Jet Blue Airways

Jet Blue Airways

Jet Blue was founded on an idea of a company that would offer low fares of discount airline carriers but all the amenities of the more expensive airlines. Founder, David Neeleman, had an extensive background in the airline industry and incorporated his own preferences when flying to create Jet Blue. Some conveniences David Neeleman introduced were electronic ticketing and allowing reservation agents to work from home to save money on rent for office space. Jet Blue went into operation in February 2000 and by March 2003 flew its 10 millionth passenger [ (Rovenpor & Michael, 2008) ]. Jet Blue was a discount airline carrier that offered passengers low fares; operated point-to-point systems; used two types of aircraft; served only snacks; and maintained quick turnaround times at airports. Jet Blue was able to operate at much lower costs than other airline companies which allowed them to continue to offer discount rates with the same great service. Jet Blue also had a strong organizational culture and truly valued its employees. They only hired individuals that mirrored the company values.

The problem was that Jet Blue took on too much too fast and had to slow down and regroup before they lost their chance at becoming a major domestic carrier. Stock prices were in a downward spiral and jet fuel prices on the rise. Both changes added to the problems Jet Blue was experiencing. It seemed Jet Blue had the right ideas and the right employees to achieve their goal but new avenues needed to be explored [ (Rovenpor & Michael, 2008) ].

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

The current airline industry is struggling due to the ever rising costs of fuel. Airlines have had to raise their costs and customers are rethinking the summer vacations because of it. If people are not traveling the airlines will lose even more money. This trend will surely affect Jet Blue because...