it is important to mention that the current essay discusses the JetBlue Airways company, which utilizes the low cost model of air flights in order to conduct business activities. A close look at the data illustrates that the company operates in the U.S. It is a domestic airline (Cornell University, 2016). It means that there are no flights to other countries in the schedule of the company.
The idea to create JetBlue Airways belongs to David Neeleman, who announced his plan a discount airline in February, 1999. The company’s first flight happened in 2000. In 2002, the airline maintained more than one hundred flights per day. The company has seriously developed since that time. The financial review demonstrates that the discussed airline has become the 11th biggest player in the industry within six years. Obviously, it is a great result, especially in conditions of the high competition, which is common for the American airline industry.
In the current decade, the airline aims to continue the existing growth. The management of the company is sure that JetBlue is a strong airline in conditions of the modern trends in the industry. However, there exists the threat for the company’s further success due to the intention of the big players to enter the niche of the low-cost air flights. Therefore, it is essential for the management to think about further actions at the market.
Overview of the problems the company faces
The JetBlue Airways company has a huge amount of various issues connected with the peculiarities of the industry. The primary problem is connected with the events of 9/11. The fact is that the U.S. government significantly increased the demands regarding the security during the air flights. The demand was also relatively low during the first months after the tragedy. Nevertheless, the low-cost strategies helped JetBlue to survive and even save the existing indicators of profit.
The second problem is that the leaders of the industry are going to implement low-cost strategies in their business portfolio. It would be hard for JetBlue to survive without acquisitions. The current CEO supposes that the possible future for JetBlue is to be acquired by other company.
The third important problem is that the future of airline industry is connected with the huge international corporations. JetBlue airline is a local player without the plan for further expansion to the European or North American markets. Thus, the company would experience significant issues without aggressive strategy of development.
List of the key players in the case
The key players are the JetBlue management, the U.S. government, the competitors, and the clients.
Solutions to the problems the company faces
It seems fair to suggest that the best solution for the company is to become the part of the bigger international corporation with the high level of independence. The umbrella branding could be a good solution. It would be possible to expand the operations to the entire North American and South American market with the help of the external capital.
Your personal assessment of the situation and three strategies you would have used to approach the problems differently
I believe that the general solution to be acquired is absolutely rational. It would be better for the company to avoid the development without the help of additional capital. Thus, it is necessary to follow three strategies:
- to define the company, which could acquire the JetBlue Airways;
- to set the dialogue with the management of this company;
- to make a bargain on the rational conditions, which would suit the management of JetBlue Airways.
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Cornell University. (2016). JetBlue: Flying for Success. The Center for Hospitality . 32.