Jet Blue 10-K Paper

Jet Blue Airlines

JetBlue Airlines

JetBlue’s strategy for success in the marketplace is product leadership with customer value proposition. This is evident in JetBlue’s 10k document when they state that their success, “…is attributable to our focus on customer satisfaction and our ability to contain operating costs” (Jetblue, 2005). It also can be seen when JetBlue states that, “We focus on serving markets that previously were underserved and large metropolitan areas that have had high average fares” (JetBlue, 2005). By doing this JetBlue is not only serving under represented communities, but also offering lower cost travel alternatives to metropolitan customers that may not have had any other choice previously. The statement that really exemplifies what JetBlue is about is, “…JetBlue, is a major low-cost passenger airline that provides high-quality customer service at low fares primarily on point-to-point routes” (JetBlue, 2005). This passage exemplifies why JetBlue has been able to show profits, even when other airlines have shown losses, and also explains why they have one of the highest seat capacities utilized on average within their industry.

JetBlue faces several business risks. This can be seen in their 10-K document when is stated that, “An inability to hire and retain personnel, timely secure the required equipment and facilities in a cost-effective manner, efficiently operate our expanded facilities, or obtain the necessary regulatory approvals may adversely affect our ability to achieve our growth strategy” (Jetblue, 2005). On top of this JetBlue’s competitors are offering more services, reducing fares, and offering special fares to counter JetBlue’s already low pricing. Increased competition, or decreased demand in the New York market, as well as unionization, and the crashing of their automated systems could also hurt JetBlue as well. The fact that they have a lack of a credit line also makes them vulnerable, because if their cash flow...