Bus 599 Case 1

Purpose The purpose of this report is to evaluate the business strategy of JetBlue Airways, brush up JetBlues main strengths, and its ability to create an effective strategical plan of action. This past year JetBlue had been able to place tenseness on creating shareholder value which positively has caused the association to reach out gains during the recession of 2009 resulting in a positive cash fuse for the first time. JetBlues effective strategy and success in such a weak economy makes it likely that the company will put out to succeed in future years. Trends in the airline industry have greatly impacted instanter strategic planning of all the airlines. As a result, the JetBlue has struggled to survive. roughly of the different trends are: crude oil pricing fluctuations, shortages of pilots, change magnitude labor costs, and post 9/11 Aviation earnest increase operating expenses. In 2008, crude oil outlays increased to a record $140 per barrel (Thompson, Strickland, & Gamble, 2010). This huge price increase caused airlines to find ways to offset the cost of fuel. many another(prenominal) began implementing new passenger fees including a fuel surcharge, baggage relegate fees, fees for heavy bags, fees for beverages and snacks, and even fees for using blankets and pillows. Currently, gas prices have dropped.

However, the airlines continue to pass along the fees to its passengers to increase tax income. In result, the fees that began originally in response to fuel prices continue to be part of the revenue generating strategies of airlines. Many pilots are retiring due to the baby boomers causing the airline industry to have a shortage of pilots. In order to become a captain pilots are compulsory to fly hour hundreds of hours. However, flying schools do not have sufficiency instructors to train enough new pilots. According to the International Air enrapture Association, an estimated 3,000 more pilots are needed each year than teach schools can provide (Thompson et al. 2010). In response, the airline... If you want to get a full essay, order it on our website: Orderessay

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