JETBLUE’S CUSTOMER VALUE SUCCESS MODEL 2
Abstract
The purpose of this research paper is to study JetBlue’s successful model and how it has helped to change the airline industry by providing cutting edge technology while keeping costs down and giving their customers exactly what they want. Creating and delivering value for customers in the industry pose some challenges. These challenges include identifying the market segments, building customer loyalty, and reducing costs. The tight competition within the airlines industry and the varying needs of customers has become a problem in identifying the market segments and creating customer value. Determining the customer value that can enhance customer loyalty is also one of the challenges that hinder delivery of superior customer value.

JETBLUE’S CUSTOMER VALUE SUCCESS MODEL 3 The economic downturn in 2009 and the oil price hike in 2008 had hit the airline industry hard. Now, with a revival in the economy, demand for air travel is improving. The airline industry lost $16 billion in 2008 and $9.9 billion in 2009. Following a turnaround, airline industry would gain $15.1 billion in profits in 2010 as expected by the International Air Transport Association (IATA). The IATA expects full-year 2011 to be tough and profits to soften to the level of $9.1 billion. Tougher conditions are likely to stem from rising fuel costs, stable yields, weak traffic volumes, slower global GDP growth and increased taxation, particularly in Europe, which are expected to suppress demand for air travel. (iata.org)

JETBLUE’S CUSTOMER VALUE SUCCESS MODEL 4 As seen in the chart above, the airline industry continues to