Jet Blue's recent troubles with a poor response to extreme weather reflect a lack of agility in substitutability. National Public Radio posted a pretty astute analysis here. It seems like a cascade of poor decisions lead to the catastrophic event. Agility in substitutability means accurate business delivery during periods of overload or failure. Flight scheduling decisions should have been guided by decision analytics that using weather scenarios and its impact on the network. You can incorporate analysis such as integer programming into active decisions and workflow. The cost of these systems can be high, yet the likeliness of a reoccurrence also seems high.
Jet Blue now has a unique perspective on the ROI of a system like this.
A passenger’s ‘bill of rights’ obfuscates Jet Blue's substitutability issue. You do not hear any of this thinking in Mr Nelleman's thinking. Investors and Competitors will be watching to see what technology they bring to prevent this.