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  • Essay / JetBlue: A Strategic Management Case Study

    JetBlue was founded with the aim of “bringing humanity back to air travel” by promoting the most unusual ideas to improve the customer experience. JetBlue has primarily targeted the low-cost airline market by offering the lowest fares in the industry while ensuring quality and memorable moments for customers. For example, unlike other airlines, JetBlue only offered one class of service, suggesting equality among all human beings. All seats were leather with extra legroom and TV screens installed for each customer. The airline was also ranked first for best customer experience due to its reliability. To ensure the JetBlue experience, the airline has adopted a number of strategies such as hiring a highly motivated, non-unionized staff and making flight cancellation a measure of last resort, in popular belief according to which “passengers preferred to arrive late at their destination rather than have their journey”. canceled flights,” demonstrating human understanding. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essayWhat challenges did the airline face in customer experience management as the airline was growing rapidly, and how did they respond? Rapid growth meant that the airline's operations were becoming increasingly sophisticated, making a change in strategy imminent even if management was not yet aware of it. For example, prioritizing late departures over flight cancellations has helped the airline win several awards for best customer experience. However, with an expanded fleet and therefore more flights per day, such disruptions have often led to significant setbacks. This is precisely what happened during the ice storm of February 14, 2007, when instead of canceling its scheduled flights for the day, JetBlue chose to wait and hope the storm would dissipate in time. to allow flights to take off and, in turn, built an excellent reputation against other airlines that had already canceled their flights. As it turned out, the long wait ultimately resulted in nine planes full of passengers being stranded on the tarmac and more than 30,000 passengers left helpless at airports across the country. This had a ripple effect that resulted in the cancellation of more than a thousand flights over the next six days and losses worth $17 million in revenue and $24 million in vouchers compensation. The crisis led to significant changes to the airline's operations, the most significant being the replacement of chief operating officer David Barger with Russell Chew, who had renowned experience in the aviation industry having held a similar position at the FAA and as CEO of American Airlines. Airline Systems Operations Center. Other changes include recognizing the vital role of early flight cancellations which has changed the airline's approach from reacting to problems with heroic actions to preparing for disruption. The airline also adopted IROP integrity where flight planning was computerized. The system also included the cancellation desk which could be activated when a packet of ten or more cancellations was issued. What exactly went wrong? For what? Who or what was responsible? The crisis has. 1-33.