JetBlue Airways Final Draft 9th March 2012

7/30/2019 JetBlue Airways Final Draft 9th March 2012

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By: Kevin Knights, Ryan Isava, Shami Maharaj, Sean Balkisoon

Buad 6605 Communication, Collaboration and Networking

Case Study Presentationof

Jabawokee


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Summary

Situational AnalysisConstituency Primary SecondaryDiagnosing the Organizations Reputation Corporate Communications Strategy FrameworkCommunication CompetenciesType of OrganizationAnswer to Question Question 1 Question 2

Question 3 Question 4Any QuestionsEND


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Open up competition in airline industry

Fierce cut throat competition ensued

Airline Deregulation(1978)

1999 Neeleman started new airline

Vision - Bringing humanity back to air travel

Value Proposition Air travel in comfort and luxury at lowcost

JetBlue Airways

Superior award winning customer service

Garnered a cult-like loyal customer following

Servicing of neglected routes

Reputation

Among the few to turn a profit in 2001 after 9/11

Size and flexibility allowed continued growth in profitability and revenue

In 2003 Most on time flights while maximizing passenger capacity

By 2007 52 Destination with 575 daily flights

Performance


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Feb 14 th 2007 Winter storm forecast for New York area

JetBlue gambled and loaded flights for departure

Hundreds of passengers stranded for hours on planes and in terminal building

Eventually all flight cancelled and passengers were bused off planes

Valentines Day

The perfect storm revealed JetBlues imperfections/ (Achilles Heel)

Valentines Day disruption led to continued flight cancellations and

further infuriated customers JetBlue was incapable of handling the crisis and restoring normaloperations

JetBlue Grounded

Costly strategy eventually devised to reset operations

Involved further cancellation of 100s of flights

Millions of dollars in losses

Reset Operations

Neeleman uncategorically accepts responsibility

Issues public apology on YouTube assuring no repeats

Introduces revolutionary Customer Bill of Rights

Restore Confidence

Rebuild Image


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JFK, JetBlues home base, known for frequent weather delays Valentines Day - Peak travel periodFAA regulation prohibits departures in the icy weather conditionsLove Affair/Cult-like customer following

Sterling reputation for customer service2006 Ranked highest in customer satisfaction among low-cost airlines2005 Ranked highest in customer satisfaction among all major airline in US2003 Among most on-time in industry2002 Crowned Marketer of the Year by Advertising Age

Shouldered entire risk for weather delays and cancellations and

loaded flights for departureReality of the situation not communicated to customers, whichwould have allowed them to decide whether the risk of personalinconvenience was acceptableMost other airlines cancelled flights earlier that day


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As weather didnt improve passengers remained entombed in planesfor hours, while others waiting to board their flights grew impatient.

JetBlue inevitably cancelled flights as bad weather persisted.The crisis was a major disruption to JetBlues operations in the daysthat followed.

JetBlue cancelled flights daily over the next few days, infuriatingcustomers whose travel plans were disrupted.The airlines reputation was dealt a severe blow, thus a strategiceffort aimed at damage control and recovery became imperative.


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PrimaryPublic/Customer (Existing &Potential)

Shareholders

Employees

Secondary

Media (Local & International)

Federal Government

Competitors


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Excellent reputation prior to Valentines Day 2007 with Award Winning Customer Service andMarketing, giving the airline and identity that was second to none.

JetBlues customer service Attentiveness won the affections of a cult -like customer following.

Neelemans personalized customer service.

Valentines Day events though inconsistent with its track record was tantamount to gross neglectand mistreatment of customers.

Reputation was negatively affected, resulting in customer and shareholder loss of confidence.No crisis management plan in place.

Poor operational procedures Massacre resulted in the companys reputation taking a plunge.

Crisis communications to customers, sorely lacking and poor at best.


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Messages

ConstituencyResponses

ConstituenciesCorporation

Channel: Electronic Media; PrintMedia; internet; internal networkfor reservations;Structure: A common preparedstatement for staff and internalstakeholders; have a designatedcommunications representative. Primary

1.Public mainly Customers

(Potential & Existing)2.Shareholders3.EmployeesSecondary1.Media2.Local and International3.Federal Government4.CompetitorsConstituents Attitude

Their Attitude was apositive one of confidenceand loyalty, prior to thecrisis but quickly changedto a negative one, whichcaused their loyalty toquickly fade as the crisisunfolded and was reportedin the media.

Prior to the crisis theconstituencies respondedpositively to the company. Butas the communications failureoccurred they respondednegatively to the companyreversing all their goodwillgleaned. Thus they shouldrevise the message quickly.

The corporation wants

each constituency toremain confident in andloyal to the company.

The Leadership team andaccess to internalcommunications tools andcorporate advertisingcampaign should havebeen the resources used.

The reputation was one of customer attentivenessand focused on the desiredof the customers.


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The company lacked an understanding of the communicationenvironment

They lack sensitivity by focusing on getting the flights out without

considering the feelings of the customers who stranded on thetarmac.

They lacked the ability to accurately analyze the situation and toinitiate messages effectively.

No one took responsibility for effective communications during thecrisis, which contributed to the perceived drop of the organizationalexcellence in their stakeholders eyes.


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JetBlue seems to adopt the Meaning-CenteredApproach (gleaned from the story as written in thetextbook)Their communications process was complex andshaped organizational events.Employees were influenced by the shared realitiesof the companys visions which contributed to theorganizing and decisions made.Stake holders were committed to the company and

its values and beliefs.


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The culture created was one of shared realities inthe manner of treating all passengers as valuedcustomers, which created a unique sense of place,Generated through ways of doing and ways of

communicating about the organization.David Neelemans leadership style wasTransformational. He inspired the employees withregards to their treatment of customers anddemonstrated this by personally answering allcustomers emails and mail.


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Informing its boarding customers of therisksUpdating websites and reservation hotlineUpdate reservation systemIssue singular crisis communication messagePrepared statement to guide employees indealing with customers and media inquiries.

Communication point of contact andspokesperson


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Communicate companys customer focus

Open and honest statement acceptingresponsibility for crisis

Rebuild loyalty among customers andshareholders

Demonstrate strength and resilience tocompetitors


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Risks Losing the CEO and founding visionary after he

shoulders the blame Exposing the CEO and company to media attack Exposing companys dirty laundry

Benefits Rebuilding customer and shareholder confidence Reiterating the companys commitment to its

customers Rebuilding the companys credibility and integrity


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Multi-media advertising campaign to featureCustomer Bill of Rights

ObjectivesContinue to attract investmentInfluence opinions of JetBlue being customer focusedand caringCreate a stronger reputation


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Marketing JetBlue Airways Customer Bill of RightsVision Bring Humanity back to air travel Objectives Increase awareness of JetBlue Vision Improve company image in the traveling publics eyes Increase customer awareness of Customer Bill of

Rights Provide customer service that meets or exceeds

industry standards Maintain Customer loyalty


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Maintain relationship with government, mediaand customers

Achieve highest ranking for customersatisfaction

Among the most on-time airlines in the industry

Fill most of its available seat while being amongthe most on-time airlines in the industry


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Customers

Shareholders

Employees

Media Competition

Government

Audience

Customer Bill of Rights: Continual transmission of informationeducating existing as well as potential customers

Promote existing services: Continued marketing of JetBlueprograms and services through all media channels

Increase market penetration of existing markets.

Market Research: Industry practices, statistics, trending of programs and services etc.

Employee development and training to include crisis training

MarketingFocus

Electronic and print media

Company Website JetBlue.com

YouTube

Personal emails to all customers.

Expansion of reservation hotline. Customer relations - satisfied customer will spread the good word

Tools


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Information on Customer Bill of Right to employees 1 month Information to public on Bill of Rights via media 1 month

Achievement of highest customer satisfaction ratings 18 months

Listed among most on-time airlines in the industry 3 months

Fill most of its available seats while being among most on time 6 months

Timetable

Monthly reports on progress of objectives

Formalized department reports for presentation at staff meetings

Periodic briefings by the chief staff executive anddepartment heads providing feedback to employees

Evaluating The Results

Restoration of brand credibility and confidenceAffect on JetBluesReputation

By putting its money where its mouth is and not simply offering an emptyapologyCorporate Responsibility

to Customers


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Documents

JetBlue Airways Final Draft 9th March 2012