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
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Introduction: JetBlue is a low-fare airline established in 1999 by David Neeleman, a veteran in airline start-up. By adopting a high frequency, short-haul, point to point strategy that leverage on technology advantage, together with an experience management board. In April 2002, JetBlue Management decided to price the IPO of JetBlue at despite that it was during one of the worst periods in airline history. The IPO was initially priced at $22-24 per share, it was later adjusted to $25 to $26
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Introduction This document presents an analysis of one case presented in the textbook (Thompson, A.A., Strickland, A.J., & Gamble, J.E. (2010). Crafting and executing strategy: The quest for competitive advantage: Concepts and cases: 2009 custom edition (17th ed.). New York: McGraw-Hill-Irwin.), entitled “JetBlue: A Cadre of New Managers Takes Control”. The case describes the reasons for the success of JetBlue, a three-year-old, low-cost airline, operating in the USA.
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JETBLUE AIRWAYS IPO VALUATION Teaching Note This case examines the April 2002, decision of JetBlue management to price the initial public offering of JetBlue stock during one of the worst periods in airline history. The case outlines JetBlue’s innovative strategy and the associated strong financial performance over its initial two years. Students are invited to value the stock and take a position on whether the current $25–$26 per share filing range is appropriate. The case is designed
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JetBlue Soars into the Friendly Skies October 18, 2010 Discuss the trends in the U.S airline industry and how these trends might impact a company’s strategy. Despite the unpredictable and rising costs of aircraft fuel, oil and maintenance, threats of terrorism, and fear of decreases in business and leisure travelers, the airline industry has remained resilient in recent years. According to Air Transport Association of America (ATA), (2006), the airline industry lost about 13 billion dollars
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Case study Main problem Ice storm grounded air bus. Affected 130000 passengers, caused the cancellation of 1100 flights over a six day period, and cost Jetblue an estimated 30 million dollars. The ice storm was a problem in Jetblue’s external environment and as such was out of the company’s control. Stock prices fell from 12.99 to 3.97 from feb 13 2007 to may 30 2008 Rising jet fuel prices – another factor in the firm’s external environment. New competititors – the firm’s industry environment
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Introduction and industry analysis JetBlue Airway Corporation is an American low-cost airline and it was one of a few U.S. airlines that were profitable during the sharp downturn in airline industry affected by the September 11, 2011 attacks. With its strong capital base, the company was successful due to its impressive management team, in which, David Neelaman has rich experience with airline start-ups; COO David Barger and CFO John Ower are all experienced former senior managers from other airlines
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Strategic Report for JetBlue Airways Harkness Consulting Innovation through Collaboration Rosanna Smart Alisher Saydalikhodjayev Sayre Craig April 14, 2007 Table of Contents Executive Summary ………………………………………………..3 Company History ………………………………….………………..4 Competitive Analysis ………………………………………………7 Internal Rivalry …………………………………………………………. 8 Entry ………………………………………………………………………… 9 Substitutes and Complements …………………………………….. 11 Supplier Power ………………………………………………………….. 12 Buyer Power
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Yale School of Management 135 Prospect Street, New Haven, CT 06511 JetBlue Airways October 9, 2002 Time Frame 12 Months Recommendation SELL Recommendations: Buy: >20% Undervalued Hold: Fair Market Value Sell: >20% Overvalued “If you want to become a millionaire, start with a billion dollars and launch a new airline…” - Richard Branson, founder of Virgin Atlantic Airways Team Members: Brad Anen brad.anen@yale.edu (203) 865-6166 % Returns Over the Last 12 Months (Prices
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