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Southwest Airlines has been unable to keep operations functioning for the past few days. Winter storm Elliott has affected every airport in its path, causing thousands of flights to be cancelled. Most airlines, except Southwest Airlines, have recovered as the storm subsides.
Flightaware provides real-time updates on cancellations and delays. Airports with a large presence in the Southwest, such as Denver International Airport, Baltimore-Washington International, and Chicago Midway, have seen a wave of cancellations, largely due to flights to the Southwest.
why did this happen?
For decades, Southwest Airlines has been a symbol of airline efficiency and profitability. It’s also passenger-friendly with free checked bags and free flight changes. Southwest has managed to stay profitable when other airlines have failed financially in the past. Only the COVID-19 pandemic ended their triumphant path.
One of the factors that has made Southwest Airlines so profitable and successful in competing with traditional carriers (American, United, Delta) is the ability to change flights more quickly and efficiently. It is possible. From each plane he earns only one additional flight a day, making him a profitable engine while other airlines struggle to stay profitable.
Such efficiency is almost always a competitive advantage. But when winter storm Elliot’s extreme weather hit the country, affecting large swaths of the country over a busy holiday weekend, the perfect storm brought Southwest Airlines’ business to its knees.
Southwest CEO Robert Jordan acknowledged the problem, calling it a “tough day.”
The Southwest flight attendants union blamed outdated technology for making it difficult to manage crews and efficiently move them where needed during recovery mode. This is the period after the airline’s facilities and personnel have been disrupted and must be redeployed to normal operations.
Computer models are the foundation for restoring airline operations, allowing flights to be rescheduled, flight crews to fit such schedules, and services to passengers. The complexity of such a business is immense. Still, all airlines are forced to resume operations using such methods.
Every time a flight is canceled, revenue is lost and the goodwill of the passengers is destroyed. Investment in such technology is expensive, but without such investment, scheduling and recovery after a major disruption is slower and more difficult.
In fact, the ultra-efficiency built into the Southwest model already makes it more vulnerable to disruptions and even more difficult to recover from after a major weather event. Technology limitations only exacerbate the situation. This lack of robustness is one price to pay for staying profitable while other airlines have endured periods of unprofitability.
Should the Southwest abandon a strategy that has worked well for decades?
Southwest has traditionally treated its employees well. It has its roots in its founder, Herb Kelleher. There have been reports this week that this is not the case and should be addressed.
A bad week of operations doesn’t mean you can throw out the formula for long-term success. What you can do is use the lessons you’ve learned over the past week to prepare for future scheduling needs, especially in the event of massive disruption.
This includes investing in technical expertise and tools to expedite crew and equipment scheduling, especially when in recovery mode after a disruption. Given that the CEO has a degree in computer science, he should know the value of such tools like no other.
Investments in such technology are always invaluable, but especially during times following major weather events like Winter Storm Elliott. Without the tools to recover from misaligned equipment and crew and restore systems quickly, passengers and their checked baggage can be left stranded, sometimes for days.
The past week should not only be a lesson for all airlines, but a wake-up call for the Southwest. Efficiency is the catalyst for profitability and robustness is the driver of customer satisfaction. Sometimes the two are in conflict. But both are needed, especially in service industries such as air travel.
We hope Southwest recovers from this debacle and makes the technology investments it needs to become a better airline for its employees and customers. We may have to sacrifice some of our profitability in the future to be stronger. In the long run, it will be worth it.
Dr. Sheldon H. Jacobson is the founder of computer science at the University of Illinois at Urbana-Champaign. He applies his expertise in data-driven, risk-based decision-making to assess and inform public policy. His research provided the technical foundation for TSA PreCheck.
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