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Jetblue Rising I. The Problem A. The Key Fact Although JetBlue is expanding very quickly and has already won many service awards, they still represent only 2.3%
causing evident pressure on all airlines. By failing to hedge the risks of rising commodity prices, JetBlue will be affectively bearing all these unwanted risks in
was formed to compete with JetBlue and other low cost airlines for the Florida market. The market environment at the time of the case was extremely difficult with
prices can harm them. In October 2005, JetBlue announced that its quarterly profit had plunged from $8.1 million to $2.7 million largely due to rising fuel costs.
what are left to be done, deadlines and problems. These efforts improve efficiency as JetBlue tries to balance rising costs for old planes and more senior employees.
Submitted by diliprai on March 8, 2006
Category: Business
Words: 3607 | Pages: 15
Views: 1511
Popularity Rank: 3,183
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I. The Problem
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A. The Key Fact
Although JetBlue is expanding very quickly and has already won many service awards, they still represent only 2.3% of the domestic airline market.
B. Advertising Objective
Many travelers don't realize that JetBlue offers at least as many perks as the traditional legacy despite their low-cost model. The stigma in the airline industry has been that low-fare/low-cost equals low frills. Our goal is to convince domestic travelers that with JetBlue they don't have to sacrifice comfort, service, in-flight entertainment, and other amenities to obtain a low-fare ticket.
II. The Creative Platform
A. The Issue
1. Reality
Strategy
Goal-To establish JetBlue as a leading low fare, low cost passenger airline by offering customers high-quality customer service and a differentiated product.
Plan-JetBlue strives to offer low fares that stimulate market demand while maintaining a continuous focus on cost-containment and operating efficiencies. They intend to followed a controlled growth plan designed to take advantage of their competitive strengths. They believe growth has, and will continue to, occur by adding additional frequencies on existing routes, connecting new city pairs among destinations already served and entering new markets often served by higher-cost, higher-fare airlines. *
History
JetBlue was created by CEo David Neeleman back in 2000 and took to the air for the first tine that February with inaugural service between New York City's JFK Airport and Fort Lauderdale, FL. Today JetBlue remains based out of JFK Airport, offering one-class service to nearly 30 US cities, the Bahamas, the Dominican Republic, and Puerto Rico. A secondary hub has been established
outside of Los Angeles at Long Beach Airport for West Coast operations.
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