Monday, December 24, 2012

Jet Blue Strategy

Mission Statement We are a low-fare, low-cost passenger flight path that provides high gear quality customer service primarily on point-to-point routes. We offer our customers a high quality product, with new aircraft, broad leather seats, free in-flight entertainment, pre-assigned seating and reliable performance. We focus on serving markets that have had high average fares. We currently respond 50 destinations in 21 states, Puerto Rico, Mexico and the Caribbean and operate over cholecalciferol flights a day with a fleet of 98 Airbus A320 aircraft and 23 EMBRAER 190 aircraft. Key Problems One of the key problems facing JetBlue is competition. JetBlue has to bit against all the other competitors for the travelers and there are lots of competitors. It has to destiny with existing carriers, low-cost startups like Skybus and Virgin America, and a Delta that is emerge from bankruptcy. M each of the larger airlines have already created copies of the JetBlue travel puzzle so they puke in addition compete on the smallisher routes. While facing competition is normal in whatever industry, many airports are basically already at the maximum number of passengers they can handle. This means that you have a relatively fixed number of passengers and all the competitors fighting over a piece of that pie.
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While JetBlue does deal with a lot of small airports that are not yet at their maximum capacity, every year there are more passengers wanting to fly so eventually the existing smaller airports go out also reach their maximum capacity. There is also a high fixed cost for each flight so any empty seats result in lost authority revenue, which cannot be recovered in the future. Therefore, as competition picks up, it will mean that JetBlue has to fight harder. There are also acclivitous costs of operation. The biggest being the high oil colour prices. Demand for oil is going up around the world faster than we can increase the supply and it will only puzzle worsened with time. This means higher fuel costs, which get passed on... If you want to get a full essay, order it on our website: Orderessay

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