JetBlue’s goal was to “bring humanity back to aviation” and to promote the most innovative ideas for enhancing customer satisfaction. JetBlue is a low-cost carrier that focuses on the market for air travel. It offers the best rates, while still providing quality service and unforgettable moments to its customers. JetBlue was the only airline that had a single service level, as if to suggest equality between humans. The seats were all made from leather and had more legroom. Each customer was also fitted with a TV screen. Its reliability also helped the airline to be ranked as first in customer satisfaction. JetBlue has implemented a series of strategies in order to achieve the JetBlue customer experience. They have hired highly motivated non-unionized personnel and made flight cancellations the last resort. This is because they believe that customers prefer arriving late to a destination rather than their flights being cancelled.
What were the challenges that the Airline faced when it was expanding rapidly, and what responses did they make?
As the airline grew, its operations became more complex. Although the change was not apparent to management, it was inevitable. The airline, for example, won several awards for its customer service by prioritizing late takeoffs. Nevertheless, due to an increased fleet size and more flights each day, these disruptions can often result in significant setbacks. JetBlue, instead of cancelling the scheduled flights, waited for the storm to pass, allowing the flight to take off. JetBlue was able to earn a stellar reputation in comparison to other airlines, who had already cancelled flights. The long wait ended up leaving nine planes and their passengers stranded at the airports. Over 30000 passengers also found themselves stranded. The ripple effect was that over 1,000 flights were cancelled in the following six days, resulting in losses of $17 million in revenue as well as $24 million compensation vouchers. The airline had to make significant changes after the crisis. Russell Chew replaced Chief Operating Director David Barger. Russell Chew’s aviation industry experience was renowned, as he served in a comparable role at FAA and the Systems Operating Center of American Airline. The airline also changed its approach to dealing with problems, from reacting by doing heroic stunts, to preparing and anticipating disruptions. The airline implemented IROP integrity for flight scheduling. The system included a cancellation desk that was activated after ten or so cancellations.
What went wrong exactly? Why? What or who was the culprit?
The weather was accelerating from snow to rain and then ice pellets. Nine planes with passengers waiting to take-off were unable to be towed away from the gate because the taxiways had become blocked by ice. Even worse, equipment used to clear the taxiways of ice was also ice-covered, making it unable to help. More than 30,000 connecting passengers were stranded at other airports due to the planes remaining on the runway for six hours. David Barger’s failure to act as chief operating officer was ultimately the cause of the accident, and he was immediately replaced after the crisis. However, given that the airline is biased against cancellation of flights, this failure was more than just circumstantial.
How did the airline manage the crisis? Why or not? What other options are there to resolve the problem?
By hiring a Chief Operating Office with extensive experience, the airline increased the management’s competence, which will enable it to better identify and prevent future crises. Early flight cancellations are also crucial to preventing any misjudgments, or under-estimation of crises. The IROP Integrity also offers major improvements for operations. For example, a standardized approach to interpreting the severity and impact of an interruption. Previously, this was dependent on the MOD. The interpretations will be more accurate and reduce or eliminate the impact of future incidents. The airline should have also considered moving operations to another airport to avoid impacting passengers not bound for JFK. What could be the negative effects of this situation for JetBlue? The incident resulted to a loss of revenues of $41 millions, which had a negative impact on the airline’s first quarter 2007 bottom line. A further consequence of the customer’s ordeal was that it could negatively impact the airline’s credibility. JetBlue may lose customers in the future to rival airlines.
The Bill of Rights for Customers as a Customer Services GuaranteeThis Bill of Rights will help JetBlue gain back its loyal customers. But it’s important to know that JetBlue passengers are not boarding their planes as a compensation. The Bill of Rights can only be effective on a short-term basis, as their main concern is reaching their destination on time in order to not miss other valuable commitments. The Bill of Rights will only work in the short term.
What other strategic or leadership initiatives should JetBlue adopt to ensure that the company is successful and that it can deliver the JetBlue customer experience?
The company’s growth increased its fleet, which made operations more complicated. The management can ensure that the airline maintains its success by spreading its operations out across airports. This will help to prevent future crises.
Works Cited
“JetBlue Airways: a New Beginning” Stanford Graduate School of Business No. L-17, 2019, pp. 1-33.
