JetBlue Founder David Neeleman's LCC in Brazil: The Conundrum of New Venture Development


Code :BSM0059A

Year :

Industry : Transportation

Region : Brazil

Teaching Note:Available

Structured Assignment :Available

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David Neeleman - The Entrepreneur David G. Neeleman (Neeleman), an American of Dutch descent was born on October 16th 1959 in Sao Paulo, Brazil. Neeleman learned entrepreneurship as a boy working in his grandfather's grocery store at Salt Lake City, Utah in the US. He attended Brighton High School in Cottonwood Heights, Utah, and the University of Utah but dropped out before graduating in favour of his entrepreneurial pursuits.

After dropping out of college in 1982, Neeleman started his own travel agency to bring over prospective clients and chartered flights from Salt Lake City to the islands. His hard-sell reputation drew the attention of a travel operator, June Morris, who then owned one of the state's largest corporate travel agencies...

Neeleman's New Venture - LCC in Brazil The Brazilian airline industry traditionally had been highly regulated and represented a small sector of the Brazilian economy. However, since early 1990s, the sector had been deregulated to certain extent that made it more attractive to the new entrants. Still the air carriers had to comply with a large number of rules and government intervention had still been strong in the industry. A new airline company would have to wait at least six months for permission to operate.

Just as various other countries of Latin America such as Chile and Mexico, Brazil too has witnessed air travel surging due to economic gains trickling down to the masses, allowing millions to fly for the first time. In Brazil the domestic air travel segment represented a higher volume than the international segment...

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