There are rules and regulations set by the Department of Transportation over this sort of thing.
25.08.2023 - 14:25 / skift.com / Justin Dawes / Bob Jordan
Southwest Airlines capped off its 2022 with the unenviable distinction of cancelling more than 15,000 flights in total during the week of Christmas, the result of a system failure caused by several issues that were exacerbated by a nationwide winter storm.
It was an unmitigated disaster for the Dallas-based airline, with the story leading news sites and network TV news broadcasts day after day, a public relations disaster that showcased its deficiencies in keeping its technology up to date.
As the debacle was being scrutinized heavily in the media each step of the way, the airline’s CEO, Bob Jordan, made several statements and appearances in an attempt to get ahead of the unfolding crisis and improve public perception.
Meanwhile, the issues that other airlines faced during the storm were quickly remedied, no system shutdown needed.
The primary reason for the major issue at Southwest was its outdated optimization technology, which the airline has outgrown over the past couple of decades. Company executives have admitted to prioritizing other things over investing in technology for operations, despite warnings from staff and some close calls previously. Paired with a staff shortage, the issue became too much for Southwest’s system to handle.
“This one clearly pushed it over the cliff,” said Robert Mann, airline industry veteran and president of aviation consultancy R.W. Mann & Co. “While they’re working this problem out, they’ve got to be absolutely certain that this never happens again.”
But whether this can happen again is a legitimate question for the entire airline industry.
Being behind technologically is a common criticism experts make of the aviation industry. Will it result in other meltdowns similar to Southwest’s?
The airline’s disaster over the holidays should serve as a reminder for other carriers to take stock of their operations to ensure nothing like this happens again, and when it comes to looking where to cut costs, leave the technology alone.
Now the question is what Southwest will do next.
What went wrong with the technology?
There is always a backlog of updates that need to happen in the airline industry, but they get pushed aside in a system where safety and regulatory issues are paramount
It appears that was the case for Southwest — to the extreme.
Unions said they had been warning Southwest of tech inadequacies for years and that the problem could have been avoided if the company would have invested in its own operations. Southwest had invested in some new technology, mostly customer-facing applications like self-service capabilities, as outlined in a public filing in early 2022. The filing also said the company had deferred a “significant number of technology projects”
There are rules and regulations set by the Department of Transportation over this sort of thing.
Hurricane Idalia is barreling toward the Florida Gulf Coast and is expected to make landfall as a major hurricane on Wednesday and disrupting travel up and down the coast.
The death of an airline employee in December and another serious injury prompted the Federal Aviation Administration (FAA) to issue a safety alert on Friday to airlines in an effort to prevent more incidents.
Two months. That’s how long Southwest Airlines expects there to be an impact on bookings from its massive holiday meltdown that disrupted millions of travelers over Christmas and New Years.
Southwest Airlines has put an initial number to the losses incurred during its holiday meltdown: a $725-825 million hit to its pre-tax income in the fourth quarter. That number includes both $400-425 million in lost revenue and added costs, for example reimbursing people for alternative travel costs.
It’s not often that travelers have something to look forward to at Newark Liberty International Airport. The new $2.7 billion Terminal A will open in December, the latest in a series of major airport projects opening around the U.S. this year.
The U.S. Transportation Department (USDOT) said it planned to seek higher penalties for airlines and others that broke consumer protection rules, saying they were necessary to deter future violations.
Good morning from Skift. It’s Tuesday, January 3, and here’s what you need to know about the business of travel today.
Southwest Airlines was up and running on a normal schedule on Friday after a massive winter storm crippled operations this week and exposed problems at the low-cost carrier.
U.S. Senate Commerce Committee chair Maria Cantwell on Wednesday said the panel intended to hold hearings after Southwest Airlines’ recent meltdown that led to nearly 16,000 flight cancellations in the week ending Dec. 29.
A group of 15 U.S. senators on Friday demanded Southwest Airlines Chief Executive Bob Jordan answer questions about the low-cost carrier’s holiday meltdown that led to nearly 16,000 flight cancellations.
Shareholders filed a lawsuit against Southwest Airlines Co on Thursday, accusing the carrier of fraudulently concealing problems that led last month to an operational meltdown and more than 15,000 flight cancellations.