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Global Strategic Communications president Peter Firestein explains how bad PR can impact a company.
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-- big companies facing a blizzard about -- this week for bonehead moves that would completely avoidable Spirit Airlines denied a dying -- a refunds.
And then in the same 24 hour news cycle announced it would charge us all hundred bucks to put a bag in the overhead not checking it but to put -- the overhead.
And then there's -- whose CEO seems to have pledged his resume a little bit.
Upon further investigation it turns out the woman who hired him.
May have done the exact same things what they all thinking how -- -- excess fixing it joining us now with some answers is Peter fire Stein.
President of global strategic communications thanks so much for joining us and lifts our Spirit Airlines because this is so crazy so they have this that was out there.
On the news talking about how he bought a ticket but he is terminal cancer is gonna die before it can use the ticket -- they tell him that they won't responded I think we have the statement.
I'm from the CEO when it when you finally saw the president has brought to his attention he said we feel really badly for mr.
Ricans this is Jerry mean -- he spent that.
However this is a country in a society where we kind of play by the rules it has played by the rules to the end.
-- and isn't this crazy revenues in 24 hours they then go out -- announced that they're charging a hundred dollars to put your bag in the overhead does this say good PR cycle for the war.
Well it only cost 297 dollars for the -- ticket down but I think come.
Mr.
ball -- playing two different games and he's very very good one and that is revenue capture.
And I think he's just beginning to learn about the other one which has to do with capturing.
Passengers who trust you.
You know.
Americans judge companies more -- -- the way they do their politicians by their values.
So I'm he's going to be learning about the effects.
-- to ignores customer.
It's really surprising because he's actually a very savvy -- we've had a month a year he does great interviews he always -- -- whatever the latest scandal is and doesn't add based on not a mean.
But the Secret Service he did you know low low cost flights to South America you know and -- used.
You know something in the scandal to do is -- -- it's actually very PR savvy this was this is priced what would you tell them to do right now.
Well for -- bullish after -- -- -- -- shock that he was asking anybody for advice down.
I would tell him that they he has vulnerabilities and he doesn't know about he appears to be a genius -- collecting revenues -- making flights attractive.
But he doesn't understand what happens when people's opinion about you turns.
And what the effect of that is going to have -- passenger traffic.
And that effect in turn on investors remains to be seen.
And at that point -- the stock suffers -- -- then he may have to emergencies with his divergences with his board.
On that he is not forcing.
Look let's move on to Yahoo! the CEO said that he had a degree in computer science and something else I think it was business administration not sure we have that.
One of -- that in fact the university didn't even offer at the time.
-- people asked the question you know how could this have gone unnoticed and turns out that the person hit areas right there it turns -- the person who did.
-- chat or who was meant you -- -- a recruiting also have the wrong nature of listed on her -- this ridiculous because really that crop called their integrity to question.
Over something so silly.
Mean what what would your advice be on this.
Well assuming that it's true in assuming that somebody it was somebody's intention to do it -- this is not the right time this error.
Critics -- -- accident got it could have been let's say it could have been an accident.
On the it's really the same kind of analysis has -- -- -- spirit here but it's the mirror image.
There are people who care about this in people who don't care the people who don't care.
Our Yahoo!'s millions and millions of users across the world they don't care about the CEOs resonate but an equally important constituency cares very much.
And that is the institutional investor yeah I'm somebody is holding millions of shares of Yahoo!.
I care about one thing about that CEO about every -- everything else and that's his credibility.
So if I'm listening to him on the next quarterly earnings conference call.
And I know that he's I believe he's -- his resonating.
And I'm listen you look at what he's talking about in terms of right next quarter and so on I hear that at Hertz yes and don't let anybody tell you that it's all math.
Investors.
React on got.
Millions of dollars billions of dollars transfer on the basis of intuition down on the and so it's important.
Here are saying that so much for joining us appreciate it thank you -- -- taker.
