The entrance of JetBlue in the Boston area low-cost carrier market in 2004 is seen as a direct attack on the Big airlines American Airlines and asks to decide whether to respond or not, and if so, how they react to it . Americans, already weakened financially can not keep JetBlue prices and remain profitable. It has the meaning of the Boston market in its overall economic picture and the possible reactions of other airlines to all measures that it needs to weigh. This case examines the recent economic … Read more »

The entrance of JetBlue in the Boston area low-cost carrier market in 2004 is seen as a direct attack on the Big airlines American Airlines and asks to decide whether to respond or not, and if so, how they react to it . Americans, already weakened financially can not keep JetBlue prices and remain profitable. It has the meaning of the Boston market in its overall economic picture and the possible reactions of other airlines to all measures that it needs to weigh. This case examines the recent economic conditions, the airline industry, the business models of 3 major types of airlines – Major, low-cost carriers and regionals – and their strengths and weaknesses in relation to the recent competition in the market, and the economic role Airports play. This case is divided into three parts: A, B, C. The case B includes American Counterattack – a free pass promotional offer from American on the day JetBlue opens. The case C describes the reactions of other airlines and JetBlue and a preliminary analysis of the Fallout: resulting financial and market costs and benefits. See related cases (case A: UV3906 and B case: UV3908).
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from
Ming-Jer Chen,
Jason Anderson,
Patrick Müller,
Jeff Tolonen
Source: Darden School of Business
2 pages.
Release Date: 08 October 2004. Prod #: UV3909-PDF-ENG
The Battle for Logan Airport: American Airlines compared JetBlue (C) HBR case solution

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