This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ Explore more of Starbucks at Starbucks.com. http://www.starbucks.com/default.asp?ci=1015 \----------------------------------------------------------/ JetBlue Moves to Repair Its Image After Sharing Files September 23, 2003 By MICHELINE MAYNARD Airline executives, industry analysts and privacy groups said yesterday that JetBlue might have to do more to appease fliers than issue an apology to those who complained about its decision to share information on 1.1 million customers with a Pentagon contractor investigating security issues. While analysts said they doubted the disclosure would do more than scuff the airline's reputation, the industry was still shaking its head over an unexpected black eye to the airline, an aviation darling since it began flights in 2000. In reaction to the uproar over its action, JetBlue said late yesterday that it had retained the accounting firm Deloitte & Touche for help in the "continued development" of its privacy policy. It said the firm would help the airline refine its standards regarding customer data. The airline also has changed its mind and said it would not be a test airline in the government's screening program called CAPPS II, or Computer Assisted Passenger Profiling System, nor would it provide background data about its passengers to the Transportation Security Administration unless required to by law. JetBlue executives also said yesterday that no one had taken legal action, but Kevin P. Mitchell, chairman of the Business Travel Coalition, which represents corporate travel departments and business travelers, said "there's talk of lawsuits out there." JetBlue's shares, which have tripled in value in the last year, fell 96 cents, to $57.96. Some passengers boarding Jet- Blue flights at Kennedy International Airport yesterday said they were concerned. One passenger, Sherman Hendel, said he was surprised and "offended" by the disclosure. "I would not expect that an airline would divulge personal information about passengers," he said. "I resent it." A spokesman for the airline disputed the contention that it handed over sensitive personal data, like Social Security numbers and income levels. "We provided names, address, phone numbers and flight information," said Gareth Edmondson-Jones, a spokesman for the airline. "Torch was able to extrapolate that data. It certainly didn't come from us: we don't keep that information." He was referring to Torch Concepts, a company that is working with the Pentagon on antiterrorism security. In any case, Mr. Jones added, "the data's been destroyed. It never reached anyone outside Torch. Yes, granted, we did break our own policy. We've regretted it and are being very open regarding it." Mr. Jones said the airline had not decided whether it needed to offer compensation to passengers, in the form of free tickets or discounts. "It's certainly something we're talking to our customers about," Mr. Jones said. Even as major airlines' fortunes have plummeted since the summer of 2000, and especially after the attacks of September 2001, JetBlue has been soaring. Along with Southwest Airlines, it is considered a leader among low-fare airlines, which now carry nearly a quarter of all passengers in the United States. Unlike Southwest, which champions a no-frills approach, JetBlue's fleet offers business-class style seats and video screens, making it appeal to a more upscale bargain seeker. It also has gained a reputation as a well-run airline, frequently scoring best among all carriers in on-time performance, as well as recording industry lows in canceled flights and lost baggage. Other airlines dismissed the idea that the practice of sharing passenger information with the authorities might be prevalent. "We do not provide that type of information to anyone," said Kurt Ebenhoch, a spokesman for Northwest Airlines. Mr. Mitchell of the Business Travel Coalition said the airline's action might alarm corporate customers. Many big companies, with an eye to saving money in a tight economy, have been booking increasing numbers of employees on discount airlines including JetBlue. Companies might curtail that practice if they do not feel they can trust airlines to keep passengers' records a secret. "This is a very serious business," Mr. Mitchell said of the data sharing. "This kind of information could tell you the patterns of the people who fly JetBlue" whether business travelers, celebrities or members of Congress. Last Friday, the airline disclosed that it had shared 5 million sets of names, addresses and telephone numbers on 1.1 million passengers last year with Torch Concepts, based in Huntsville, Ala. The airline's chief executive, David Neeleman, apologized to passengers in an e-mail message on Friday. "That was a mistake on our part, and I know you and other customers feel violated by it," he wrote. But John McCorkle, a flight attendant for US Airways who writes an airline industry newsletter, said the move ignored the airline's own privacy policy, posted on its Web site. In it, JetBlue promises that "the information collected on this site is not shared with any third parties." Mr. McCorkle and Mr. Mitchell both said passengers were bound to question JetBlue's assertion that it had destroyed the customer records. "I would want to know in far more detail that they had done so," Mr. Mitchell said. "And I'd want to know that they'd put safeguards in place so that it would never, never happen again." Some passengers at Kennedy airport yesterday said they knew of the information sharing and were dismayed. Marilyn Hendel, who was traveling with her husband to Palm Beach, said, "If the government wishes to investigate people, they should have representatives at the airport doing it." Some JetBlue passengers said they had no problem with the airline releasing personal data to ensure their protection. Philip Lo Piccoto, a New York hair stylist, said that "under regular circumstances, I would feel terrible," but the conflict in Iraq justified the airline's decision. "Seeing as we're in a war," he said, "it's O.K. with me." The JetBlue episode comes amid a dispute between American and European officials over how much information European airlines should provide about passengers traveling to the United States. The United States wants airlines to hand over passengers' files before they board planes, as a safeguard against possible terrorist acts. Privacy advocates say the airlines should not be forced to violate European privacy rules. http://www.nytimes.com/2003/09/23/business/23AIR.html?ex=1065325371&ei=1&en=7689290112716b86 --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! 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