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Jetblue
1. Running head: JETBLUE AIRWAYS CASE STUDY ANALYSIS 1
JetBlue Airways Case Study Analysis
Morgan Bocciolatt, Lindsey Hadlock, and Julie Fruscio
Ithaca CollegeJETBLUE AIRWAYS CASE STUDY ANALYSIS 2
JetBlue Airways Case Study Analysis
Problem Definition
The situation described in “JetBlue Airways: Regaining Altitude” is one that,
unfortunately, more than a few people have experienced. The many problems that unfolded in
the course of only a few short days, were all caused by one main issue, a lack of communication
and communication training in a crisis situation.
Company Objectives
What once was a vision has now become a reality that defines JetBlue as a company.
Neeleman envisioned the ultimate flying experience for his customers.
Every seat would come equipped with a television that featured dozens of free channels
provided by satellite signal. Finally, to keep costs down, JetBlue would offer a virtually
unlimited supply of appealing in-flight snacks instead of soggy meals that no one really
wanted. (Argenti, 2009, p.100)
It is obvious that David Neeleman and JetBlue set out to exceed customer satisfaction and in
general, tend to go above and beyond what the average airline has to offer. However, it seems
that their goal of excellent customer service was higher in importance than teaching their
employees how to communicate in emergency situations, such as the one presented to us in the
case study. It is essential for companies to find a competitive advantage to set themselves apart
from other companies in their industry, however it is also crucial for these companies to find a
balance and continue to value the basic fundamentals of communication.
Data AnalysisJETBLUE AIRWAYS CASE STUDY ANALYSIS 3
2. JetBlue went from startup company to powerhouse of the sky in 2007 with overall growth
in terms of destination and size. Run by CEO David Neeleman’s expertise and experience in the
industry, the company boasted in customer satisfaction and provided practical and luxury
amenities to all passengers. “Neeleman envisioned treating JetBlue’s customers…to comfy
leather seats, paperless ticketing, and exceptional service by flight crew members” (Argenti,
2009, p.100). Soon after 9/11 JetBlue and airlines worldwide went through mandatory alterations
in order to comply with safety demands and hypersensitive flying customers. In the months
following the horrific event “only three airlines managed to turn a profit…-the low-cost carriers
Southwest, AirTran, and JetBlue” (Argenti, 2009, 100). In the following years the bond between
customer and airline continued to strengthen. JetBlue seemed to be at the top of its career,
ranking “highest in customer satisfaction among low-cost airlines in 2006 and among all major
airlines in the United States in 2005” (Argenti, 2009, p.99). The size and continuity of the
JetBlue brand helped it endure changing markets and adapt to demands set by the industry.
It seemed JetBlue could do no wrong until winter weather conditions got the best of them
on Valentine’s Day 2007. Officials at JetBlue made a false accusation that the winter storm
weather forecast would change. After the break in the storm failed to appear and the company
declined to make cancellations they ended up paying for it in reputation, integrity, and
reimbursement vouchers. With planes backed up from all directions, passengers, luggage and
cargo were stuck for 6-9 hours. Some customers waited to board planes that would soon be
cancelled, while others waited for a take-off that would never happen. JetBlue failed to
effectively communicate the message to the customers. According to Argenti, “Nine of the
airline’s jets sat idle on the tarmac for more than six hours before passengers were successfully
JETBLUE AIRWAYS CASE STUDY ANALYSIS 4
offloaded and taken to the terminal” (Argenti, 2009, p.101). Things continued to get worse on
the days following this heart breaking system failure.
3. On February 15, airport personnel had to call police to help control the crowd at Newark
Liberty International Airport. The combination of “deteriorating weather conditions at JFK and
flaring tempers, both inside JetBlue’s terminal, and aboard its planes exacerbated the company’s
crisis” (Argenti, 2009, p.103). The endless ground delays were starting to aggravate the clients
and they were not being informed of the “big picture”. Flights were unable to take-off, but
customers were receiving periodic updates that still gave them hope that their planes would land
at their destinations. Flight attendants delivered apologies, snacks, and beverages, but the
customers were at their wits end. They needed more than apologies; they needed answers.
In the days following the crisis JetBlue customers tried to seek comfort in venting their
thoughts and opinions. They visited the Web site and called the hotline number hoping to get in
contact with someone who could listen and compensate them for the hardships they endured.
Instead they heard pre-recorded messages directing them to call back at a later date, due to an
overflow in call volume. The deterioration of JetBlue’s reputation continued when additional
flights were cancelled and luggage was declared missing. Multiple operation failures and an
overall communication breakdown invited the media to have a heyday.
Newspapers and broadcasters worldwide were publishing headlines scattered with words
of JetBlue’s mishap, which increased the damage done to their reputation. At the same time,
Congress was calling for legislation on the coverage of airplane passengers, which prevented
them from being held in grounded planes for long hours. In order to establish customer rights
“many suggested that the implementation of an industry-wide passenger bill of rights would be
necessary to spur major airlines to action” (Argenti, 2009, p. 103). People all over were talking
JETBLUE AIRWAYS CASE STUDY ANALYSIS 5
about and the need for change and an examination of customer treatment. JetBlue decided to be
proactive and fix the problems they created instead of letting the damage fester and get worse.
The JetBlue Airways Customer Bill of Rights was published in 2007, which established
4. industry standards and corresponding compensation for hardships endured by JetBlue clients.
According to Neeleman, “The airline had to do something novel, something impressive,
something no competitor has ever done before to make amends to its customers” (Argenti, 2009,
p.103). The document states customers will get vouchers for future traveling if flights remained
grounded for a given length of time after landing. It also includes policies for departure, arrival
and ground delays, overbookings, and in-flight entertainment. JetBlue raised the industry
standards by committing to a plan that exemplified its goal to make the traveling experience
simple and pleasant.
When a crisis hits there are many ways a company, or individual, can react. With
multiple system failures, flawed decision making, and a string of bad luck JetBlue could have
gotten buried by the storm. However, with Neelman’s exceptional leadership skills in the days
following the crisis, JetBlue showcased its professionalism by uniting to create an unprecedented
document, which changed the standards of air transportation.
Alternative Strategies and Recommendations
Weather delays often keep customers from arriving on time to their desired destination.
By implementing more communication throughout the JetBlue locations nationwide, the
negative effects of the Valentine’s Day storm could have been prevented, at the very least
handled more efficiently. By handling the crisis communication more professionally following
the storm and its aftermath, JetBlue could have avoided the logistical failures in the system that
led to further complications. Ultimately, with the implementation of the Customer’s Bill of
JETBLUE AIRWAYS CASE STUDY ANALYSIS 6
Rights, JetBlue recovered from the Valentine’s Day Storm and created a very responsible plan
for further crisis of a similar nature.
Communication With Internal and External Stakeholders
To better communicate with internal stakeholders, Jet Blue should have implemented an
5. internal communication program. The communication program would include direct information
sharing for employees as well as an outside communication network to share updates with
customers and other stakeholders. Extensive employee training would be needed in order to
properly utilize these communication alleyways. This will ensure that employees have the proper
knowledge and training to effectively communicate in a time of stressful crisis. The plan will
also utilize daily communication interactions, in order to prevent company disasters from
happening in the future.
JetBlue employees did not have a clear means of communication to remain updated and
informed throughout the Valentine’s Day storm and the days following. The lack of
communication within the company was a large problem, as it became essential to move
customers from one place to another safely and efficiently. With a willing staff, the
implementation of a communication program will allow for employees to be in the know and
offer their assistance when needed.
The first line of communication implemented within the program should be from the
weather supervisors to the pilots and boarding staff. The most direct way to do this would be
through a phone call or two-way radio device.
• This will allow for pilots to know the status of operations pertaining to their plane and
other planes. JETBLUE AIRWAYS CASE STUDY ANALYSIS 7
o The pilots are then informed and can determine where to be on the runway in
regards to their next action.
The boarding staff will also have direct communication with weather supervisors and pilots.
This should be done through a phone call or two-way radio device.
• This will allow the employees to know whether or not to board people onto the planes
and who will be exiting planes.
The next line of communication should be between the boarding staff and the pilots and the
6. customers.
• Pilots and boarding staff should update customers on the current status of plane
operations every half hour, or when a new revision to the plan has taken place.
o This will help to keep the customers knowledgeable and calm during a crisis.
After the direct communication between employees at the effected airport has changed, direct
communication to JetBlue companies at other airports need to be informed.
• A phone call must be made to other JetBlue locations that would be directly affected by
the alterations at the primary airport.
o This will allow for information sharing involving customer departure and arrivals
within a network of JetBlue locations.
• This information should then be passed to the boarding staff and pilots as to inform them
of actions taking place at other Jet Blue locations.
• This should then follow the chain of communication, and the boarding staff and pilots
should directly inform the customers waiting.
An email of modifications and altered information should be sent to JetBlue headquarters
so that all JetBlue locations can have a uniform detailed report of what is taking place.
JETBLUE AIRWAYS CASE STUDY ANALYSIS 8
Headquarters from there can have a better understanding of the situation taking place, and can
manage any other movements that must be made in order for the changes to run smoothly. They
also can communicate with any other specific JetBlue employees or locations that might need
further directions. Information should also be posted to the company’s intranet, in order to have
one central digital location employees can check for updated data.
Customers will have the option when buying their ticket to receive a text message or
email pertaining to details about their flight. This will enable all customers to receive flight data
as soon as it is processed to JetBlue headquarters, allowing them to receive updated information.
7. If the variations to the original plans made will affect customers with flights in the days
following, emails and text notifications should be sent to them as well stating the new
information that pertains to their fights.
Customer information centers should be set up to answer phone calls pertaining to
alterations in flight plans. This will allow customer confusion to be handled and will keep the
customer more informed and better cared for. Information should also be posted on the company
website for customers to check if they so desire. This provides another communication channel
for customers to receive data.
Communication during the crisis should have continued with the plan stated above.
Sending out apology emails about delays and situations where waiting was widespread would
also be helpful in maintaining customer loyalty. Following the crisis, emails as well as letters
should be sent out to customers apologizing for any inconveniences caused by JetBlue services;
the emails and letters should potentially provide incentives to keep those customers affected
within the crisis, to continue to use JetBlue services. Within the emails or letters a link to a
comments or concerns section available on the website should be added. This way, everyone
JETBLUE AIRWAYS CASE STUDY ANALYSIS 9
affected has a way to give his or her input. A phone number should be listed, and more
representatives should be available to answer phone calls. The automated recording, “We are
experiencing extremely high call volume…We are unable to take your call” should not be used
(Argenti, 2009, p.102). This will enable any customer who wants to express their feeling with an
actual person can do so, allowing for more customer satisfaction dealing with the consequences
of the undesirable situation and how the crisis is being managed.
Neeleman stated “We had so many people in the company who wanted to help, who
weren’t trained to help” (Argenti, 2009, p.102). Therefore, training pertaining to this new
communication program needs to be implemented requiring all existing employees and any new
8. employees hired within the company to fully understand the communication process and know
how to proceed within the program. This is essential because a communication program is
useless if employees to not know how to follow the process correctly and use the program to
maximize communication benefits.
Implications of this alternative communication program will help the company manage
crisis communication internally as well as with external stakeholders. Extra expenses will be a
factor, but in order to rebound successfully from a crisis these actions need to be taken. Although
paying more employees to answer phones and send out information emails will cost more in the
long run, this will overall show how dedicated JetBlue is to customer loyalty. Customer loyalty
is of utmost important within the airline business, as there are always other options to choose
from.
Media Message: David Neeleman
The corporate communications team at JetBlue should have arranged for David
Neeleman to appear on the national television news and talk show circuit following the
crisis.JETBLUE AIRWAYS CASE STUDY ANALYSIS 10
After a crisis situation, it is best to admit organizational faults and then move forward in creating
a communications plan in order to gain back customer attention. After the JetBlue crisis, David
Neeleman should have gone on the news and made a pubic apology for the problems the
company had and the mismanagement of the situation. This apology needs to be quick and
direct, not elaborating but mentioning that in the very near future a new customer appreciation
strategy will be implemented.
Since the Customer Bill of Rights has been created, Neeleman should go onto news
broadcasts and talk shows and apologize again, but focus mainly on what the company is doing
to gain back lost customers. He should talk about what the Customer Bill of Rights is and how it
is geared to reconnect the customer to JetBlue.
9. This would be beneficial to JetBlue because after admitting their faults, they can then
focus all their attention at creating a new sense of customer loyalty. It shows that they are
actually making a difference within the company and backing up their claims to change.
The main risk could be that the audience could misinterpret a component of Neeleman’s
dialogue. Another risk is that Neeleman could misspeak in one of his interviews and the audience
could get the wrong impression about JetBlue and their actions to reinvent customer loyalty.
JetBlue Corporate Advertising Program
Since Jet Blue has just undergone some major customer expectation setbacks, an
imageadvertising program would be most beneficial to the company. By reestablishing
themselves in
the market with a new focus, new customers as well as existing customers will be presented with
the improved JetBlue focus on customer appreciation.
Marketing Customer Bill of Rights to External and Internal Stakeholders
Marketing the Customer Bill of Rights to internal stakeholders will consist of:JETBLUE
AIRWAYS CASE STUDY ANALYSIS 11
• putting the Customer Bill of Rights and information about it on the company intranet,
• sending out emails to all internal employees and investors with the Customer Bill of
Rights and information about what it is, and
• putting training information on the intranet and in emails in order to prepare employees
for questions about the new program.
o This will allow all employees to feel integrated into the new program and will
allow them to be able to have a part in the company affairs whether they directly
interact with customers or not.
Marketing the Customer Bill of Rights to external stakeholders will consist of:
• putting the Customer Bill of Rights on the company website, and posting news updates
about it, so that customers’ attention can be focused to this new implementation that
10. solely benefits them,
• sending out emails to customers with the Customer Bill of Rights and what it implies in
order to gain back previous customers and inform them of the new benefits to traveling
with JetBlue,
• publishing a press release stating their apologies and how this new Customer Bill of
Rights will change how they run their operations at JetBlue with a customer first mindset,
• posting the Customer Bill of Rights on their social networking sites, as another way to
reach the customer and inform them of the new changes, and
• sending out text messages to customers informing them of the new Customer Bill of
Rights and to check out the website to find out more.JETBLUE AIRWAYS CASE STUDY
ANALYSIS 12
Effect on JetBlue
JetBlue did implement the Customer Bill of Rights and it can be found on the company
website. Although this was a costly and risky move for JetBlue it overall proved effective, as
JetBlue has continued to remain a prestigious airline company. It proved to the customers that
JetBlue really stands behind what they say and their focus goes to keeping the customer happy.
JetBlue was dedicated to solving the problem with the customer in mind. This overall was
rewarding not only to the customer but also to JetBlue as a company, enabling them to remain a
well trusted and reliable airline.JETBLUE AIRWAYS CASE STUDY ANALYSIS 13
References
Argenti, P. A. (2009). Corporate communication. New York, NY: McGraw-Hill/Irwin.JETBLUE
AIRWAYS CASE STUDY ANALYSIS 14