Jetblue Case

1777 Words 7 Pages
AZ to MD JFK to NY CA to FL

JetBlue $ - $188 $842

Southwest $456 $ - $898

Delta $846 $272 $1,626

American $403 $374 $721

1. Based on the research it appears JetBlue has lower prices compared to its competitors. JetBlue did not have available flights from Phoenix to Baltimore on October 25th. JetBlue’s base is JFK in New York. When JetBlue was able to lock in JFK as their base they gained an advantage over its competitors. Many of the low cost competitors did not do business out of New York because it was expensive. JFK was the center for international flights and the CEO of JetBlue thought that it would not face much domestic competition.
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The one time it seems that the buyers were powerful is after 9/11 because everyone was afraid to fly and they started to ride buses, trains or drive their own car.

JetBlue was smart to operate from JFK, knowing that JFK mainly operated internationally. They found less competition for domestic flights at JFK and JetBlue capitalized on it. Where there was high demand for flights, JetBlue focused on that demand and was able to sell fares at low prices. They had already hedged some cheap fuel which their competitor did not. JetBlue was able to undercut them. JetBlue was profitable because of low operating cost. They did not have establishment, they did not hire too many staff and they mainly use electronic ticketing which reduces the number of necessary
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Already being established in the airline industry has the benefit of already overcoming the barriers of entering a new market, especially one as difficult as the airline industry. JetBlue also already has a customer base in place so they only have to grow it not start it.

Possessing 30% of the market share is good for profits and proves it is a well-liked company in the airline industry.

The flight schedule of flying from northeastern cities to southern cities allow JetBlue to attract vacationers and will be more likely to be going where travelers are wanting to go.

The no flight cancellation policy gives customers a guarantee that they will reach their destination no matter the issues at hand; this creates a good customer relationship and will keep customers coming back for flights in the future.

Hedging fuel prices help to lower costs and smooth out those costs making JetBlue’s financial position look more attractive to investors.

The A320 allows for a standardized training process for mechanics, pilots, and support staff which allows for lower direct labor costs also ensuring a better financial position for

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