When Scootitude Meets Attitude

  • 789 views
Uploaded on

This case was prepared by Serene Cai and Sherry Goh as an assignment for CS 4033 Corporate Communications Management at Nanyang Technological University.

This case was prepared by Serene Cai and Sherry Goh as an assignment for CS 4033 Corporate Communications Management at Nanyang Technological University.

More in: Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
789
On Slideshare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
0
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Disclaimer This case was developed based on archival research with the sole purpose for class discussion. It does not aim to serve as endorsements or to be used as a source of primary data to illustrate managerial practices of the organization(s) or individual(s) mentioned in the case.
  • 2. Case Overview This case looks into how a series of unfortunate flight delays, compounded by inappropriate image restoration strategies, has taken a toll on Scoot’s reputation. Anchored in crisis management, this case will also examine how social media acted as a double-edged sword against the social media guru.
  • 3. Teaching Objectives At the end of this case, students should be able to: Critically evaluate the image restoration strategies used in a crisis, and propose viable alternatives. Identify the problems arising from using social media as a sole crisis communication medium, and propose other appropriate mediums.
  • 4. Scoot’s CEO, Campbell Wilson “We absolutely understand your frustrations, but what’s done is done. There are things that we can learn from this, and I assure you that we will. But, more than anything, we will continue to focus on providing great value, safe and – as best we possibly can – fun and reliable travel. Thanks for taking time to read this and, whether you’ve commented for or against us, thanks for your passion.”
  • 5. Corporate Background of Scoot Came into the scene on 1 November 2011 Wholly owned subsidiary of Singapore Airlines, invested SGD$283 million to start the low-cost carrier Provides medium and long haul no-frills flights between Singapore and Sydney, Gold Coast, Bangkok, Tianjin, Taipei, Shenyang, Nanjing, Qingdao, Seoul, and Hong Kong Termed “poor man’s excuse to fly SIA”, “luxury budget” Known for attributes such as “spontaneity, movement, informality and a touch of quirkiness” – serving people with Scootitude.
  • 6. SIA Group business model diversification
  • 7. Competitors Scoot will face two direct competitors in the region’s low-cost carrier market catering for long-haul flights: AirAsia’s Air Asia X Qantas’s JetStar
  • 8. How it unraveled 19 January 2013, Scoot found a technical glitch on its Bangkok-bound aircraft. The emergency slide was not functioning properly, and hence the seats near the slide had to be vacated in accordance with protocol. After an unsuccessful attempt to request for 23 volunteers to change their flights, Scoot told the last 23 passengers that they could not be uplifted.
  • 9. How it unraveled – Cont’ A group of Chinese travellers, who were already in the boarding area, turned disruptive and refused to let the plane depart upon hearing that their remaining members would not be uplifted. Hundreds of passengers were stranded at Changi Airport as a result of the stand-off. The Airport Police Division of Singapore Police Force had to be brought in to contain the situation, while Scoot representatives tried to negotiate unsuccessfully.
  • 10. The Stand-off
  • 11. How it unraveled – Cont’ After a lengthy 6-hour delay, 23 other passengers volunteered to change to the next available flight and accepted the compensation offered by Scoot (SGD$200 Scoot vouchers). The Singapore-Bangkok flight finally departed, but caused a knock-on effect to Scoot’s subsequent flights (to Sydney, Tianjin, Gold Coast etc).
  • 12. How it unraveled – Cont’ Disappointed passengers took to the social media to complain about the flight delays, and the lack of information provided. Compounding the problem was the fact that Scoot’s real-time email and SMS alert system was not ready for activation during the crisis. All in all, the consecutive flight delays and insufficient information disseminated led passengers to experience confusion and anxiety. Scoot Facebook page then became a platform for which criticisms grew and developed.
  • 13. Scooting into Trouble – Stakeholders’ Responses The Media’s Biased Coverage “There should be a set of rules to ensure that airlines meet minimum operational and service standards, with penalties imposed if they don't.” -The Straits Times (local media) “Hundreds of passengers were stranded after their flights on the budget airline Scoot were delayed.” -Channel NewsAsia (local media)
  • 14. Scooting into Trouble – Stakeholders’ Responses The Media’s Biased Coverage “Hundreds of passengers, including an unaccompanied minor… were left to fend for themselves for two days at Changi Airport after budget airline Scoot allegedly overbooked flights” -News.com.au (foreign media)
  • 15. Scooting into Trouble – Stakeholders’ Responses The Disappointed Scooters “Everyone was hungry but we couldn’t go out to eat because the staff told us that if we weren’t there when the flight was ready, they’d leave without us. If we didn’t do it, everyone will be stuck in that place without food. We lost a lot of money.” -Passenger Michelle Tok, one of the volunteers (The Straits Times)
  • 16. Scooting into Trouble – Stakeholders’ Responses The Disappointed Scooters “There is a family with two small children, and a minor travelling alone who would have no way to get accommodation waiting for the next flight. Scoot basically said the only thing they will do is place us on the next flight in 20 hours and you’re on your own, the rep at terminal refused our requests to speak to management or any other Scoot staff at the airport.” -Affected passenger, forced to sleep over in the airport’s transfer terminal (The Straits Times)
  • 17. Scooting into Trouble – Stakeholders’ Responses The Disappointed Scooters “Giving a complimentary return ticket doesn’t solve anything. The next trip might be faced w the same delay! OMG! Scoot! Ur delays information is way too unprofessional. Tiger would inform all customers way before hand via SMS! N this happened since 19jan. If u foreseen an overbooking, y don u inform us in advance? [sic]” -Facebook user Low Jessie, who took her frustrations to the Scoot Facebook page
  • 18. Scooting into Trouble – Stakeholders’ Responses The Disappointed Scooters “Will be my first and last to ‘Fly Scoot’ for me. #dontflyscoot No ground support what so ever at Changi. No information, no notification, no response, no obligations. I will be taking my case to the ombudsman in Australia. I will miss my prepaid shuttle and will miss work. Doesn’t matter what it says in their T&C if it’s illegal. Due diligence has its place.” -Facebook user Michael Suprana, a foreigner whose impression of the international carrier was tarnished by the flight delay.
  • 19. Scooting into Trouble – Stakeholders’ Responses Onlookers Not Impressed “service has not improved one bit… just today, I read about how they blatantly cancelled the flights and the only refund given was, in terms of Scoot vouchers [sic].” -Onlooker who wrote in to The Real Singapore. “China has blocked Facebook so it is pointless for informing them on Facebook as per Tianjin flights.” -Onlooker Boniface Paul Banta who posted on Scoot Facebook page.
  • 20. Scooting to the Rescue – Scoot’s Responses Compensation & Rectification Scoot offered to place the volunteers on the next available flight, provide them accommodation, and compensate them with SGD$200 Scoot vouchers. All affected passengers were also compensated with SGD$50 Scoot vouchers each.
  • 21. Scooting to the Rescue – Scoot’s Responses A Series of Apologies Scoot Facebook team posted a one page long note on 20 January 2013, apologizing for the flight delays on 19 and 20 January 2013. However, this was mentioned: “the primary issue arose when we were not able to accommodate 23 people booked on the Singapore-Bangkok flight (TZ302) on 19 Jan, due to technical reasons.” “Regrettably, the 23 passengers did not accept the offer, and a large group of their friends who were already in the boarding area became disruptive and would not let the flight board, thus holding back all other passengers as well.” A distancing strategy – an excuse to avoid the blame by scapegoating the 23 passengers?
  • 22. Scooting to the Rescue – Scoot’s Responses A Series of Apologies Scoot admitted that it had not informed its passengers early enough, and highlighted that it was in the midst of implementing a SMS alert system to update passengers swiftly on disruptions (received a mixed response). Continued to post a series of Facebook notes notifying passengers of the affected flights. A separate note was posted for each affected flight.
  • 23. Scooting to the Rescue – Scoot’s Responses Wilson’s Sour Apology Scoot’s CEO, Campbell Wilson posted a Timeline Photo of himself, and included an apology for the flight delays on Scoot Facebook page.
  • 24. Campbell Wilson’s Facebook Apology
  • 25. Scooting to the Rescue – Scoot’s Responses Wilson’s Sour Apology Wilson summarized the reasons for the delay as such, “a small technical glitch and the actions of a small number of people had substantial consequences on the travel of many others.” Shifting of blame instead of assuming responsibility for its technical hiccup?
  • 26. Scooting to the Rescue – Scoot’s Responses Wilson’s Sour Apology Wilson highlighted that “snow, fog, typhoons or the occasional technical glitch are just some of the issues that are a fact of life for any regular traveller” and “less than 1% of our flights have been affected by more than 15 minutes due to engineering reasons since our launch.” Downplaying the crisis?
  • 27. Scooting to the Rescue – Scoot’s Responses Wilson’s Sour Apology Wilson emphasized that disruptions sometimes do happen and by “pretending that they don’t, or thinking that despite every statement to the contrary we were just joking in our recommendation to take travel insurance, won’t prevent them from happening.” Shifting blame to affected passengers who did not heed Scoot’s advice to purchase travel insurance?
  • 28. Scooting to the Rescue – Scoot’s Responses Wilson’s Sour Apology Wilson concluded by saying “We absolutely understand your frustrations, but what’s done is done.” While reassuring consumers that Scoot will continue to improve its service, he ended the note with “Thanks for taking time to read this and, whether you’ve commented for or against us, thanks for your passion.” A sincere apology or a sarcastic note to antagonistic passengers and onlookers?
  • 29. The Challenge The question at hand is how inappropriate image restoration strategies have negatively affected the young, fun, and value-providing airline, in the event of a series of unfortunate flight delays. Scoot, a social media guru, found itself embroiled in a social media crisis of its own, and challenged with restoring its image amidst the widespread online criticism.
  • 30. Discussion Questions 1. (a). Discuss the means with which Scoot handled crisis communication. 1. (b). What went wrong for Scoot? 2. How could Scoot have approached the crisis differently? Suggest alternative strategies Scoot could adopt to restore its image.
  • 31. Discussion Questions 3. Identify the main problems concerning the use of social media as a sole crisis communication medium. 4. Suggest other suitable mediums and discuss their relevance to the crisis.
  • 32. References CAPA Centre for Aviation. (2012, June 4). Launch of new SIA subsidiary Scoot shakes up LCC market. Retrieved from: http://centreforaviation.com/analysis/launch-of-new-siasubsidiary-scoot-shakes-up-the-lcc-market-75191 Delays to Scoot flights on 19 Jan and 20 Jan 2013. (2013, January 20). [Facebook update]. Retrieved from https://www.facebook.com/notes/flyscoot/delays-to-scoot-flights-on-19jan-and-20-jan-2013/465694353490098 Flight Delay: OOL-SIN (TZ005) on 21 Jan to depart from OOL at 1435hrs (OOL Time), due to arrive in SIN at 2030hrs (SIN time). (2013, January 21). [Facebook update]. Retrieved from https://www.facebook.com/notes/flyscoot/flight-delay-ool-sin-tz005-on-21-jan-todepart-from-ool-at-1435hrs-ool-time-due-/465830570143143 Flight Delay: SIN-BKK (TZ302) departed from SIN at 2135hrs (SIN Time), and is due to arrive in BKK at 2255hrs (BKK time). (2013, January 20). [Facebook update]. Retrieved from https://www.facebook.com/notes/flyscoot/flight-delay-sin-bkk-tz302-departed-from-sin- at2135hrs-sin-time-and-is-due-to-a/465800420146158
  • 33. References Flight Delay: SIN-OOL (TZ006) on 20 Jan to depart from SIN on 21 Jan at 0346hrs (SIN Time), due to arrive in OOL at 1326hrs. (2013, January 21). [Facebook update]. Retrieved from https://www.facebook.com/notes/flyscoot/flight-delay-sin-ool-tz006-on-20-jan-to-departfrom-sin-on-21-jan-at-0346hrs-sin/465826386810228 Flight Delay: SIN-SYD (TZ002) on 21 Jan to depart from SIN 0430hrs (SIN Time), and is due to arrive in SYD at 1515hrs (SYD time). (2013, January 21). [Facebook update]. Retrieved from https://www.facebook.com/notes/flyscoot/flight-delay-sin-syd-tz002-on-21-jan-todepart-from-sin-0430hrs-sin-time-and-is-/465829606809906 Flight Delay: SYD-SIN (TZ001) on 21 Jan to depart from SYD at 1615hrs (SYD Time), due to arrive in SIN at 2115hrs (SIN time). (2013, January 21). [Facebook update]. Retrieved from https://www.facebook.com/notes/flyscoot/flight-delay-syd-sin-tz001-on-21-jan-todepart-from-syd-at-1615hrs-syd-time-due-/465840626808804 FlyScoot.com. (2011, November 1). Not your usual airline name, not your usual airline. Retrieved from http://www.flyscoot.com/index.php/en/pr06-not-your-usual-airline-namenot-your-usual-airline.html
  • 34. References FlyScoot.com. (2012). Our promise to you. Retrieved from http://www.flyscoot.com/index.php/en/ in-flight/our-promise-to-you.html FlyScoot.com. (2013, September 19). You’d be Dim not to get Sum ! Retrieved from http:// www.flyscoot.com/index.php/en/pr66-you-d-be-dim-not-to-get-sum.html Hundreds stranded as Scoot flights delayed. (2013, February 20). Channel NewsAsia. Retrieved from http://news.xin.msn.com/en/singapore/hundreds-stranded-as-scoot-flights-delayed Kaur, K. (2013, February 18). No-frills flights shouldn't mean no standards. The Straits Times. Retrieved from http://www.relax.com.sg/print/article/news/no-frills-flights-shouldn’t-mean-nostandards Scoot CEO responds uproar over 11-hour flight delay. (2013, March 13). The Real Singapore. Retrieved from http://therealsingapore.com/content/scoot-ceo-responds-uproar-over-11hour-flight-delay
  • 35. References Scoot passengers stranded at Changi Airport. (2013, January 22). News.com.au Travel. Retrieved from http://www.news.com.au/travel/travel-updates/scoot-passengers-stranded-atsingapore-changi-airport/story-e6frfq80-1226558806451 Steven Greenway. (2013). Steven Greenway Linkedin Page. [LinkedIn Page]. Retrieved from http://www.linkedin.com/in/stevengreenway Wilson, C. (2013, January 23). Timeline Photos. [Facebook update]. Retrieved from https:// www.facebook.com/photo.php?fbid=467022250023975&set=a.241287689264100. 58604.195291693863700&type=1 Yahoo! News. (2011, November 1). Singapore Air budget carrier Scoot to begin 2012. Yahoo News. Retrieved from http://news.yahoo.com/singapore-air-budget-carrier-scoot-begin2012043145741.html Yong, C., & Kaur, K. (2013, January 22). Changi stand-off delays Scoot flight. The Straits Times. Retrieved from http://news.asiaone.com/News/Latest+News/Relax/Story A1Story20130121396954.html