JetBlue Founder David Neeleman's LCC in Brazil: The Conundrum of New Venture Development



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Code :BSM0059A

Year :
2008

Industry : Transportation

Region : Brazil

Teaching Note:Available

Structured Assignment :Available

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Abstract: Entrepreneur David Neeleman (Neeleman), founder of the US based successful low-cost carrier (LCC), JetBlue Airways Corp. (JetBlue), after stepping down as JetBlue's chief executive officer in February 2008, announced the creation of a low-cost carrier in Brazil to tap the nation's expanding appetite for flying. Neeleman planned the carrier to start flying by early 2009. Neeleman saw plenty of opportunities in the booming Brazilian economy where air travel had been expanding annually at a double-digit pace. However, the Brazilian market, having infrastructural issues and being dominated by two airlines; Transportes Aereas Meridional (TAM) and GOL Linhas Areas Inteligentes S.A. (GOL), that together commanded more than 90% of domestic airline market, presented a tough situation for the entrepreneur. The case, highlighting the Brazilian airline industry scenario, in view of Neeleman's new LCC, provides a scope to analyse the strategies, opportunities, and challenges of a new venture development for an entrepreneur.

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Pedagogical Objectives:

  • To understand Corporate Entrepreneurship
  • New Venture Development : Opportunities and Challenges for an Entrepreneur
  • To analyse Strategies for New Venture Development.

    Keywords : David Neeleman; JetBlue; Entrepreneurship; Azul; TAM; GOL; Brazilian Airline Industry; Low-cost Carrier (LCC); Entrepreneurial Leadership; Brand Building; New Venture Development; Duopoly; Five Forces Analysis; Market Entry Strategies Case Study; SWOT analysis

    Contents :
    David Neeleman - The Entrepreneur
    Neeleman's New Venture - LCC in Brazil


    Case Introduction >>


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