How is it related to the company’s overall business strategy? With the JetBlue Airways experience, passengers enjoyed free amenities such as watching live satellite TV, listening to XM satellite radio, brand name snacks, coffee and drink.
Passengers can also experience paperless ticketing, assigned seating with more legroom. These experiences have helped to streamline JetBlue’s business strategy as being the best customer service in the airline industry. 2.What challenges did David Neeleman and his executive team face in managing the customer experience as the airline grew rapidly? How did they respond to those challenges? The challenges were new airline fleets were behind schedule and installation of the in-flight system was taken longer than expected. In addition to that, the main market route was damage by an active hurricane seasons resulting in flight cancelation and delays. The demand for air travel also fell; the fuel cost increased thus causing JetBlue to suffer a loss in revenue.The responses were to grow revenue by fare increases, using their resources wore effectively and increase service to areas with fewer competitions.
Promise was also made to improve workforce productivity through better training, no pay increases and a more extensive use of automation. After the Ice Storm 3What exactly went wrong? Why did it go wrong? Who, or what, is responsible? One of the biggest disasters that happened in JetBlue history took place on Valentine’s Day, February 14, 2007, a high air-traffic day.Caught by a bad winter storm and bad airline planning, JetBlue passengers ended up spending as many as 11 hours trapped on planes on a frozen tarmac in New York. JetBlue thought the weather would break and it would be able to fly, keeping its revenue flowing and its customers happy. Customer service was damaged for JetBlue, as most people were not happy with the long amount of time they were spending on the planes. Even though JetBlue offered refunds and other perks to customers there reputation was still tarnished as passengers compared these long delays as hostage situations.A basic problem was JetBlue’s communication system.
The ice storm had left a large portion of the airline’s pilots and flight attendants far from where they needed to be to operate the planes, and JetBlue lacked the trained staff that was needed to find them and tell them where to go. Another problem was the reservation system; the system was so overwhelmed that customers were unable to get through to human agents to check on a flight. 4Did the airline handle the crisis well? Why or why not? What else could JetBlue have done to improve the situation?I believe the situation was handled well, because after the February 14th delays, JetBlue executives developed a passenger Bill of Rights to help deal with the situation if it happens to arise again. The Bill of Rights provides real compensation for delays and cancellations, and it is believed to be stronger, deeper, and much more defined than any other customer commitments you could find in the airline industry. Although there was no way JetBlue could have prevented the cancelled flights due to bad weather, they should have had risk management plan in effect addressing ice storms before this incident occurred.Another solution to the problem would be to park incoming flights near the gate and send a bus out to pick up the passengers. This way they wouldn’t have to wait in the plane until a gate is available or call other airlines and see if they can use there gates if one is available no passenger should wait in an idle airplane for more than an hour.
For outgoing flights, the airline should not load the passengers until the weather is clear or air traffic is clear enough to depart. 5. What are the potential negative consequences for JetBlue resulting from the situation?JetBlue’s stocks have dropped; the company spent millions of dollars on passenger funds and vouchers, employee’s overtime and other storm related costs. 6. What do you think of the Customers’ Bill of Rights as a service guarantee? Do you think it will help the company regain customer loyalty? Customer service is the foundation that JetBlue was built on and this Bill of Rights will protect passengers who are suffering from delays caused by unplanned events due to weather, terrorism, and any uncontrolled events not brought by JetBlue Airways. Looking Ahead 7. What further strategic and/or leadership actions should JetBlue take to nsure the company’s viability and future success? JetBlue currently has the lowest per seat operating cost of any competing airline, but they are constantly facing competition from other airlines.
The competition is threatening their market share. Jet Blue must implement an aggressive expansion plan. Jet Blue must locate new and untouched markets in order to sustain their plan for expansion; this has the opportunity to increase profits on a great level. Additionally, they will need to ensure that their infrastructure is able to handle the quick growth that they are striving for.An ongoing issue for Jet Blue is the fact that although they are the lowest priced carrier, they also serve the least amount of markets in the industry. The competition is ever increasing and not only from domestic airlines, but from international airlines that are entering the united States market also. For JetBlue to remain a successful company it needs reevaluate its emergency-preparedness plans.
Customer satisfaction is one of the primary bases of JetBlue airlines and they should take more emphasis in this area.