Jetblue Airways Case Study

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JetBlue Airways is a corporation that mainly focuses on low-cost transportation service. It is one of the major airlines predominant in the domestic airline industry. The impact of September 2001 on aviation has drastically decreased and all the major airlines had lost in huge amounts. This made almost all the major airlines to increase their debts by tapping the credit lines or taking care by issuing bonds. Despite of all the vital actions made to survive the decline of passengers’ ratio and fares, most of the airlines strained with huge debts. JetBlue being a low-cost transportation service didn’t had much effects during 2001 and was making huge amount of profits even during 2001 and afterwards. With its exceptional service, not only it attracts customers but also has ability to change and evolve. Today, some of the major air travels face the bankruptcy and also lost some of their market for the low-cost airline industries. JetBlue airways face many external factors that influence their business in the industry. Despite the economic downturn, JetBlue’s position will continue to remain unassailable in this competitive world. JetBlue adopted a proactive, customer-oriented approach to service and it also chose its employees very carefully in order to meet the complete customer satisfaction. Although the fuel prices have increased dramatically in recent times, many airlines faced weak economy leading to poor ticket sales in turn losing their customers but JetBlue effectively escaped this hurdle. Usually all potential passengers look at the price of the ticket even before considering any other factors. Typically being the lowest-cost airline JetBlue is suitable type of aircraft in the current economic environment and is easy to reac... ... middle of paper ... ...ce cost with the aging of JetBlue. • Strict laws and regulations for the aircrafts, aviation and airlines and also the TSA (Transportation Security Administration) security regulations. External Factor Evaluation/ Analysis Matrix: In calculating the External Factor Evaluation/ Analysis matrix (EFE) (EFA), initially we have to list all the factors externally effecting the company and the divide them in opportunities and threats. Once divided each factor is assigned with a weight from 0 to 5 or can be percentage (0 implies no importance and 5 implies highly important or dangerous). Once weights are assigned then factors are rated according to how they organization responds to the current strategies. Finally all weights are multiplied with ratings to get the total weighted score. This total weighted score helps in determining how well the business responds to external

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