JetBlue Turnaround Plan

JetBlue CEO Joanna Geraghty has been at the helm for about nine months, and last week she unveiled the carrier's plan to get back to profitability after years of losses and declining performance.

Geraghty's turnaround plan has three primary workstreams:

1. Cut costs to enable JetBlue to continue to serve its traditional value-conscious customers profitably.
2. Eliminate unprofitable routes. Said differently: shrink to improve earnings.
3. Offer first-class cabin and airport amenities like lay-flat seats and branded airport lounges.

The first two items make complete sense for a low-cost carrier, while the third could make you wonder where Geraghty is going with JetBlue strategically. It seems unlikely that the carrier will be able to compete with the likes of Delta and others on first-class amenities (presumably at market/route competitive pricing). After all, who is going to pay ultra-premium fares to ride on a budget carrier? But, if the strategic