JetBlue Airways Corporation

The company, JetBlue Airways, is a low-cost airline whose major flights serve destinations within the United States. However, JetBlue has flights to destinations in the Caribbean, South American and Latin America. Although the domestic market-share for the company is small in comparison to established airlines such as Delta and Southwest, the company is aggressively expanding its destinations and fleet to serve a wider market.

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The airline offers both the passenger travel and cargo delivery. JetBlue caters for the delivery of varying cargo sizes while ensuring minimal impacts of fuel and security expenses on customers. Furthermore, JetBlue offers free snack and beverages to its customers on all fights. Another feature associated with JetBlue is the consideration for spacious sitting arrangement for its customers.

Around 1999, David Neeleman established the JetBlue Company under the name, New-Air. The major factor that led to the founding of this company was the need to exploit the opportunities in the low-cost carriers by offering quality services at affordable prices. To enhance its market appeal, JetBlue introduced new concepts such as the inclusion of a TV and Satellite radio on the seats of its fleet to provide to entertain customers during flight. In 2000, JetBlue began official operations after receiving a formal state authorization. The trend in the company’s performance since the onset of its operations highlights a business entity that has significant levels of dominance in the low-cost domain of the airline industry. Since 2002, the company has repeatedly posted an ever-increasing number of customers. Records about JetBlue customers between 2003 and 2004 indicate an estimated 20 million increase in the number of users of the airline. Although the financial performance of the company has had some hiccups, the company has always had ways to reverse losses through its Return to Profitability (RTP) strategy. Such was the case in 2006 when JetBlue suffered losses that the management attributed to factors such as high fuel prices and operating inefficiency. However, the company could minimize costs and regained profitability in 2007.

JetBlue has remained aggressive in its attempts to expand by venturing into new destinations and introducing customer-friendly packages such as refundable fares. The naming of JetBlue as the best airline among low-cost carriers in the US highlights a company with attractive prospects for investors. However, the company had a history of notoriety for conducting flights even on the advice to cancel them. Such was the case in 2007 when poor weather conditions necessitated the cancellation of flights destined to the Northeast and Midwest. Despite the severity of the weather, which kept most of the airlines grounded, the JetBlue management kept passengers waiting for their flights, while those that had already boarded planes could not disembark. This case led to considerable losses for the company. JetBlue’s actions triggered negative reactions from various consumer rights groups that viewed its actions as an abuse to consumer rights. The losses incurred due to this action prompted the company to create a Customer Bill of Rights. The provisions in this bill stipulated financial compensations for customers that suffer delays or cancellation of flights.

Since its incorporation, JetBlue has collaborated with various entities in the airline’s attempts to attract more customers. For example, the joint efforts between JetBlue, Yahoo and Blackberry led to the introduction of Wi-Fi features in some of its fleet. This considerably boosted the company’s marketing approaches especially concerning business people who needed a constant access to the internet even while traveling. JetBlue’s special packages have enabled the company to compete effectively with other low-cost carriers such as Air-Tran Corporation and SkyWest. Furthermore, its customer-focused approach has placed the company in a position to compete with major carriers such as Delta.

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