Problems at Jetblue

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  • Topic: The Downward Spiral, Risk, Adrian Belew
  • Pages : 2 (524 words )
  • Download(s) : 113
  • Published : February 17, 2013
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Problems at JetBlue
On February 14, 2007, JetBlue’s lack of preparation and poor management decisions caught up with them. They faced a disastrous turn of events that most businesses anticipate and prepare for. Most businesses plan for worse case scenarios and have contingency plans in place to address those problems should they arise. It is imperative, for airlines in particular, to have contingency plans and be well prepared in case of any and all emergencies. JetBlue’s operations and policies proved inefficient because JetBlue’s management team operated on the assumption that they could handle a problem if and when it occurred. They lacked preparation and clear expectations, which contributed to the company’s meltdown in 2007. JetBlue marketed themselves as the inexpensive alternative to other airlines. Therefore, the company had to eliminate all of the bells and whistles its competitors offered in an effort to keep costs down. This also meant that its operations staff and IT systems were significantly limited. As a result, the company was not prepared for an emergency situation of such a large scale. The bad weather on February 14, 2007 caught them off-guard; their IT systems in place were not capable of handling the overload of required information. Also, JetBlue’s staff was limited and not properly cross-trained in handling reservation, flight and crew applications. Additionally, poor policies and procedure in place, like the airlines policy to do whatever it could to ensure a flight was completed, even if it meant waiting for a few hours, contributed to the downward spiral that took place in 2007 for JetBlue. Management took a risk that the weather would improve and hoped that the decision they had taken would pay off with huge profits. Unfortunately, the events of 2007 did not play out how JetBlue’s management team hoped. Their systems could not handle the overload of customers that were trying to rebook flights, and their baggage tracking system...
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