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Jetblue Airwau Inc

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Submitted By yon150
Words 810
Pages 4
JetBlue Airway, Inc. was a low-cost carrier (LLC) airline company that began operations in early 200. With a unique “anti-establishment” business model and “value player” positioning strategy, JetBlue established itself as a low cost, hardworking, and dependable airlines company. After the 2001 September terrorist attacks, JetBlue seized the opportunity to expand by launching an initial public offering. When other airlines were slow to resume operations, JetBlue tool advantage of the situation by increasing safety measures, boosting services offered, and expanding operations. Between 2002 and 2003, JetBlue grew rapidly until profits dropped significantly in 2004. With rising fuel cost, aggressive competition, and an aging fleet, JetBlue was forced to announce a recovery plan. Just as profits slowly recovered in 2006, a snowstorm hit the United States, causing a huge customer service and database management crisis that negatively affected JetBlue’s reputation. JetBlue initially achieved profitability in the challenging aviation industry due to its business model and processes, positioning and culture. Unlike its competitors, JetBlue chose New York as its base, which allowed for domestic fight leadership at JFK airport. By combining low fares with valuable services, such as snacks and personal satellite television, JetBlue was able to position itself among it customers. Tactically, JetBlue bought economical and easy to maintain aircraft and chose routes and airports that they had less competition but were still highly demanded. Non-unionized crewmembers were encouraged to be positive, proactive, and customer-minded, which stood out to traveling customers. With a solid deliberate strategy at its star, JetBlue was able to achieve profits early. JetBlue’s temporary competitive advantage developed as a direct result of several external and internal

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