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Case Title:

JetBlue Airways: Can success continue with growth?

Publication Year : 2006

Authors: C.Vijaya

Industry: Transportation

Region:US

Case Code: GRS0127C

Teaching Note: Available

Structured Assignment: Not Available

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Abstract:

JetBlue Airways, the low cost airline based at New York, was a hugely successful startup story in the history of the US airline industry. From a net loss of USD 21.3 million in 2000, JetBlue earned net profit of USD 47.5 million in 2004. The Airline won the Best Low-Cost Carrier, Best Customer Service and Best Domestic Airline awards from various Business Travel magazines surveys since 2002.

JetBlue’s success had been achieved during a major slump in the US airline industry. Although JetBlue’s first five years had been highly successful, analysts wondered if the same momentum could be maintained when the size of the airline increased. There were concerns about whether the on-time flights, in-flight facilities and customer service could continue to attract customers when the number of routes and fleet size increased. It also remained to be seen if the low fare could be maintained amidst high fuel and employee costs.

The case allows for discussion on challenges faced by low-cost airlines and what future strategies the airlines should adopt to face competition.

Pedagogical Objectives:

  • To discuss the reasons for Jet Blue’s success when airline industry was facing slump
  • To discuss challenges faced by low cost airlines.

Keywords : JetBlue Airways; US Airline Industry; Low Cost carriers; Start Up success; Operational strategies; word of mouth advertising; Growth Strategies Case Study; Technological upgradation; Human Resource Strategies; Financial strategies; expansion strategies; principles of leadership; quality customer service; David Neelman; United Airways Ted; Delta Airlines’ Song

Contents : 
Introduction
JetBlue’s Formation
JetBlue’s Strategies for Success
Human Resource Strategies at JetBlue
Challenges amidst growth plans
JetBlue’s Financial Performance
JetBlue’s share price movements & volumes
JetBlue’s Fleet details

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