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
Low Operating Costs
6.03 cents mile vs.
10.91 industry
average
13.4 hrs average
utilization per aircraft
Productive workforce
Low distribution costs
Direct Bookings
Single aircraft
New
Brand




Weaknesses
Hubs
Destinations
Small Airlines
Single Class
Debt
Floating interest
rates
Additional
Financing problems
Maintenance Costs


Competitive Advantages
Bulletproof Cockpits
Low fares
Experienced Management
Leather Seats
DirecTV
XM Radio coming soon!

Facts
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
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.

Facts
INFLIGHT ENTERTAINMENT

A&E
Animal Planet
Boomerang
Bravo
CNBC
CNN Headline News
Comedy Central
Court TV
DIRECTV
FREEVIEW
Discovery
ESPN
ESPN2
ESPNews
ESPN Classic
Food Network
Fox Movie Channel
Fox News Channel
FX






GSN, the Network for
Games
Hallmark Channel
The History Channel
HGTV
MapQuest
MSNBC
MTV
National Geographic
Channel
Nickelodeon / Nick at
Nite
SCI FI Channel
Telemundo
The Learning Channel
Travel Channel
TV Land
(Freeview/Specialty
Events on weekends)
USA Network
VH1 Classic
The Weather Channel
WNBC
All JetBlue aircraft are equipped with an in-seat
digital entertainment system (individual seatback
monitors, armrest remotes with channel and volume
controls) offering 36 channels of free DIRECTV
programming - no other airline offers more live
satellite TV options. On flights longer than two hours,
a selection of first-run movies and bonus features
from FOX InFlight is also available. Over the next
few months, we will be upgrading our entire fleet to
include 100+ channels of XM Satellite Radio.
Cities Served
Aguadilla, Puerto Rico
Boston, MA
Buffalo, NY
Burbank, CA
Burlington, VT
Denver, CO
Fort Lauderdale, FL
Fort Myers, FL
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
San Diego, CA
San Jose, CA
San Juan, Puerto Rico
Seattle, WA
Syracuse, NY
Tampa, FL
West Palm Beach, FL
Washington, DC
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?