jetBlue Airways

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jetBlue Airways

• By Rachel Andersen, Joe Bossert, Jarvez Hall,
  Jeff Hensley, Brandon Kirkbride and Adam Tolman

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Agenda

• Strategy
• History
• Competitors
• Strengths/Weaknesses
• Competitive Advantage
• Facts
• Financials
• Advertising
• Future of Company

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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.

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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

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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.

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Competitors

• Southwest
• American
• Delta
• Northwest
• United
• Continental
• Pan Am
• Horizon/Alaskan

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Strengths/Weaknesses

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

• 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

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Competitive Advantages

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

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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.

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Facts
AE 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.

• INFLIGHT ENTERTAINMENT

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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

• San Diego, CA
• San Jose, CA
• San Juan, Puerto Rico
• Seattle, WA
• Syracuse, NY
• Tampa, FL
• West Palm Beach, FL
• Washington, DC

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Financials Cost Structure
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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

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An Inside Look

• Tour
• In flight Entertainment
• Blue Cities

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The Unadvertising

• Hot Shorts

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• 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

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You can purchase more than a flight
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Stock price
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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

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Sources

• http//home3.americanexpress.com/corp/pc/2005/true
  blue.asp
• http//archives.californiaaviation.org/airport/jpg
  00600.jpg
• http//www.jetblue.com/
• http//quotes.nasdaq.com/asp/summaryquote.asp?symb
  olJBLU60selectedJBLU60
• http//64.106.229.11/jetblue2004/balance.html
• http//www.brandingblog.com/2004/05/branding_at_je
  t.html
• http//www.sjc.org/AirportReport/Mar04/AR_content.
  html

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• Just to end

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Questions?