JetBlue Airways: Neeleman's Future Bet



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Code : COM0038

Year :
2004

Industry : Transportation

Region : USA

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: During the period 2001-2003, when the six major network carriers in the US had collectively lost $21 billion, the low cost airline JetBlue had managed to increase its profits from $38 million to $103 million. In spite of the overall industry malaise, Neeleman, the airline's founder made an aggressive plan to increase the fleet size from 57 Airbus A320s to 290 and the employee strength to 25,000 by 2010 (from 6,000 in 2003).

Pedagogical Objectives:

  • To discuss the strategies adopted by JetBlue to keep costs low and compare them with other low cost carriers such as Southwest Airlines
  • To discuss the development of the work culture at JetBlue and its significance in differentiating the airline from its other competitors
  • To discuss the challenges the airline might face due to the rapid expansion and its comparison with People Express Airlines
  • To discuss the challenges the airline might face by diversifying its fleet with the Embraer jets and the probable unionisation threats it might face due to this strategy
  • To discuss the challenges it might face from the other major airlines once the industry becomes more stable.

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    Keywords : JetBlue Airways; Low cost airlines in the US; Cost management by low cost carriers; US airlines industry after September 11, 2001;Corporate Strategies Case Study; Brand building by JetBlue Airways; Operations of JetBlue airways; HR (human resource) practices at JetBlue Airways; Core values of JetBlue Airways; Low cost versus traditional airlines in the US; Growth plans of JetBlue Airways; The challenges ahead for JetBlue Airways

    Contents :
    The US Airline Industry
    JetBlue:Genesis and Growth
    The Challenges Ahead


    Case Introduction >>


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