Managing in Troubled Times Case Study

Jet Blue: Too much Turbulence

OR

Abstract:
Established in 1999, JetBlue was a low cost start-up airline. After the 9/11 terrorist attacks while the airline industry suffered losses and struggled to survive in the tough business environment, JetBlue continued to grow and gain market share due to its innovative marketing strategies. However, in 2005 JetBlue's profits were under pressure as it registered its first ever losses in the fourth quarter. This case study, while highlighting the formation and growth of JetBlue against the backdrop of the September 9/11 attacks, offers the scope to discuss the situation of the US aviation industry and JetBlue's strategy for a turnaround.

Pedagogical Objectives:

• To discuss the dynamics of the low cost airlines in the US
• To understand JetBlue’s low-cost business model
• To discuss the market factors affecting low-cost airlines.

Keywords : JetBlue; Commercial Aviation Sector; JetBlue’s Low-cost Business Strategy; Managing in Troubled Times Case Study; JetBlue’s losses; Aviation Industry Scenario; Increasing fuel costs; JetBlue’s turnaround strategy; Fuel hedging; Embraer; TrueBlue frequent flyer programme; Rockwell Collins guidance system