Case 16 Jetblue Airways__1 (1)
Case 16 JetBlue Airways: Challenges Ahead Theodore Bosley, Christopher Calton, Jeffrey Deakins, Tomoko Nakajima, Sally Orford, Robin Pohl, Robin Chapman Arizona State University Introduction delaying deliveries of some aircraft, selling others, and eliminating some cross-country flights.4 Despite these We’re going to bring humanity back to air travel. —David Neeleman actions, in a recent interview Neeleman insisted, “We’re 5 Founder and Chairperson still a growth airline.” It remains to be seen how JetBlue will continue to grow in the face of increasing strategic David Neeleman, JetBlue’s founder and chairperson, challenges. sought to “bring the humanity back to air travel.”1 Since launching operations in February 2000, JetBlue distin- History guished itself from its competitors by providing superior customer service at low fares. The JetBlue experience in- Founding History of Jet Blue cluded brand new airplanes, leather seats, and personal David Neeleman founded JetBlue Airways Corporation satellite TV service. The firm experienced rapid early in 1999, after raising $130 million in investment capi- growth. In a period when most U.S. airlines struggled in tal. Building on his past experiences, Neeleman hired the aftermath of the September 11, 2001, terrorist attacks, talented executives, such as David Barger, previous vice JetBlue reported 18 consecutive quarterly profits. president of the Newark, New Jersey, hub for Continental, Then in 2005, JetBlue announced its first net loss of and John Owen, previous vice president of Operations $20 million. The disappointing results were attributed Planning and Analysis for Southwest.6 JetBlue chose John to spiraling fuel prices, aggressive competition, and in- F.
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