3/23/2017

Agenda

Strategy
History
Competitors
Strengths/Weaknesses
Competitive Advantage
Facts
Financials
jetBlue Airways
Advertising
By: Rachel Andersen, Joe Bossert, Jarvez Hall, Jeff
Hensley, Brandon Kirkbride and Adam Tolman Future of Company

Strategy History

Our goal is to establish jetBlue as a leading low- February 11, 2001

fare, low-cost passenger airline by offering
customers high-quality customer service and a
differentiated product. We strive to offer low fares
that stimulate market demand while maintaining a
continuous focus on cost-containment and operating
efficiencies. We intend to follow a controlled growth
plan designed to take advantage of our competitive
strengths. Our growth has occurred, and we believe
it will continue to occur, by adding additional
frequencies on existing routes, connecting new city
pairs among the destinations we already serve and
entering new markets often served by higher-cost,
higher-fare airlines.
CEO David Neeleman: Bring humanity
back to air travel.
Executive Team
David Neeleman: Chief Executive Officer
Dave Barger: President & Chief Operating Officer
Thomas Kelly: Executive Vice President
John Owen: Executive Vice President & Chief
Financial Officer

More History Competitors

First and only U.S. start-up airline to launch Southwest

with more than $100 million in capital American
Began with service between New York City
and Ft. Lauderdale, FL. Delta
2000: Flies its one millionth customer and reports $100 Northwest
million in flown revenue for 2000.
2001: Flies its two millionth customer. United
2002: Acquired 100% of the ownership interests in LiveTV. Continental
2003: Announces initial public offering of its common stock
2004: Launches online flight check-in. Pan Am
2005: Receives FAA's highly coveted Diamond Certificate of Horizon/Alaskan
Excellence Award.

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Strengths/Weaknesses Competitive Advantages

Strengths Weaknesses Bulletproof Cockpits

Low Operating Costs Hubs
6.03 cents mile vs. Destinations Low fares
10.91 industry Small Airlines Experienced Management
average Single Class
13.4 hrs average Debt Leather Seats
utilization per aircraft Floating interest
Productive workforce rates
DirecTV
Low distribution costs
Direct Bookings
Additional XM Radio coming soon!
Financing problems
Single aircraft Maintenance Costs
New
Brand

Facts Facts
FLEET: JETBLUE -- FIRST AND ONLY: All JetBlue aircraft are equipped with an in-seat
77 Airbus A320 aircraft , all
powered by International Aero First and only U.S. start-up airline digital entertainment system (individual seatback
to launch with more than $100 INFLIGHT ENTERTAINMENT monitors, armrest remotes with channel and volume
Engines (IAE) V2500 engines
JetBlue has orders with Airbus for million in capital A&E controls) offering 36 channels of free DIRECTV
GSN, the Network for
a fleet of as many as 233 A320 Animal Planet programming - no other airline offers more live
First and only airline to offer 24- Boomerang
Games
satellite TV options. On flights longer than two hours,
aircraft and has placed an order Hallmark Channel
with Embraer for a fleet of up to channels of live satellite television Bravo
The History Channel a selection of first-run movies and bonus features
free at every seat CNBC
200 EMBRAER 190 aircraft. The CNN Headline News
HGTV from FOX InFlight is also available. Over the next
first EMBRAER 190 aircraft will be First and only airline to broadcast Comedy Central
MapQuest few months, we will be upgrading our entire fleet to
delivered in 2005. Court TV
MSNBC include 100+ channels of XM Satellite Radio.
the Olympic Games live at every MTV
JetBlue's A320 aircraft have a DIRECTV
single-class configuration of 156 seat FREEVIEW
National Geographic
Channel
seats, while the EMBRAER 190 First U.S. airline to introduce Discovery
Nickelodeon / Nick at
will have a single-class ESPN
"paperless cockpit" flight ESPN2
Nite
configuration of 100 seats. SCI FI Channel
technology ESPNews
All JetBlue's fleet is outfitted with ESPN Classic
Telemundo
leather seats with free DIRECTV Only U.S. airline to be 100% Food Network
The Learning Channel
programming at every seat. ticketless Travel Channel
Fox Movie Channel
TV Land
First U.S. airline to install bullet- Fox News Channel
(Freeview/Specialty
FX
proof cockpit doors across its Events on weekends)
USA Network
fleet VH1 Classic
First and only airline to install The Weather Channel
WNBC
security cameras in passenger
cabin for customer and crew
safety

Cities Served Financials Cost Structure

Aguadilla, Puerto Rico San Diego, CA
Boston, MA San Jose, CA
Buffalo, NY San Juan, Puerto Rico
Burbank, CA Seattle, WA
Burlington, VT Syracuse, NY
Denver, CO Tampa, FL
Fort Lauderdale, FL West Palm Beach, FL
Fort Myers, FL Washington, DC
Las Vegas, NV
Long Beach, CA (near Los
Angeles)
Nassau, Bahamas
New Orleans, LA
New York City, NY (JFK)
New York City, NY (LaGuardia)
Newark, NJ (service starts October 5,
2005)
Oakland, CA (near San Francisco)
Ontario, CA (near Los Angeles)
Orlando, FL
Phoenix, AZ
Ponce, Puerto Rico
Portland, OR
Rochester, NY
Sacramento, CA
Santiago, Dominican Republic
Salt Lake City, UT

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Advertising An Inside Look

Amy Curtis-McIntyre, VP of Marketing

Tour

Advertising is the last thing you bring to the mix. You start by In flight Entertainment
getting the product right, getting your attitude right, getting
everyone internally understanding the mission. Then you move
to telling the story through PR. You build the advertising last,
and that way you can live on realistic budgets Blue Cities

Commercials

The Unadvertising

AMERICAN EXPRESS AND JETBLUE

AIRWAYS EXTEND PARTNERSHIP WITH NEW
COBRAND CREDIT CARD AGREEMENT

Hot Shorts Our partnership with JetBlue is another way we can offer consumers
rewards products to fit their lifestyle with brands that have their
loyalty. Al Kelly, American Express.

JetBlue is committed to finding new and innovative ways to offer our

customers more ways to save and partnering with American Express
will enable us to do just that. David Neeleman, CEO, JetBlue

You can purchase more than a flight

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Stock price

Future of the Company Sources

Expected Increase 4-5% http://home3.americanexpress.com/corp/pc/2005/t

Expected Operating Capacity
27-29%
15 new aircrafts
22% fuel costs hedged at $1.17 gal.
Expected Operating Margin 7-9%
rueblue.asp
http://archives.californiaaviation.org/airport/jpg006
00.jpg
http://www.jetblue.com/
http://quotes.nasdaq.com/asp/summaryquote.asp?
symbol=JBLU%60&selected=JBLU%60
http://64.106.229.11/jetblue2004/balance.html
http://www.brandingblog.com/2004/05/branding_at
_jet.html
http://www.sjc.org/AirportReport/Mar04/AR_conten
t.html

Questions?

Just to end