JETBLUE: HIGH-FLYING AIRLINE MELTS DOWN IN ICE STORM A CASE STUDY

JETBLUE: The

TAKE-OFF

Jet Blue Bringing humanity back to air travel and Making Flying Happier and Easier For Every One Promoted by David Neeleman, an exceptional visionary in 1998 Promise to provide every customer with the JetBlue Experience which combined value, service and style. Started as a low cost carrier offering amenities available in pricier carriers Younger fleet, loyal staff helped in low maintenance and labor costs than its competitors. Quick break even and profit year after year

JETBLUE:

Cruising

to

Provided what it calls the best customer service in the business Won dozens of awards for its performance and customer satisfaction, low cost / no frill airline and in all quality ranking surveys By 2004 it climbed to 11th position the highly competitive U S airline business. In 2005 it ran into turbulence due fleet replacement ,maintenance issues and reported loss for first time. On Valentine day 2007, Jetblue flights stranded at Airport a violent ice storm Passengers stuck for hours without food and water Jetblue mishandles the situation

Customer Focus Initiatives

       

Theme of Bringing humanity back to air travel and making flying happier and easier for everyone. New kind of Low Fare air line (less by 65%), wider seats, more legroom & storage space. Refund for every cancellation. Compensation for delays. Maintenance of Time Schedule One way ticketing . In-flight entertainment like-Live TV, FM Radio, Internet, Spa, Wine and Co-Branded Freebies. Touch Screen Check-in. Non stop services between major destinations- New York and Fort Lauderdale, Florida.

Customer Satisfaction Tracking

 Hands on tracking by CEO
 working alongside employees ,  talking with pilots,  Personal contact with fliers  Asking suggestions from travellers for service improvement

 Jetblue had the 2nd lowest rate of customer complaints in industry

Customer Retention Initiatives

The company pampered the customers with a bouquet of services I would walk through the fire for him Strong bonding between committed employees& loyal customers After breakdown in service issued a public apology. Staff rallied behind CEO in damage control Jet Blue introduces the Customer Bill of Rights- the First in Airline Industry.

Service Delivery Design Changes

Introduced freebies & amenities by Co-branding Innovative service delivery and continuous improvement. E-ticket , More legroom all Fares one-way and all seats assigned. First to introduce New Embraer 190 regional jet planes. Free live television

Branding Initiatives
     

Neelemans ability to connect with people Low fares and premium experience Could position itself as a top brand with in a short span of 5 years Won dozens of awards for performance, cust satisfaction Co-branding with major brands for in-flight entertainment. Won Several awards for customer service excellence.

Strengths
        

A Charismatic and visionary leader as Neeleman Ability to connect with people and inspire them. Younger Fleet and deeply committed Staff. Strong customer loyalty. Low Maintenance and Labour Costs Old School Competitors Low Airfares Strong Financials Intra-preneurship -Team work in all aspects of business

Weakness
Rough transition from a small company to large airliner Poor technology diffusion during transition phase Wait & see approach with the weather Over obsession in maintenance of ontime performance at any cost Poor response to a crisis situation Absence of business continuity plan

Learning Points
Differentiation strategy in a highly competitive market environment Ability to connect to people and involve all employees ownership Every employee as a marketer Customer loyalty Customer retaliation Don t take customer for a ride Importance of disaster management and /PR