14 Aug Chapter 13 – Jet BlueInstructionsWhen low-cost carrier JetBlue Airways began ope

Chapter 13 – Jet BlueInstructionsWhen low-cost carrier JetBlue Airways began operations in 1999, it promised customers cheapfares combined with exceptional service. JetBlue planes offer more legroom and all seats onJetBlue planes offer passengers 36-channel DIRECTTV® service on seat-back screens.For seven years, JetBlue, with a few exceptions, kept its promise to passengers. It shot to thetop of customer satisfaction surveys conducted by J.D. Powers and Associates. On Valentine’sDay, 2007, however, the airline suffered the worst crisis in its history. Due to an unexpectedNew York ice storm, nine JetBlue planes full of passengers were stranded on the tarmac forover 6 hours—one plane and its 130 passengers sat on the tarmac for 10 hours. The planes leftthe gate and then found they could not take off but the airlines, feeling that the storm would letup by midmorning, did not allow the planes to return to the gate. In the end, the wheels of theplanes were frozen in the slush, unable to move.In addition to its immediate response to the February cancellations, JetBlue cited its dedicationto “bringing humanity back to air travel” and established a Customer Bill of Rights retroactive toFebruary 14. The Bill of Rights outlines what JetBlue will provide to its customers in cases offlight cancellations, departure delays, overbookings (customers who are denied boarding willreceive $1000), and even when the DIRECTV® is inoperable.1. What is the decision facing Jet Blue?2. What factors are important in understanding this decision situation?3. What are the alternatives?4. What decision(s) do you recommend?5. What are some ways to implement your recommendations?

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