Jetblue : A Low Fare Flying Airline Essay

Jetblue : A Low Fare Flying Airline Essay

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JetBlue was founded in 1999 by David Neeleman under the name of New Air and later was change to JetBlue. David Neeleman aim to create a low fare flying airline to compete with southwest airline. Many of JetBlue employees were former employees of southwest airline. In 2000 JetBlue begins flying to routes in New York and Florida. The next year they built their second base in Long Beach, California. JetBlue is one of few airlines that was continuously profitable after 9/11.


Threats of new entrants
JetBlue have a low threat to new entrants since the airline industry have strong barriers to entrants. The first barrier to entrant would be the cost it will take to build an airline, it will take millions of dollars to construct an airport and then more money on the airplanes upkeep. Also since 9/11 the government have become more regulated to the airline industry. So it will cost even more money to make sure everything is up to the government standard. The next barrier is that consumer are more worried about their safety and won’t just ride any airline. It will take millions of dollars in advertisement to build the customer trust. Another barrier would be the competencies of the industry. Since most of the market share are taken up by all the big airline there are little to none market share left for any new airline. My final barrier would be the capital it will cost to compete against the big airlines low cost fare. Since the gas price will continue to raise it will be hard for a new airline to maintain low cost fare while providing customers with a comfortable and safety flight that is up to the standards of the other airlines.
Threats if substitute products
In shorter distance the JetBlue is highly threaten by substitute products, ...


... middle of paper ...


... Low operating cost
• Strong brand name
• Efficient management
• Customer satisfaction
• Advertisement
• Capital
• Effective uses of technology
Weakness:
• Relative new company
• High upkeep
• Focus on middle class

Opportunity:
• New technological
• Industry expansion
• Airline alliances
• Economy improvement
• Tourism increase
Threats:
• Weather
• Fuel prices
• Strong competition
• Security issues
• Government regulation
• International Politics


Recommendation
• Try to lower upkeep cost as much as possible, keep a eye on new technology and efficiently use of fuel
• Offer more complement items on flight such better snacks, and games. So that you can become more differentiable.
• Lobby politicians for favorable regulations
• More oversea flight seen the economy is improving tourism will increase
• Continue to expanded into other areas and countries

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