JetBlue Airlines
Strategic Management Case Analysis
Introduction to the Company
History of the Firm
JetBlue was established in 1999, and was the third airline start-up for founder and CEO David Neeleman. Neeleman managed to gather $130 million, the most ever raised for a start-up airline, from investors that included Chase Capital and financier George Soros. With the large start-up capital he purchased new Airbus A320 jets equipped with satellite TV, a first in the industry. In 2004 the company ordered an additional 30 new A320 aircrafts from Airbus. The airlines first flight was from New York to Fort Lauderdale in 2000. During the year, the airline added nine more destinations in California, Florida, New York, Utah, and Vermont. By 2001 the airline was operating 20 new A320s with an ambitious 131 on order (JetBlue Airways Corporation, n.d.).
The terrorist attack of September 11, 2001 crippled the airline industry, however, JetBlue continued to expand its network, and it went public in 2002. JetBlue added nine new destinations in 2004, including Boston. They further expanded in 2005 offering the company’s first non-stop coast-to-coast route from Burbank, California to JFK. In 2007, the company partnered with Yahoo, Research in Motion, and LiveTV to provide complementary in-flight email and instant messaging services. The same year, JetBlue and Lufthansa entered into an agreement by which Lufthansa purchased 19% of JetBlue.
Mission Statement and Vision Statement
JetBlue’s “mission of bringing humanity back to air travel” (Jetblue Airways 2006 Annual Report, n.d.) is supported by their core values of safety, caring, integrity, fun, and passion. JetBlue’s vision is to establish itself ...