Jet Blue

JetBlue Airways: A Cadre of New Managers Takes Control

Janet Rovenpor

Manhattan College

CASE

Mary Michel

Manhattan College

O

n February 14, 2007, Valentine's Day, Genevieve McCaw and her boyfriend arrived at JFK International Airport and boarded JetBlue flight number 351 bound for Burbank, California. The plane, however, never took off. An ice storm grounded the Airbus A320 on the tarmac for almost an entire day. When the ordeal was over, McCaw created a blog and posted the following message: "Nothing says 'I love you' like being held hostage on a frozen plane with the man you love, 99 strangers, 4 other people you happen to know, 4 screaming babies and 3 rambunctious kids running about, nothing but chips and soda for sustenance, faulty power, unreliable direct TV and an overfilled sewage system for 11 hours" (see www.jetbluehostage.com). McCaw was not the only traveler who was angry. The ice storm affected 130,000 passengers, caused the cancellation of 1,100 flights over a six-day period, and cost JetBlue an estimated $30 million.1 Industry observers and loyal customers were left to wonder how this could happen. After all, JetBlue was founded by David Neeleman, a Salt Lake City entrepreneur, to "bring humanity back to air travel."2 As the eighth largest passenger carrier in the United States, JetBlue had won many awards, including "Best Domestic Airline," "Best Domestic Airline for Value," and "Best Overall Airline" for onboard service. Company officials explained that JetBlue's philosophy was to delay flights rather than cancel them. The airline was committed to getting its passengers to their destinations despite bad weather. When the ice storm lasted longer than forecasted, flight delays at JFK caused cancellations at other airports. Outbound passengers in New York could not deplane because there were only 21 gates for 52 airplanes

and some airplanes had become frozen to the ground at the gates. Neeleman issued several apologies on news...