JetBlue Airways: Challenges Ahead

Running Head : JETBLUE AIRWAYS : CHALLENGES AHEAD

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University : A and discussion of the main problem (s

The JetBlue Airways Corporation is a major airline with revenues in excess of 1 .7 billion and which commenced operations in February 2000 The airline operates from its hub at the John F . Kennedy International Airport and runs a fleet of A320 airbus and Embraer E190s aircraft with 47 destinations and up to 470 flights a day . Buoyed by its generic strategy of cost leadership as well as differentiation through unrivalled customer

comfort , the JetBlue Airways Corporation got off to a sound footing with impressive year on year sales in the initial years . However , with rising fuel prices , cutthroat competition , rising maintenance and operating costs , and a general increase in seniority of its workers , the company has in recent times posted a string of losses . Numerous other challenges face the company and the airline industry in general . In its bid to return to profitability , assert its market dominance and meet the expectations of customers , JetBlue needs to originate a strategy that will overcome the identified problems . This seeks to examine the environment in which the company operates as well as evaluate and propose various strategic options which can be pursued by the firm

Strategy analysis

Situational analysis

Industry analysis

The airline industry , like any other industry , is impacted by porter 's five forces . These forces include supplier power , barriers to entry buyer power , rivalry , and threat of substitutes . A distinct...