Jet Blue Case Analsis - 4874 Words

Jet Blue Business Analysis Introduction JetBlue Airways Corporation has established itself as a low-fare passenger airline with a differentiated product and a high-quality customer service. They focus on serving underserved markets and large metropolitan areas that have high average fares. They offer both short-haul and long-haul routes that are point-to-point rather than the hub and spoke route system that has been adopted by most major U.S. airlines. JetBlue was incorporated in Delaware in August 1998 and started operations in February 2000. On April 11, 2002 they announced their initial public offering of its common stock. Their base of operations is at New York John F. Kennedy International Airport (JFK). On February 14, 2003,†¦show more content†¦Differentiation The differentiated aspect of JetBlue s business strategy includes extra-wide leather seats with more legroom. It offers 24-channel live satellite T.V. free at every seat. Pre-assigned seating, superior customer service, and a customer loyalty program. Financials JetBlue JetBlue is a financially growing company. Its revenues have increased from $104.6 million in 2000 to $635 million at the end of 2002. Net Income has also increased from a negative $21.3 million in 2000 to nearly $55 million at the end of 2002. Net Income was already at $245 million as of June 2003. From March of 2003 to June 2003, the share price had risen from $27.71 to $41.98 per share. JetBlue is well on its way to becoming an industry leader. Industry Comparisons In its three years of operation, JetBlue has made great strides with their financial position. Revenues for JetBlue were an impressive $635 million. AirTran Holdings, Inc. had $825 million in revenue, while Southwest had $5,521 million. Southwest has clearly more revenue than JetBlue, but they have been around since 1971 and serve 58 cities to JetBlue s 22 cities. Net Income comparisons show that JetBlue earned $55 million, Southwest had $241 million, and AirTran earned $68 million. The Balance Sheet is a statement of financial position. JetBlue has 29% of its total wealth in assets and 43% in