JetBlue Airways: Growing Pains Case

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1.0 Current Situation

1.1 Current Performance

JetBlue continued to grow and implement its expansion plans this is despite other airlines facing difficulties as a result of the terrorist attack of September 11, 2001. However, due to a combination of internal and external factors the company experienced a strain on its operating costs. In 2006, JetBlue recorded its first loss since the launch of its IPO sighting the increase in the cost of jet fuel (George and Shirisha, 2008). These challenges resulted in JetBlue recording a negative gross profit margin as a result of the operating margin falling from 8.8% to 2.8% and the on-time performance record reducing to 71.4%.

1.2 Strategic Posture

1.2.1 Mission

To offer underserved markets and customers with low-cost passenger services by providing high-quality customer service that will possess the value of their money.

1.2.2 Objectives

·      Provide customers with a high-quality experience at a reduced price.

·      Provide domestic flight services in airports with a high supply of international flight services.

·      To ensure the ratios of long-haul to non-long-haul flights are reduced.

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