Analysis of Jet Blue Airways Essay

1830 Words Jul 21st, 2012 8 Pages
Analysis of Jet Blue Airways
BUS 599
October 19, 2010

Analysis of Jet Blue Airways
JetBlue Airways Corporation is an American low cost airline. Since 2001, the U.S. airline industry has faced an unprecedented set of challenges. Following the terrorist attacks of September 11, 2001, the airline industry reported tremendous losses and several of the largest U.S. airlines filed for Chapter 13 bankruptcy protection (Flouris, Walker, 2005). As a result, the airline industry has been more creative in their strategic marketing plans to remain financially viable. Many airlines have led the way with innovative ideas to retain, gain, and build their customer base. JetBlue Airlines has followed the path of most airlines but as one of the
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Increased fuel pricing has led to increased passenger fees for revenue generation for airlines. In 2008, crude oil pricing increased to a record $140 per barrel (Thompson, Strickland, & Gamble, 2010) and passenger fees rose sharply during this time. The dramatic price increase for crude oil caused airlines to struggle to offset the cost of fuel. At this point many airlines implemented new passenger fees including a fuel surcharge, baggage check fees, fees for heavy bags, fees for beverages and snacks, and even fees for blankets and pillows. However, since then gas prices have dropped and the airlines strategy has not changed. The airlines continue to pass along the fees to its passengers to increase revenue. These fees were implemented due to increased fuel prices and continue to be part of the revenue generating strategies of airlines.
Strategic Intent
Strategic intent of a company describes how a company is going to realize its vision. Strategic intent provides a particular point of view about the long term vision or aspiration of the company. Simply put, a strategic intent is your company's vision of what it wants to achieve in the long term. JetBlue’s strategic intent is to maintain a disciplined growth strategy by increasing frequency on their existing routes, connecting new city pairs and entering new markets (Thompson, Strickland, & Gamble, 2010). JetBlue’s goal is to establish themselves as a leading low

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