JetBlue: High-Flying Airline Melts Down In Ice Flying Storm (A Case Study)

This case of JetBlue airways is based on service failure and its adequate recovery procedures. It is listed in the New York stock exchange as (NYSE:JBLU). A horrific incident on Wednesday, February 14, 2007 occurred in the history of JetBlue airways. Bad weather hampered the regular operations of JetBlue as winter storm. JetBlue’s passengers were in trouble of 10 hours waiting. Its normal operation took seven days to be restored. In that uncertain situation their orders become refunded and employee and recovery cost increases.

Because of that incident JetBlue incurs operating loss. So their share price decreases comparing to its previous years of operations. JetBlue faced that unfortunate situation because of lack of operational interaction among all departments of the organization.      

Finally, their CEO Neelam’s hard perseverance showed some unique ways to recover it. Although it did not worked as remedy for that service failure very quickly, it developed some long-term recoverable standards to bring the JetBlue airways in the aviation industry of the United States.       

   
Question 1

Could JetBlue depend on Neelman to lead the company out of trouble?

Neelman the CEO of JetBlue airways is running the company since many years. He should know all the influential matters inside the company on its employees and outside the company on its valuable customers.

If we can see that Neelman established the JetBlue a top class brand among customers in USA, Mexico and Caribbean region. Its unique services were very popular among customers which were absent in their competitors airlines. From different financial data we can see that it had a positive move from 2001 - 2006 before the occurrence of the trouble.

It was the main failure of the operational functions of JetBlue airways. But it was an accidental issue on which the CEO has no direct influence. Rather than this the overall growth, return and revenues, passenger per employees everything were in an upward move. Moreover they were in less complaint section of US airline industry.

Neelman had a vision to make JetBlue a new category of airline Service Company. He developed teamwork inside the organization to increase service quality.

After having the snow melt trouble Neelman and his fellow employees are trying to recover it as soon as possible such as building customers’ trust again.

By analyzing this I can say that Neelman is a dependable person for JetBlue Airways to be one of the best airline services again.

                                                                                                      

Question 2

Did the executive at JetBlue learn enough from their service failure to fix what was wrong and prevent from happening again? If not what further action should be taken?

Yes, I think they are learnt enough to fix the service failure and prevent it from happening again.

Neelman & his employees were trying hard to retain the previous position by learning from their service failure. For that they have targeted the Valentine’s Day. On that day the CEO Neelman issued a public apology and offered various recoverable measures. It was including the full refund and a free round trip if any passenger is detained onboard for more than 3 hours. JetBlue announced that they are ready to give any kind of penalty if any customer is the victim of his kind of trouble.

If employees are not learnt enough to recover the trouble, in that case JetBlue can bring some changes such as – upgrades to its reservations, innovative crew scheduling and call center.

Question 3

What, if any, strategic and operational changes should be made to ensure the company’s full recovery?

Customer defined not company defined

Should not guarantee

JetBlue airways have service failure and for that they must ensure the proper form of recovery. Their customers have recovery expectation of - understanding & accountability and fair treatment. Accountability and understanding may include both monetary and non-monetary benefits. Customers switching can be reduced by rebuilding and maintaining relationship with customers.

From the next service JetBlue airways should make the service fail – safe by doing it right the first time. Beside that JetBlue airways should set customer defined service strategy rather than company defined strategy.

Right after the service failure they must track complaints regularly and provide adequate explanations behind the failure to make transparent recovery.

As the JetBlue have service failure they must not provide big guarantees to their customer very frequently. But on some matters they can provide guarantee which is positively related to its adequate service guarantee.

I think JetBlue airways should follow above mentioned recovery procedures to overcome these unavoidable circumstances.

Conclusion

JetBlue Airways ‘s service is in critical condition and recovery should follow the appropriate service recovery procedures discussed in the chapter “Service Recovery” in the book of Zeithaml, Jo Bitner, Gremler and Ajay Pandit.