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When
low-cost carrier JetBlue Airways began operations in 1999, it promised
customers cheap fares combined with exceptional service. JetBlue planes offer
more legroom and all seats on JetBlue planes offer passengers 36-channel
DIRECTTV® service on seat-back screens.
For seven years, JetBlue, with a few exceptions, kept its
promise to passengers. It shot to the top of customer satisfaction surveys
conducted by J.D. Powers and Associates. On Valentine’s Day, 2007, however,
the airline suffered the worst crisis in its history. Due to an unexpected
New York ice storm, nine JetBlue planes full of passengers were stranded on
the tarmac for over 6 hours—one plane and its 130 passengers sat on the
tarmac for 10 hours. The planes left the gate and then found they could not
take off but the airlines, feeling that the storm would let up by midmorning,
did not allow the planes to return to the gate. In the end, the wheels of the
planes were frozen in the slush, unable to move.
In addition to its immediate response to the February
cancellations, JetBlue cited its dedication to “bringing humanity back to air
travel” and established a Customer Bill of Rights retroactive to February 14.
The Bill of Rights outlines what JetBlue will provide to its customers in
cases offlight cancellations, departure delays, overbookings (customers who
are denied boarding will receive $1000), and even when the DIRECTV® is
inoperable.
1. What is the decision facing Jet Blue?
2. What factors are important in understanding this
decision situation?
3. What are the alternatives?
4. What decision(s) do you recommend?
5. What are some ways to implement your
recommendations?
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