Management made the first mistake by looking at the problem too simply, and not thinking about the end result fully. When I say this, I am talking about the planes and the weather, but it could also apply to the IT solutions that Jet Blue had implemented prior. The planes should have been left in the terminal until the weather cleared, instead of loaded with passengers and try to make the flight out on time when the weather was so bad. Management looked so blindly at the goal of achieving on time flights, that it ignored the reality that on time flights could not happen in this weather. (Rainer, R. K., Jr., & Turban, E. (2009)).…
JetBlue marketed themselves as the inexpensive alternative to other airlines. Therefore, the company had to eliminate all of the bells and whistles its competitors offered in an effort to keep costs down. This also meant that its operations staff and IT systems were significantly limited. As a result, the company was not prepared for an emergency situation of such a large scale. The bad weather on February 14, 2007 caught them off-guard; their IT systems in place were not capable of handling the overload of required information. Also, JetBlue’s staff was limited and not properly cross-trained in handling reservation, flight and crew applications. Additionally, poor policies and procedure in place, like the airlines policy to do whatever it could to ensure a flight was completed, even if it meant waiting for a few hours, contributed to the downward spiral that took place in 2007 for JetBlue. Management took a risk that the weather would improve and hoped that the decision they had taken would pay off with huge profits.…
JetBlue management’s assumptions concern future events, forward-looking statements involve risks, uncertainties and assumptions are based on information currently available to them. JetBlue struggles to deal honestly and fairly with all those who encounter in its world, it always tries to provide the accurate information to its customers, crewmembers, shareholders and stakeholders regarding any financial, environmental and social responsibilities.…
JetBlue was started in 1999 by David Neeleman, whose vision is to give high-quality and reliable flying experience in a budget airline. Through sophisticated technology, brand new aircrafts, impeccable customer service and low fares, JetBlue was on its way to achieve this vision. Although the low-fare travel industry was gaining momentum, the September 11 attack brought a massive downturn to the already-risky airline industry. However, JetBlue was still able to deliver good performance despite the circumstances. It offered the lowest cost per available-seat-mile of any major US airlines. In order to support JetBlue’s growth plan and offset portfolio losses by its venture-capital investors, JetBlue wished to raise capital through initial public offering (IPO). The purpose of this report is to determine the appropriate JetBlue’s IPO price given the available data.…
3. In light of the Feb. 2007 crisis how did JetBlue try to repair the damage to its reputation? Was the company successful?…
I personally think the JetBlue Airways officials would have been more prepared for such damaging results. I would have implemented an emergency storm system to assist all reservations agents with the equipment to operate during such severe storms and ensured that during an emergency that everything would go…
Gittel, J. H., O’Reilly, C (2001). JetBlue Airways Starting from Scratch. Boston: Harvard Business School Publishing. Pp. 1-14 (78-91).…
JetBlue Airways Corporation was formed in August 1998 as a low-fare, low-cost but high service passenger airline serving select United States market. JetBlue's operations strategy was designed to achieve a low cost, whilst offering customers a pleasing and differentiated flying experience. JetBlue has had a successful business model and strong financial results during that period, and performed well in comparison to other airline companies in the US during the period between 2000 and 2003. It had been the only other airline apart from Southwest airlines, to have been profitable during the aftermath of the September 11, 2001 attacks on World Trade Center, and at a time when the entire airline industry was experiencing losses.…
Although Ms. Amarsingh’s behavior violated corporate policy about the treatment of customers, being terminated appears to be a drastic decision. Customers traveling today are more frustrated by delays and perceived service lapses. As the vice president of JetBlue, I would look at the situation and come up with a solution to better protect my employees as well as send a clear message that we are committed to customer service.…
For example, one incident on United Airlines last week has caused them to lose 100’s of millions of dollars in stocks and airfare. In addition to this, they now have a lot of work to do to regain the confidence of their potential customers and stock holders. Sometimes it only takes one incident to lose confidence and trust.…
References: Bailey, Jeff. (Feb.19, 2007). JetBlue’s CEO Is ‘Mortified’ After Fliers Are Stranded. Retrieved August 30th, 2008 from www.nytimes.com…
JetBlue's culture is to differentiate itself through a customer-and employee-centric culture. Leadership would not tolerate any declines in employee or customer perceptions of the airline as a good place to work or a good flying experience. The changes started with a plan for improving employee engagement results as the thinking was, if the company improved those metrics, customers would receive great experiences (Spillover Effect).…
Jetbue attendants have a sense of fun about their jobs, and can do pilot informs over the public address system that yes, there’s a major storm coming into the New York City area but that we’ll get their on time anyway. And the plane and passengers do. So the traveller wonders. Is this for real? Or maybe the right question is, “how long can they keep up this nonsense?” Jetblue was rated highest in customer satisfaction of all US airlines in Conde Nast Traveler magazine’s 2005 Business Travel Awards- the fourth time in 6 years.…
• How should JetBlue position itself to counter the competitive challenges that it faced in 2007?…
What problems do you think might be associated with bringing customers together in the way that Boeing did?…