External Environment for Jetblue

External Environment: Opportunities and Threats for JetBlue Airway Societal environment After September 2001, melodic phrase travel decreased sharply and major airline companies had baffled the money. This bears those airline companies to increase the debt by tapping their credit lines and/or subject bonds. These actions were vital to help the carriers survive the dramatic decline in passenger levels and f ars, and the sharp increase in losses, but left hand most of the major airlines burdened with huge debt loads . Moreover, in that location are some airline companies that offer low-fares services such as JetBlue and Southwest. They are the airline companies that still growth during 2001 and make the huge profit during 2001 especially JetBlue because they serve in the trade that most major airline companies were ignoring. Today, this push major airlines companies such as Delta, Northwest, and many opposite major airline companies had filed for nonstarter to stop the debt that they created from 2001 and lost some market share to other low-cost and low-fare airline companies. Although, the oil price has increase in year 2002 and keep increasing until today because of too more consumption in U.S and China and war in Iraq relate as well up as the hurricane. This makes the oil price to climate up more than usual.

We estimate that displace costs take up about 19% of total airline revenues in 2004, up from 15% in 2003 and 13.6% in 2002. We also estimate that fuel costs are likely to rise to about 24% of total revenues in 2005 . Porter¡¦s Approach to industry Analysis for Jet Blue Airway Potential Competitors: Low ?æRivalry among active firms is intense, which affect the profits to be low. It¡¦s unattractive to the authority competitors. ?æHigh initial investments and fixed costs such as lease a fleet of safe and reliable aircraft, treat reasonable gate access and landing fees as well as high labor and fuel costs. ?æThere are the price competitions in the airline industry, which... If you want to get a full essay, order it on our website: Orderessay

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