University of Central Punjab

Submitted by:

MUHAMMAD FAHAM L1S20MBAM0023

FAWAD ALI L1S20MBAM0037
INAM E ALI L1S20MBAM0035
ADEEL IMRAN L1S20MBAM0003

Submitted To:
Dr. Aitzaz Khursheed

Date of Submission: April 19, 2020

1. Identify the most important opportunities, Threats, strengths and
weaknesses of your case studies. (4 Marks)
Opportunities:
 Lower fuel prices have helped airlines’ performance metrics.
 Coach passenger revenue tends to account for 80% of all revenue generated
by air service companies.
Threats:
 Ironically, it is often expensive to exit the industry, as airlines have long-term
lease agreements in place.
 Aircraft fuel is JetBlue‘s largest expense category, representing 36% of total
operating expenses in 2014, compared to 38%in 2013.
Strengths:
 JetBlue‘s traffic grew by 9.8% year-over-year for the first half of 2015.
 JetBlue‘s traffic and capacity growth increased during January 2015 to record
the highest growth among its peers.
Weaknesses:
 Compared to rival airlines, JetBlue‘s on-time arrivals and departures
underperformed on these metrics.
 JetBlue‘s prices 25% higher than Spirit Air and other discount airlines.

2. W h i c h o p p o r t

improve its performance? (6 marks)

Coach passenger revenue tends to account for 80% of all revenue generated by
air service companies. This statement tells us that, there is a huge potential in
Coach passenger. The case study says that, only 10% passenger uses business
or elite class tickets to travel. This shows that there is a huge market of coach
passenger waiting for a company to grab. And in jetblue’s case, the 80% of the
 revenue accounts from the coach passengers. So they can start new intercity
routes.

Aircraft fuel is JetBlue‘s largest expense category, representing 36% of total

operating expenses in 2014, compared to 38%in 2013. Now we know that, the
fuel is the major cost of the airline ticket. The price of ticket is much more elastic
to the price of fuel, which results, if the fuel prices goes up. Their business would
be at risk, as lesser number of people would be using their serves. So, we had
suggested that, the intercity new routes with more traffic would be beneficial, and
will serve with more revenues.

3. Suggest at least one strategy for the opportunity and one for the threat
identified in question numbered 2 for the firm to act upon. (10 marks)
JetBlue should start new coach passenger / economy class routes to new
location with more heavy traffic. The logic of this is that the revenue generated by
the coach passenger is 80% of the total revenue. The new coach passenger
intercity route will attract new customer, as people uses airlines for faster way
of transportation. This will also save fuel. And use the fuel more efficiently as
more people will be willing to travel in coach passenger seating. Moreover, the
biggest threat to JetBlue is the time management. People prefer airlines due to
faster mode of transportation. If JetBlue starts are new intercity route of heavy air
traffic, with the express lanes and express counters, so people would prefer
airlines instead of local transports and subways.