How would you describe JetBlue's

operations strategy prior to the

November 2005 adoption of the
E190?

Objective to become a growth company
Operations similar to Southwest
Differentiating factors:
Added comfort features
Assigned seating
Leather Upholstery
Satellite TV
Long-haul flights
Red-eye flights
No flight cancellations

Compare the economics of the E190
and A320 for JetBlue. What are the key
drivers of profitability for each type of
plane?

Parameters A320 E190
Average CASM 6.1 cents (Exhibit 3) 6.8 cents (Exhibit 3)
Average RASM 8.64 cents (Exhibit 9) 11.58 cents (Exhibit 9)
Average PASM 2.54 cents 4.78 cents
Drivers of profitability A190
Seating capacity & Stage
Length
100, 2100 nautical miles
Average daily utilization 10 -11 hours Reduced remuneration costs
to pilots
Average round trips
Drivers of profitability A320
Seating capacity & Stage
Length
156, 2700 nautical miles Higher the values
Higher will be the revenues
Average daily utilization 13.4 hours More revenues charged from
customers
Average round trips Lesser the value
Lesser will be time spent on ground
Tap the mid-size market

Do you agree with JetBlue's decision to
add the E190 to its fleet? Be prepared
to state the rationale for your decision.
Yes, JetBlue should add E190 to its fleet due to the
following advantages over A320
Mid-sized aircraft
100 Passengers, 2100 nautical miles
Weight of the aircraft is less which reduces fuel costs
Tapping the new market
Geographic and Low cost routes
Lower remuneration to pilots
Taking the share of A320
Based on Nautical miles
Based on Average Passengers



Standardized to non-standardized/complex systems
Dip in Customer satisfaction
Rigorous Training is required
Increased Maintenance cost and Building infrastructure capabilities
How should JetBlue slow down the
growth of its fleet? Should it cut
growth in A320 capacity, E190
capacity, or both?