JetBlue Airways is an airline that operates in the United States and offers low-cost services to travelers. The headquarters of the company are in New York and the main base is the John F. Kennedy International Airport. It serves at least 97 destinations, and thus, it is an influential airline service provider. Founded in 1999, it maintains a fleet of 300 planes (United States Securities and Exchange Commission). The company faces competition from other airlines and has to offer cheap services with quality.
Jet Blue’s Presence outside the U.S.
The carrier operates flights in the United States as well as has other destinations, such as Bermuda, Bahamas, Colombia, Costa Rica, Dominican Republic, Jamaica, Grenada, Peru, Mexico, Puerto Rico, Tobago, Trinidad, and Cuba among others (JetBlue, 2016). The company serves passengers through direct flights to these destinations with the frequency from one to four on a daily basis. It also has a partnership with other airlines to facilitate the transfer of people through international flights, but the sale of seats strictly remains under control of the respective carrier. Partners under agreement include Aer Lingus, Lufthansa, South African Airways, and Air China among others.
JetBlue’s Involvement in a Global Supply Chain
The carrier sells drinks and snacks in planes and airports, and since international passengers purchase them, the business contributes to the global supply chain. JetBlue provides transport services of passengers and goods to various destinations that amount to 47 within the U.S. and 21 at the international level. The company makes at least thirty flights a day and has partnerships with other international carriers to facilitate flights at the international level. By ferrying passengers, the carrier also links buyers and sellers facilitating the supply of goods and services. The airline offers free entertainment in planes in the form of television screens and the free Internet (United States Security Exchange Commission, 2010). Advertisement channels facilitate the flow of advertisements and educational information across international boundaries.
The Effect of Globalization on JetBlue
The globalization of trade and air transport has greatly affected Jet Blue Airways since it has led to the increased demand for intercontinental and international travels. Since the airline cannot serve passengers at all corners of the world, the only way to maintain competitive edge in the globalized air transport is through alliances with other international firms (Hernandez, 2010). Such agreements enable JetBlue to benefit from a transfer of passengers from other airlines and increase its competitiveness. Globalization has also led to increased competition, and in this case, Southwest Airlines is a major rival of JetBlue Airways, and this has prompted the latter to use the website and online travel platforms to reach out customers widely (Hernandez, 2010). An increase in airlines has also prompted the company to offer very low prices to continue attracting a large share of the market. Globalization has also contributed to a rise in the demand for flights, and thus JetBlue has engaged in the introduction of new routes to target more travelers.
The Possibility of JetBlue Pursuing a Global Supply Chain Strategy for the Future
The company has a strong background that has facilitated its growth. Thus, it has the potential to pursue a global supply chain strategy in the future. However, this move is prone to many challenges, which may inhibit the growth of the company and an increase in routes leaving the only option to enter into a partnership with other carriers to facilitate the transfer of passengers to all operational destinations. Among the problems that may hinder the expansion of routes, there are operational costs, since the firm will have to spend a lot of money on wages, maintenance of the enormous fleet of aircrafts, and other costs associated with maintaining operational bases in international airports. The inequality in the prices for fuel in many countries may pose a challenge to the airline. Thus, it may incur losses due to the increased expenditure on fuel. Another challenge can be the feeling of regional identity, and this can compel the governments of various countries to protect their respective airlines imposing restrictions or hard operating terms on foreign carriers. It can also be difficult for the firm to predict the future changes and trends for a very wide network of flights. Thus, it can be risky to engage in uncontrolled expansion.
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Conclusion
Jet Blue operates in and out of the United States in both regular and chartered flights. The firm participates in the global supply chain through the sale of drinks and snacks as well as linking sellers and buyers through transport. The firm is affected by globalization through increased demand for flights and high competition that requires an alliance with other partners. Lastly, it has the potential of adopting a globalized strategy in the future, but there are many challenges, including inequality in prices for fuel in different countries and uncertainty. The best option is therefore forging alliances with other international airlines.