The Southwest Airlines debacle is the result of outdated technology that analysts and its unions have warned about for a long time.
Becker said in the interview that people have a right to be upset. Years ago they should have invested in these systems.
Southwest has canceled more than 2,500 flights on Wednesday and a similar number on Thursday, while its rivals have largely recovered from the cold. Passengers who have been stranded at airports, missing luggage or holiday time with their families may be reassured by the apology offered by the airline and its CEO.
Pete Buttigieg told Jordan that the department expects Southwest to take steps to prevent a situation like this from occurring again. The Senate Commerce Committee will be looking into the matter.
Southwest's system is a point of pride and helps it reach many medium-sized markets. The behind-the-scenes technology that makes it possible to schedule crews and aircraft all proved brittle this week, just as it did in October 2021. Humans had to call in to track down pilots and flight crews when the computers weren't up to the task.
The memos show alarm as the storms hit.
Randy Barnes is the president of TWU Local 555, which represents Southwest's baggage handler and other ground workers. Barnes said that if airline managers had planned better, the recent problems could have been avoided.
At a media day in November, the CEO said he couldn't say how much it would cost to improve the operation. Executives talked about the $2 billion being spent to improve the in-flight experience at the event.
Jordan said that they were behind. We have outrun our tools as we grow. There is a lot of paper when you are at an airport. We have a lot moving around the country. Someone needs to call them or chase them down in the airport if they get demoted.
Some of Jordan's top lieutenants rejected the idea that Southwest was slow in adopting new technology. Andrew Watterson said in an interview that he doesn't think it's true. The scheduling system is very good.
According to analyst Becker, the prospect of the company investing more in technology under Jordan was one change that was thought to be a catalyst for Southwest.
Becker said that she expects earnings to be hit in the hundreds of millions of dollars. Southwest might have to heavily discount tickets in the first quarter in order to get back travelers.
Southwest shares fell 2% in the morning. The drop on Tuesday was the largest since July. Through Tuesday, the shares were down 21%.
Becker said scheduling probably won't get caught up until this weekend because the carrier said it would run only one-third of flights. Southwest has only canceled a few flights on Friday.
She said that the carrier might have to curtail some of its ambitions until people are fully trained. 20% of the carrier's workforce is new this year, thanks to the fact that 11,000 people have been hired to replace those who left during the Pandemic. 40% of Southwest's workers will be new to the airline by the end of the year, according to the company.
Becker doesn't think they can get by with another storm without investing in systems to improve things.
All Rights Reserved © 2024
