- What is the most important problem facing Jet Blue?
- What recommendation(s) would you make to Jet Blue, and in what order of priorities?
- How do you balance between your commitment to shareholders and your commitment to the community?
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Solution Preview - What is the most important problem facing Jet Blue?
In May 2007, hundreds of customers were forgotten on the tarmac. This event caused consumer groups, attorneys, representatives and senators to change the perception of Jet Blue’s customer service. Also reported in 2007, JetBlue slowed down its growth–it sold five aircraft in 2006 and might let more go if demand remains soft. JetBlue’s fleet reduction is part of a plan by the carrier’s executive team to attempt to sustain double-digit operating margins.
In addition to its fleet scale-back, JetBlue is taking a comprehensive look at its route network, management says, noting that some of the 16 new markets that came on line in 2006 could be a drag on profit and loss. CFO John Harvey says new market growth won’t be nearly as dramatic going forward, predicting annual growth of two-to-four new cities per year. He believes JetBlue needs to examine markets with an 18-20-month maturity level and decide whether to trim frequencies or eliminate them altogether. - What recommendation(s) would you make to Jet Blue, and in what order of priorities?
According to a New York based PR agency, specializing in crisis communications, the customer service crisis experienced by Jet Blue was avoidable. The number one priority for Jet Blue will be to improve their …
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