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February 20, 2007
JetBlue’s Reputation In Crisis, Again!
PHOTO: JetBlue Passengers Stranded On Plane Over 8 Hours
"I think I'm uniquely qualified to deal with these issues."
Said David Neeleman, JetBlue's CEO, with hubris.
According to Reuters, JetBlue Airways Inc., which was forced to cancel nearly a quarter of its flights this holiday weekend after last week's ice storm in New York, said on Sunday it expected to return to a normal schedule by today.
But it may take the low-cost airline a long time to regain its reputation after suffering harsh criticism from thousands of stranded travelers since the storm struck Feb. 14.
The airline admitted it didn't act swiftly enough to cancel flights after the storm struck and threw federally mandated air crew work-time schedules into disarray, resulting in massive flight cancellations at the start of a high-volume holiday period.
"This has never happened before on this scale," said JetBlue spokeswoman Tracy Sanford on Sunday. "We didn't cancel flights as much as we could have." She said the delays and subsequent cancellations had a "snowball effect" on air crew schedules.
The airline, already suffering from widely publicized delays and cancellations as ice and snow blanketed the New York area on Wednesday, said it canceled 173 out of a scheduled 600 flights Saturday and another 144 Sunday.
Late Saturday, the airline canceled another 139 flights slated for Monday, Presidents Day, to and from locations including Austin, Texas; Jacksonville, Florida, and Bermuda. It said it may yet be forced to cancel more and encouraged travelers to check the airline's Web site frequently.
The airline offered refunds and free flights to travelers scheduled for flights to and from a dozen or so cities and said it may reimburse some "on a case by case basis" to travel on other carriers.
PHOTO: More Stranded JetBlue Passengers
The passenger strandings, coming in the wake of debacles at other U.S. airports in recent months, led to congressional calls to revive "passenger bill of rights" legislation, a push that abated in 1999 after the airline industry voluntarily agreed to customer service initiatives.
JetBlue said it is still assessing the financial impact of the debacle. In an interview last week, Chief Executive David Neeleman said debacle would cost the airline "many millions of dollars."
According to A.P., JetBlue Airways introduced a customer bill of rights today that promises vouchers to fliers who experience delays, hoping the move wins back passengers after an operational meltdown damaged its brand and stock price.
Founder and chief executive David Neeleman described the crisis as "a huge bump in the road" but said JetBlue would move past it. He said 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.
JetBlue said the first step in getting people to fly on the airline again was its introduction of a new customer bill of rights.
Under the bill, customers will be compensated based on the length of delays. The value of the vouchers range from $25 to the full amount of the ticket. The qualified delays include those caused by 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 departure, customers can ask for a full refund. JetBlue said passengers would also receive vouchers if delays are the airline's fault.
JetBlue vowed to deplane passengers if an aircraft is delayed on the ground for five hours.
The airline said it was fully operational on Tuesday after a sequence of events led to the cancellation of 1,096 flights, tarnishing the reputation of a carrier known for its low fares and customer service. More than 100,000 passengers were affected.
Snow and extreme temperatures last week froze equipment and grounded the company's planes at JetBlue's terminal at John F. Kennedy International Airport in New York, trapping certain passengers inside the plane for as long as 10 1/2 hours.
PHOTO: JetBlue Should Not Make Pinocchio-like Statements
JetBlue said it waited too long to call for help to get passengers off the planes because it had hoped the weather would let up and flights could proceed.
Bad weather delays and cancellations led to a spike in customer complaints that flooded the company reservations system, and many of pilots and flight crews ended up stuck in places other than where they were needed.
When the weather struck Feb. 14, JetBlue didn't have a system in place to reroute so many stranded flight crews, something it said it is working to rectify within a few weeks.
"What we did was wrong and we didn't have a plan," Neeleman said. He called last week a "somber" time.
To prevent future breakdowns, Neeleman said JetBlue will put in place a reserve force of employees in the New York area who can aid the airline in a crisis.
"Had we had that in place for this event, it would have been much better," Neeleman said.
Neeleman said JetBlue's reservation operations center in Utah was also overwhelmed.
"We are addressing that very aggressively," he said.
Since those "cascading events," Neeleman has been trying to convince investors and customers that the airline will recover. On a conference call Tuesday, he faced a barrage of questions but maintained that JetBlue was not going away.
"This is a great company," he said. "We've had seven years of unbelievable service."
JetBlue's shares fell nearly 5 percent in afternoon trading today.
The debacle is sure to hurt JetBlue's bottom line. Prudential analyst Bob McAdoo wrote in a note to investors that "revenues and added expenses will cost the company about 4 to 6 cents in the March quarter."
Neeleman said he expects JetBlue to hand out $26 million in refunds and credits and another $4 million in incremental expenses such as paying overtime for crews and chartering airplanes.
Neeleman said the company would provide more details about those costs in a filing later Tuesday with the Securities and Exchange Commission.
It's not clear if the damage to JetBlue will hurt its future prospects. McAdoo suggested the effects would be temporary.
"Although the press coverage of JetBlue's problems has been widespread, the problems experienced are not likely to be repeated nor any negative impact on the company's reputation be long lasting," he wrote in a note to investors. "Other new airlines have experienced similar problems with few lingering image problems."
PHOTO: JetBlue CEO David Neeleman
A few comments from the Reputation Doctor regarding JetBlue’s reputation in crisis, again:
JetBlue CEO David Neeleman's statement about "being uniquely qualified" to deal with these issues" is full of hubris and inexperience.
With all due respect to Mr. Neeleman, in my opinion, he is not at all uniquely qualified to handle these crisis issues regarding JetBlue's damaged reputation. This is new territory for JetBlue, they have made big mistakes, they have no outside PR counsel on this crisis or past crises and humility at this time is a major tool for rehabilitating a reputation in crisis. Hubris is not a tool needed in any crisis and Mr. Neeleman gave a few statements filled with hubris.
Don't make promises you can't keep. Better to manage expectations then over promise and appear like Pinocchio.
Neeleman said the problem will soon be fixed and it will not happen again. How can he make such a claim? His airline is moving into unchartered territory for this small and growing airline and unrealistic expectations of future excellence can hurt JetBlue's reputation for the long-term with many key stakeholders.
JetBlue needs to hire an excellent PR firm with seasoned crisis public relations and reputation management experience today!
JetBlue is now negatively branded with a reputation as the cheaper airline you don't want to take when bad weather hits because you won't get off the ground for many hours or days. Look for consumers to not forget. In addition, larger airlines are sure to remind us all why they believe their service is more reliable and give more options in bad weather.
Remember, do the right thing when your reputation is in crisis and seek the counsel of an experienced reputation management expert. It will be a major challenge, but ultimately the rewards of repairing your reputation will be great. Why? Because Your Reputation Is Everything! ™
About Mike Paul
Mike Paul is editor of The Reputation Doctor blog. The Reputation Doctor is a nickname given to him by various clients. Mike's blog is located at www.ReputationDoctor.com. He appears regularly on Fox News Channel, CNN, MSNBC, Court TV, ABC News, ESPN, CBS News, BBC, and others as a weekly contributor and expert in the global news regarding corporations, CEOs, political leaders, athletes, celebrities, and other organizations with reputations in crisis. Mr. Paul is also president and senior counselor of MGP & Associates PR (www.mgppr.com), a leading strategic public relations and reputation management firm based in New York. For interview requests, speeches, senior counseling or other business opportunities with Mr. Paul, call 212-595-8500 or email info@mgppr.com.
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February 14, 2007
Howard K. Stern's Reputation In Crisis - Svengali, Love or Money Re: Anna Nicole Smith?
PHOTO: Howard K. Stern allegedly negotiated the rights to his story the day after Anna Nicole's death for $1 Million to Entertainment Tonight
“Anna was my life. She was my whole life. I loved her.”
Cried Howard K. Stern after Anna Nicole Smith's death.
According to several news agencies, Roger Gomez, the Bahamas' chief magistrate, stated that island authorities now have a heightened interest in questioning Howard K. Stern regarding the death of Anna Nicole Smith's son Daniel in September.
The inquest in the Bahamas into the death of Daniel Smith has been set for March 26 2007, with Gomez assuming around 30 witnesses will appear in court.
New evidence and facts regarding Smith's sudden death and that of her son are continually arising and raise further suspicions and questions, especially regarding Howard K. Stern.
Gomez said that both Smith and Stern were in the hospital room when Daniel Smith died.
PHOTO: Anna Nicole Smith as Marilyn Monroe
"Anna Nicole, the mother of Daniel, is dead, and Howard is the only one who was alive who was in the room," Gomez said. "And it really arouses our suspicions to exactly what happened in the room."
Gomez also found it "unusual for someone to die suddenly" despite the fact that a combination of methadone and antidepressants Lexapro and Zoloft were found in Daniel's blood. Photographs published this week of Smith's fridge in the Bahamas showed a stock of methadone.
"If that is verified by evidence at the inquest, it will certainly increase our interest, because methadone is allegedly one of the drugs he may have died from," Gomez said.
Photographs of Smith in the arms of a Bahamas Immigration official have also been circulating, yet he said Smith was a friend of his wife and family, and that the "innocent photographs" were taken by Stern. He has refused to resign as he believes he did not act inappropriately.
It is still unknown what killed the former playmate as investigators await the results of the blood and spinal fluid that was taken from her shortly after her death.
Perper, the medical examiner said that "rumors are flying like balloons, but many balloons are pierced by reality."
He added that the autopsy found no needle marks, no pill residues in her stomach or any indication she had been drinking alcohol. There was also no evidence of recent plastic surgery.
Until it is determined concretely what exactly happened to both Anna Nicole Smith and her son Daniel, rumors and theories will continue to surface.
PHOTO: Howard K. Stern on Larry King: Father or Liar?
A few comments from the Reputation Doctor regarding Howard K. Stern's reputation in crisis.
One fact is not in doubt: Howard K. Stern's reputation is in crisis.
Within the next 90 days, the world will learn the truth regarding whether Howard K. Smith is Dannielynn's biological father, whether he has the right to Anna Nicole Smith's body for burial and maybe whether he was involved with the death of both Anna Nicole Smith and her son Daniel. As I always say, there is a huge difference between the court of law and the court of public opinion. The court of public opinion rules every minute of every day and the court of law rules only at the end of trial. Howard K. Stern's reputation is in crisis and it resides in a court just as important as the court of law.
If it can be proven that Howard K. Stern gave Anna Nicole's son Daniel methadone, Stern will see prison time.
FACT: Howard K. Stern certainly did not help Anna Nicole Smith or her son to stop taking drugs. FACT: He also was nearby when both were found dead. At best, he was not a good friend by allowing his friend Anna and her son Daniel to continue with their drug use and at worst, he was enabling their drug use for personal gain. Many times people believe they are smarter than the law and lead with their egos and try to cover up the truth. How many times do we have to learn the truth always bubbles to the top, especially with the media microscope looking down on your every move - past, present and future?
Howard, the truth will set you free!
I believe Howard K. Stern is at risk for potential suicide. He needs to have his family and friends close by and watching him now more than ever. He knows the truth and it is my personally opinion that he has not been fully truthful in the many areas he has been questioned regarding his relationship with Anna Nicole Smith and her son Daniel. However, he still has an opportunity to set the record straight and do the right thing. I believe his house of cards is about to take a big fall and I think it is tearing him apart. I think he is scared to death to tell the truth, but it is the truth that will truly set him free and begin to repair his reputation for the long term. If not, the lies will eat him alive and keep his reputation in crisis. The vacuum of rumors can be replaced by truth and Howard K. Stern must take the lead. Hang on, this story has legs and will be in the news through spring.
Remember, do the right thing when your reputation is in crisis and seek the counsel of an experienced reputation management expert. It will be a major challenge, but ultimately the rewards of repairing your reputation will be great. Why? Because Your Reputation Is Everything! ™
About Mike Paul
Mike Paul is editor of The Reputation Doctor blog. The Reputation Doctor is a nickname given to him by various clients. Mike's blog is located at www.ReputationDoctor.com. He appears regularly on Fox News Channel, CNN, MSNBC, Court TV, ABC News, ESPN, CBS News, BBC, and others as a weekly contributor and expert in the global news regarding leaders, celebrities, corporations and other organizations with reputations in crisis. Mr. Paul is also president and senior counselor of MGP & Associates PR (www.mgppr.com), a leading strategic public relations and reputation management firm based in New York. For interview requests, speeches, senior counseling or other business opportunities with Mr. Paul, call 212-595-8500 or email info@mgppr.com.
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February 5, 2007
Young Female Celebrities With Reputations In Crisis
PHOTO: Newsweek Cover Story
“One thing is not in doubt: a lot of parents are wondering about the effect our racy popular culture may have on their kids and the women they would like their girls to become. The answers are likely to lie in yet another question: where do our children learn values?”
From The Girls Gone Wild Effect, Newsweek Magazine's Cover Story.
According to Newsweek, like never before, kids are being bombarded by images of oversexed, underdressed celebrities who can't seem to step out of a car without displaying their well-waxed private parts to photographers, writes Assistant Managing Editor Kathleen Deveny with Assistant Editor Raina Kelley in the current issue of Newsweek.
In a recent Newsweek Poll, 77 percent of respondents say young women celebrities like Britney Spears, Paris Hilton and Lindsay Lohan have too much influence on young girls. Eighty-four percent of those polled say sexuality plays a bigger role in American popular culture than it did 20 or 30 years ago and 70 percent say this is more of a bad influence on young people today than a good influence.
PHOTO: Britney Spears Without Underwear
In the February 12 Newsweek cover, "The Girls Gone Wild Effect," (on newsstands Monday, February 5), Deveny and Kelley examine whether there really are harmful long-term effects of overexposure to Paris Hilton and whether we are raising a generation of what one L.A. mom calls "prosti-tots," young girls who dress like tarts, live for Dolce & Gabbana purses and can neither spell nor define such words as "adequate."
Educators say they don't believe most girls in middle school wear short skirts or midriff shirts to attract the attention of older men, or even boys, Newsweek reports. (High school is, granted, a different story.) Sixth graders dress to fit in with other girls and for acceptance in social groups. "They dress that way because that's what they see in the media," says Nancy T. Mugele, who works in communications at Roland Park Country School in Baltimore. "They don't want to be different."
PHOTO: Lindsay Lohan Drunk
One-day marriages aside, why wouldn't girls be fascinated by Brit and her celebrity pals? These 21st-century "bad influences" are young, beautiful and rich, unencumbered by school, curfews or parents. "They've got great clothes and boyfriends. They seem to have a lot of fun," explains Emma Boyce, a 17-year-old junior at Louise S. McGehee School in New Orleans. But fascination and admiration are two very different things. As they get arrested for driving drunk and feuding with their former BFFs, the Brit Pack makes it easy for young women like Boyce, a top student and accomplished equestrian, to feel superior to them. "My friends and I look at them to laugh at them," adds Boyce. "Our lives seem pretty good by comparison. We're not going to rehab like Lindsay."
As Deveny writes, our anxiety about girls and sex is growing just as the statistics seem to be telling a different story. Sex surveys are notoriously unreliable, but the best available data show that the average age of first sexual intercourse for girls is 17, according to the Guttmacher Institute, and hasn't changed by more than a few months in 20 years. The overall teenage pregnancy rate in 2002, the most recent available, was down 35 percent from 1990, according to the Center for Disease Control. And while celebrity idols stumble in and out of rehab, the rates of drinking, smoking and overall drug use among teenage girls have declined in recent years, says the Institute for Social Research at the University of Michigan.
That some girls dress like Paris/Britney/Lindsay is empirically true. But it's difficult to draw a straight line between the behavior of celebrities and the behavior of real girls. "We certainly don't see our girls clamoring to get to downtown Chicago to the clubs," says Mark Kuzniewski, principal of Aptakisic Junior High in Buffalo Grove, Ill. And while girls may admire Britney's clothes and dance moves, her students "can't understand why Britney would wear no underwear," says Michelle Freitag, fifth-grade teacher in suburban Chicago. Their verdict: Britney is a "hootch," which is a polite way of saying "slut."
PHOTO: Tara Reid and Paris Hilton Wasted
A few comments from the Reputation Doctor regarding young female celebrities with reputations in crisis and their impact on young girls everywhere:
WARNING TO PARENTS: Young female celebrities today don't care about being role models to young girls. They only care about making money and having fun.
Most young female stars like Britney Spears, Lindsay Lohan and Paris Hilton really don't care about being role models. They have been told how important being a role model is to their long-term careers and they have rejected that advice from their own parents, managers and PR consultants. Many young celebrities move out at an early age, are very immature, buy their own home and have too much money, which is dangerous combo. They rebel just like other teenage girls, but their rebellion is seen through the prism of the media microscope day after day. Sadly, they continue to garner support from tweens and teens every where, as parents look on with disgust, but these same parents don't step up to the plate and...PARENT.
If young girls learned proper values at home and had mature and balanced parents who spent time with them, demonstrated their love with actions and held their children accountable, these celebrity influences would be reduced.
I see it time and time again: parents today who want their children to be their friends instead of their children. I see parents afraid to offer solid boundaries, rules, discipline and accountability for their children's actions. I see parents not willing to discipline their children because they fear their children will not like them and rebel. Sadly, these parents are in crisis themselves and they are the root of the problem within their children. Not disciplining a child is not love, it is actually irresponsible, unloving and damaging. Sad but true.
Communication is the key to educating young girls about the behavior of their young female idols in Hollywood.
Do you really think hiding a magazine or clicking the channel on the TV is going to stop your daughter from learning about the latest inappropriate behavioral crisis of Britney, Paris or Lindsay? It is time to get real! Your daughter will then learn about it at school from a friend, buy the magazine herself and hide it or see everything anyway on the Internet. They go to Youtube daily and have their own pages on MySpace and you don't even know it. True parents don't hide, procrastinate or run from communicating about difficult subjects with their daughters. By the way, this is not just a job for Moms. This is also a job for Dads to educate their daughters on the impact of their behavior on boys. Most experts would argue the relationship between a father and a daughter is just as important or more important than the relationship between a mother and her daughter. Just as important is how parents should be mirroring an appropriate and loving marriage relationship for both their daughters and their sons. Where do you think kids should be learning the most? At home from their parents! Time to step up to the plate with your daughters. Don't allow these young female celebrities to be the biggest influences in your daughters' lives. That is your job as a parent. Your child's reputation is counting on you!
Remember, do the right thing when your reputation is in crisis and seek the counsel of an experienced reputation management expert. It will be a major challenge, but ultimately the rewards of repairing your reputation will be great. Why? Because Your Reputation Is Everything! ™
About Mike Paul
Mike Paul is editor of The Reputation Doctor blog. The Reputation Doctor is a nickname given to him by various clients. Mike's blog is located at www.ReputationDoctor.com. He appears regularly on Fox News Channel, CNN, MSNBC, Court TV, ABC News, ESPN, CBS News, BBC, and others as a weekly contributor and expert in the global news regarding leaders, celebrities, corporations and other organizations with reputations in crisis. Mr. Paul is also president and senior counselor of MGP & Associates PR (www.mgppr.com), a leading strategic public relations and reputation management firm based in New York. For interview requests, speeches, senior counseling or other business opportunities with Mr. Paul, call 212-595-8500 or email info@mgppr.com.
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