Industry Factors
In the period between 2001 and 2003, when JetBlue’s growth was at a peak, most of the major
airlines in the United States were suffering from the adverse effects of the September 11
attacks. JetBlue had taken advantage of its competitors’ weakened state to boost its own
growth. However, by 2004–2005, many of the airlines that were operating under Chapter 1128
began to recapture market share. These airlines were able to undercut competition by offering
very low fares, taking advantage of the protection of the bankruptcy laws. “It’s too much
competition from companies that are purposely allowing themselves to lose money. Companies
in bankruptcy right now, such as United and US Air, have been significantly slashing
their own fares,” said Rick DiLisi, a spokesman for Independence Air, a low-cost airline
based in Virginia.29 JetBlue was also affected by the low fares offered by United Airlines
(United) and Delta Air Lines (Delta), both of which were operating under bankruptcy protection
at the time, on transcontinental routes, American Airlines (American) and Continental
Airlines (Continental), which had escaped Chapter 11, also become aggressive about defending
market share, and launched several new transcontinental flights at low prices.