The aircraft industry is dominated by two companies,
Airbus and Boeing. Due to the weak economy following
September 11, 2001, their orders for new commercial planes
fell sharply. However, as commercial business improved,
the large manufacturers profited from the buoyant space
and defense markets. Embraer, the number four aircraft
manufacturer, has seen lackluster commercial sales, but is
benefiting from increased sales in the military sector.
Typically, the low-cost airlines operate few aircraft
types, reducing their maintenance, scheduling, and training
costs. JetBlue currently owns two airplane models,
and its growth plans include the addition of 96 Airbus
A-320s and 92 Embraer E190s.Cost efficiencies would
be lost if JetBlue switched suppliers, exposing the firm
to any problems related to either of its aircraft suppliers.
But currently more pressing for JetBlue are the challenges
associated with the airline industry.