What are the main problems facing Jet Blue?

JetBlue can face some important problems in this market. First we have the fuel. Prices are too high and have many changes but, without that, the company can’t exist. Then the competition in this business is huge and very aggressive and good strategies are fundamental to survive in this market. This company fights against high costs, like operational costs, that do not help the company to have a solid financial structure. Another difficulty is the number of empty seats in each flight.

As we can read in the case-study JetBlue is a relatively small company so it does not have the powerful weapons that other big companies in the sector have. The Government with his federal taxes creates an important barrier to the success of JetBlue. Besides that and because of the company’s price/cost policy it has low operating revenues; because of fuel prices changes JetBlue is not able to maintain its growth.

An additional problem related to this last one is the delay of many flights, that don’t pass on a good image of JetBlue for the outside environment.

As we can see so many times in television, the hurricanes in some parts of the world are responsible for the raising of prices of fuel, situation that is disastrous for the company.

Resuming, there are some significant problems to which JetBlue has to respond with innovative and continuous successful strategies if the will of the administration is to turn JetBlue in a memorable airline company.

3. What are your recommendations for Jet Blue?

1. JetBlue has to try to build new strategies to become a more solid company. 2. Maintain and improve the relation with clients, which is a really important key-success factor of this company. 3. Find new strategies, like the establishing contracts with fuel companies to reduce the dependence from fuel. 4. Become even more innovative to acquire the necessary weapons in this turbulent industry. 5. Strategy of differentiation in prices accordingly with the services provided to each client

2. Do a SWOT Analysis to Jet Blue.

|STRENGHTS |WEAKNESSES |
| | |
|Important routes |No meals served |
|Electronic tickets |Small planes |
|Huge preoccupation with little details |High costly seats |
|Clients/Passengers in first place; |Lower salaries |
|Marketing campaigns; |Dependence of oil prices |
|Commitment to low costs and service quality; |Dependence from airports’ facilities |
|Top management team; |Being a small airline company; |
|Experience and motivation of workers; | |
|Entrepreneurial spirit; | |
|JetBlue terminal features; | |
|Low rate of complains; | |
|Company values | |
|Innovative use of technology | |
|Lower costs with rent – working home workers | |
|Respect for employees | |
|Excellent airplanes’ conditions | |
|Security concerned | |
|Cheap trips | |
|Fast aircraft service | |
|Low mishandled baggage reports | |
|On-time performance | |
|Fast check-in | |
|Team spirit | |
|Commitment to low costs and service quality | |
|Human resources management; | |
|Training. | |
|OPPORTUNITIES |THREATS |
| | |
|Health preoccupations |New competitors |
|Contracts to purchase oil |Fuel prices changes |
|New technologies; |Advantage other companies have by having contracts to obtain |
|New market segments; |oil |
|Agreements with the Government; |Demand variations; |
|New and innovating marketing campaigns. |Clients’ irritation because of the waiting-time; |
| |Possible delays. |