Could Jet Blue’s new bill of rights bankrupt the company?
Will JetBlue Airways new customer bill of rights that promises vouchers to fliers who have delays win back disgruntled passengers?
The airline certainly hopes so but others are dubious.
The new rules call for JetBlue customers to be compensated based on the length of the delays. The vouchers range from $25 to the full amount of the ticket. The delays include airplanes’ unable to taxi to the gate within 30 minutes and flight departures held up for a minimum of three hours, according to JetBlue.
If JetBlue cancels a flight within 12 hours of its departure, customers can ask for a full refund or a voucher. JetBlue said passengers would also receive vouchers if flight delays are the airline’s fault.
JetBlue also vowed to deplane passengers if an aircraft is delayed on the ground for five hours.
Founder and chief executive David Neeleman described the crisis as “a huge bump in the road” but said JetBlue would move past it, and told reporters in a conference call that he had no intention of resigning in the wake of the worst corporate mess in the airline’s 7-year history.
“I think I’m uniquely qualified to deal with these issues,” Neeleman said.
The airline said it was fully operational Tuesday after a sequence of events led to the canceling of 1,096 flights and tarnished the reputation of a carrier known for its low fares and exceptional customer service. More than 100,000 passengers were affected, Mr Neeleman said.
Snow and extreme temperatures last week froze equipment and grounded the company’s planes at JetBlue’s terminal at John F. Kennedy International Airport, stranding passengers inside the aircraft for up to almost 11 hours.
JetBlue said it waited too long to call for help in getting the passengers off the planes because it hoped the weather would let up and the flights could proceed.
The bad-weather delays and cancellations led to customer questions and complaints that overwhelmed the company’s reservations system, and many of its pilots and flight crews wound up stuck in places other than where they were needed.
To prevent future breakdowns, Mr Neeleman said he intends to put in place a reserve force of JetBlue employees in the New York area who can come to the aid of the airline in the case of a serious crisis.
Airline expert Terry Trippler told the AP that JetBlue would overcome the public relations problem. But he had reservations about the bill of rights.
“If you start paying people when you’re late, other airlines could be forced to join and then you’re in a bidding war,” Trippler said. “And when you’re selling tickets for $100 and giving $100 vouchers away, something has got to give. It doesn’t make good economic sense.”
Other experts suggested the costs of such a guarantee could potentially bankrupt the airline.
Report by David Wilkening

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