JetBlue Airways is an up and coming airline, specializing in non-stop flights to and from highly traveled destinations. JetBlue’s target clientele is business men and women who demand high service at low cost.
JetBlue is growing at an extreme rate which must decrease in coming years. In the last two years, JetBlue grew at over 100%, I quickly decreased the rate of growth until it was the industry average for the last years of my model.
• Beta – I was unable to find this value anywhere so I took an average from comparable companies in the same industry: AirTran, Southwest, and Delta. This gave me a beta value of about 1.25, which seems slightly low to me
• I assumed that the JetBlue would become much more eff