Jetbluecasestudybrennanmorgan2007 130326192936 Phpapp01
CASE STUDY
JetBlue: High-Flying Airline Melts Down in Ice Storm
Joe Brennan, Ph.D. , Ohio University
Felicia Morgan, Ph.D., University of West Florida
Introduction
On Wednesday, February 14, 2007, JetBlue Airways Corp. (NYSE:JBLU) suffered the most severe service disruption in its seven-year history. A winter storm snarled operations at the regional carrier‟s JFK International Airport in New York, its main East Coast hub, forcing the airline to cancel more than half of its flights. Ten planes sat unable to move on icy runways in New York, trapping passengers inside for up to 10 hours. JetBlue‟s ordeal continued for nearly a week. The airline had trouble resuming normal operations when additional storms struck, leaving planes and crews out of position. The carrier ultimately cancelled nearly 1,900 flights, affecting 130,000 travelers, before it was able to restore normal operations on February 20. The unprecedented service failure would force the airline to grant $26 million in passenger refunds and vouchers and to spend another $4 million on employee overtime and other storm-related costs (Wong).
Although the massive Valentine‟s Day storm affected every airline flying East
Coast routes, the news media focused their attention on JetBlue‟s problems.
Commentators wondered if the company that had once promised to “bring humanity back to air travel” had abandoned its commitment to stellar customer service and become yet another uncaring airline. Stranded passengers wasted no time publicizing their complaints on blogs and in the media, and skittish investors began unloading JBLU stock. This was the worst crisis in the young company‟s history. JetBlue‟s management had to act quickly to regain customer loyalty, reverse a barrage of hostile press coverage, and reconfigure operations to prevent a similar disaster from recurring.
“Making flying happier and easier for everyone”
The airline was founded in 1998 by 38-year-old David Neeleman, who saw himself as “bringing humanity
JetBlue: High-Flying Airline Melts Down in Ice Storm
Joe Brennan, Ph.D. , Ohio University
Felicia Morgan, Ph.D., University of West Florida
Introduction
On Wednesday, February 14, 2007, JetBlue Airways Corp. (NYSE:JBLU) suffered the most severe service disruption in its seven-year history. A winter storm snarled operations at the regional carrier‟s JFK International Airport in New York, its main East Coast hub, forcing the airline to cancel more than half of its flights. Ten planes sat unable to move on icy runways in New York, trapping passengers inside for up to 10 hours. JetBlue‟s ordeal continued for nearly a week. The airline had trouble resuming normal operations when additional storms struck, leaving planes and crews out of position. The carrier ultimately cancelled nearly 1,900 flights, affecting 130,000 travelers, before it was able to restore normal operations on February 20. The unprecedented service failure would force the airline to grant $26 million in passenger refunds and vouchers and to spend another $4 million on employee overtime and other storm-related costs (Wong).
Although the massive Valentine‟s Day storm affected every airline flying East
Coast routes, the news media focused their attention on JetBlue‟s problems.
Commentators wondered if the company that had once promised to “bring humanity back to air travel” had abandoned its commitment to stellar customer service and become yet another uncaring airline. Stranded passengers wasted no time publicizing their complaints on blogs and in the media, and skittish investors began unloading JBLU stock. This was the worst crisis in the young company‟s history. JetBlue‟s management had to act quickly to regain customer loyalty, reverse a barrage of hostile press coverage, and reconfigure operations to prevent a similar disaster from recurring.
“Making flying happier and easier for everyone”
The airline was founded in 1998 by 38-year-old David Neeleman, who saw himself as “bringing humanity