Aug 18

Steven Slater, The Reality Show

Today's guest post is by Julie Farin

JetBlue flight attendant Steven Slater has become the latest media magnet due to his dramatic  “take this job and shove it” exit from Flight 1052 at New York’s JFK airport last week, following Airplane-exit his public obscenity-filled rant involving a rude passenger who allegedly injured him while retrieving her carry-on baggage from the overhead bin (ignoring Slater’s instructions to remain seated).

Just 48 hours after this well-publicized incident, the social media was all a-Twitter and divided. There were those who called Slater a hero, a man who should have been applauded for fulfilling every disrespected working person’s fantasy.  Others thought him more of a zero, whose actions were reckless and dangerous.  JetBlue, on the other hand, suspended the 28-year airline veteran and two days later issued a light-hearted statement on their company blog basically announcing that they couldn’t comment on the situation due to the ongoing investigation.

I am surprised that JetBlue did not swiftly issue a statement apologizing for their employee’s rogue behavior (right or wrong, there were 100 witnesses who heard his eff-ing tirade over the PA system) while they collected all the facts.  This was the airline’s opportunity to reiterate how seriously they consider the safety of their passengers and their employees, instead of treating Slater’s public meltdown as somewhat of a joke, as the tone of their statement seemed to suggest. 

Clearly, this man was beyond stressed and frustrated by having to deal with the bad behavior of ill-mannered passengers day after day.  But, as they say, it comes with the territory of a job that deals with the public. Perhaps JetBlue should mandate stress-management seminars for flight attendants as part of its on-going training (if it hasn’t already).  For the record, I recently traveled on JetBlue round-trip from JFK to San Diego, and it was a wonderful experience.  In fact, I plan on flying JetBlue again next month.

Regardless, Mr. Slater has become an overnight celebrity with all the traditional and social media attention (buy your "Save Steven” t-shirts here!)    And it now seems that he has hit the publicity mother lode:  Hollywood publicist Howard Bragman has announced he is representing Slater, losing no time fielding offers for book deals, endorsements, and reality TV shows.

Hey, if the Jersey Shore cast’s antics can be celebrated on TV, why not a harried flight attendant? 

Julie Farin is a Public Relations professional based in New York with expertise in TV, entertainment, magazine publishing, and the media in general.  She is a news and information junkie, Godfather aficionado, and proud to admit that John Lennon is her favorite Beatle.

Jun 17

Where’s Mr. Blackwell when you need him?

Forbes is great at compiling lists. They publish the 400 richest, the 100 best investments, the 300Top_10
Spartans. Oh wait. The latter wasn’t a Forbes list.

Regardless, Forbes has just published its list of the 75 most reputable companies in the U.S. There are lots of names you’d expect (Johnson & Johnson, GE and FedEx, for example) as well as a few surprises (Enterprise Rent-A-Car, Goldman Sachs and Morgan Stanley). I found the latter two names particularly interesting in light of the sub-prime disaster.

But, enough about the good guys. I’d like to see a list of America’s least reputable organizations (a Forbes 500 version of Mr. Blackwell’s 10 worst dressed Hollywood stars, if you will).  Who would you put on the least reputable list?

Here’s my top 10 (bottom 10?):

1.) Jet Blue – From a reputation standpoint, this airline is a midair collision. And, what’s with JetBlue and bathrooms? First, they won’t allow passengers to use restrooms during a nine-hour delay on Valentine’s Day. Then, more recently, they forced a passenger to fly in a lavatory for an entire flight? (Note to self: use the restrooms before boarding).

2.) The entire airline industry minus Southwest.

3.) ExxonMobil, Shell and their ilk. How much longer before top oil and gas industry executives start fearing for their lives because of astronomically high gas prices?

4.) New York City crane suppliers.

5.) A New York City political infrastructure that allows crane safety standards to go by the boards.

6.) Ford (talk about being asleep at the wheel as the gas/environmental crisis loomed large on the horizon. They’ve finally begun shutting down assembly plans that make the gas guzzlers).

7.) Chrysler and the rest of the beleaguered American auto industry (imagine losing an 80 percent market share and still being in freefall?)

8.) The New York Metropolitan Baseball Club, inc. (Mr. Wilpon: now, that you’ve finally fired Willie Randolph, it’s time to turn your sights on Omar Minaya. He’s the chief architect of this mess. Dump him ASAP and hire a GM who can build a blended team of veterans and up-and-comers.)

9.) The National Basketball Association. The game is a farce. Showboating "what’s in it for me?" players sharing the court with crooked referees makes for an NBA that’s on a fast break to oblivion (or, if not, at least becoming a legitimate rival to professional wrestling).

10.) The fast food industry. I still think they’re part of the problem, not the solution.

Thanks to Rob Longert for the idea.

Dec 30

Growth at Any Price – Including No Growth

Guest blog by Gene ColterTh12410
When my mom travels from my home to JFK airport this week, chances are her Florida-bound JetBlue flight will be substantially delayed, just as my dad’s flight was last week.

It won’t be the airline’s fault – New York-area airports have on-time arrival/departure percentages that rival the test scores of “successful” college football teams – but every little hiccup gets me thinking about what’s gone terribly wrong with the airline that only a short while ago had been the promise of the industry. More to the point, JetBlue stands as an object lesson on the mission that drives – and damages – many of America’s greatest companies.

JetBlue is near to hitting a couple of notable anniversaries. The discount carrier was founded almost a decade ago in 1998, and it was almost a year ago that JetBlue made worldwide headlines after allowing weather-bound passengers to spend 10 hours on the tarmac and canceling over 1,000 flights.

The root cause of that debacle – and the inevitable travel delays of the Colter brood – is not weather. It is JetBlue’s overreaching for “growth,” a sin that’s so common among notable public companies and their backers that we have trouble even recognizing its pervasiveness.

Please know that your blogger does not own sandals and hugs no trees. (In fact, given the latter’s tendency to invade his basement, he must often be physically detained by contractors from trying to cut down every tree in his heavily wooded Northern New Jersey neighborhood.) But the fact stands that there are reasonable growth strategies – often evidenced by their long-term parameters – and growth-right-here-right-now-don’t-care-how-it-happens strategies.

When David Neeleman founded JetBlue, he showed signs of getting it all right: limited, controlled reach; disdain for the all-over-the-place pricing and hub-and-spoke system that had damaged the major carriers; dynamite customer service; and a serious commitment to managing costs.

But Neeleman is also a “serial entrepreneur” and a man who seems to treat his much-discussed attention-deficit disorder as a public-relations messaging point. More to the point – and this is the real killer – JetBlue is a public company, with all the attendant quarter-to-quarter demands that entails. We should have known.

So it was a couple of years ago that Neeleman — since replaced in the top job, though he remains the company’s non-executive chairman – added another type of aircraft to JetBlue’s stable, plus a bunch more routes and a new training center. Costs – in an industry already legendary for high fixed costs – soared. The future is by no means bright for the airline with good TV, fun-loving attendants and tasty blue-corn chips.

Business luminaries with much more serious chops than I will see that I am making a lonely argument about controlled growth, and they will dismiss it. Yet the fact remains that sometimes – many times – companies would be better off reining in their urges to soar ahead and instead settle for steady profits and good cash flow, picking their spots for big strategic moves that will bring another wave of sustainable growth.

Just ask JetBlue, which posted losses for the last two years and whose stock price is near-grounded at about $6. Even fans of the airline have noted that it has grown too fast to manage its challenges.

It’s unfair (though certainly convenient) to single out JetBlue. Many companies have similarly stumbled. Countless more will follow. And even successful multinationals suffer at the hands of U.S. public markets, which, make no mistake, are a tremendous asset, perhaps more so than government and any other social entity.

Consider, for example, McDonald’s. The Golden Arches have pretty much penetrated every market they can operate in. Analysts ding the stock because it is no longer a “growth company.” But the cash flow from “Billions and Billions Served” is amazing, and what’s wrong with cash and the profits they produce? I suspect the company could fund itself from operations for eternity, or easily turn to banks or bond markets should it need to fatten up its customers, er, coffers. Does it even need to be public anymore?

So, as the New Year approaches, make your way to the airport and settle in for your long (long) trip home. Perhaps you can kill some time by working on a plan to take McDonald’s private.

* * *
Speaking of public companies, anyone who wants to get the real read on what the economy’s fate will be in 2008 would do well to skip the government data and instead turn to the companies’ financial reports. Your goal is to determine whether companies are spending down their cash piles. Right now, most aren’t. If that trend continues no amount of consumer spending or Federal Reserve intervention will keep the economy’s trajectory from looking like JetBlue’s stock chart.