2. Introduction
JetBlue Airways is an American low-cost airline
based in New York
It was founded in 1998 by David Neeleman
It uses one of the youngest fleets in the skies
A notable incident that happened was the
February14th,2007 ice story
As a result, they created the “Customer Bill of
Rights”
David retired after the incident in 2007
3. Swot Analysis
STRENGTH Weakness
Low operating cost Relatively new company
Efficient employees Weak financial reporting
Good customer service It has been using a
single fleet
Effective use of
technology
4. Swot Analysis
Opportunities Threats
JetBlue financial position Terrorism
is strong so it can think of Rise in fuel prices
expanding nationally and Strong competition
internationally
Employee unions
Add up more services for
passengers
Increase number of flights
Joint ventures
7. Key Success Factors
Attracting
Customers
Managing Managing
its fleet its People
Managing
its
Finances
8. Jetblue Strategy (2008)
Re-evaluate the ways the company was using its asset
Reduce capacity and cut cost
Raise fares and grow in certain market
Offer improved services for corporation and business
travellers
Form strategic partnership
Increase ancillary revenues
9. Factors driving change in the airline
industry
Fuel prices
Aircraft and Routes
The airports and geographical regions served
The market share
Consumer demands regarding air travel
12. PESTEL Analysis
POLITICAL FACTORS ECONOMIC FACTORS
September 11, terrorists Improved purchasing
attack. power.
Political stability. Rise in Inflation.
Competitive Airline Rise in oil prices
industry.
Regulatory factors.
13. PESTEL Analysis
SOCIAL FACTORS TECHNOLOGICAL
FACTORS
Greater customer
awareness. Beginning of e-ticketing.
Increased entertainment Automated systems
level. (cockpits).
Security level of Advertisements (newly
customers. introduced animated).
Bad services & lost
baggage.
14. Key Issues Faced By JetBlue and
Solutions
14th Feb Valentine’s Day weather related incident in
2007 .
Lead to destroy reputation and step down of David
Neeleman as CEO.
Incorporating new technologies.
Best practices and providing comprehensive cross-
training to all employees.
Making JetBlue’s Vision more solid and famous.
15. Key Issues Faced By JetBlue and
Solutions Cont..
Increase in Fuel prices and customer demand for air
travel.
it affected the industry’s profitability and each air
carrier responded differently.
Charge for things that used to be free such as checked
and carry-on baggage, meals, seat assignments, etc
Using one engine for taxing to take-off runways, flying
at higher altitudes where oxygen quality is lower
resulting in less fuel being burned.
Aircraft flying without full fuel tanks and topping off
at airports with less expensive fuel.