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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: JETBLUE -- FIRST AND ONLY:
First and only U.S. start-up airline to launch with more than
77 Airbus A320 aircraft , all $100 million in capital

powered by International Aero First and only airline to offer 24-channels of live satellite
television free at every seat
Engines (IAE) V2500 engines First and only airline to broadcast the Olympic Games live at
every seat
JetBlue has orders with Airbus for First U.S. airline to introduce "paperless cockpit" flight
a fleet of as many as 233 A320 technology
aircraft and has placed an order Only U.S. airline to be 100% ticketless

with Embraer for a fleet of up to First U.S. airline to install bullet-proof cockpit doors across its
fleet
200 EMBRAER 190 aircraft. The First and only airline to install security cameras in passenger
first EMBRAER 190 aircraft will be cabin for customer and crew safety

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.
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
Animal Planet GSN, the Network for programming - no other airline offers more live
Boomerang Games
satellite TV options. On flights longer than two
Bravo Hallmark Channel
The History Channel hours, a selection of first-run movies and bonus
CNBC
CNN Headline News HGTV features from FOX InFlight is also available. Over
Comedy Central MapQuest the next few months, we will be upgrading our entire
Court TV MSNBC fleet to include 100+ channels of XM Satellite Radio.
DIRECTV MTV
FREEVIEW National Geographic
Discovery Channel
ESPN Nickelodeon / Nick at
ESPN2 Nite
ESPNews SCI FI Channel
ESPN Classic Telemundo
Food Network The Learning Channel
Fox Movie Channel Travel Channel
Fox News Channel TV Land
FX (Freeview/Specialty
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?