jetBlue Airways

By: Rachel Andersen, Joe Bossert, Jarvez Hall, Jeff

Hensley, Brandon Kirkbride and Adam Tolman
Agenda

• Strategy
• History
• Competitors
• Strengths/Weaknesses
• Competitive Advantage
• Facts
• Financials
• Advertising
• Future of Company
Strategy

• “Our goal is to establish jetBlue as a leading low-

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.”
History

• February 11, 2001

• 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

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

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

• Southwest
• American
• Delta
• Northwest
• United
• Continental
• Pan Am
• Horizon/Alaskan
Strengths/Weaknesses

• Strengths •Weaknesses
• Low Operating Costs •Hubs
• 6.03 cents mile vs. •Destinations
10.91 industry •Small Airlines
average •Single Class
• 13.4 hrs average •Debt
utilization per aircraft •Floating interest
• Productive workforce rates
• Low distribution costs •Additional
• Direct Bookings Financing problems
• Single aircraft •Maintenance Costs
• New
• Brand
Competitive Advantages

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

Amy Curtis-McIntyre, VP of Marketing

• “Advertising is the last thing you bring to the mix. You start by
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”

• Commercials
An Inside Look

• Tour

• In flight Entertainment

• Blue Cities
The Unadvertising

• Hot Shorts
• AMERICAN EXPRESS AND JETBLUE®
AIRWAYS EXTEND PARTNERSHIP WITH NEW
COBRAND CREDIT CARD AGREEMENT

• “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
Stock price
Future of the Company

• Expected Increase 4-5%

• Expected Operating Capacity
• 27-29%
• 15 new aircrafts
• 22% fuel costs hedged at $1.17 gal.
• Expected Operating Margin 7-9%
Sources

• http://home3.americanexpress.com/corp/pc/2005/t
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
• Just to end
Questions?