GROUP 4: ANANDITA JINDAL BIKRAMJEET CHEEMA CHAITANYA BAKSHI MEGHA JASWAL NEENA NAUTIYAL

Case discusses the unfortunate storm of February 2007

which quite diminished the image of Jet Blue.

The storm caused cancellation of almost 1900 flights.
10 planes sat unable to move on the icy runways in New

York, trapping passengers up to 10 hours inside the plane.

This service failure lead to huge amount of refunds.

This was the worst crisis in the companys history.

The airline was founded in 1998 by David Neeleman. Initially the name was new air corporation. Changed the

name to jet blue in 1999.

Offer low cost and high quality service to and from New

York City.
Providing types of amenities reserved for pricier carriers.

First flight in February 2000. Neeleman took the company public in April 2002

While the airline industry faced:

Rising fuel prices Heavy debt loads Increasing pension liabilities

JET BLUE EFFECTIVELY ESTABLISHED AS A POWERFUL BRAND.

JET BLUE had no effective plan that would have helped

defuse the situation that they were in.

Restore the faith of disillusioned customers whose travel

plans are affected

Earn favourable coverage by U.S media outlets as Jet blue

continues to expand
Reassure shareholders that Jet Blue remains a viable and

promising vehicle for investment.

Ensure employees feel like they are empowered to perform

their responsibilities effectively

Convince federal government regulators that JetBlues top

priorities continue to include safety and customer service.

Jetblue can depend on David Neeleman as he understood how to

cut cost and keep operating expenses low, which results in rapid expansion of Jetblue.
During ice storm in 2007 passengers were grounded at an

expense that cost Jet Blue 30 million.

Neeleman quickly instituted the Passenger Bill of Rights. Started setting systems in place that could hold more reservation

agents in such critical times.

Ques2. Did the executives at Jet Blue learn enough from their service failure to fix what was wrong and prevent it from happening again? If not, what further action should be taken? What strategic and operational changes should be made to ensure the company's full recovery?

In order for JetBlue to regain their image they would

need to take necessary steps beyond refunds and vouchers.

Advertising campaigns to highlight the improvements.

Expressing that this was just a one time mistake, how

they understand the problem, and finally how they will fix the problem.
JetBlue should take all the blame for the horrid incident. If JetBlue blames the weather, the customer would

simply say that the other airlines didnt have this problem.

 JetBlue should take a few steps to better their

communication with their stakeholders during this incident.

They should held meetings to show that they were very

concerned but it would be ok in a very short time.

They could have explained how they would not only re-

compensate their shareholders, but offer small and reasonable incentives for staying on board.

Adding new locations . New planes will reduce the risk of losing customers due

to unplanned delays.
More media advertising should be done instead of

depending on word of mouth.