Delta Drops Fees, Learns Lesson

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    Rigid rules lead to viral video crisis

    Last month Delta Air Lines took a serious pounding to its already-tattered reputation when a YouTube video which featured shocked home bound soldiers commenting on the $200 fee they were charged for checking extra baggage (which contained government-issue weapons used to fight overseas, by the way) went viral.

    Delta’s initial response was to apologize, but by simply giving lip service and refusing to actually make a change in policy, it only added fuel to the fire, creating more negative commentary and drawing harsh criticism from stakeholders. Finally, Delta saw the light and adjusted its policy to allow an additional free bag for troops, but the damage was done.

    What should we learn from this? BCM President Jonathan Bernstein answered that question in an interview for the San Francisco Chronicle:

    The lesson, said Jonathan Bernstein, president of Bernstein Crisis Management Inc., is that companies should let airline workers make decisions in the name of good customer service. In this case, the Delta employee who handled the fee was just following the rules of Delta Air Lines Inc.

    “Then those situations never have to escalate into crises,” Bernstein said. “They (Delta) end up with a hit on their reputation that they could have avoided.”

    Requiring special authorization for checking one extra bag is just plain over-bureaucratization. Flexibility is a hallmark of smart business models for good reason, and this should extend right down to those working the phones and customer service counters. With training, enabling your front-line representatives to make minor changes could save you from a major crisis.

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    For more resources, see the Free Management Library topic: Crisis Management
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    [Jonathan Bernstein is president of Bernstein Crisis Management, Inc. , an international crisis management consultancy, and author of Keeping the Wolves at Bay – Media Training.]