Case4.1 Case Study Example

The New York based JetBlue airways outpaces most ambitious projects in 2007. This was due to advanced services by the flight service that ensures customer satisfaction. The company experiences flawed decision making that tarnishes the reputation of JetBlue even as the firm records losses. The company resurrects after the deregulation Act that eliminates government control over the commercial aviation.
This airline is the brainchild of David Neeleman who has helped in the setting up of other airlines. Neeleman designs JetBlue with the recent features to ensure customer satisfaction and lowers the freight charges to counter the stiff competition. Neeleman has a high capital reserve to equip the flight with features that appeal to customers.
The firm experienced a horrific condition due to deterioration of weather in February 2007. Harsh weather conditions jeopardize JetBlue operations on that fateful day. Customers of the airline experienced flight cancellations as well as high instances of loss of baggage. The disruptions are caused multiple operational failures, as explains Neeleman due to the crisis.
The cancellation of the flight led to an enormous loss to the company as it lowered the operating margin forecast. After the operational meltdown of JetBlue airways, congress thought of implementing a bill of right to safeguard the interests of the passengers. Neeleman offered his school of thought to design a customer’s bill of rights that specifies terms of compensation in case of air travel disruptions.
Customers traveling using JetBlue would receive vouchers to help them in their future travels. This idea would come at expensive costs towards the firm. Neeleman personally replied all customer requests since he perceived the Customer Bill of Right as a vital image in restoring the image of the airline company. Neeleman held that the program would come at an additional cost. In light of this, the important thing was to win the customers confidence together with JetBlue key stakeholders.