Jet Blue - Strategic Management - Assignment Example
Jet Blue embarked on an ambitious expansion plan, adding new planes and routes much faster than it added passengers. With the added capacity for more passengers, but customer base falling due to competition, Jet Blue started to face its most crucial problems. The profits started declining until in 2006 Jet Blue reported its first ever loss. Jet Blue could not utilize its planes to full capacity to meet the increasing fuel charges. Till now, Jet Blue hasn't been able to recover fully although the company is profitable again. (Press Release - Jet Blue, 2006) (Kahn, 2004)
The shareholders of a company want higher returns on the shares in the form of dividends and value of the share. On the other hand, a community does care what returns the shareholders get. They want the company to conduct a business that either gives a positive return to the community or does not hinder the community in either way.
