Porter Forces JetBlue Airways Analysis

Few inventions have changed how people live and experience the world as much as the invention of the airplane. During both World Wars, government subsidies and demands for new airplanes enormously improved techniques for their design and construction. Following the World War II, the first commercial airplane routes were set up in Europe. Over time, air journey has become so commonplace that it would be hard to imagine life without it. The airline industry, therefore, certainly has progressed. It has furthermore altered the way in which people live and conduct business by shortening travel time and altering our concept of distance, producing it possible for us to visit and conduct business in places one time considered remote.

The JetBlue Airways exists in an intensely competitive market. In recent years, there has been an industry-wide shakedown, which will have far-reaching effects on the industry's trend in the direction of expanding domestic and international services. In the past, the JetBlue Airways industry was at smallest partially government owned. This is still factual in numerous countries, but all foremost airlines have come to be privately held.

JetBlue Airways also revenue from transporting cargo, selling frequent flier miles to other companies and up-selling in flight services. But the largest proportion of revenue is drawn from regular and business passengers. For this reason, it is significant that you take consumer and business confidence into account on top of the regular factors that one should consider like earnings development and debt load. (For more about the buyer self-assurance review, glimpse Economic Indicators: Consumer Confidence Index).

Business travelers are significant to JetBlue Airways because they are more likely to travel some times throughout the year and they are inclined to purchase the upgraded services that have higher margins for the airline. On the other hand, leisure travelers ...