Jetblue Airways: Too Much Growth Too Fast?

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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. This led to the introduction of the Embraer E190. Unfortunately, the reality of the situation turned out to be much different than what JetBlue had anticipated. The process of adding a new fleet of aircraft was wrought with complications, and coupled with the disastrous Valentine’s Day fiasco JetBlue must rethink the new strategy they had undertaken. SOLUTION STATEMENT In order for JetBlue to compete in the point-to-point and regional market segments, it is recommended they develop a new business model which includes maximizing the potential synergies, as well as minimizing the costs associated with the intricacy of the JetBlue organization. In order to achieve economies of scale JetBlue needs to maintain at least 40-50 airplanes of each model. The company should utilize its strategic alliance with Embraer to modify aspects of the E190 that are causing growing pains, as well as cross train employees and provide a contingency plan for emergency situations. Finally, JetBlue should instate a Six Sigma program for continually

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