Post on 03-Apr-2018
7/29/2019 Group-4 Service Mktng
1/13
GROUP 4:
ANANDITA JINDAL
BIKRAMJEET CHEEMACHAITANYA BAKSHI
MEGHA JASWAL
NEENA NAUTIYAL
7/29/2019 Group-4 Service Mktng
2/13
Case discusses the unfortunate storm of February 2007which quite diminished the image of Jet Blue.
The storm caused cancellation of almost 1900 flights.
10 planes sat unable to move on the icy runways in New
York, trapping passengers up to 10 hours inside the plane.
This service failure lead to huge amount of refunds.
This was the worst crisis in the companys history.
7/29/2019 Group-4 Service Mktng
3/13
The airline was founded in 1998 by David Neeleman.
Initially the name was new air corporation. Changed the
name to jet blue in 1999.
Offer low cost and high quality service to and from New
York City.
Providing types of amenities reserved for pricier carriers.
First flight in February 2000. Neeleman took the company
public in April 2002
7/29/2019 Group-4 Service Mktng
4/13
While the airline industry faced:
Rising fuel prices
Heavy debt loads
Increasing pension liabilities
JET BLUE EFFECTIVELY ESTABLISHED AS APOWERFUL BRAND.
7/29/2019 Group-4 Service Mktng
5/13
JET BLUE had no effective plan that would have helpeddefuse the situation that they were in.
Restore the faith of disillusioned customers whose travelplans are affected
Earn favourable coverage by U.S media outlets as Jet bluecontinues to expand
Reassure shareholders that Jet Blue remains a viable andpromising vehicle for investment.
7/29/2019 Group-4 Service Mktng
6/13
Ensure employees feel like they are empowered to perform
their responsibilities effectively
Convince federal government regulators that JetBlues top
priorities continue to include safety and customer service.
7/29/2019 Group-4 Service Mktng
7/13
7/29/2019 Group-4 Service Mktng
8/13
Jetblue can depend on David Neeleman as he understood how to
cut cost and keep operating expenses low, which results in rapid
expansion of Jetblue.
During ice storm in 2007 passengers were grounded at an
expense that cost Jet Blue 30 million.
Neeleman quickly instituted the Passenger Bill of Rights.
Started setting systems in place that could hold more reservation
agents in such critical times.
7/29/2019 Group-4 Service Mktng
9/13
Ques2. Did the executives at Jet Bluelearn enough from their service failure to
fix what was wrong and prevent it from
happening again? If not, what furtheraction should be taken? What strategic
and operational changes should be made
to ensure the company's full recovery?
7/29/2019 Group-4 Service Mktng
10/13
In order for JetBlue to regain their image they would
need to take necessary steps beyond refunds and vouchers.
Advertising campaigns to highlight the improvements.
Expressing that this was just a one time mistake, howthey understand the problem, and finally how they will fixthe problem.
JetBlue should take all the blame for the horrid incident.
If JetBlue blames the weather, the customer wouldsimply say that the other airlines didnt have this problem.
7/29/2019 Group-4 Service Mktng
11/13
JetBlue should take a few steps to better theircommunication with their stakeholders during this
incident.
They should held meetings to show that they were veryconcerned 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.
7/29/2019 Group-4 Service Mktng
12/13
Adding new locations .
New planes will reduce the risk of losing customers due
to unplanned delays.
More media advertising should be done instead of
depending on word of mouth.
7/29/2019 Group-4 Service Mktng
13/13