Jetblue Airways

Abstract

JetBlue Airways was founded in August of 1998; they have been named the #1 U.S. domestic airlines and ranked highest in Customer Satisfaction among low cost carriers in North America by J.D. Power and Associates. They have set a standard of providing great customer service at a low cost in an industry where most of its competitors have managed to fall at the waist side due to the growing industry trends. Their strategy is consistently reflected in their unwritten mission statement, which is essentially a defined set of core values they operate by; Safety, Caring Attitude, Integrity, Fun and Passion. They have a unique strategic plan that sets them apart and give them an overwhelming competitive edge.

Jet Blue is a 4-star rated airlines with great growth potential and good recipe for success, but even with all that going for you, they still have to wager against the industry trends that affect all U.S. Airlines currently in business. The challenges are the same for everyone. Most of the popular trends that affect the industry as whole are shaped by our current economic situation as a country, which also extends globally. For example, fuel costs have set an increasing trend of escalating cost to the airlines which they have had to flow down to customers. In 2008, oil prices rose to $140 per barrel (Thompson, Strickland, & Gamble, 2010). Airlines have come up with some creative ways to soak up some of the lost revenue as a result of higher fuel charges. Another growing trend is imposed fees and taxes. These new fees and taxes have been creatively marketed by airline companies so that they can try to maintain their loyal customer base. Fees and taxes in addition to a substantially high ticket cost is not a trend that consumers want therefore airlines have to come up with new creative ways to sugar coat the additional cost so that they don’t lose their customer base. Security is also a major growing trend in the industry today. Since the 9/11 attacks many people are concerned about their safety and security when they travel. Airline companies are now challenged to not only encourage travel on their aircraft because it is safe, but provide proof on changes made since then to increase passenger security and provide safety records that show that the new implementations have been tested and work for the benefit of their customers. David Neeleman CEO went as far as installing bulletproof cockpit doors, which are sealed off with steel doors that only the pilots can open; preventing terrorist attacks.

There are new developed trends in the industry everyday that keep the airlines continually striving for improvements, but safety, additional taxes and fees as well as managing fuel cost are a few of the top concerns.

Jet Blue strategic intent is as direct as it states in the company’s