By: Stephanie Creek

Craig Galyon

Background

Founded by David Neeleman in February 1999

Several executives are former Southwest Airlines employees

Offer low-cost travel, but distinguish itself with it’s amenities

“Bring humanity back to air travel”

The ProblemFebruary 14th 2007Snowstorm hits East CoastJetBlue cancels 1,096 flights, stranding

thousands of passengers, pilots, and crewAt least 10 flights from JFK airport were

delayed on the tarmac, some lasting as long as 9 hours

Passengers and crew are stuck in plane, and not allowed to de-board

The SolutionOffered immediate refunds and travel

vouchers for customers stuck on plane for more than 3 hours

CEO David Neeleman took full responsibility for the incident

Neeleman appeared on CNN, FOX, and even the David Letterman Show to explain and apologize for the situation

Customer Bill of RightsDetailed list of how company will treat

passengers in certain situations

Requires airline to give: $1,000 to customers who are involuntarily

denied boarding$50 for any 2-4 hour delayAmount increases as delay times increase

Did it work?Neeleman:

was praised for his approach to the problem, and for not backing down

was asked by the board to step asidewas replaced by President Dave Barger in May

2007became the non-executive chairman of the board

JetBlue third-quarter earnings in 2007 beat expectations and revenues rose by 22%

Has since been named “best low-cost airline” by OAG, a travel data firm

What was learned?Evidence points to a recovery in operations

and customer serviceIn March, JetBlue responded quicker to

another major snowstorm by cancelling flights upfront

As a result, less travelers were stranded

How is this PR?JetBlue CEO took it upon himself to repair the image

of a company who’s goal is to “bring humanity back to air travel”

Most CEOs in his position would not have handled the situation as publicly

"What I've learned about these situations is you come out and explain what happened ... and what you're doing to make sure it never happens again," he said. "That's the right thing to do. If you try to hide stuff and twist the truth, you don't come across as credible. I decided to do this, and no one is telling me what to do."

Sourceshttp://www.businessweek.com/managing/

content/nov2007/ca20071127_929517.htm?chan=search

http://www.forbes.com/2007/02/20/neeleman-jet-blue-lead-cx_tw_0220jetblueceo.html

YouTube: http://youtube.com/watch?v=-r_PIg7EAUw