JetBlue Airlines and Government Regulations - Coursework Example

Introduction

JetBlue Airways Corporation commonly known as JetBlue is a low-cost airline that is majorly based in the United States of America. It has its headquarters in the Long Island city which is in the neighborhood of New York and its main base of operations at the John F Kennedy International Airport. It has other offices in Utah and Orlando Florida. It currently has its destinations in various parts of the Caribbean, Mexico, Central and even South America.

Business Environment

The business world barely complains whenever there is a company that is carrying favor with specific government regulations or any preferential treatment, and this happens mostly because corporations most of the time believe that they may be the next in line for a favor. Or even if possible someday the favored light will shine on them. However, whenever they see a terrible regulation or increased taxes they brace for a fight, and this is because tax cuts and regulations can offer an advantage to a company. To the extent that it's stated that there are companies that regulations alone can make them need a bailout or even run out of business (Hamilton, 1999). JetBlue spends a fortune in order to make sure that its operating under the rules that are given in the safety regulations. And such trends occasionally forces it to try and adjust. Even though as a big corporation there are certain privileges it obviously enjoys as compared to other airlines a highly regulated industry by the government means that they will have to spend a lot to meet the requirements that have been set by the authorities. And as such the current tax cuts that they are about to be handed may be sending them celebratory spirits. Though nowhere in the JetBlue operations have they signaled that they intend to move out of the United States due to high taxes. The current tax cuts may as well give them a big reason to stay.

Sustainability

With the house tax bill expected to slash corporate tax to about 20%, this will most definitely bring a lot of changes in ways several companies JetBlue included will be doing business. On the fact that it will be getting tax cut of the century may help enhance its sustainability. In that JetBlue, as an institution may be able to operate within its capital capacity and these goods may trickle down to consumers of their services as well (Byrnes et al., 2013). This may mean that they may find their infrastructure spending affordable and as such reduce some of the costs that are usually most of the times carried down to the customers. This may be more sustainable than ever thought (Tobia & Masroma, 2016). Because there are instances where companies have sought to move their headquarters out of the country because of what they cry as unsustainable tax rate. This bill has been wildly criticized as not good for the common man, critics have stated that the theory of “Trickle-down economics “ has never worked. But whether they work or not, this tax cut should be and will be a good thing for JetBlue airline.

Internal Resources

To JetBlue this should be the perfect opportunity they must have been waiting for. And as it appears just like other corporations they are quietly waiting for this opportunity. JetBlue has been known for its excellent customer care and they show through the number of times they have been recognized for it. It’s also been recognized as one the best low-cost airlines, and it seems they want that same old glory back again. Therefore with the fact that they will have a massive tax cut, this is the opportunity for them like they intend to, increase the rate of customer satisfaction by not only reviewing their prices but also improving further their customer services and care.

JetBlue has continuously wanted and to some extent given its customer's very attractive amenities, by giving their customers a flying experience like no other. With this massive tax overhaul, they might just do that wholesomely. This airline is known to cater very well to those customers who have felt that they have been underserved by other carriers; therefore they seek to make the ultra-price sensitive travelers feel at home by their very generous and often highly competitive offers, and with the tax cuts things might even be better for a traveler. Therefore it seeks to make most of this opportunity to attract even more customers and widen the range of benefits it from time to time enjoys as a customer-oriented airline as the amenities have, are and will continue to attract more customers.

Communications

The situation with the massive tax overhaul has gotten debates all over the country to various CEOs and stakeholders of multiple companies. This has been done through discussions and talks throughout all the media on the government action on the taxes (Serrato & Zidar, 2016). It has also attracted extensive expert analysts who have seen to the fact the handling of tax is a gift to major corporations like JetBlue and it may be useful for the businesses but may not carry the same benefits to an average working class person. Even though the major corporations have been most of the time on the sidelines of this debate, they have quietly supported this idea because of the benefits that it carries for them (Tobia & Masroma, 2016). Because JetBlue believes and has always felt that in the instance the major profits like the one they are about to get are not tampered with they mean well for the worker. The truth is that such an analysis remains to be seen, on whether the results will mean well for an average person like it sure does appear to be good for JetBlue.

Company Image

JetBlue as one of the best airlines has had government regulations affect it one way or the other. This is because whenever there are government regulations that are tough, it always means they have to either cut down on how they spend because of the impact that the regulations may have on their operations or will have to increase the funding they had originally allocated as their operations cost. This is usually to ensure that the customer barely notices the difference (Serrato, 2016). And as such it has a very positive image. And now with the tax cuts poised to take effect shortly, the level of service and customer care is highly expected to increase to one of the best quality. Thus people may be looking forward to using JetBlue with the expectation that the ticket prices may be as affordable as they continuously are and perhaps even lower. Even though corporations such as JetBlue always stand accused of manipulating the government processes by use of lobbyist’s this may be an excellent thing going on for not just JetBlue customers but also employees. Therefore this is wildly expected to boost the already positive image and the ever positive feedback the company has enjoyed continuously for all those years.

Response

It’s no doubt that tax cuts have elicited a vast array of reaction from those who support it to those who don’t. But there the small companies who have stated that the fact that there will be a tax cut does not in any way affect them, it, however, gives them a lifeline. In that when there is a tax cut then there is a likelihood of shift that will happen. Most of the large corporations may stop going overseas for their products and come back to take their products from the United States and as such boost small businesses (Baccini et al., 2014). And as such there are very many companies who may shift their ways and basis of operations because of the tax cuts that they are about to receive. Similarly, there are those businesses who have moved out or had started shifting their operations to other countries because of what they may have referred to as high taxes (Serrato et al., 2016). Such companies may decide to either come back or briefly halt their move to other countries as they monitor how things will go. There is also a chance that with the tax cuts there may be an increase in wages but then this has been the debate for years on what is considered the minimum wage. And even though it will all be left to the companies to decide there is a chance there may be an increased income, though most of the time these benefits go to the top official’s leaving people on the ground with nothing. This may happen with JetBlue. There is a chance it may choose to reward its employees or perhaps improve the working conditions for their employees as a reactionary stance to the massive tax breaks they are going to get.

Impact

Companies like JetBlue with the massive tax cuts that critics see as enormous tax scum one of the immediate things that may happen is the increased spending in the United States rather than seek good or products from other companies that are overseas. Let’s give an example, with the tax cuts in the instance that JetBlue needs to increase its fleet it may heavily consider ordering from companies that like Boeing that are in the United States rather than go to Airbus which is located outside of United States. This means that its consideration of the United States market may resonate with other companies who may also seek United States markets and thus increase its spending in the United States. This could mean that in the long term it could lead to boom within the country. This could also mean that in the instance that JetBlue had a stock pile of cash outside the country, then it may consider bringing it back in the country (Baccini et al., 2014). This may mean that JetBlue can develop even further and its development can be a very good news for the United States job market where very many opportunities are likely to come up.

External Resources

The tax cuts debate have taken over Washington in the recent times and as such it was keen to notice the number of lobbyists that had been working on the tax bill. So much that it’s estimated that for every member of Congress chance are that there were 11 lobbyists. Most of this lobbyists were working on the deductions that are required so that corporations like JetBlue can get the tax cuts that had been promised under the Trump administration. Public affairs professionals have equally gotten behind podiums to defend the fact that this tax bill means more for the citizens that they mean for the corporations (Archer, 2017). And the argument has continuously been said that a thriving business sector means that there will be more opportunities for people and income spending by household will rise something that is not supported by fact as bipartisan groups have come up against the bill arguing that it means that things like Medicaid will be interfered with. This is something that both the lobbyist’s and other people in the government seem to disagree with.

Conclusion

The proposed massive tax cuts if put in place will be very good to companies like JetBlue. Because it will not only save them the tax burden, but it will also give them the opportunity to expand and explore without fear of going under. Similarly, it will be good for them in that they will be able to offer customers better services without a doubt that government taxes and regulations may weigh them down. However even with all the good this tax cuts and reductions of rules are good for businesses like JetBlue, there is confusion on what it may mean for working class individuals.