JetBlue Airways Corporation was founded in 1999 by David Neeleman.

Since launching its

operations, JetBlue distinguished itself from competitors by providing superior customer service

at low fares. During the 2000-2004 period, JetBlue experienced a rapid growth despite 9/11

terrorists' attacks and reported $1,27 billion operating revenues in 2004. By implementing

innovative IT programs such as paperless cockpits and Internet booking systems, the company

was able to manage its flight schedule more efficiently. The unique organizational culture made

JetBlue to become one of the best places to work and customers were satisfied by happy crew

members, unlimited snacks and beverages, leather seats and free on-board movie channels.

During 2005-2007, the company's growth began to slow down. JetBlue reported its first net loss

of $20 million in his history in 2005. Aggressive competition, high fuel prices and increasing

operating costs put JetBlue in very difficult situation. Major competitors were forming alliances

with international airway companies and expand their business geographically. In 2005 JetBlue

purchased nine new Embraer E190 aircrafts which increased maintenance and training costs.

Furthermore, the older Airbus aircrafts required more maintenance expenses than before.

Resources:

• Strategic Airport Locations

• “Crew Members”

• New Airplanes

• IT resources

• Strategic Routes
 • Strategic Management

Capabilities:

• Contented/Involved Employees

• Low Cost Carrier

• Low Maintenance Costs

• Automation of Technology

• Low Customer Complaints

• Remote Workforce

• Quick Turn Around Time

• Low Cost Per Average Seat Mile

• Customer-friendly Embellishments

• High On-time flights

• High Flight Seat Utilization

Core Competencies:

• Low Cost Per Average Seat Mile

• Quick Turn Around Time

 • Automation of Technology

• Customer-friendly Embellishments

Finding of Fact:

JetBlue is recognized as an industry leader as a Low Cost Carrier. As such, when they enter into

new market areas/routes, established airlines in that market are reacting aggressively with

increased flights and lower fares.

Recommendation/Justification:

JetBlue has established itself as a Low Cost Carrier airline that operates out of underutilized,

secondary airports, flies high demand and underserved routes, and performs well in the short to

medium routes. They quickly established their dominance as a LCC and reaction from the full

service airlines was minimal. Their latest attempts to capture routes from Atlanta to Los Angeles

were met with aggressive actions by Delta by increasing capacity on their flights and reducing

fares. The factors of supply and demand forced JetBlue to abandon the plan.

JetBlue needs to concentrate on the routes and cities that established their dominance as a Low

Cost Carrier. They have proven that by providing non-stop flights from lower costing airports to

secondary cities, they can achieve a high on-time arrival rate with high customer satisfaction.

The fact they do not need to connect with other flights prevents issues of lost luggage and missed

connections because of delays.

JetBlue has invested heavily in its Information Technology to achieve a high level of automation.

I believe they could leverage some of that technology to data mine information as to which
routes/cities that they could best use their business model to compete in. Utilizing information

such as number of flights to/from cities, capacity of flight, booked seats, and price of seat could

identify which routes/cities that would offer JetBlue the highest return on investment in entering

that market.