JetBlue will begin flying out of Boston's Logan Airport?and American Airlines was feeling the heat. JetBlue was growing eight times faster than Southwest Airlines, the longtime leader among low-cost carriers, and the rapidly expanding low-cost segment of the industry?30% of all U.S. flights, projected to rise to 40% by 2006?presented an increasing challenge to the "major" airlines. For American, J
The entrance of JetBlue into the Boston area low-cost carrier market in 2004 is viewed as a direct attack on Major airlines and prompts American Airlines to decide whether or not to respond and if so, how to respond. American, already weakened financially, cannot match JetBlue's prices and remain profitable. It must weigh the importance of the Boston market in its overall economic picture and the
The entrance of JetBlue into the Boston area low-cost carrier market in 2004 is viewed as a direct attack on Major airlines and prompts American Airlines to decide whether or not to respond and if so, how to respond. American, already weakened financially, cannot match JetBlue's prices and remain profitable. It must weigh the importance of Boston market in its overall economic picture and the pote
In early 2012, an equity analyst, was examining the jet fuel hedging strategy of JetBlue Airways for the coming year. Because airlines cross-hedged their jet fuel price risk using derivatives contracts on other oil products such as WTI and Brent crude oil, they were exposed to basis risk. In 2011, dislocations in the oil market led to a Brent-WTI premium wherein jet fuel started to move with Brent
This case examines the April 2002 decision of JetBlue management to price the initial public offering of JetBlue stock during one of the worst periods in airline history. The case outlines JetBlue's innovative strategy and the associated strong financial performance over its initial two years. Students can value the stock and take a position on whether the current $22 to $24 per share filing range
JetBlue Airways is only five days away from entering the Boston market by establishing a presence at Logan International Airport. The VP of strategy for JetBlue considers the range of potential competitive responses that he might expect from such established airlines as American Airlines, so he can anticipate and prepare. As the largest major carrier operating out of Logan, American had more at ri
This case outlines the history of JetBlue Airways from its inception in 2000 until 2004. The case provides details of JetBlue's business model and reasons for success. It can be used in a course on service operations or strategy.
This case presents a firsthand account of a flying experience on JetBlue Airways in June 2004. The narrative reports on the cross-country flying experience of one passenger.
This exercise has been used in Darden's first-year strategy course in conjunction with the "JetBlue Airways versus American Airlines" case series and is appropriate for any strategy course in a module addressing competitive dynamics. The purpose of this game is to explore the interdependencies of firms in competitive decision-making situations. The game requires pairs of competing firms to make a
Herb Kelleher, executive chairman of Southwest Airlines, writes to Elliott Weiss, operations professor at the Darden School. Kelleher responds thoughtfully and in detail to two Darden cases about the experiences a Darden student had while flying on Southwest Airlines and JetBlue Airways.
This case presents a firsthand account of a flying experience on Southwest Airlines in June 2004.The narrative reports on the cross-country flying experience of one passenger. See also "Marlene's Marvelous Adventure: JetBlue Airways" (UVA-OM-1153).