Marketing in Action Case : Real Choices at JetBlue When low-costcarrier JetBlue Airways began operations in 1999, it promisedcustomers cheap fares combined with exceptional service. JetBlueplanes offer more leg room and all seats on JetBlue planes offerpassengers 36-channel DIRECTV® service on seat-back screens. Forseven years, JetBlue, with a few exceptions, kept its promise topassengers and shot to the top of customer satisfaction surveysJ.D. Power and Associates conducted. On Valentine’s Day, 2007,however, the airline suffered the worst crisis in its history. Dueto an unexpected New York ice storm, nine JetBlue planes full ofpassengers were stranded on the tarmac for over 6 hours—one planeand its 130 passengers sat on the tarmac for 10 hours. The planesleft the gate and then found they couldn’t take off, but theairlines, feeling that the storm would let up by midmorning, didnot allow the planes to return to the gate. In the end, the wheelsof the planes were frozen in the slush, unable to move. In the nextfew days things got even worse for JetBlue as a snowball effect(pardon the pun) from the storm caused hundreds of flights to becancelled—JetBlue’s flight attendants and pilots were not wherethey were needed, and the company’s communication system staffpeople were not trained to tell them what to do. At some airports,police had to be called in to help calm down the irate customers.While the airline was far less than satisfactory in its response tothe Valentine’s Day ice storm, its response to the crisis was amodel of excellent PR. Seeking to swiftly respond to the crisis andappease angry customers, CEO David Neeleman quickly apologized tocustomers and explained what went wrong. He said he felt“mortified” and “humiliated.” To get his message across, heappeared on CNN’s American Morning, Today, Fox and Friends, andSquawk Box early the next day. But JetBlue did more than justapologize to consumers. The airline offered passengers who werestranded on JetBlue planes for three hours or more a full refundplus a free round-trip ticket to any JetBlue destination. In all,the airline spent $30 million on vouchers for passengers of the1,102 cancelled flights. In addition to its immediate response tothe February cancellations, JetBlue cited its dedication to“bringing humanity back to air travel” and established a CustomerBill of Rights retroactive to February 14. The Bill of Rightsoutlines what JetBlue will provide to its customers in cases offlight cancellations, departure delays, overbookings (customers whoare denied boarding will receive $1,000), and even when theDIRECTV® is noperable. But will these changes satisfy customers?Most customers reacted with caution, saying that they would bewatching the airline to see if it lived up to its promises. Otherstranded passengers were less positive, and some vowed never to flyJetBlue again. Will the Bill of Rights allow JetBlue to gain thelevel of customer loyalty it enjoyed before the crisis? While mostcustomers of delayed flights may be satisfied, others may not. Whatabout customers whose delays fall 10 minutes short of receiving afull-price trip voucher? And what will happen when another crisisoccurs? JetBlue must continue to develop customer service and PRprograms if it is to stay in the air for the long haul. You Makethe Call 1. What is the decision facing JetBlue? 2. What factorsare important in understanding this decision situation? 3. What arethe alternatives? 4. What decision(s) do you recommend? 5. What aresome ways to implement your recommendation?
