to take on these eight–hundred pound gorillas. You have to be a little nuts to want to do thiS.IIS
David Neeleman
David Neeleman,the founder of JetBlue,had gotten his start in the airline businessin 1984when he partnered with June and Mitch Morris to run the
Southwest Airlines' look–alike, Morris Air. Neelemanraised $20 million in venture capital from Michael Lazarus of the Weston Presidio group, and in
just over one year increasedthe value of Morris Air from approximately $59 million to $130 million.
Herb Kelleher, CEO of Southwest Airlines, watched the growth of Morris Air and its route network centered in Salt Lake City, Utah, and made
Southwest's first and only acquisition to date. Southwest Airlines was the most prominent success story in the U.S. airline industry , and had always
prided itself on growing from within at a steady rate of 12% to 18% per year. But Morris Air was so similar to Southwest, by design, that Kelleher
believed the merger would be a success. Neeleman and the Morris family sold Morris Air to Southwest Airlines in 1993, and Neeleman joined

Jetblue Legal Issues
Introduction
JetBlue Airways is a passenger airline founded in 1999 by David Neeleman. Neeleman aimed to provide the customer with first–rate service at
reasonable prices. In order to ensure this strategy, JetBlue had to recruit and hire the right people to complement its core values. The company
encompasses five core values: safety, caring, integrity fun, and passion. JetBlue uses a targeted selection process to identify employees which fit the
company values. However, this approach can lead to equal employment opportunity legal challenges.
A. National Laws Equal Employment Opportunity Laws provide guidelines for designing Human Resource systems in an organization that are legal,
ethical, fair and justified, thus protecting both ... Show more content on Helpwriting.net ...
(Lewis, 2007). JetBlue uses a targeted selection process. When JetBlue began its hiring, recruiters looked for applicants who displayed integrity, as
well as, showed traits consistent with its core values of safety, caring, integrity, fun, and passion. The interview process for both mechanics and pilots
are built on these core values to ensure the right cultural fit. During the interview process, applicants are asked to recall incidents from previous jobs
and describe how the situation was handled along with the consequences of the actions. JetBlue hired applicants who did not compromise on the safety
of passengers such as a mechanic who did not certify an aircraft because it did not comply with safety standards. JetBlue hired this mechanic because
his attitude fit with the standards set forth by JetBlue. On the other hand, a pilot who was arrogant was refused employment. In pilot recruitment, pilots
are required to be computer savvy, but they also need to fit the culture of the airline. The company covered the cost of pilot training, unlike other airline
carriers, therefore, the aspect of being a cultural fit is important to control attrition costs. If an employee leaves after the company invests in training, it
would be

Delta and The Future of The Airline Industry Essay
IV.The Future of the Airline Industry
The Airline Industry is in an interesting situation. Simply adding a low cost alternative is not enough in the industry. The Internet has made the power
of buyers grow with the transparency of ticket prices. This is not something that will change any time soon. Because of this profitability is
predominately reserved for low–cost yet distinctive carriers. No consumer wants to ride what they consider a "lesser" airline. Airlines need a way to
distinguish themselves from one another while also acknowledging the increased power of buyers. The future of the industry is in JetBlue's "cheap
chic" style. Airlines need to maintain a cost effective price point while also not appearing cheap. Small ... Show more content on Helpwriting.net ...
Through similar mergers in the 1980s and 1990s, Delta extended its reach into trans–continental and international markets (Rivkin 7–8). According to
its stated position today,
"Delta Air Lines serves more than 160 million customers each year. With an industry–leading global network, Delta and the Delta Connection carriers
offer service to 356 destinations in 65 countries on six continents." (Delta.com).
The result of this objective is the third largest commercial carrier in the world, having a strong presence in major hubs such as Atlanta, Dallas,
Cincinnati, and Salt Lake City (Rivkin 8).
As with all airlines, Delta's recent performance has been significantly impacted by industry shifts and external events. Terrorist attacks and escalating
costs have significantly impacted Delta's profitability in recent history (Rivkin 4). The company has also been losing valuable market share to the
low–cost carrier Southwest Airlines throughout the southeast and specifically in the lucrative Florida market (Rivkin 8). JetBlue also began
encroaching on key Delta routes, and this seems only likely to increase (Rivkin 9). Despite this, Delta has still performed better than any other legacy
carrier (Rivkin 8). Still, recent history has brought several changes to this legacy carrier, and the company has turned its attention towards new
competitive strategies.
II.Analysis of Delta's Competitive Strategy and Position
In recent

Case Study Of Jetblue
JetBlue Airways Corporation, JetBlue for short, is one of the biggest air travel company in the United States. JetBlue is the 6 largest airline in
America. The company is headquartered in the Long Island City neighborhood of the New York City, with its main base at John F. Kennedy
International Airport. It also maintains corporate offices in Cottonwood Heights, Utah, and Orlando, Florida. During it operation, JetBlue has faced up
with many tragedies and problems. Typically is the problematic flight happened in Valentine day February 14, 2007. Most people thought that
misfortune even puts an end for the airline. Nonetheless, JetBlue not only survives, but it growing, earns a profit and become the favorite airline of
many people. So we wonder... Show more content on Helpwriting.net ...
2.Moving on to the second question '' Describe in detail all the facets of JetBlue's product. What is being exchanged in a JetBlue transaction? ''.
People donate their time, money, effort to book a flight successfully, they also exchange the opportunity to use service of some other airline to
experience all the facets JetBlue's market offering. And JetBlue has done a great job to not let their precious customer down. In some aspect,
JetBlue's service is considered ingenious cause they have made effort to distinguish their service in a better way to their competition. They give
people a unique and pleasant service in exchange for their cash. Now let point out in detail all the facets of JetBlue's product that make they become
a better option for the traveler. First is the features and services on the flights. JetBlue gives the customer three more inches of legroom than the
average airline seat. If that even cannot meet the need of some people they can pay a litter extra about ten dollars for having more space and a flatter
recline position. Moreover, there are comfortable seats with leather lining, give the customer the feeling that they are experiencing a luxury
service.Furthermore, in addition to snacks and free soft drinks, flyer is able to enjoy some special food product offered by JetBlue as Terra Blues
chips, immaculate Baking's Chocobillys cookies, and Dukin's Donuts coffee. We can sense the deliciousness from the name. More important, the
customer does not feel

Jetblue Competitors
JetBlue Airways Corporation is one of the few American low–cost airline and the 5th largest airline in the United States. JetBlue carries more than 35
customers each year to 96 cities in the U.S., Caribbean and Latin America with an average of 925 flights. JetBlue Airways Corporation is a
publicly traded company. The top 5 shareholders are Dave Barger, Joe Clinton Peterson, Robin Hayes, Mark Powers and Frank Sica accordingly.
Dave Barger is the largest shareholder with approximately 860, 000 shares as of March 15, 2015 and the former chief executive officer (CEO) of
JetBlue. Joe Clinton Peterson is the second largest shareholder with roughly 610,000 shares owned. Peterson, is the CEO and founder of Peterson
Partners LP, a private equity firm. Robin Hayes, is the current CEO of JetBlue having replaced Barger in 2015 and he also sits in the company's board
of directors. Hayes, position owned 360,000 shares as of July 6 2016 making him third–largest shareholder. Mark Powers' is JetBlue's chief financial
officer (CFO), his position nearly 190,000 shares the fourth–largest shareholder. He has been with the company since 2006 following his appointment
as JetBlue's treasurer. Frank Sica, has been the Vice chairman of JetBlue's board of directors since 1998. He approximately owned 91,000 shares as of
February 21, 2016 making him the fifth–largest shareholder. JetBlue Airways headquarters, 2701 Queens Plz N, Long Island City, NY 11101 is the
location of the world headquarters.

Jetblue Airways
STRATEGIC MANAGEMENT & POLICY
COMM 4005 / SP1
MODULE 3
JETBLUE AIRWAYS:
A CADRE OF NEW MANAGERS TAKES CONTROL
JETBLUE AIRWAYS
Question 1
David Neelman's original strategic vision was to 'bring humanity back to air travel' through combing low fares of a discount airline carrier with the
comforts of a small cozy den in people's homes.
David's strategic vision is a good one, but the strategic objectives, strategy development, and implementation and execution should be modified to
address both the internal environment and external environment, such as; current technological, economic and industry conditions. The new executive
leadership should be looking at ways to adjust and improve upon the strategy–executing process in ... Show more content on Helpwriting.net ...
Smaller airlines may be forced to merge with larger ones in order to

Jetblue Airways, And Spirit Airlines Inc.
Southwest has based their original strategy on maintaining low fares, high frequency of flights, on–time arrivals and focusing on the customer
experience. However, Southwest has altered their strategy, which previously made them unique in the industry, due to a rising amount of competition
from larger airlines that have developed alternative low–cost carriers, essentially diminishing that competitive advantage the "Southwest Effect" once
had. Kelly notes that there is "new competition from leaner, larger airlines, low–cost carriers as JetBlue Airways Corp. and Spirit Airlines Inc."7,
making the competitive advantages that Southwest offered less and less sustainable.
In an effort to meet growing customer needs, Southwest has begun to add more flights and expand into larger markets. According to Bob Jordan,
there are "100 million passengers a year who fly [with] us and a large percentage want to go to New York City... Newark".7 Before, Southwest would
only operate in smaller markets where customers would have to steer away from congested airports to find Southwest. Now, Southwest is moving to
busier and higher–cost airports. Part of the new strategy is to tap into the high flow Northeast traveler market. Southwest began their Northeast
expansion with services to Baltimore, the least congested airport in the Baltimore–Washington Metropolitan Area, and eventually reaching other
uncongested locations in the Northeast. Expanding into larger airports in new areas provides the

Jetblue
JetBlue Airways Corporation (NASDAQ: JBLU) is an American low–cost airline with its main base John F. Kennedy International Airport, also in
Queens.
In 2001, JetBlue began a focus city operation at Long Beach Airport in Long Beach, California, and another at Boston's Logan International Airport, in
2004. It also has focus city operations at Fort Lauderdale – Hollywood International Airport and Orlando International Airport. The airline mainly
serves destinations in the United States, along with flights to the Caribbean, The Bahamas, Bermuda, Colombia, Costa Rica, Dominican Republic,
Jamaica, and Mexico. As of November 8, 2010 JetBlue serves 62 destinations in 21 states (including Puerto Rico), and eleven countries in the
Caribbean and ... Show more content on Helpwriting.net ...
On April 19, 2010, JetBlue announced new service from Bradley International Airport in Hartford, Connecticut starting on November 17, 2010. They
will offer twice daily non–stops (four daily departures) to Fort Lauderdale and Orlando.
C. OBJECTIVES AND DEFINITION OF THE PROBLEM STATEMENT
The case evaluation aims to achieve the following:
1.To determine the best stock valuation model applicable to JetBlue's IPO shares
2.To distinguish the difference of using different stock valuation models
3.To calculate the offering price of the new IPO shares
4.To confirm if the share price suggested by management is reasonable or not
5.To identify the risks involved in oversubscribed shares
Based from the stated objectives above, the following were defined for the case:
MAIN PROBLEM TO BE RESOLVED: What would be the appropriate offering price for the new IPO shares ofJetBlue Airways Corporation listed in
NASDAQ which would not only help the firm raise short–term capital requirements but would also provide positive returns to its shareholders in the
future?
UNDERLYING PROBLEM(S)/ISSUE(S) TO BE RESOLVED:
1.What should be the best stock valuation model applicable to JetBlue's IPO shares?
2.What would be the impact of these valuation models on the calculated offering price for its IPO shares?
3.Is the

Jetblue Essay
JetBlue
JetBlue was merged in August of 1998. It is an American low–cost carrier and is the 6th largest airline in the United States. The corporation is head
quartered in the Long Island City community of the New York City region of Queens. Its main stream is at John F. Kennedy International Airport.
JetBlue transports services across the United States, the Caribbean and Latin America.
Next, with JetBlue being a low–cost carrier, they are currently working on growth plans to help bring in more revenue. They face competition
because other airlines are corporated with large corporations and major legacy carriers. JetBlue needs a massive network. If JetBlue can't increase in
size, it could lose market share while others keep increasing. JetBlue, knew that in order to keep up with other carriers, they had to escalate the number
of commercial airline partnerships. The increase has led to more money revenue. Also, airport deliveries played a major role with problems that they
were facing. JetBlue has not been around, as long as South West Airlines, American Airlines, United, andDelta Air Lines. That means that since they
haven't been around as long, they have to commit their time to trademark their name out and keep up positive feedback. For other aircrafts, it may be
considered "older" aircrafts, but JetBlue had needed to brand out more aircrafts. If they did make too many planes and they were not used, it would
cause them to either sell, park, or lease to other airlines.

Case Study : Jetblue Ipo Valuation Finance
Group Case: JetBlue IPO ValuationвЂЁFinance 6806, Fall 2014вЂЁвЂЁAbrar KhayyatвЂЁRajesh MarajвЂЁVeronica PaezвЂЁвЂЁNovember 10,
2014вЂЁ
Problem Statement
Only two years in existence, Jet Blue decided to become a public company and issue an initial public offering. Jet Blue's decision came in 2002, just as
the airline industry experienced a substantial downturn following the terrorist attacks of September 2011. Despite these challenges, Jet Blue remained
profitable and experienced aggressive growth. In order to support this enormous growth and offset portfolio losses, the public offering seemed to be
best course of action.
Jet Blue decided its IPO price should be in the range of $22–$24 per share and communicated this to the investment community. The underwriting
team at Morgan Stanley forecasted excess demand from investors for the 5.5 million shares of the Jet Blue IPO, and subsequently filed for an
increase in the share price to a new range of $25 to $26 per share. After raising the stock price, Jet Blue and Morgan Stanley felt that there was still
tremendous demand and became worried of that the share price was still too low. Management became concerned and fragmented opinions surfaced on
how to proceed. The US economy remained stagnant and the airline industry was especially hit hard; failing to offer the share price at an equilibrium
price could potentially hamper Jet Blue's access to the capital markets in the future and affect the market value of the company.

Strategic Analysis of Jet Blue Airlines: Executive...
Strategic Analysis of Jet Blue Airlines
Executive Summary
JetBlue is a company built on a focus strategy of low–priced, no–hassle ticketing and refreshingly efficient customer service. The company began with
the goal to eliminate many of the complexities and asininities of commercial air travel and set a new standard for customer service. Thus far the
company has flown beyond these goals and everyone's expectations while returning a handsome profit to whomever chooses to invest in this airline
industry success.
From his humble beginnings as a University of Utah drop–out, CEO David Neelman shorlty became a self–taught airline industry guru – gaining a
comprehensive understanding of the inner workings of the industry as the co–founder of ... Show more content on Helpwriting.net ...
Clerk: Well, first I need to ask you a few questions. When do you intend to use it?
Customer: I want to paint tomorrow on my day off.
Clerk: Sir, the paint for tomorrow is $200 per gallon.
Customer: What? When would I have to paint in order to get $9 paint?
Clerk: That would be in three weeks, but you will also have to agree to start painting before Friday of that week and continue painting until at least
Sunday.
Customer: You've got to be kidding!
Clerk: Sir, we don't kid around here. Of course, I'll have to check to see if we have any of that paint available before I can sell it to you.
Customer: What do you mean check to see if you can sell it to me? You have shelves full of that stuff; I can see it right there.

Clerk: Just because you can see it doesn't mean that we have it. It may be the same paint, but we sell only a certain number of gallons on any given
weekend. Oh, and by the way, the price just went up to $12.
Customer: You mean the price went up while we were talking?
Clerk: Yes sir. You see, we change prices and rules thousands of times a day, and since you haven't actually walked out of the store with your paint
yet, we just decided to change. Unless you want the same thing to happen again, I would suggest you get on with your purchase. How many gallons do
you want?
Customer: I don't know exactly. Maybe five gallons. Maybe I should buy six gallons just to make sure I have enough.
Clerk: Oh, no sir, you can't do that. If you buy the

Jetblue Airways: Crafting and Executing Strategy
JETBLUE AIRWAYS
Paper 1: Crafting & Executing Strategy
Strayer University
BUSS 599: Strategic Business
Table of Contents
Introduction........................................................................................p. 3
Trends in the Airline Industry.....................................................................p. 4
Jet Blue's Strategic Intent...........................................................................p. 4
Jet Blue's Financial Objectives and Related Success..........................................p. 5
Strategic Elements..................................................................................p.5
Jet Blue's Strategies for the Future............................................................p. 6
Summary...........................................................................................p. 7
References........................................................................................p. 8
JETBLUE AIRWAYS
INTRODUCTION
JetBlue Airways Corporation got its start on February 11, 2000, and has since grown ... Show more content on Helpwriting.net ...
JetBlue continues to generate positive free cash flow throughout the increasingly dragging economy. In 2005, they had taken a hit, with a loss of
revenue for the first time since being incorporated in 1998...but they were able to quickly restructure and refocus. With that focus and determination,
they have redeemed themselves and hurdled back into the top of the ranks with their competitors.
"With oil on the rise and uncertainty in the global markets, I believe JetBlue's contrarian model uniquely positions us to succeed. Industry
consolidation will likely continue in 2011 and while JetBlue is committed to organic growth, we believe we are well positioned to benefit from others'
actions, as airline mergers remove excess capacity and rationalize pricing. JetBlue will remain focused on striving to create long–term shareholder

value. We intend to continue taking a disciplined approach to costs and capital expenditures while maximizing revenue, nurturing our brand and
preserving a direct, productive relationship with our crewmembers" (Dave Barger, 2011 Annual Report).
SUMMARY
The past five to seven years, with the strained economy, it has put a real train on the airline industry as well. Although JetBlue did show signs of a
struggle when they closed out 2005, they were able to quickly turn things around by

Jetblue Negative Issues
In 2005, among other major airlines in the United States, JetBlue was known to be one of the highest in customer service (Argenti, 2017, p. 102). They
were ranked the highest because they served and valued their customers to the best they could, and tried to provide them with the best service during
their flights. JetBlue served their signature Terra Blues potato ships, free satellite television in every leather seat, legroom, among other attentive
services (Argenti, 2017, p. 102). JetBlue had a valuable reputation; however, all that changed due to deteriorating weather condition.
As mentioned in the reading, due to the deteriorating weather caused at the New York'sJohn F. Kennedy International Airport, critical constituency
issues were arising within JetBlue's customers and their own employees. More than 250 of its 505 flights daily canceled and had an outcome of
1,200 flights canceled between February 14 and February 19 (Argenti, 2016, p. 105). Because of the widespread of cancellations, this caused loss of
baggage's which enraged customers. However, one of the biggest errors that caused constituency issue was when JetBlue trapped their customers inside
the plane for over nine hours before they were taken to their terminal (Argenti, 2017, p. 104). These issues ruin JetBlue's reputation within their
potential customers because they now feared that they could lose their baggage, have their flights canceled or even worse, be trapped inside the plane
for numerous of hours.

Analysis Of Jetblue Airways And British Airways
The objective of this research paper is to describe how the 21St Century utilized concepts , such as corporate social responsibility in relation with triple
bottom line, to shift the airline industry into becoming a forward–thinking industry embedding sustainability into their core of business operations to
create shared value for business and society. I will define corporate social responsibility and areas of social responsibility in the airline industry at the
beginning of the paper and proceed with how it ties into the bottom line concept. Next, I will give brief examples of airlines such as JetBlue Airways,
and British Airways how they apply these concepts into their mission. In conclusion, I will express my own thoughts about how different generations
based their purchases and career decisions on these concepts.
Corporate Social Responsibility (CRM)
Corporate social responsibility (CSR) refers to business practices involving initiatives that benefit society (2). CSR may also be referred to as
"corporate citizenship" and can involve incurring short–term cost that do not provide an immediate financial benefit to the company, but instead
promote positive social and environmental change(1).
To be socially responsible, the airline industry must have a clear, rational definition of social purpose, a system of setting priorities based on their
social implications, and a structured, integrated approach to financial and social action (Graham, 2010).
When defining the

External Environment Analysis
External Environment Analysis
JetBlue Airways Corporation (JetBlue) is a company that has focused on low–cost airline transportation service. It is also one of the top major airlines
dominating the Domestic Airlines industry. To develop a better strategic business plan the company's external business market and the effect it has on
the business continuity plan must be analysis as well as the general, industry, and competitor environments. Another issue affecting companies is the
role business ethics plays in gathering competitor intelligence.
External Business Market
The Domestic Airlines industry is affected by key external drivers, such as corporate profit, world price of crude oil, per capita disposable income,
inbound trips ... Show more content on Helpwriting.net ...
JetBlue needs to develop a plan to deal with its heavy debt load while dealing with the constraints of customers driven by price and route, low brand
loyalty, and heavy capital costs.
General Environmental Analysis
The general environmental analysis is a study of six primary factors, which are political/legal, economic, socio–cultural, demographic, technological,
and global. This study is essential for JetBlue to compete effectively in the Domestic Airlines industry. By conducting this study JetBlue will have a
clear understanding of the elements in society that directly affect the industry.
Political/Legal Factors
The level of regulation for the Domestic Airlines industry is medium, and the trend is steady. The different organizations affecting the industry are the
Air Transport Association of America (ATA), Department of Justice, the FAA, the United States Environmental Protection Agency (the EPA), the
Transportation Security Administration (TSA), and the US Customs and Border Protection. The many laws and regulations instituted by the United
Stated Government that affect the industry directly are the Airport Noise and Capacity Act of 1990 (the ANCA), the International Civil Aviation
Organization's (ICAO) Chapter 4 noise standard, and the Aviation, and Transportation Security Act (ATSA). These laws and regulations affect the cost
of airline operations.

Economic

Jet Blue Case Analsis
Jet Blue Business Analysis
Introduction
JetBlue Airways Corporation has established itself as a low–fare passenger airline with a differentiated product and a high–quality customer service.
They focus on serving underserved markets and large metropolitan areas that have high average fares. They offer both short–haul and long–haul routes
that are point–to–point rather than the 'hub and spoke" route system that has been adopted by most major U.S. airlines.
JetBlue was incorporated in Delaware in August 1998 and started operations in February 2000. On April 11, 2002 they announced their initial public
offering of its common stock. Their base of operations is at New YorkJohn F. Kennedy International Airport(JFK). On February 14, 2003, ... Show
more content on Helpwriting.net ...
Differentiation
The differentiated aspect of JetBlue 's business strategy includes extra–wide leather seats with more legroom. It offers 24–channel live satellite T.V. free
at every seat. Pre–assigned seating, superior customer service, and a customer loyalty program.
Financials
JetBlue
JetBlue is a financially growing company. Its revenues have increased from $104.6 million in 2000 to $635 million at the end of 2002. Net Income has
also increased from a negative $21.3 million in 2000 to nearly $55 million at the end of 2002. Net Income was already at $245 million as of June 2003.
From March of 2003 to June 2003, the share price had risen from $27.71 to $41.98 per share. JetBlue is well on its way to becoming an industry leader.
Industry Comparisons
In its three years of operation, JetBlue has made great strides with their financial position. Revenues for JetBlue were an impressive $635 million.
AirTran Holdings, Inc. had $825 million in revenue, while Southwest had $5,521 million. Southwest has clearly more revenue than JetBlue, but they
have been around since 1971 and serve 58 cities to JetBlue 's 22 cities. Net Income comparisons show that JetBlue earned $55 million, Southwest had
$241 million, and AirTran earned $68 million. The Balance Sheet is a statement of financial position. JetBlue has 29% of its total wealth in assets and
43% in

Crafting and Executing Strategy
Running head: ASSIGNMENT #1 CRAFTING AND EXECUTING STRATEGY
Assignment #1
Jet Blue Airways
Strayer University
BUS599016VA016–1116–001
Strategic Management
July 11, 2011
Abstract
This paper examines the business strategy of Jet Blue Airways. The paper will also examine strategic elements that provide the organization with a
competitive advantage. The company's competitive strategy and the impact of the trends in the U.S. airline industry will also be discussed.
Assignment #1
Jet Blue Airways David Neeleman worked in the travel and airline industry before starting JetBlue. He was well versed in customer service. He
learned from his grandfather as a ... Show more content on Helpwriting.net ...
According to Thompson, Strickland, and Gamble, a company exhibits strategic intent when it relentlessly pursues an ambitious strategic objective,
concentrating the full force of its resources and competitive actions on achieving that objective (p. 36). JetBlue was founded to "bring humanity back
to air travel." David Neeleman started JetBlue to provide low fares and comfort. JetBlue won several awards for being the best domestic airline.
JetBlue determined five important values, and safety was their number one priority. The four other values were of equal importance are caring,
integrity, fun, and passion.
Discuss Jet Blue's financial objectives and whether or not the company has been successful in achieving this objective. The financial objective of
JetBlue and any corporation is to become more profitable. JetBlue has been successful in achieving their financial objectives by offering low fares
by keeping operating costs low and quality high. JetBlue was not able to deliver value to its stockholders. None of the major airlines were able to
deliver value to stockholders (C–64). JetBlue maintained a conservative financial strategy and maintained strong liquidity. JetBlue had one of the

highest liquidity coverage ratios of the major airlines (C–67).
Discuss Jet Blue's strategic elements of cost, organizational culture, and human resource practices and evaluate whether each element provides the
organization with a

Jetblue Organizational Plan
JetBlue's Organizational Plan JetBlue's Organizational Plan Introduction JetBlue is known as the airline that promises, and also delivers. JetBlue
delivers Air flight of the future, with new jets and the lowest fares available. JetBlue has proved to the world that one can have it all. JetBlue's
Airways started in 2000 with the mission as stated by the founder Neeleman: "to bring humanity back to air travel by offering passengers low fares,
friendly service, and high–quality product" (Ford, 2004, p.139). JetBlue has five core values that they operate by on a daily basis, which includes,
safety, caring, integrity, passion and fun. JetBlue continues to adapt to the changing environment, and its community by evaluating the risks and... Show
more content on Helpwriting.net ...
Another strength that JetBlue has is that they have newer planes, advanced technological aspects that are more cost efficient. However, JetBlue's
weakness includes high debt due to the cost jets and high dependence on the metro area. JetBlue's opportunity in the industry includes the industry
growth and JetBlue's commitment in partnering with other companies to draw in more customers. Some threats to JetBlue is an over competitive
market, raising fuel costs and constant increase in stricter government restrictions ("Blue Airways Corporation SWOT Analysis," 2014). Strategic
Plan JetBlue's strategic plans continue to find ways to remain as affordable and as cost efficient for both the company and the costumer by
controlling monitor fuel cost and offering newer jets as they reduce the cost fuel. The newer jets run at better speed, decreasing the cost and actual air
travel time. JetBlue has associated itself with the program Nextgen. Newer methods are developing to reduce fuel waste and to reduce air traffic
(Jetblue.com/green, 2012). Containing the cost to a smaller budget will continue to keep JetBlue ahead in the airline market, and still allows them to
stay at a low cost. Operational Plan An Operational plan for JetBlue is to involve a functional part of the JetBlue enterprise. JetBlue continues to
provide safe traveling to customers

Jetblue Airways Ipo Valuation
Running Header: JetBlue Airways IPO Valuation
JetBlue Airways IPO Valuation
Borislav Belenov, Wade Brashear, Jamie Clausen,
Paul Collier, Nicole Hagan and Melissa Lein
Managerial Finance
Chadron State College
Professor Steve Stoner
May 2009
David Neeleman is the founder of JetBlue Airways, which began under the name of "New Air" in 1999. Many JetBlue executives were previously
employed by Southwest Airlines, a competitor in the area of low cost travel. However, Mr. Neeleman's vision was to offer more amenities to its
passengers, like in flight entertainment, leather seats, and unsurpassed customer service (Discounting, 2009). His idea was "to launch a new airline that
would bring humanity back to air travel (Schill, M. J., et al, ... Show more content on Helpwriting.net ...
After SEC approval, the stock distribution begins. On the chosen effective date, the stock offerings are traded for the first time. However, the
closing of the transaction occurs several days later, usually eight days. This is when the underwriter deposits the net proceeds from the IPO into the
company account. The underwriter now needs to provide after market stabilization, as well as analyst recommendations, and making a market in the
stock, which enhances the demand for shares (Ellis, K., et al, 1999). The IPO process is long and arduous. A company needs to be totally
committed before beginning the process. However, becoming a publicly traded entity is preferable to, for example, selling debt. This is due to the
facts that, with an IPO, only a certain amount of agreed upon shares are to be offered to the public. Control of the organization should remain as it
was prior to being publicly traded. JetBlue made a positive choice to become a publicly traded entity. By doing this, JetBlue has increased their capital
in order to sustain growth of the company. Growth within the company has increased revenues for the company.
The stock price of JetBlue is influenced by different factors from all possible spheres: company's financial performance, customer feedback, company's
brand recognition and reputation, industry analysis, financial and industry experts' analysis. All these factors

Social Case Study: Jetblue Airways
JetBlue Airways:
Regaining Altitude after the Valentine's Day Massacre of 2007
A Submission to the Arthur W. Page Society Case Study Competition
2 Abstract Valentine's Day 2007 changed the course of history for JetBlue Airways. The upstart low
–fare airline – which had enjoyed unprecedented
acclaim from customers and industry observers – suddenly found itself in the midst of its first major operational catastrophe. A winter storm that
enveloped the New York metropolitan region and JetBlue's hub at John F. Kennedy International Airport left hundreds of the company's passengers
stranded in the terminal, and worse, in planes on the tarmac. The flight disruptions at JFK plunged JetBlue's entire operation into chaos, forcing the
carrier ... Show more content on Helpwriting.net ...
JetBlue was the brainchild of David Neeleman, an industry visionary who promised to "bring humanity back to air travel."9 Neeleman, who was born
in Brazil but grew up in Utah as part of a large Mormon family, was no stranger to start–up airlines.10 He helped to build Morris Air, a Utah–based
airline that Southwest acquired in 1993 for $129 million.11 Neeleman leveraged his industry experience and connections to create a company that
would boast a fleet of brand new airplanes, low fares, and a host of customer–friendly embellishments that legacy carriers and other start–ups would be
hard–pressed to match. Neeleman envisioned treating JetBlue's customers – never referred to as passengers – to comfy and wide leather seats,
paperless ticketing, and exceptional service by flight crew members. Every seat would come equipped with a television that featured dozens of free
channels provided by satellite signal. Finally, to keep costs down, JetBlue would offer a virtually unlimited supply of appealing in–flight snacks instead
of soggy meals that no one really wanted.12 Backed by an impressive capital reserve, Neeleman's plan worked far sooner than even the most
optimistic industry observers predicted. With its new airplanes and flights to and from previously underserved markets, JetBlue quickly shot to the top
of J.D. Power and Associates' customer satisfaction surveys.13 Based at New

Jetblue Airways Executive Summary
Executive Summary
JetBlue Airways, the latest entrant in the airlines industry has gone through the initial stages (entrepreneurial and collectivity) of the organizational life
cycle rapidly under the successful leadership of David Neelman. JetBlue Airways is currently in the formalization stage of the life cycle where in it
needs to create procedures and control systems to effectively manage its growth. Also as it proceeds to grow further to reach the elaboration stage,
JetBlue needs to continue to align itself with the environment in order to maintain its sustained growth.
JetBlue: Entrepreneurial Stage
David Neelman realized his vision of creating an airlines company that is focused on customer service by starting JetBlue. During ... Show more content
on Helpwriting.net ...
Neelman providing the necessary strong leadership, along with the talented management team formulated clear operative goals and directions based on
his vision. Decisions that were made emphasized the need to provide a better passenger experience such as choosing New York JFK as the home base
of the airlines. Customer interaction (external environment) and employee satisfaction (internal) were the important factors in formulating the mission.
The Mission statement included Safety, Caring and Integrity that can be attributed to the customers and the mission statement also included fun and
passion that can be attributed to the employee satisfaction.
The skill emphasis needed in a service industry such as airlines is mostly interpersonal. Recognizing the need for interpersonal skills, JetBlue designed
the employee selection process to make sure the hired crew members fit into the culture and understood the values and mission. Decision making is
another important characteristic of the service industry and the crew members were also identified and selected on their decision making capabilities as
the customer related decisions are made at the lowest level of the organization. JetBlue designed the orientation process to highlight the different core
values to the employees and made them identify with the mission. Expected behavior of the employees and their contribution to the success of the

Jetblue Airways: Managing Growth Essay
Jet Blue Airways; Managing Growth
1. Jet BlueВґs Business– level strategy; value and cost drivers Jet Blue uses to create and maintain ist competitive position
Founded by the discount airline veteran David Neeleman in 2000, JetBlue Airways has quickly become one of the largest discount airlines in the
United States. Starting primarily by serving the East Coast, the airline has since expanded throughout the country and entered the international market.
The reasons for its early success are numerous: JetBlue entered the market with one of the largest levels of liquidity of any start–up airline; it met the
needs of customers' whose primary concerns are price and route; and it successfully defined its brand and differentiated itself ... Show more content on
Helpwriting.net ...
Therefore, Southwest as well as Jet Blue are considered as low cost carriers (LCC). Jet Blue offers fares up to 65 per cent lower than legacy
competitors. Jet Blue Airways positions itself by connecting large, typically northeastern, US cities with warmer cities in the southeast. Jet BlueВґs
emphasis is like SouthwestВґs on low fares and point to point transportation. Jet Blue entered the market like Southwest with only one machine, the
A320. In this way they could ensure serving a variety of medium– and long–haul routes and numerous overnight flights. Jet Blue could also standardize
its training and servicing processes around the aircraft. This allowed them to gain flexibility in scheduling and capacity management. Another feature
for customers to make travelling with this airline more attractive are added comfort features such as assigned seating, leather upholstery and satellite
TV on individual screens in every seat. Their key principle was that flight cancellation should be avoided at all costs. In 2005, Jet Blue broadened their
portfolio in entering the market of medium–sized cities, which was served only by regional airlines. They entered this market using a new midsized
aircraft called E190. In launching this new machine, they were able to use synergy of combining the A320 and the E190 profitably while serving now
smaller and bigger airports. This portfolio mix gives Jet Blue a yet matchless, strategic competitive advantage compared to the other airlines.

The Human Resource Development Partner And Training Manager
As the human resource development partner and training manager, I was contacted by JetBlue to develop a detailed lesson plan for their newest
addition to their family. JetBlue recently hired thirty new reservation agents to help with their growing business. A lesson plan is a detailed plan of
action to guide the trainer throughout the process that intends to take the trainee from step A to Z. This plan must be developed in advanced so that the
trainer is prepared for the information that must be taught including: the content to be taught; how much time is required for each lesson; what method
will be used to teach the information; what type of training materials are needed; the location of the training; and how the training will be evaluated
(Werner & DeSimone, 2012). Before the lesson plan can be developed, information is needed related to the organizational history of JetBlue along with
the job responsibilities for the reservation agents. JetBlue Airlines, the fifth largest in the United States, houses their main headquarters in Long Island,
NY with corporate offices residing in Cottonwood Heights, Utah. JetBlue was founded by David Neeleman in 1998, and currently uses Sabre
reservation systems to book flights to ninety–seven destinations in the US, Central America, Mexico, Caribbean, and South America (Snyder, 2010).
"JetBlue inspiration starts here" (Flying on JetBlue, n.d.) is their motto, and it reflects their mission statement of "Inspiring humanity a single action

Jetblue Case Study Essay
1.Describe the "JetBlue Experience." How is it related to the company's overall business strategy?
With the JetBlue Airways experience, passengers enjoyed free amenities such as watching live satellite TV, listening to XM satellite radio, brand name
snacks, coffee and drink. Passengers can also experience paperless ticketing, assigned seating with more legroom. These experiences have helped to
streamline JetBlue's business strategy as being the best customer service in the airline industry.
2.What challenges did David Neeleman and his executive team face in managing the customer experience as the airline grew rapidly? How did they
respond to those challenges?
The challenges were new airline fleets were behind schedule and ... Show more content on Helpwriting.net ...
A basic problem was JetBlue's communication system. The ice storm had left a large portion of the airline's pilots and flight attendants far from where
they needed to be to operate the planes, and JetBlue lacked the trained staff that was needed to find them and tell them where to go. Another problem
was the reservation system; the system was so overwhelmed that customers were unable to get through to human agents to check on a flight.
4Did the airline handle the crisis well? Why or why not? What else could JetBlue have done to improve the situation?
I believe the situation was handled well, because after the February 14th delays, JetBlue executives developed a passenger Bill of Rights to help deal
with the situation if it happens to arise again. The Bill of Rights provides real compensation for delays and cancellations, and it is believed to be
stronger, deeper, and much more defined than any other customer commitments you could find in the airline industry.
Although there was no way JetBlue could have prevented the cancelled flights due to bad weather, they should have had risk management plan in
effect addressing ice storms before this incident occurred. Another solution to the problem would be to park incoming flights near the gate and send a
bus out to pick up the passengers. This way they wouldn't have to wait in the plane until a gate is available or call other airlines and see if they can
use there

Jetblue's Case Analysis : Jetblue
Dynamic JetBlue Airways is socially, monetarily and ecologically mindful organization, with a brand picture that separates it from its opposition, with
proceeded with maintainable business works on bringing about progress. JetBlue has continued 100 million travelers, with a normal of more than 800
day by day flights and serving near 100 goals in the United States, the Caribbean and Latin America. The aircraft utilizes different techniques, for
example, interlining to meet more purchaser requests and present its superior administration, Mint, which helps in the venture into developing markets
and creating countries. This case examination depicts the historical backdrop of JetBlue, it's items and administrations, an appraisal of the association's
vital position and execution inside the aircraft business, issues that represent a danger to the association and regions of development and venture into
new range and markets. Catchphrases: social, financial, condition, interline, customer, methodology JetBlue JetBlue Corporation, or JetBlue, is New
York's Hometown Airlineв„ў,is a youthful carrier organization beginning from the US that gives extraordinary client benefit minimal effort charge,
reliable to its ease upper hand that has created billions in incomes and many honors. This case investigation depicts in detail JetBlue's experience, key
profile and situational examination. JetBlue's responsibility regarding finding creative approaches to expand clients and traveler

Jetblue Swot Analysis
SWOT Analysis: JetBlue Airways
DeVry University Online by Keith Escher
Organizational History
Known as one of the very few airlines which has actually managed to make a profit since the downturn in the travel business, which was a result of the
September 11th attacks, JetBlue Airways continues to pride itself by living up to its dedication of "bringing humanity back to air travel"(JetBlue Bill of
Rights).
JetBlue was incorporated in Delaware in August 1998 and was founded by David
Neeleman, a former Southwest Airlines employee and practicing Mormon man with nine children in February of 1999(JetBlue Airways). The vision of
the airline was to provide low cost air travel with certain amenities, including TV's on ... Show more content on Helpwriting.net ...
The company learned early on that it was more of a cost effective approach when employees are used in a variety of job roles, as opposed to having
employees who are specialized in one area only and that are not permitted to work outside of their job expertise.
In addition to their wonderful staff and customer service, JetBlue also offers their passengers "comfortable seating, with lots of leg room. They
actually are able to offer their taller passengers some extra leg room with 4 more inches of space available"(JetBlue's Bill of Rights Info). Along with
the seating options,
JetBlue also operates with a fleet of newer jets, as compared to some of the other budget airlines.
Now, the weaknesses of JetBlue happen to be first of all, that they continue to expand, however, at a slow rate. They currently only offer flights to 61
cities in the US and to a few other countries, with their home base airport, JFK, having the highest congestion in the country. Plans for global
expansion are also on the drawing board, however, this is also happening at a slow pace. In order for the airline to remain competitive, they must
expand their horizons and soon.
Another issue which came up recently and happened to be a weakness, is that
JetBlue received some negative press. "What had happened was that in May of

2010, one of their pilots threatened to harm himself a few hours before takeoff.
Also, in August of 2010, one of

Case Study Jetblue Airways
C A S E 20 JetBlue Airways:
GROWING PAINS By S. S. George and Shirisha Regani
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
1 Table of content (Moved to final report)
2 Introduction (AurГ©lien)
2.1 Case summary (Moved to final report)
2.1.1 Main issue (Moved to final report)
2.1.2 Case analysis (Moved to final report)
3 Internal analysis
3.1 Mission, vision, strategy, and competences (Moved to final report)
3.1.1 Mission (Moved to final report)
3.1.2 Vision (Moved to final report)
3.1.3 Business strategy (Eugene) (Moved to final report)
3.1.4 Competences (Moved to final report)
3.2 Marketing strategy
3.2.1 Product
3.2.2 Price
3.2.3 Promotion
3.2.4 Place
3.2.5 People ... Show more content on Helpwriting.net ...
High profitability leads to high retained earnings and drastic improvement on both return on assets (ROA) as well as return on equity (ROE).
However, JETBLUE AIRWAYS has weak liquidity. Currently, the current ratio shows a lack of ability to cover short
–term cash needs, yet the
company's liquidity has not increased from the same period last year, indicating lack of improvement in cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 26.82% from the same quarter last year. The company has grown to a
bigger size.

Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future and the
company's general financial condition generally become more healthy due to drastic improvement of profit margin from FY14 to FY15.
4. Internal Factors Analysis (IFAS)
Internal Factors
Weight
Rating
Weighted score

The Mission Of The Executive Management Team
David Neeleman founded JetBlue in 1999, under the principle of low cost travel and high quality customer's service. Planes were designed with
leather seats and satellite TV at each seat. Neeleman initially set out to call the airline Taxi associating it with New York City. However this idea was
quickly dropped for several reasons. Soon thereafter the airline was introduced as New Air but quickly changed to JetBlue. A year after standing up, its
headquarters was established at John F. Kennedy International Airportin New York. The first inaugural flight was between JFK and Fort Lauderdale,
Florida. Within its first year, Jet Blue had serviced over one million customers and had a net income worth $38.5 million. TodayJetBlue Airways ...
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Socio/cultural, economic, political, and technological are all factors that influence the airline industry (Boyens, Cha, Livneh, Pan–Fea, Singh, &
Vintrou, 2002). The most important socio/cultural influence that affected the airline industry was the attacks on September 11th. The Department of
Transportation reported a revenue drop associated with an increase in operating cost and a new fear of flying. After September 11th, Jet Blue was
one of only a few airlines that made a profit during a sharp draw down in airline travel ("Jet blue airways", 2003).
The weather is unpredictable at best, the second largest cause of pilot error, and attributes to the majority of airline delays. A winter storm in
February of 2007 and bad planning left travelers stranded on aircraft for more than 11 hours in New York. JetBlue's customer service was severely
impacted by the gravity of this storm. Although JetBlue offered refunds and other perks for the delayed passengers, for a company built on customer
service, their reputation was still tarnished. Additionally, JetBlue's communication systems were significantly disabled. Crewmembers were far from
where they needed to be and a lack of trained staff was unable to tell them where to go. When a similar situation occurred a couple of months later,
JetBlue prepared themselves beforehand and cancelled several flights the night prior, while

Jet Blue Essay

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