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We considered the present position and way forward.
Introduction on JetBlue Airways
PEST Analysis
Porter’s Five Forces Analysis
Conclusion
These are the four main areas to be considered.

...(Plane flies in)...

We’ll look at the competitive challenges facing JetBlue.

Launched operations 2000
Differentiation strategy
Relative small player
New York hub
Competitive challenges
JetBlue launched operations in 2000. Relative new entrant.
Talented Executives. Strength of airline experience.

To gain competitive advantage, JetBlue sought differentiation as their strategy. They offered superior customer service at low fares.

Relative small player compared to key competitors with sales revenue of $2.4 billion in 2006 and total assets of $4.8 billion.

They have two plane types and in 2006 had 1.7 million passengers. Their hub is New York John F. Kennedy airport.

Rapid growth during early years, which then slowed due to competitive challenges and made there first net loss of $20 million in 2005. A future strategy to be developed.

Political and Legal
Government regulations
Closely monitored
When, Where and How airlines can fly
Compete internationally

FAA Density Regulations
Performance setbacks
Hub at New York
Airport slot allocations

Government Regulations–

The airline industry is monitored closely by the government. So the government plays an important role within the airline industry.

The government will monitor when, where and how airlines can fly, how much they can charge in terms of how they can market international travel.

The government regulations may make difficult for JetBlue to compete internationally. European airlines make a lead for international aviation.

FAA Density Regulations–

JetBlue experiences some performance setbacks in high traffic areas due to congestion.

There hub is in New York which handles a lot of traffic. So the slot is essential for airlines operations.

FAA regulations on slot allocations provide capabilities which enhance takeoff and landing capacity and ease congestion problems for airport in high-demand airspace. For example, the FAA encourages use of larger aircraft and propose a 10-year slot reallocation.

Fuel Prices–
As the second-highest expense for airlines, fuel cost control is an important link in cost management. The spiralling fuel prices is the main reason of rising operating costs in the airline industry.
The FAA forecasts that fuel costs will remain increase for the next several years. This rising fuel prices remain a threat in the industry. So the volatile prices led to fuel hedging.
GDP– There is a closely relationship between airline usage and GDP development. With the decline of US GDP, the airlines’ profits maybe suffer loss.

Following the world economic crisis, the emerging economies have recovered better in recent years. Brazil, Russia, India and China also know as BRIC, and their economy recovery are remarkable particularly. Along with the rapid development of four countries, there is a significant increase in consumer’s wealth and international busi本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。