Case Study 1: JetBlue Airways IPO Valuation 08 Fall AFF5300 Case Studies in Finance- March 2013 Executive summary This report examines the decision of JetBlue management to price the initial public offering (IPO) of JetBlue Stock on the April 2002, a few months after the terrorist attack in September, 2001. First, the paper provided a brief introduction to JetBlue Airways and its industry. This paper revealed JetBlue’s innovative strategy and the associated strong financial performance over
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Memorandum TO: FROM: DATE: September, 27 2013 RE: One-Page Memo on JetBlue Case Study The purpose of this memorandum is to discuss the JetBlue case study, and review my answers to the specified questions. I will elaborate as to which price I believe JetBlue should choose for their initial public offering (IPO), and why JetBlue should choose that price. The first step in determining JetBlue’s IPO price is analyzing specific ratios of publicly traded competitors in JetBlue’s
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JetBlue Case Study Analysis JetBlue Airways Corporation Overview JetBlue Airways Corporation is an American low-fare airline, which headquartered in the Long Island City near the New York City. Its main base is John F. Kennedy International Airport. Basically, the airline mainly serves destinations in the United States, as well as many Latin American countries. As of October 2013, JetBlue serves 84 destinations in multiple countries. Low-fare airline is an airline that generally with a lower
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| JetBlue Airways | | Valuation of an IPO Case Study | | JetBlue Airways | | Valuation of an IPO Case Study | 2014 Ivan McClure, Imtiaz Saboor, Vanessa Lopes, Gilberta Pjetri 2014 Ivan McClure, Imtiaz Saboor, Vanessa Lopes, Gilberta Pjetri TABLE OF CONTENTS * History * Advantages & Disadvantages of an IPO * IPO Process * Weighted Average Cost of Capital (WACC) * Similar Company Analysis * Discounted Cash Flow Analysis * Final
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1. What were the key elements of JetBlue’s strategy in 2008? • JetBlue Airways chief operating officer (COO) Russell Chew developed the new business strategy in 2008. Following are the key elements of new strategy. • Reevaluate the ways the company was using its assets. • Reduce capacity and cut cost. • Raise fares and grow in select markets. • Offer improved services for corporations and business travelers. • Form strategic partnership. • Increase ancillary revenues. The key elements of
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What is an IPO and why is it such a big deal? Is this a good idea for JetBlue? Explain. When a privately held company makes its stock available to the general public for the first time on a securities exchange, this is known as the company’s Initial Public Offering (IPO). The IPO can consist of an initial issue of either debt or equity. The IPO process is also referred to as a private company “going public”. There are numerous benefits associated with going public. IPO benefits include enlarging
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Jet blue hits turbulence assignment 1. As shown in the case, the types of information systems are - TPS ( Transaction Processing)system that is used for making the reservation, papereless processes in this case - CRM (Customer Relationship Management) that enables the customers the communication with the airline company and acquire updated flight info such as delays and cancellations - ESS (Executive Support System)- rovides senior management a way to address strategic issues
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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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Case Study 13: JetBlue Airways External Environment Analysis: * PESTEL(Macro-level environment) * Political: September 11 terrorist attack, tons of new flying rules and regulatory factors, political stability, competitive industry, * Economic: Improved purchasing power, rise in oil prices & inflation * Sociocultural: Increased entertainment level, greater customer awareness, security level of customers, bad service & lost baggage * Technological: Automated
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JetBlue Hits Turbulence Case Study Question I. What types of information systems and business functions are described in this case? The information system described in this case is the Transaction Processing System (TPS) which is used to perform and record the day-to-day business transactions including reservations, paperless ticketing and baggage handling. JetBlue attempted to standardize its IT processes by utilizing a single vendor for its technological framework for all facets of its
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