...Jet Blue Airways: Analysis of a Company The airline industry serves not only as a means of transportation to millions of people on a daily basis, but also a huge customer service industry. Customers analyze every aspect of air travel from the food services offered and convenience of completing business transactions, to the airline’s safety results and ratio of on-time departures. Many customers become brand loyal, where others will do business simply based on price. It is also vital to note that, like any company, brand perception plays a large role in the success or failure of a company within the airline industry. Because of the number of individuals impacted when a flight goes awry, it only takes one incident to completely destroy an airline company’s credibility for safety, which can also lead to reduced sales and ultimately profit. Airlines must also now adapt to the world of technology as many consumers are looking for airlines that provide high tech amenities, such as paperless boarding passes and the ability to use cell phones while in flight. To keep their customer’s content, airlines must use their Research and Development teams to meet these expectations or they will lose those customers to competition. At the creation of Jet Blue, its Chief Executive Officer, David Neelman, wanted to “combine the low fares of a discount airline carrier with the comforts of a small cozy den in people’s homes” (Thompson, Strickland, Gamble, 2009). He wanted leather seats...
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...Certification of Authorship: As a student of American InterContinental University I pledge that all tests taken by me, and that all work submitted by me, will be original and solely the results of my own efforts. _______________________ ABSTRACT In this paper we are asked to answer specific questions concerning the case involving a man from Seattle who filed a lawsuit against a very popular soft drink company in regards to a Harrier Jet that the man alleges was promised as part of an offer through advertisement. I will discuss the objective theory of contracts, the four essential elements of a valid contract and how they correlate to the case mentioned above. I will also bring light as to why this specific case did not succeed in court and how this case was different from any other case that used the same approach to customers through advertisements. When dealing with contracts there are 4 essential elements that make a contract valid. These 4 elements would start off with an offer, then Acceptance, intention of legal consequences, and then consideration. An offer means that clear, definite statement to do something must occur. Estimates, requests for proposals and letter of intentions do not count. With an offer of course comes an acceptance. An acceptance is when the offer brought to a person whether it’s a verbal or written agreement is accepted. Acceptance of the term in its exact form can...
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...Date: 9/05/2012 Re: Jet Blue Airways Case Attached Please find JetBlue airways case and their IPO prices Calculation table. The purpose of this memorandum is to discuss the initial public offering and the pricing of IPO of JetBlue Airways by using the selected multiples of comparable airlines. It also includes some advantages and disadvantages of a firm from going public. The multiples used to set IPO price were prices per share, earning per share, cash flow per share, total assets per share, and revenue per share of five comparable airlines. When looking to take a company public, investors first examine other comparable companies’ stock prices. The five Comparable airlines companies we chose are: Air Tran, Alaska Air, America West, Midwest, and Southwest Airline. The Prices for Jet Blue Airways are based on the selected multiples calculated with JetBlue’s financial statement, shares outstanding, and the two important multiples that are price per share and cash flow per share. 1. What are the advantages and disadvantages to a firm from going public? list at least three of each. Advantages: A. Going public will result in increased capital for the issuer. A public offering places a value on company's stock and insiders who retain stock may be able to sell their shares or use them as collateral. B. A company's debt-to-equity ratio improves after an initial public offering, which means that the company may be able to obtain more favorable loan...
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...* Introduction: * Approaches focussed: * Divisions of approaches and applies: * Merits and demerits of approaches: * Conclusion * Reference Consider this practical case perspective on how e-commerce has affected your favourite orange airline: Intro: Easy jet is an European airline which was launched in 1995 by its founder Greekcy Priot Stelios Haji-Loannou. It was started with two wet leased Boeing like 737-200 aircrafts and today it operates 196 aircrafts with 20 buses all over around the Europe. It carried 45.2 million passengers in the year of 2009 which made it as a second largest low cost European airline behind Ryanair. In 2002, Easy jet bought London Stansted based Go airline £ 374 million (easy-jet.com). Go was the low cost scheduled passenger airline which provides service within the Europe. The main reason behind this acquisition was profitable and established airline with strong growing aspects that reveals a year to year increase of 232 per cent. Nearly 90% of sales in Easy jet are online from this website. There are two significant features based on its success are: low price and E- commerce strategies .The purpose of this Easy jet‘s, online the presence of information’s and procedures to sketch and propose suggestion on the progression involved in creating a booming online presence( David & Cynthia1999). Apart from this it will define its approaches for its significant success of industry. In this paper, we will first...
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...Business 310 BY: KELVIN WILLIAMS AIU ONLINE 09/05/15 What are the key legal factors present in the scenario? There are a lot of legal issues at hand in this scenario, but the main legal issue whether the company is telling the truth or is it valid or not. The soft drink company put a deal out there, which promised a reward of a Harrier Jet for whoever would reach 7 million company points. But when a customer reached the 7 million points it remained to be seen if the company would keep there end of the bargain. The issue here is whether the company’s suggestion for exceeding something that wasn’t a reasonable or appropriate award constituted a valid contract or not. What are the 4 elements of a valid contract? There are four elements of a contract and when a party files a suit claiming a breach of contract; the first question the judge must answer is whether a contract existed between the parties. The complaining party must prove four elements to show that a contract existed: (1) offer, (2) Consideration, (3) Acceptance and (4) Mutuality. If any one of them is missing, the agreement will not be legally binding. An offer is when one of the parties makes a promise to do or refrain from doing some specified action in the future. In this case the company offered to give a Harrier jet to the customer who could reach a total of 7millon points. Consideration means something of value was promised in exchange for the specified action or non-action. This can take the form of a significant...
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...Case # 3 Jet Blue Airways Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy Overall the US airline industry is a cut-throat business which is extremely competitive. The cliché ‘it’s a dog eat dog world’ applies perfectly here. Over the past few years the situation grew even worse due to the recession, increased unemployment, the weakened dollar exchange, and difficulty predicting how OPEC will behave month to month. The fluctuation in the oil market has a direct effect on ticket prices bought in bulk or reserved six to nine months in advance. Airline pay close attention to the oil Futures Market to make sure their purchases of fuel is hedged. Airline companies are divided into a few categories. Jet Blue is in the discount airline category, where lowering the fixed cost is an important factor. For a discount airline to offer cheaper price, services must be cut as well as the number of airports serviced. Only destinations with high volume are able to be serviced, thus a traveler may be forced to have multiple connections to reach their destination. Airplanes must be leased instead of bought to reduce the upfront cost. In-flight meals and unlimited beverages are curtailed or completely removed. The absence of complimentary cases of beer or soda cans adds to savings on gasoline as well as price per can which is factored into lowering the ticket price. Full service airlines such as Singapore and Lufthansa, cater to a...
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...Legal and Ethical Issues in Business October 25, 2015 Abstract What kind of statements are companies allowed to make in their advertising campaigns to get noticed by the general public? How much of this advertising is taken seriously by the general public? Will a company be held responsible to follow through for their statements made in an ad campaign? We will examine these questions in this paper. Circumstance In 1999, a Seattle man took a popular soft-drink company seriously when one of its commercials made an offer of a Harrier jet, the famous high-tech jump jet used by the U.S. Marines. In a TV commercial that aired in 1995, the company jokingly included the Harrier as one of the prizes that could be received with a mere 7 million company points. Although that sounds like a lot of points to get from drinking the soft drink company's products (roughly 190 drinks a day for 100 years), the company also allowed customers to purchase points for 10 cents each. The man did the math and discovered that the cost of the 7 million points needed for the jet was $700,000. He then put together a business plan, raised the $700,000 from friends and family, and submitted 15 points, the check, and an official order form along with a demand for the Harrier jet. The company wrote back, stating that the Harrier jet in the commercial was simply used to created humorous and entertaining advertisement. They apologized for any misunderstanding...
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...JetBlue Airways, Starting from Scratch Nicholas Billy Date of Case: October 9, 2001 22693 The major issue of this case is how will JetBlue address hiring and recruiting employees and acquire the skill sets necessary to support its anticipated growth. This case demonstrates a good value of the compensation function of the human resource management functions. What JetBlue focuses on is the different length of time periods each individual job they offer will be. For the flight attendants, they understand that it is not a career for people, just a job for that time. Offering three different kinds of pay helps JetBlue as a company because it gives them options of people to hire. Another good value of Jet Blue’s compensation aspect is that they paid their jobs more than their competitors. This gives them an advantage for finding employees because not only do they offer better pay they also offer benefits and stock options. In Mondy’s textbook we learn that a union is a group of employees who all join together to form a third party to deal with their employer when it comes to wages, benefits, and working conditions. However, what we saw in this Jet Blue case is that the management team didn’t want a union to be formed. They saw not having unions in their workplace would help create a better team environment which would lead to more success. Not having a union helps Jet Blue maintain their offering of their different pay contracts. The importance of focusing in on the...
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...“To Hedge or Not to Hedge: The Dilemma Airlines Face when it comes to Jet Fuel” “GLOBAL FINANCIAL STRATEGIES” Instructor: Dr. William Hardin III FLORIDA INTERNACIONAL UNIVERSITY Professional Master’s in Business Adminstration Program- Panama May 5th, 2012 Project Outline Introduction 1. “Hedging” Defined 2. The Hedging Process 1. The Fuel Hedging Decision-making 2. Steps in the Hedging Process 3. Different types of Hedging Strategies 4. The Accounting Aspects of Hedging 5. Formula used in the Spot Pricing of Jet Fuel 3. Pros and Cons Arguments of Hedging Jet Fuel 4. Risk Factors that may affect the Hedging of Jet Fuel. 5. Conclusion 6. Data Analysis, Graphics and Tables 7. Bibliography Introduction The hedging of jet fuel by major airlines is the topic of this project. Hedging is considered by some as a form of insurance, similar to the kind you buy for your personal use (health, life, auto) or for your business (fire, flood, cargo). The process of hedging fuel and its derivatives is far more complicated than going out to buy a homeowner’s insurance policy, for example. We will address the different types of hedging strategies that can and are being implemented by some of the major global carriers and we will also take a look at those carriers who do not practice hedging at all. Hedging allows airlines to “insure” themselves against a negative event, such as a sharp rise...
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...Case Review/IRAC Case Citation John D.R. Leonard, Plaintiff v. Pepsico, Inc., Defendant 88 F.Supp.2d 116 (1999) Key Facts Pepsico conducted a test of a new promotion in the Pacific Northwest from October 1995 to March 1996 where plaintiff saw the advertisement and contended that it offered a Harrier Jet. Through acquaintances, plaintiff raised $700,000, and wrote a check to Pepsi along with 15 pepsi points and a filled out order form for 7,000,000 additional Pepsi points. Defendant’s fulfillment house rejected plaintiff’s submission. Plaintiff’s counsel responded on May 14th, 1996 forewarning that they will file an appropriate action if they do not fulfill their offer of a Harrier Jet. Procedural History This case went straight to the United States District Court. Legal Issue Whether the television commercial constituted an offer of a Harrier Jet. Legal Reasoning Although the plaintiff filled out the Order Form with a check, etc.; -Under these principles, plaintiff’s letter of March 27, 1996, with the Order Form and the appropriate number of Pepsi Points, constituted the offer. There would be no enforceable contract until defendant accepted the Order Form and cashed the check. -The commercial cannot be regarded in itself as sufficiently definite, because it specifically reserved the details of the offer to a separate writing, the Catalog. -As the Mesaro’s court explained, the absence of any words of limitation such as “first come, first served...
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...personal gain divert unto himself the opportunities which in equity and fairness belong to his corporation.” (Mallor, 2013) Mallor defines “the duty of utmost loyalty and fidelity to the corporation as duties: 1. not to self-deal 2. not to usurp a corporate opportunity 3. not to oppress minority shareholders 4. not to trade on inside information.” (Mallor, 2013) Summary of the facts Jet Courier Service, Inc. (Jet) was a family-owned corporation established in 1981 and headed by Donald W. Wright. The offices of Jet were in Cincinnati, Ohio. Jet did not have an office in Denver, Colorado. Anthony Mulei was working in Denver for another air courier service company in a management position. Mulei had worked in the air courier industry for many years and had numerous business connections in the banking industry in Denver and other cities. Based on Mulei’s industry experience and connections, Wright felt Mulei would be able to expand Jet’s business. On February 18, 1981, Wright and Mulei orally agreed that Mulei would come to work for Jet and manage a new Denver office. Mulei would be the Vice President and General Manager of Jet’s Western Zone operations with his base being the Denver office. The verbal agreement also covered that Mulei would have autonomy in matters such as the solicitation of business, the operation of the business, and personnel policies for the Western Zone....
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...Case studies Name: Tutor: Course: Institution: Date: Flying to the Auto Bailout on a Private Jet Basic problems In this case study, there is wastage of resources. The CEOs of the nation's three largest automobiles uses private jets to attend the corporate public relations congress. This is wastage of resources since they are using private jets to travel when their companies are struggling to stay afloat. Ignorance is another basic problem evident in this case study. These CEOs are very ignorant. They attend the corporate public relation congress in Washington unprepared and thus appear to know nothing about their problems. The three companies, GM, Ford and Chrysler, lack the concepts of public relations. The main issues American economy is melting down. Most of the workers are losing their jobs since the companies cannot handle many workers anymore. The companies have got inadequate cash. Bankruptcy is another main issue experienced in this case study. The General Motors Company and the Chrysler can no longer pay their debts. Key decisions * According to the case study, the leaders have to come up with a new public relations strategy. * The CEOs should correct any mistakes they have made before such as using private jets to travel. * Introduce innovation in products * The auto industry of the US should promote its products. * Ensure transparency in business operations. SWOT analysis Strengths * Availability of resources for the companies ...
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...March 20, 2015 Ethics of Accounting 4350-01 Bennie and the Jets Jet Energy Company is a company that provides electricity to about 7 million customers in the southern states. Bennie Gordon is one of the accounting managers at the division level who reports to Sarah Higgins; she is the controller of the division where Gordon works at. Higgins reports to Sam Thornton; Chief financial officer, who he then reports to Vannessa Jones, CEO of Jet Energy Co. The company is only allowed a rate of return on operating income of 12.5 % on sales of electricity, if the company exceeds these rates they would have to give customers cut on the rate they pay. Bennie Gordon has recognized some of accounting entries have not been journalized correctly, causing the company not to cut rates. The case gives an example of how some insures give Jet Energy rebates all the way up to $30.5 million dollars and these rebates have been journalized incorrectly these account entries kept the company from reducing the rates for the customer. Bennie Gordon had known about the situation for about two years and kept quite, now he has decided to speak out and fix the issue. In the first question it ask what steps should Gordon take to make sure the accounting matter is addressed and what steps we suggest to be taken, as well as what are the obligations of Gordon, Higgins, and Thornton. We suggested that Gordon should report what he recognized as incorrect journal entries to the boss Higgins. After...
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...WESTJET CASE ANALYSIS Information technology is a revolution in itself. I perceive the blend of Information Technology with business strategy in collaboration with most apt IT governance is what is required for an organization to flourish and be in a win- win situation in the long run. In the case analysis of The West jet, we are going to see how IT, Business Strategy and IT governance can be utilized in upgrading an organization so that it provides better customer service and satisfaction. Analysis :- West Jet Airlines known for its "High Value and Low Fare" was working fine with its in- house small but efficient Information technology services(It worked as the integral growth of the West Jet) until it started facing hindrances in code share. The systems in the west jet were stand- alone systems and were not able to collaborate with the international Airlines Systems. Initially, West Jet selected Sabre to move to International reservation system but it was not commendable. There were some issues with the IT Infrastructure. I perceive not having an IT expertise at an executive level is a major drawback for any growing organization since the business strategies have to be in sync with the IT requirements. Realizing that, the CEO along with other executives signed a contract with Cheryl Smith to be the CIO for The West jet. Since The West jet wanted to use IT to move to next level so Cheryl was responsible for raising the IT systems and infrastructure at par with other Airlines...
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...individuals, individuals and companies or companies and companies. The second element is consideration. With having consideration this is the most common when there is money exchanged for services that were provided or also goods that were exchanged. The third element is contractual capacity or where the parties are qualified to be able to agree to the terms. What is meant by this is that all parties are legal age and are able to understand all of the terms of the contract fully. Lastly the fourth element is the lawful object. By this element it means that contracts can’t be binding or even be considered if there have been illegal activities involved. What is meant by the objective theory of contracts is whether a reasonable person that is viewing the circumstances would be able to conclude that the parties that are involved intend to be legally bound with the contract. This theory does not apply to this case at all. With the judge stating that jets are so expensive that no person could have concluded that the jets were offered to the customers through the commercial. Therefore this was a deal that too good to be true. This was not a legal bound contract or an agreement between anyone that the jets were included. The reason the court held that there was no valid agreement is because that the customer did not actually talk to the company about this of having the jets as a prize. The commercial did not actually offer the jet to the customer. The jet was used to help advertise...
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