JetBlue Airways: Growing Pains?

 
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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : BSTR277 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

Business Strategy
Case Length : 18 Pages
Period : 2000-2007
Pub Date : 2008
Teaching Note : Available
Organization : JetBlue
Industry : Aviation
Countries : USA

Abstract:

This case examines JetBlue's business model and studies the factors behind the airline's initial rapid growth and early success.

It raises the question of whether JetBlue's growth in its early years may be considered unsustainable as argued by some analysts.

It also discusses some of the factors that were responsible for JetBlue's later troubles and the airline's Return to Profitability plan that aimed at helping it streamline its operations.

The case ends with a commentary on the challenges that JetBlue might face in the future.

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Issues:

The growth of a startup in a turbulent and highly competitive industry, and the challenges it faces.

The difficulties in sustaining the initial momentum of growth for a company operating in a volatile business environment.

The effect of a dynamic business environment on a company's performance and the importance of strong strategic planning in sustaining long term growth.

Contents:

  Page No.
A Change of Guard at Jetblue   1
Background   2
Growth and Expansion   4
Turbulent Times   5
The Return to Profitability Plan   8
The Customer Service Fiasco   9
More Turbulence Ahead?   11
Exhibits   12

Keywords:

JetBlue Airways Inc, US Airline Industry, Low cost carriers, Value Player, Full Service Airlines, Budget airlines, Return to Profitability Plan, Growth Strategies

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