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Zainab Dabo Aliyu 3607744
Arshed Aydrose 3351166
Hatim Piplodwala-3549884
Introduction
 JetBlue Airways is an American low-cost airline
  based in New York
 It was founded in 1998 by David Neeleman
 It uses one of the youngest fleets in the skies
 A notable incident that happened was the
  February14th,2007 ice story
 As a result, they created the “Customer Bill of
  Rights”
 David retired after the incident in 2007
Swot Analysis
 STRENGTH                 Weakness
 Low operating cost       Relatively new company
 Efficient employees      Weak financial reporting
 Good customer service    It has been using a
                           single fleet
 Effective use of
 technology
Swot Analysis
 Opportunities                   Threats
 JetBlue financial position      Terrorism
  is strong so it can think of    Rise in fuel prices
  expanding nationally and        Strong competition
  internationally
                                  Employee unions
 Add up more services for
  passengers
 Increase number of flights
 Joint ventures
5 Generic Strategy
Potters 5 Forces
Key Success Factors

               Attracting
               Customers


  Managing                  Managing
   its fleet                its People


               Managing
                  its
               Finances
Jetblue Strategy (2008)
 Re-evaluate the ways the company was using its asset
 Reduce capacity and cut cost
 Raise fares and grow in certain market
 Offer improved services for corporation and business
  travellers
 Form strategic partnership
 Increase ancillary revenues
Factors driving change in the airline
              industry
 Fuel prices
 Aircraft and Routes
 The airports and geographical regions served
 The market share
 Consumer demands regarding air travel
Market Share
PESTEL Analysis



             Jetblue
PESTEL Analysis
  POLITICAL FACTORS            ECONOMIC FACTORS

 September 11, terrorists    Improved purchasing
  attack.                      power.
 Political stability.        Rise in Inflation.
 Competitive Airline         Rise in oil prices
  industry.
 Regulatory factors.
PESTEL Analysis
   SOCIAL FACTORS              TECHNOLOGICAL
                                   FACTORS
 Greater customer
  awareness.                 Beginning of e-ticketing.
 Increased entertainment    Automated systems
  level.                      (cockpits).
 Security level of          Advertisements (newly
  customers.                  introduced animated).
 Bad services & lost
  baggage.
Key Issues Faced By JetBlue and
Solutions
 14th Feb Valentine’s Day weather related incident in
 2007 .

 Lead to destroy reputation and step down of David
  Neeleman as CEO.
 Incorporating new technologies.
 Best practices and providing comprehensive cross-
  training to all employees.
 Making JetBlue’s Vision more solid and famous.
Key Issues Faced By JetBlue and
Solutions Cont..
 Increase in Fuel prices and customer demand for air
    travel.
   it affected the industry’s profitability and each air
    carrier responded differently.
   Charge for things that used to be free such as checked
    and carry-on baggage, meals, seat assignments, etc
   Using one engine for taxing to take-off runways, flying
    at higher altitudes where oxygen quality is lower
    resulting in less fuel being burned.
   Aircraft flying without full fuel tanks and topping off
    at airports with less expensive fuel.
Strategic Group Mapping
THANK YOU.

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