JetBlue Airways JetBlue has successfully implemented an integrated strategy operating a single-type aircraft fleet in a focused segment of the market. The company had success in gaining market share along the existing routes and wanted to expand into medium-sized cities that were being served by legacy carriers’ regional airlines. As JetBlue moved into these markets with shorter flights they realized a need for a more suitable aircraft. Having a smaller jet would make it easier to enter these new markets because of their lower break-even load and it would help to increase passenger loads on their original point-to-point flights. Because of the strategic alliance with Embraer, JetBlue played a significant role in designing the interior of the aircraft to improve passenger comfort, a key component of their differentiation strategy.
Conversely if the sales mix were changed in favor of one of the lower contribution margin aircraft then the volume of aircraft sold would need to be increased in order to make up for the reduced profit per aircraft. 3.
Executive Summary Outlined in this analysis is the underwriting process for Jetblue Airways IPO as well as a description of the steps taking, and lastly the valuations for this IPO based on financial and non-financial information. JetBlue Airways is an innovative and low-fare airline that promised to “bring humanity to air travel back in 1999. Their primary goal was provide high-quality customer service for passengers flying in unique and new aircrafts that had leather seating free Live TV in every seat, pre-assigned seating, reliable performance and simple low fares. In this study we analyzed the value of debt of the firm to help us compare the effects of percent changes of price per share in relation to growth as well as the percent change in price per share in relation to cost of equity. We found that Cost of Equity has a much larger impact on PPS than Growth.
Ryan Air versus The easyGroup : A comparison of business strategy 1. What are the main sources of economies of scale, scope and learning that underpin the strategy of Ryanair? The Ryanair business strategy is to be the cost leader in the airline industry. The cost structure of the airline industry is predominantly one of fixed costs. The Ryanair strategy is to keep paring away at fixed costs and increase the passenger load per aircraft to improve profitability.
New entrants such as Virgin America are bracing the competition by offering lower fares to customers. Such a strategy pose a great threat to the operations of Jet Blue whose major strategy and survival is the low airfares offered. Lastly, the potential for increased labor cost as a result of the possible future shortage of pilots predicted by the International Air Transport Association will impact negatively on future expansion programs of smaller airlines such as Jet Blue. Discuss Jet Blue’s strategic intent prior to 2008 Jet Blue strategic intent prior to 2008 was to use low fares and entertaining planes to
Boeing is the largest exporter by value in the United States. The manufacturing process experienced a major change and there was less production delays than before which not only helped in keeping an efficient flow when it came to their supply chain but also helped in better customer service which of course helped them hold on to crucial market share. Gaining market share of course hugely elevated their problems of losing customers or market share to Airbus (who in order to turn away customers from Boeing had initially adopted the strategy to lower prices of their products). Of course the customers were airline companies. Boeing’s success depended directly on the success of those airline companies.
Describe the different stakeholders who influence the purpose of two contrasting businesses Describe how two contrasting organizations impact the goals and aims of the company. The key stake holders of easy jet consist of: Customers: the customers of easy jet want the services of a company to be the best of them; this means that the customers want the company to provide the best service possible. The point of view from the customer is that if they are buying a ticket they want to be taken from A – B as fast and cheap as possible so if the company raises prices or goes green and such it affects them and they wish to be taken into consideration. These people wish to get cheaper flights from the company. They have influenced the goals of the company by trying to get it to be cheapest yet profitable flight provider.
These cost savings are achieved through a few fundamental principles that underlie the low cost airline model, these being high aircraft utilisation achieved through clever timetabling and fast turnarounds, high load factors, and ruthless cost control. The final part of the study evaluates whether, in my opinion, the low cost airline industry is sustainable in the UK and after careful consideration of
Also, the increase of the debt will reduce the debt to capital ratio which could affect the company’s credit ratings. Another issue to take into considerations is how the consumers will view such a move. Will they be happy to see that the company is trying to meet their needs or will they have short-term memory and just decide to venture into new items on the market? Will the expansion be too late in meeting their needs or will it increase sales income? Also they must take into consideration the effects of the volume increase on their distributors.
JetBlue also has less congested airports, which helps to speed flight departures and get their passengers to their destinations in a faster manner. Some of the marketing techniques that JetBlue uses are web-based ticketing, which is then used as a distribution channel. They have a sophisticated market segment properly identified for the business travelers flying point-to-point and of course effective pricing which gives them the edge against their competitors (Evans, 2007). As for service, JetBlue is always in constant communication with customers to