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JetBlue Formulating Plan To Compensate Stranded Passengers

JetBlue Airways founder and CEO David G. Neeleman says he will announce tomorrow what he calls a customer bill of rights. It will financially penalize JetBlue--and reward passengers--for being stranded on a plane after a certain amount of time.

Neeleman says that the cancellation of about 1,000 flights since an ice storm hit the Eastern U.S. last Wednesday was the result of a shoestring communications system, which left pilots and flight attendants in the dark, and an under-size reservation system. Saying that he is "humiliated and mortified" by the breakdown, Neeleman also admits that his company's management is not strong enough.

Until now, JetBlue and its low fares have enjoyed overwhelming popularity and customer-satisfaction ratings. Vowing to create "a different company" despite the expense, Neeleman says: "What's more important is to win back people's confidence."

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