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Abstract

Entrepreneur David Neeleman, founder of the US based successful low cost carrier (LCC), JetBlue Airways Corporation, after stepping down as JetBlue's Chief Executive Officer in February 2008, announced the creation of a low cost carrier in Brazil to tap the nation's expanding appetite for flying. Neeleman planned for the carrier to start flying by early 2009. Neeleman saw plenty of opportunities in the booming Brazilian economy where air travel had been expanding annually at a double-digit pace. However, the Brazilian market, having infrastructural issues and being dominated by two airlines; Transportes Aereas Meridional and GOL Linhas Areas Inteligentes SA, that together commanded more than 90% of domestic airline market, presented a tough situation for the entrepreneur. This case, highlights the Brazilian airline industry scenario, in view of Neeleman's new LCC and provides scope to analyse the strategies, opportunities, and challenges of a new venture development for an entrepreneur.
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March 2008

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Abstract

Entrepreneur David Neeleman, founder of the US based successful low cost carrier (LCC), JetBlue Airways Corporation, after stepping down as JetBlue's Chief Executive Officer in February 2008, announced the creation of a low cost carrier in Brazil to tap the nation's expanding appetite for flying. Neeleman planned for the carrier to start flying by early 2009. Neeleman saw plenty of opportunities in the booming Brazilian economy where air travel had been expanding annually at a double-digit pace. However, the Brazilian market, having infrastructural issues and being dominated by two airlines; Transportes Aereas Meridional and GOL Linhas Areas Inteligentes SA, that together commanded more than 90% of domestic airline market, presented a tough situation for the entrepreneur. This case, highlights the Brazilian airline industry scenario, in view of Neeleman's new LCC and provides scope to analyse the strategies, opportunities, and challenges of a new venture development for an entrepreneur.

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Location:
Industry:
Other setting(s):
March 2008

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