Pestel

PESTEL Analysis

Political: Ever since the September 11 terrorist attack on the World Trade Centre, strict regulations and security measures were imposed by the US government to provide maximum protection within the airport facilities. The airline deregulation of 1978 allows companies to enjoy lower cost and a greater market share, as domestic passengers do not have to switch between planes to travel during long journeys.

Economical: Rising oil prices is a cause of major concern for the aviation industry. JetBlue, being a relatively new and low budget company in the industry, sells tickets at a lower price that may not prove to be profitable for the company in the long run. Additionally, fuel cost represents 15% of the overall expense for the airways.

Sociocultural: One of JetBlue’s primary assets lies in the fact how they provide an excellent service for baggage handling and passengers’ necessities alike. Customer awareness has been created by JetBlue airways through their recent creation of their Customer Bill of Rights.

Technological: The introduction of electronic ticketing and the scope to reserve flight tickets from an advanced date allows an increasing rate of passengers to use JetBlue. Being able to book tickets online increases company’s productivity as the whole process of reserving seats on the plane becomes much faster. JetBlue runs their phone reservations service at a lower cost than competitors by utilizing corps of reservation agents.

Environmental: Incremental weather is the prime cause for flight delays and aviation industry will always be affected by unfavorable weather conditions. Often times, the outdated air traffic control becomes the reason for ineffective routes and planes staying idle for longer periods. Therefore, the traffic control system must be restructured to accommodate the growth of the airline industries.

Legal: JetBlue does not have airplane size limits like their competition because their pilots are not...