Jet Blue Airways

Mary Perkins

Assignment on Jet Blue Airways

Strategic Management

Dr. Robert Shamowski

January 16, 2011

Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy

As in many mature industries, consolidation is a trend. Airline groupings may consist of limited bilateral partnerships, long-term, multi-faceted alliances between carriers, equity arrangements, mergers, or takeovers. Since governments often restrict ownership and merger between companies in different countries, most consolidation takes place within a country. In the U.S., over 200 airlines have merged, been taken over, or gone out of business since deregulation in 1978. Many international airline managers are lobbying their governments to permit greater consolidation to achieve higher economy and efficiency. JetBlue was interested pursing partnerships with other airline companies. JetBlue had indications that it might become a target of a takeover. The shares hit an all-time low of $3.15 on July 11, 2008.

Discuss Jet Blue’s strategic intent

Established in 1998, JetBlue Airways did not begin operational service until February 2000. David Needleman’s intent was to start a company that would combine the low fares of a discount airline carrier with the comfort of people’s homes. JetBlue set out to offer a product superior to competitors at affordable prices and to be New Yorks low-fare hometown airline. JetBlue’s customers saved 65% compared to current competitor offerings. JetBlue became the first airline to offer all passengers personalized in-flight entertainment. Flat-screen monitors installed in every seatback allow customers live access to over 20 channels at no additional cost. Also JetBlue offered full-page newspaper advertisements boasted low-fares, new planes, leather seats, spacious legroom, and a customer-service oriented staff

JetBlue was the number one on-time airline with 80.25% of flights on-time while major airlines averaged 73.6%....