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The paper discusses the challenges facing the airline industry and describes how JetBlue has responded to these challenges. The paper outlines JetBlue's modest strategies for 2008 and beyond and shows how the company is focusing on low-level tactics to improve its business that can easily be achieved. The paper concludes that JetBlue is a strong performer but not one gifted with incredible sources of competitive advantage, and the company's plans to continue to improve incrementally is likely the best tactic for the time being.
From the Paper:"The US airline industry has faced numerous struggles in the past decade. The impact of the September 11th terrorist attacks continues to be felt in onerous security regulations that discourage travelers from flying. The cost of jet fuel has fluctuated wildly in the past few years, giving airlines cost uncertainty. Lastly, the economic downturn has curtailed the amount of business travel, a key revenue-earner for US airlines. The industry continues to be tightly regulated, and most US airlines have difficulty turning a profit, which has raised the specter of a round of consolidation among US carriers.
"The security regulations make it difficult for airlines to offer a comfortable and pleasurable experience to travelers. While this affects all airlines equally, it does not affect other modes of transportation, particularly automobile. Airlines need to accommodate for this disadvantage by finding other ways to make air travel more comfortable for passengers.
"Jet fuel is, along with labor, a major cost driver for airlines. The cost of jet fuel has been subject to significant volatility in recent years, in particular 2008. In order to achieve cost certainty in jet fuel, many airlines undertake fuel hedging in order to lock in prices. This can backfire, however, if a firm locks in a high price, as many did in 2008. The strategic response of most airlines is to reduce fuel hedging in light of the high degree of volatility (McCormick/Reuters, 2010)."
Sample of Sources Used:
- McCormick, G./Reuters. (2010). US airlines more cautious on '10 fuel hedges. Reuters. Retrieved April 9, 2010 from http://www.reuters.com/article/idUSTRE61O59Z20100225
- Thomas, H. & Baer, J. (2010). Consolidation for US airlines back on the agenda. The Financial Times. Retrieved April 9, 2010 from http://www.ft.com/cms/s/0/199272b8-436e-11df-833f-00144feab49a.html
- Mutzabaugh, B. (2010). JetBlue pokes fun at Spirit's carry-on fee by touting luggage 'outerwear'. USA Today. Retrieved April 9, 2010 from http://www.usatoday.com/travel/flights/item.aspx?type=blog&ak=86845.blog
- JetBlue press release. (2010) JetBlue announces 2009 annual profit. Retrieved April 9, 2010 from http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irol-newsArticle&ID=1380104&highlight=
- No author. (2007). JetBlue Airways' hiring process takes flight with Trend Integration's Interview Direct. Retrieved April 9, 2010 from http://www.hr.com/SITEFORUM?&t=/Default/gateway&i=1116423256281&b=1116423256281&application=story&active=no&ParentID=1194370529058&StoryID=1189613819844&xref=http%253A//www.google.com.my/search%253Fq%253Djetblue+human+resources%2526ie%253Dutf-8%2526oe%253Dutf-8%2526aq%253Dt%2526rls%253Dorg.mozilla%253Aen-US%253Aofficial%2526client%253Dfirefox-a
Cite this Case Study:
JetBlue's Strategies for 2008 (2013, January 14) Retrieved September 24, 2023, from https://www.academon.com/case-study/jetblue-strategies-for-2008-152217/
"JetBlue's Strategies for 2008" 14 January 2013. Web. 24 September. 2023. <https://www.academon.com/case-study/jetblue-strategies-for-2008-152217/>