Case presentation on: JET BLUE

GROUP – 6
VISHWAS – 17145
YADUNANDAN – 17146
VARSHANATH – 17147
SHOUBHIT DEHARIYA – 17148
IVIN ANTO ALAPATT – 17149
HARI SHANKAR – 17150
CHANDANA – 17151
MANJUNATH - 17152
 Company Overview
 Founded in the year 1999.

 Started with an initial capital of over 160 million dollars.

 Its home base was John F. Kennedy Airport.

 Faced no labor issue since it was non-unionized.

 After the terrorist attacks of 2001, it made maximum profit.

 In 2005 its profit declined from 8.1 to 2.7 million dollars, yet it kept
expanding.

 In February 14, 2007, it met with an unforgettable fiasco, named

“Valentine’s Day Nightmare”.
Reason for CRISIS
 Sole motive of profit maximization.
 Expansion of the business despite a drastic fall in profits (because of increasing oil
prices).
 They ignored the weather forecast and took the decision to fly the planes.
 Dependence on an undersized reservations system that relies on a dispersed workforce
(many agents worked flexible hours from home)
  Dependence on the Web, a low-cost solution that works well until thousands of
passengers need to rebook at once
 Inadequate staffs.
 Existing staffs lacked training to deal with emergency situations.
 Poor communication system in the organization.
 An undersized reservation system.
 Q1) Bring out the potential per crisis indicator of a potential
crisis reaction in the company in the light of the facts of the
case?
PRE-CRISIS THROUGH RESOLUTION MODEL
1. Prodromal stage (Pre-crisis stage):
 It continued to expand its operations regardless of falling profit.
 Jet Blue was aware that the city was hit by a storm, still it chose to fly.
2. Acute stage (Crisis occurred)
 Point of no return: Passengers were stuck in the planes and the company lacked human as
well as physical resources to handle the situation.
3. Chronic Stage (Lingering)
 JetBlue immediately took the responsibility of the crisis
 They took the crisis as a lesson and vowed to right by the “company’s customers”
 They took initiatives to find out what actually went wrong.
4. Resolved stage (Return to normalcy)
 The company incurred both monetary and non-monetary expenses to get back to the
normal stage.
 Q2. Evaluate Jet Blue’s handling of the
aftermath of the event.
Reaction through Accommodation

 Reaction-The crew and passengers got stuck on the runway with no support from the ground.
There was a scene of panic.
 Defense-The company also took a number of other rectifying measures. Apologized publicly to over
131,000 customers affected by the cancellations, delays, and diversions.
 Insight- It acted as an eye opener. It revealed the short comings in communication system and lack
of training and other problems.
 Accommodation-Reviewed and published its Code of Ethics. Offered varying levels of
compensation to the customers. Issued a Customer Bill of Rights.
 Agency-The company understood the cause.Trained the employees to work better in emergency
situations.Improved its communication system.
Bringing Humanity back to Air Travel

Realising its moral and ethical obligations towards its customers, JetBlue-

 Provided contingency training to its employees.

 Enhanced the company’s management system through a better

communication system.

 Implemented the consumer Bill of Rights.

 Continued to provide more affordable flights, however with more stringent

quality and safety norms.
THANK YOU