Jet Blue Airways

In: Business and Management

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CRAFTING AND EXECUTING STRATEGY
Professor Charles Woods
Bus599
May Digby
October 15, 2011

Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy.
The airline industry exists in an extremely competitive market; a market which has become even more competitive; given the current state of our economy. Airlines were faced with rising fuel costs; and decline in travel after the 9/11 attacks. This forced the airline industry to initiate cost cutting measures to be able to continue to operate. This was good news for discount airlines such as JetBlue Airways. JetBlue saw an increase in passengers; resulting in an increase in revenue. JetBlue’s strategy is to provide the passenger the ultimate air travel experience at an reasonable price. Jet Blue was able to become a leader in the airline industry by distinguishing itself from other low fare carriers by offering amenities such as; live television, leather seats and gourmet snacks. Passengers confidence in air travel was damaged greatly after the 9/11 terrorist attacks. JetBlue was one of the few airlines that made a profit following the 9/11 attacks. (Wikipedia) Airline industry has been deeply affected by the recession also. Airlines have been forced to cutback on flights and reschedule existing routes and have been forced to charge for extra baggage. Consumers are constantly searching for ways to save money and the airline industry had tried to adjust to the increasing demand by cutting and controlling costs.
Discuss JetBlue’s strategic intent.
David Nelleman, JetBlue’s founder, developed JetBlue with the notion of bringing humanity back to air travel. David Neeleman’s focus was on customer service. He had experience in the customer service sector of travel and airline industry; and he was able to incorporate his experience into the development of…...

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