Case Study 3: Jet Blue: High-Flying Airline Melts Down 1. After the unfortunate storm of February 2007, JetBlue’s image was quite diminished. The storm caused the cancellation of almost 1,900 flights. This in turn caused JetBlue to lose a decent amount of money. Additionally, this incident jeopardized JetBlue’s image that previously was stellar. In order for JetBlue to regain their image they would need to take necessary steps beyond refunds and vouchers. I would recommend that JetBlue first assess their leadership and make sure the problems didn’t come from the core decision makers.
Also, JetBlue should slightly reduce their airfare rates and perhaps their onboard beverages as well. I would suggest they take on additional advertising and marketing campaigns to expose these improvements and further brand recognition after these improvements. 2. JetBlue could have taken a few steps to better their communication with their stakeholders during this incident. They could have 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. They could have held web conferences for their major internal stakeholders to entertain suggestions and answer any questions and concerns. 3. When addressing the stakeholders, JetBlue should take all the blame for the horrid incident. They must take an approach that explains how they should have been totally read for the storm. It is must be expressed by JetBlue how wrong they were and actually use it for their advantage.
By this I mean expressing that this was just a one time mistake, how the understand the problem, and finally how they will fix the problem. If JetBlue did the opposite and blamed the weather, the customer would simply say that the other airlines didn’t have this problem. That would be merely counterproductive. 4. JetBlue’s Customers Bill of Rights is intended to provide a written promise between JetBlue to its customers. This contract is in fact a legal binding document that gives the customers of JetBlue certain rights that they have while going on a flight.
If JetBlue for whatever reason violates one of these rights, the customer can legally sue JetBlue. There is no way JetBlue could possibly retract their Customer Bill of Rights once it is made public. The customer has this document in writing and it is legally binding. JetBlue cannot just say that it does not matter after the fact. 5. This is a great question. The way I would market the JetBlue Customer Bill of Rights to external and internal shareholders would be totally different.
The way I would market it to the external shareholders would be that they are receiving a guarantee that is legally binding. They way I would marker it to internal shareholders would be explaining to them how this would increase brand loyalty and new customers. In turn, regardless of getting sued once in a blue, they would be making tons of money that would far outweigh the costs. Ultimately, I would market this bill of rights as the best innovation by any airline ever. JetBlue can be genius if managed properly.