JetBlue

Definition

JetBlue is a major American low-cost airline that has played a significant role in the context of the Great Deregulation Experiment. It was founded in 1998 and has since become one of the leading carriers in the United States, known for its innovative approach to customer service and its focus on providing affordable air travel options. The Great Deregulation Experiment refers to the series of policy changes in the airline industry that occurred in the late 1970s, which led to the removal of government regulations and the introduction of increased competition. This shift has had a profound impact on the industry, including the emergence of airlines like JetBlue that have capitalized on the new market dynamics.

5 Must Know Facts For Your Next Test

1. JetBlue was founded in 1998 and has since become one of the largest low-cost carriers in the United States, with a focus on providing affordable air travel and high-quality customer service.
2. The airline's business model is based on offering low-fare tickets by reducing or eliminating traditional airline services and amenities, such as free meals and checked baggage, in order to keep operating costs low.
3. JetBlue has been at the forefront of the industry's technological advancements, including the introduction of in-flight entertainment systems, satellite-based Wi-Fi, and mobile applications that enhance the passenger experience.
4. The airline's route network has expanded significantly since its inception, with a focus on connecting major metropolitan areas and popular leisure destinations across the United States.
5. JetBlue's success has been attributed to its ability to capitalize on the deregulation of the airline industry, which has allowed for increased competition and the emergence of low-cost carriers that offer more affordable air travel options to consumers.

Review Questions

• Explain how JetBlue's business model has been influenced by the Great Deregulation Experiment in the airline industry.
  • The Great Deregulation Experiment in the airline industry, which began in the late 1970s, has had a significant impact on JetBlue's business model. The removal of government regulations over fares, routes, and market entry has allowed JetBlue to emerge as a low-cost carrier, focusing on providing affordable air travel by reducing or eliminating traditional airline services and amenities. This strategy has enabled JetBlue to keep operating costs low and pass the savings on to customers, which has been a key factor in the airline's success and growth since its inception in 1998.
• Analyze how JetBlue's innovative approach to customer service and technology has contributed to its competitiveness in the deregulated airline industry.
  • In the context of the Great Deregulation Experiment, JetBlue has differentiated itself from its competitors by focusing on providing high-quality customer service and embracing technological advancements. The airline's introduction of in-flight entertainment systems, satellite-based Wi-Fi, and user-friendly mobile applications has enhanced the passenger experience and set it apart from other low-cost carriers. This innovative approach, combined with JetBlue's commitment to maintaining a positive customer experience, has helped the airline attract and retain a loyal customer base, giving it a competitive advantage in the deregulated industry.
• Evaluate the role that JetBlue has played in shaping the competitive landscape of the airline industry in the post-deregulation era.
  • JetBlue has been a significant player in the post-deregulation era of the airline industry, helping to shape the competitive landscape. The airline's successful business model, which focuses on providing affordable air travel through cost-saving measures, has put pressure on legacy carriers to adapt and become more responsive to consumer demands. Additionally, JetBlue's emphasis on customer service and technological innovation has raised the bar for the industry, forcing other airlines to invest in improving the passenger experience. By challenging the traditional norms of the airline industry, JetBlue has contributed to the increased competition and innovation that has characterized the Great Deregulation Experiment, ultimately benefiting consumers through more choices and better air travel options.

Related terms

Airline Deregulation Act:

The Airline Deregulation Act of 1978 was a landmark legislation that removed government control over fares, routes, and market entry, leading to the deregulation of the airline industry in the United States.

Low-Cost Carrier: A low-cost carrier is an airline that offers low-fare tickets by reducing or eliminating services and amenities, such as free meals and checked baggage, in order to keep operating costs low and pass the savings on to customers.

Airline Competition: Increased competition in the airline industry following deregulation has led to lower fares, more route options, and a greater focus on customer service and innovation as airlines compete for market share.