JetBlue Airways

1
JetBlue Airways
Vladimir Minasyan Aram Minasyan Armen
Danielyan Vardan Sahakyan
2
Company History

• JetBlue Airways Corporation was founded in 1999
  by David Neeleman
• 2000-2004 period Rapid Growth
• 2005-2007 period Growth Slow Down

3
Internal Environment

• Superior Customer Service
• Increasing Maintenance Training Costs
• Two types of aircrafts in the fleet
• IT Solutions

4
External Environment

• Airline Industry Environment
• High Fuel Prices
• Aggressive Competition
• Increasing salaries due to seniority of crew

5
SWOT ANALYSIS

• High level of maintenance costs

• Unique organizational culture
• Superior customer service
• Loyal and happy employees

STRENGHTS
WEAKNESSES

• Aggressive competition
• Unstable and increasing fuel prices

• Increase in business flights
• Possible improvement
• of FAA regulations

OPPORTUNITIES
THREATS
6
Problem Statement

• The major problem of the JetBlue Airways
  Corporation is gross profit margin which had been
  impacted by increasing maintenance, training and
  fuel costs.

7
EVALUATION OF ALTERNATIVES
ALTERNATIVES
Competition Direct Attack
EXPAND GEOGRAPHICALLY
Fleet Optimization
WEIGHTS
C R I T E R I A
3
3
5
PROFITABILITY
0.40
3
1
5
0.15
MKT SHARE
CUSTOMER LOYALTY
4
2
5
0.25
COMPETITOR RETALIATION
0.20
3
5
1
4.4
3.3
2.85
TOTAL
1.00
8
The Best Solution

• Fleet Optimisation
• Sell old aircrafts
• Use only Embraer E190

9
Outcome

• Free cash flow generated from the sales of old
  aircrafts
• Low training costs
• Low maintenance costs

10
Thank You
JetBlue is the best