II. Company Descriptions: JetBlue & Southwest
III. The Strategic Management Process
i. Mission & Objectives
ii. External Analysis
iii. Internal Analysis
iv. Strategic Choice
IV. Evaluations and Recommendations
V. Summary
VI. References & Appendix
ⅰ. Reasons of Selection: JetBlue and Southwest
The US passenger airline industry is competitive and highly sensitive to GDP and economic situations. And their profits are sensitive to changing fuel costs, average fare levels and demand of passengers. Once unexpected situations happen like inclement weather, international events and terrorism, passenger demand will be extremely lower than before, so their business will have trouble.
There are competitors in regional airlines and there are competitive factors in this industry such as fares, capacity, customer service, route, flight schedules, models of aircraft, safety records, reputation of brands, promotion and facilities in aircraft things like that.
Since 2001, many regional airlines have faced significant financial restructuring, including bankruptcies, mergers and consolidations. These processes caused lower cost structure by reducing operating costs, including labor costs, debt terms, lease and fleet, pension plans, giving workforce flexibility.

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