Competitive Strategies Case Study

Southwest vs JetBlue in the Changing Market

OR

Abstract:
Southwest Airlines and JetBlue were two leading low cost airlines in the US. Both airlines adopted a similar business strategy to compete against each other in the LCC market in the US. However in 2006, the two airlines faced increasing cost pressures due to high costs, increased competition and rising fuel prices. The case study discusses Southwest Airlines and JetBlue’s strategies to overcome cost pressures and compete against each other buy differentiating their services.

Pedagogical Objectives:

• The case compares the business model of the two leading companies in the field of low cost airlines i.e. Southwest Airlines and Jet Blue
• It evaluates various strategies adopted by the two companies to gain cost competitiveness.

Keywords : Southwest airlines; jetBlue; low cost airlines; David neeleman; New Air; XM satellite radio; Embraer; homesourced reservation system; Airbus A320; hobby Airport; Morris air; Competitive Strategies Case Study; Arizona One

Contents : 
The US airline industry
The Aviation Industry Scenario
Airline market share
Southwest vs JetBlue Competition
Mounting cost pressures
Fuel hedging by various airlines