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Strengths And Weaknesses Of Jet Blue: Bring Humanity Back To Air Travel

1896 words - 8 pages

Established in 1998 by David Neeleman, JetBlue offers a unique flying experience at a reasonably low rate. “Bring Humanity Back to Air Travel”, with a mission that holds truth, the Company is an advanced passenger airline that delivers outstanding customer service at competitive rates on point-to-point routes. Jet Blue offers its customers an efficient product with a aircraft that is fuel efficient. Leather seats, free entertainment during the flight located at every seat, assigned seating and reliable performance are all a part of what makes JetBlue a leader in its industry. Despite the recent downfall of the economy, JetBlue has managed to grow financially and spread geographically. As of December of 2009, the company began serving 60 locations in 21 states and more than 10 countries in the Caribbean’s and Latin America.

Strengths
Low cost Airline of America
Like Southwest Airlines, JetBlue follows the low cost approach, however it adds to its services by providing free entertainment for its travelers. LiveTV, provides customers with live in flight satellite television and XM radio services, Wireless data communication and Internet services are just a few things that make this low cost airline a great way to travel. Unlike their competitors who charge additional fees for these services, the JetBlue experience includes these great amenities free of charge for its in-flight customers (Barger, 2007).
Although JetBlue is relatively a new company, it has managed to gain popularity in the United States because of its low fares and customer service. JetBlue was named the number one U.S. domestic airline by Coned Nast Traveler magazine’s “Readers’ Choice Awards” for the sixth year in a row (Barger, 2007).
Operational Strength
The operations of JetBlue are mostly based on main metropolitan areas where low rates are usually unheard of. Keeping rates low to these locations has assisted the company to gain access into a travel market all of its own. This strength offers opportunity for growth further out into the international market.

Weaknesses
Low Market Share
Because it is still considered a new company, JetBlue gains most of its revenue from the national market. Its dependence on the geographical regions it travels to makes it vulnerable to the changes that the country faces economically and politically. Because most of JetBlue’s dependence is on the U.S market, this exposes them to the risks of the economies conditions.

Declining operating efficiency
In 2008, JetBlue reported a net loss of $84 million and an operating margin of 3.3%, compared to the net income of $12 million at a 6% margin n 2007 (Barger, 2007). The decline in the years to follow was a direct result of the increase in fuel prices. Low fares and high fuel prices affected JetBlue’s reputation and contributed to downfall of the company’s economic performance.

Opportunities
Increase the number of flights
JetBlue is a fast growing company however, it needs to increase the...

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