Shares of air carrier JetBlue (NASDAQ: JBLU) fell on Tuesday, in the aftermath of a week of weather related delays and self-admitted deficiencies in its response plans. The company expects from $20 million to $30 million in losses as a result.
Shares of air carrier JetBlue Airways Corp. (NASDAQ: JBLU) dropped Monday 5.16 percent, 70 cents, to $12.86.
The discount airline said Monday it is creating a â€˜Customer Bill of Rightsâ€™ that spells out policies and voucher options for passengers.
The â€˜bill of rightsâ€™ has been instituted after passengers in planes departing from JFK airport in New York on February 14 were confined in grounded aircraft for up to 11 hours as a result of bad weather.
The new policies aim to guarantee better communication to customers about cancellations and diversions, as well as provide clear deplaning procedures. A new voucher system for delays will also take effect, offering customers compensation ranging from $25 vouchers, to vouchers equal to the total paid fare. Refunds will be available if a flight is cancelled before 12 hours before departure.
Among the policies announced Monday, the company says it will help travelers deplane the aircraft if a flight has been ground-delayed for five hours. Delays of 30 to 60 minutes will be compensated for with $25 vouchers toward a future purchase. The plan increases the voucher value until the delays reach 4 hours. The compensation will be retroactive to February 14.
This was a big wake-up call for JetBlue, said JetBlue Founder and CEO David Neeleman. If there's a silver lining, it is the fact that our airline is going to be stronger and even better prepared to serve our customers.
The company said it would help better train plane crewmembers and form a customer advisory council.