JetBlue will fly from Boston Logan Airport and American Airlines felt the heat. JetBlue has grown eight times faster than Southwest Airlines, a longtime leader in low-cost carriers, and the rapidly expanding low-cost segment of the industry, 30% of all flights of the U.S. is projected to rise to 40% by 2006, representing an increase of calls to "major" airlines. For the U.S., the entrance into JetBlue to Boston via Logan signaled the time of reckoning. If the airlines are opting for the standard competitive response, such as lower prices and a frequent flyer program? Should she take on JetBlue at Logan only, or in all markets where it will compete with the low-cost bidder? U.S. must weigh the importance of the market in Boston's overall economic picture and the potential responses of other airlines for any action it takes. This is considered the economic conditions affecting the airline industry, the business model of the three main types of major airlines, low-cost and regional, and their strengths and weaknesses in terms of the latest competitive market conditions. In the case involves an American counter-attack and the case with the answers of other airlines and JetBlue, including the review by the financial and market costs and benefits. "Hide
by Ming-Jer Chen, Jason Anderson, Patrick Muller, Jeff Tolonen Source: University of Virginia Darden School Foundation 25 pages. Publication Date: 08 Oct 2004. Prod. #: UV3906-PDF-ENG
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