Abstract

This case examines JetBlue's business model and studies the factors behind the airline's initial rapid growth and early success. It raises the question of whether JetBlue's growth in its early years may be considered unsustainable as argued by some analysts. It also discusses some of the factors that were responsible for JetBlue's later troubles and the airline's Return to Profitability plan that aimed at helping it streamline its operations. The case ends with a commentary on the challenges that JetBlue might face in the future.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The growth of a startup in a turbulent and highly competitive industry, and the challenges it faces.
• The difficulties in sustaining the initial momentum of growth for a company operating in a volatile business environment.
• The effect of a dynamic business environment on a company's performance and the importance of strong strategic planning in sustaining long term growth.

Keywords

JetBlue Airways Inc, US Airline Industry, Low cost carriers, Value Player, Full Service Airlines, Budget airlines, Return to Profitability Plan, Growth Strategies