Jet Blue Airways

Essay by KinghighUniversity, Bachelor'sA+, March 2006

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Team A Consulting has targeted JetBlue Airways as a new client. JetBlue is a leader in the low-cost commercial airline industry with a proven record of accomplishment, increasing revenue every year they have been operating. Their financial success can be attributed to many factors including non-union labor, one type of aircraft in their fleet (reducing inventory costs), paperless cockpit, paperless tickets, and satellite radio and television at all the seats. All of these help keep costs down, attract new customers, and the savings passed onto the customer. JetBlue has been the recipient of many awards throughout the years. See Appendix A for a complete list of awards from 2005. To kick off their sixth year anniversary in 2006, JetBlue is sponsoring an online instant win game for their "Bigblueweek" celebration. Prizes include a new Acura, Direct TV packages, and free travel. JetBlue is an upstart airline that operates in what remains one of the toughest industries imaginable and faces significant challenges.

In addition to specific company information, Team A Consulting will discuss economic challenges facing Jet Blue, and how these challenges can be overcome. Team A will illustrate Economic indicators used for forecasting purposes as well as devise a list of recommendations.

Executive Summary


JetBlue's General offices are located in Forest Hills, New York. The Customer Call Center is located in Salt Lake City, Utah. JetBlue's operations are primarily web-based with all 1,100-customer service representatives working from their homes.


Since JetBlue's inception in 1999, the airline has enjoyed a continuing increase in

revenue. JetBlue reported revenue for 2004 is (in millions) $1,265,972, which is up considerably from $104,618 (in millions) in 2000.

Financial Condition

While the domestic airline industry has continued to suffer financial losses through 2004, JetBlue has remained profitable. Their net income is $47.5 million...