The low cost phenomenon has revolutionised the aviation market; guiding the path for success, with cost efficient and productive innovations. The global economic crisis, fuel crisis and the increasing operating costs has forced the low- cost airlines to constantly evolve and adapt their business model to the existing market conditions.
The pragmatic research objective of this report is to analyse the business model of the JetBlue Airways and to strategically plan for the future success and profitability of the airline. Conduct an in-depth research about the main characteristics of typical low cost carriers, highlighting the different cost advantages when compared with typical equivalent network carriers. Evaluate the current situation of JetBlue Airways, mentioning the impacts of internal and external factors on the operation and management of the airline, and discuss the associated opportunities, threats and risks to the business.
Recommend a plan of actions for the next 5 years, mentioning the associated likely risks and outcomes. LCCs business strategy now explores new models with significant developments, such as: forming alliances, codesharing and interline agreements, operating long-haul flights and offering new products and services. Figure 1. Low-cost business model Kachaner et al. Figure 2. Low-cost carrier activity circle Vespermann and Holztrattner The following table 1 shows the chief differences in the characteristics between low-cost carriers and traditional airlines.
Global strategy and high cost. Medium to long distances. Single aircraft type with high aircraft Multiple aircraft types with low Aircraft utilisation. Smaller staff administration and Plentiful staff and low Staff highly productive workforce. Complex fare structure with Fare Structure Simple fare structure. Loyalty No loyalty programs. Frequent Flyer Programs. Programs High direct sales with mainly Low direct sales and high Sales Distribution internet-based bookings or through dependency on travel agents.
Traditional check-in Operations E-ticketing and self service check-in. Table 1. The airlines also charge for the in-flight facilities and services. Significant cost savings is made through electronic bookings and through direct sales via internet and call centres ICAO It also provides the pilots and the cabin crew the flexibility to operate on any aircraft in the fleet.
Figure 3. JetBlue founded under the chief leadership of David Neeleman; commenced operations in February , with a mission to offer high-quality customer service and differentiated products to underserved markets JetBlue Airways As for the operations, JetBlue uses paperless cockpit and electronic ticketing which saves time and reduces cost.
The figure 9 shows the cost gap between the network airlines and JetBlue Airways. Again, van de Velde stresses that his aim least those whose rail networks are similar in character was not to push a given policy position but instead to to the ones discussed in this volume. Indeed, books provide information which others may use to do so. Although the need for rail policy re-evaluation is now becoming ap- J. All rights reserved. PII: S 0 9 6 6 - 6 9 2 3 9 9 0 0 0 3 6 - 8 Global Airlines: Competition in a transnational industry perspective on network development is stronger, cover- second edition , Pat Hanlon, Butterworth-Heinemann, ing such topics as franchising and code sharing.
Chapter Oxford pp. This edition appeared is testament to the dynamic condition chapter is also used to review aspects of airport capacity of the airline industry.
The pace of change is especially shortage. Chapter seven tackles the fast-evolving pattern competition and regulatory themes. The book ternational air services. Major Industry players are analyzes through corporate snapshot, an analysis of the business segments they operate through, a financial analysis and a SWOT analysis. We analyze 78 major airlines in the global airline industry.
Executive Summary B. Industry Definition C. Global Airlines Industry C. Industry Trends E. Analysis of Key Airline Regions F. Key Airline Markets G.
Industry Players H.
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