Jetblue

JetBlue Front End After a thorough review and abstract of JetBlue Airways business strategy and industry, a few issues arise as to whether JetBlue will be able to sustain its growth and go along to prosper in an already turbulent environment. Thus far, JetBlue has whip most challenges in the industry that fellow competitors seem to go on prey to. JetBlue has maintained a constant degree of victory due to their distinctive commitment to customer service feature with its ability to be a low cost leader. However, oversight must slip away to be innovative in their ideas and stewardship if JetBlue is to continue its success. The major issues that require much thought and examination by management are the management of operating costs throughout the company and competition. Managing of Operating Costs. Implementing A Hedging Strategy Jet enkindle expenses for any airline cost a substantial tot and nonetheless, over the past several years, prices in the industry stick increased significantly causing evident pressure on all airlines. By failing to hedge the risks of rising trade good prices, JetBlue will be affectively bearing all these unwanted risks in its business model.

Although JetBlue has minimally addressed this issue by reasonably hedging its fuel costs, much(prenominal) effort and expertise is demand in this crucial area if Jetblue is to continue its success. It is super recommended that a dynamic hedging strategy be employed and continually managed throughout the year. The two options that are available are everyplace the Counter instruments and Exchange traded features. Though the first option is more expensive and more risky due to counterparty risk, it is far more customizable which will be better suited to our changing needs. When work on the exchange since there are no futures on Jet fuel, futures on crude or heating anoint will have to be used because they are highly positively correlated. During hedge implementation, JetBlue must vary its oil... If you want to energize a full essay, order it on our website: Orderessay

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