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Jet Blue
- 1. JetBlue Airlines [Success Story] October 1, 2009 Efforts by:- Meenakshi Bisht Tushank Neeraj Garg
- 10. Market Positioning Position Map Price Low High Quality Low Southwest American Airlines United Airlines Delta Frontier AirTran JetBlue
- 23. Thank You
Editor's Notes
- With the exception of a few carriers such as Southwest Airlines and JetBlue, many of America's airlines are have been losing significant amounts of money. The problems they face are daunting. One of the problems involves travelers concerns about flying after the attacks on the United States on September 11, 2001. Another problem involves the increased costs of security, which the airlines must absorb. The latest blow involves the massive increases in the cost of jet fuel. With the price of crude oil at more than $50 a barrel, already an all time high, and with prices continuing to rise every airline is feeling the financial pinch. Add in the fact that so called full service airlines are losing passengers to discount airlines such as Southwest and JetBlue and it becomes easy to see why airline stocks are in disfavor on Wall Street, and why many airlines' stock values have plummeted. JetBlue is in the transportation sector of the economy and operates as a commercial airline. JetBlue is one of the few exceptions to this rule. By virtue of the fact that the company has been able to control cost, and generate higher revenues in a post-911 world, its stock price has managed to remain steady
- With the exception of a few carriers such as Southwest Airlines and JetBlue, many of America's airlines are have been losing significant amounts of money. The problems they face are daunting. One of the problems involves travelers concerns about flying after the attacks on the United States on September 11, 2001. Another problem involves the increased costs of security, which the airlines must absorb. The latest blow involves the massive increases in the cost of jet fuel. With the price of crude oil at more than $50 a barrel, already an all time high, and with prices continuing to rise every airline is feeling the financial pinch. Add in the fact that so called full service airlines are losing passengers to discount airlines such as Southwest and JetBlue and it becomes easy to see why airline stocks are in disfavor on Wall Street, and why many airlines' stock values have plummeted. JetBlue is in the transportation sector of the economy and operates as a commercial airline. JetBlue is one of the few exceptions to this rule. By virtue of the fact that the company has been able to control cost, and generate higher revenues in a post-911 world, its stock price has managed to remain steady
- Safety: It always comes first. We each wear the hat of the Chief Safety Officer. It’s everyone’s job to ensure a safe environment and experience for our Customers and each other. • Caring: Respect and understanding are the hallmarks of who we are. Caring is what brings the JetBlue Experience to life. • Integrity: Doing the right thing. It’s the only way to do business, so we communicate openly and honestly. That’s how we earn trust--from each other and our Customers. • Fun: Work should be a friendly environment—a place that you like. The equation is simple: we enjoy our jobs and our Customers enjoy the JetBlue Experience. • Passion: JetBlue is more than just an airline. We deliver a great experience and an excellent product with dedication and enthusiasm. That’s what keeps our Customers coming back.
- In order to continue their success, jetBlue needs to pursue a Cost Leadership Strategy. A large part of their identity, as a company, is centered around their low-cost flights paired with other luxuries they have provided for their customers. Without the low-cost alternative to the major airlines, jetBlue would not have had the same level of success. In addition, with other new low-cost airlines like Independence Air following suit with jetBlue, they must maintain this aspect of their identity. Provided that they continue to expand at a safe pace and can expand to other markets, jetBlue will continue their trend of cheap airline fairs. The greatest American example of low cost identity is Wal-Mart. Its customer base started and continued because people knew that they could count on low prices in their stores. For the sake of analogy, if jetBlue can parallel Wal-Marts attitude with a similar Cost Leadership Strategy, then their continued success is evident.