JETBLUE CASE STUDY Research Paper Example | Topics and Well Written Essays - 1500 words

JETBLUE CASE STUDY - Research Paper ExampleHowever, a disturbing particular slightly turn over of Jetblue is that, far from increased percentages of sales over the years, the percentages argon actually falling. Sales for 2006 represent a 36% increase over 2005, but sales proportion of 2007 is only around 20% increase over 2006. It is imperative that sales growth is consistent through bigger quantum of sales and revenues over profitable segments. Coming to variable be, it is seen that the proportion is larger for variable costs rather than fixed. Aircraft fuel, as expected, holds the largest chunk. insurrection fuel prices is one of the principal risks in the airline business business. Jet fuel costs were considered the second largest operate cost in the airline industry, after module costs. Coming to hedging it is seen that occasionally the company should corrupt crude oil options contract or trade in agreements. These commodity prices are connected with aircraft fuel, maki ng differential gear of them effective. These are short term measures designed to hinder against steep increases in prices of aircraft fuels.Lower distribution costs, set about selling overheads and higher instance of productive output. This has been brought about by exercising of electronic ticketing and maximum use of internet services for airliners.Only two types of aircrafts in use The... Coming to variable costs, it is seen that the proportion is larger for variable costs rather than fixed. Aircraft fuel, as expected, holds the largest chunk. Rising fuel prices is one of the principal risks in the airline business. Jet fuel costs were considered the second largest operating cost in the airline industry, after staff costs. Coming to hedging it is seen that occasionally the company should purchase crude oil options contract or swap agreements. These commodity prices are connected with aircraft fuel, making derivative of them effective. These are short term measures designed to counteract against steep increases in prices of aircraft fuels. Four possible reasons on how the company has, up to now, managed and achieved low operating costs are as follows.Lower distribution costs, lower selling overheads and higher instance of productive output. This has been brought about by use of electronic ticketing and maximum use of internet services for airliners. Only two types of aircrafts in use The Company flies only two types of aircrafts, A320 and Embraer 190. Thus, it is possible for Jetblue to plan and control its operations, servicing and maintenance. Moreover, its pilots are more comfortable flying aircrafts whose technical and flight systems are well known to them and this helps in attaining crowning(prenominal) flight efficiencies and lower chances of accidents or operational malfunctioning. Higher aircraft utilization By effective and harmonized plan of aircrafts, and well- planned movement control, it is able to spread its fixed costs over a larger deem of flights and available seat miles. Some of their aircrafts are on day-and-night