Jetblue

JetBlue IPO

JetBlue was incorporated in Delaware in August 1998. David Neeleman, formerly employee of Southwest Airlines, founded JetBlue Airways Corporation in 1999 as “NewAir”. It is an American low-cost airline and this company is headquartered in the Forest Hills neighborhood of the New York City borough of Queens. Its main base is John F. Kennedy International Airport, also in Queens.

The first AirBus A320 aircraft arrived in early December, 1999. NewAir stated commercial operations in mid-February, 2000, with its inaugural flight between JFK and Fort Lauderdale, FL. During 2000, new aircraft joined the fleet, and a lot of destinations were added to the network, and by the end of the year, JetBlue flies its one-millionth customer, reporting $100 million in flown revenue. In March, 2002, JetBlue flies its five millionth customer.

An initial public offering (IPO) or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises. Many companies that undertake an IPO also request the assistance of an Investment Banking firm acting in the capacity of an underwriter to help them correctly assess the value of their shares, that is, the share price.

There are several benefits to being a public company, namely:

* Bolstering and diversifying equity base

* Enabling cheaper access to capital

* Exposure, prestige and public image

* Attracting and retaining better management and employees through liquid equity participation

* Facilitating acquisitions

* Creating multiple financing opportunities: equity, convertible debt, cheaper bank loans, etc.

* Increased liquidity for equity holder

There are also several disadvantages to completing an initial public offering, namely:

* Significant legal, accounting and marketing costs

* Ongoing requirement to disclose financial...