Business 10th Edition by Ferrell,Geoffrey Hirt,Linda Ferrell

Exercise 4

Flying at a Higher Altitude: JetBlue Introduces Luxury Seating
JetBlue, the well-known discount airline, is changing its marketing mix to compete with other airlines. Historically, the airline offered only coach seating and, like Southwest Airlines, allowed bags to be checked for free. However, as the dynamics of the airline market have evolved, JetBlue has not been adaptable. As a result, it has lost market share. While the low-cost model appeals to many flyers, those who have to travel long distances will pay higher prices for more comfortable seats.
In order to cater to a wider range of consumers, JetBlue is introducing premium seating on some of its cross-country flights. Flyers will have the option of simply more leg room at the front of the plane or, if they rather, they can opt for suites. Suites are seats equipped with a massager and density adjuster that converts into a bed. The passenger can also have more privacy at these seats with a moving partition serving as a closed door. Hot meals, free alcoholic beverages, and a larger screen on which to watch DirectTV are also offered for these luxury seats. JetBlue is trying to keep up with the competition by optimizing its product offerings and varying its price points. 43
Do you think JetBlue can successfully transition from a lowcost carrier into a more high-end airline?