Jet Blue Case

JetBlue Airways: Managing Growth

Table Of Contents

1. Introduction

2. Problem Identification

3. Industry Analysis

4. Key Success Factors

5. External Analysis (FIVE FORCES MODEL)

6. PESTEL

7. External Analysis Explanation

8. Internal Analysis Explanation (VRINE)

9. Competitor Analysis

10. Financial Analysis

11. Alternatives

12. Decision Criteria

13. Recommendation

14. Implementation

15. Contingency Plan

16. Appendix

Introduction

The case provides an overview of a company in the airline industry, JetBlue Airways and discusses its issues with managing growth as the company has decided to expand its services to serve customers in the medium to small-sized markets with regional jets. Throughout this case, provided will be detailed analysis of JetBlue decision to serve other markets and to manage its growth going forward.

Problem Identification

The newly appointed CEO of JetBlue Airways, David Barger, is looking to curtail its capacity growth in light of rapidly increasing fuel costs and the decision to reduce the number of aircraft deliveries, specifically deciding how to distribute these reductions between Embraer E190 fleet versus Airbus A320. Ultimately, David Barger’s decision will be crucial to keep the company stable moving ahead as it affects many aspects of the company.

Industry Analysis

The airline industry includes two groups of competitors; legacy and LCC (low-cost) carriers. Primarily, the most well known airlines in the industry such as United and American Airlines are considered legacy carriers as their service is based on a “hub-and-spoke” system. Airlines that utilize this system set up “hubs” at specific airports where passengers are shuttled through to connection flights “spoke”, hence the name “hub-and-spoke. On the other hand there is LCC, also known as low-cost carrier, which is based on the philosophy of “point to point” where the passengers are taken directly between...