Jetblue Case Study

1114 Words 5 Pages
Direct foreign investments for American Airlines and JetBlue Both companies employ other manufacturing companies for the production of their aircraft. American Airlines fleet includes aircraft from Boeing, Airbus, Bombardier, and Embraer; on the other hand, JetBlue's air fleet is limited to aircraft from Airbus and Embraer. Neither of them manufacture their own aircraft; in that sense, none of them can really dive into direct foreign investment. According to the book "Marketing Management" by Greg. W. Marshall and Mark W. Johnston, a manufacturing aspect must be present for the term direct foreign investment to be achieved. They do, however, have strategic alliances and international joint ventures that make their reach global. American …show more content…
This credit is redeemed not only for free miles of flight, it includes rewards such as flight upgrades, vacation packages, car rentals, hotel stays and other retail products. This credit is also a form of customer acquisition as it appeals to new customers and customers of other airlines companies if they are frequent fliers; it is also a form of customer retention and profitability which will be touched on later. One of the customer acquisition strategies of JetBlue is that it is New York’s Hometown airline and has targeted New Yorkers when T5, JetBlue opened their state-of-the-art terminal at New York’s JFK airport on October 22, 2008. The terminal has promised to be "the latest and greatest in airport experiences". T5 offers free Wi-Fi, 24 food and beverage outlets and 27 retail shops. The food selection at T5 really makes the passenger feel like they are in New York, incorporating myriad varieties like New York style pizza, sushi, Mexican, Spanish tapas and more. JetBlue has also opened the Airspace Lounge, where travelers can access complimentary food and drinks, showers, and business services including free Wi-Fi, power outlets at every seat, the use of MacBooks and Windows PCs, and dedicated workspace areas. The lounge is open on a …show more content…
These are only one part of American Airlines’ and JetBlue’s acquisition strategies. American Airlines have also covered the second objective of CRM: retention. They have built the AAdvantage program in 1981 where Frequent flier programs were the airline’s strategic decision to use its spare capacity, as in money and assets, as a resource to generate customer loyalty. "Airlines are high fixed cost businesses. Costs do not change much, no matter whether the load factor is 25 or 95 per cent. American knew that filling the empty seats would have little impact on costs, but could impact significantly on future demand. The airline searched its reservation system, SABRE, for details of

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