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☆ Southwest Airlines to Revamp Crew Scheduling System
▼ + stars: | 2023-01-13 | by ( Alison Sider | ) www.wsj.com time to read: 1 min

Southwest Airlines Co. has hired an outside consulting firm and is working to strengthen a crew scheduling system after a meltdown roiled its operations during the holidays, Chief Executive Bob Jordan said in an interview. The airline canceled more than 16,700 flights from Dec. 21 through Dec. 31 after it struggled to recover from a severe winter storm long after rival airlines had resumed normal operations. Southwest has said the disruption will reduce its pretax earnings by $725 million to $825 million.

☆ Shareholders sue Southwest Airlines over flight meltdown
▼ + stars: | 2023-01-13 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

REUTERS/Shelby Tauber//File PhotoJan 12 (Reuters) - Shareholders filed a lawsuit against Southwest Airlines Co (LUV.N) on Thursday, accusing the carrier of fraudulently concealing problems that led last month to an operational meltdown and more than 15,000 flight cancellations. Flight operations at Dallas-based Southwest buckled shortly before Christmas as a fierce winter storm swept across the United States. The carrier largely restored normal operations by Dec. 30, several days after other airlines had recovered. In an interview on Thursday, Jordan said Southwest was looking at all operations to avoid a repeat of the meltdown. The case is Teroganesian v Southwest Airlines Co, U.S. District Court, Southern District of Texas, No.

☆ Exclusive: Southwest eyes operational changes after airline's meltdown -CEO
▼ + stars: | 2023-01-13 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +2 min

CHICAGO, Jan 12 (Reuters) - Southwest Airlines Co (LUV.N) Chief Executive Bob Jordan said on Thursday the company is looking at all options to ensure the operational meltdown it suffered last month is not repeated. The Dallas-based carrier has been dealing with customer outrage and regulatory scrutiny after a systems meltdown last month left thousands of passengers stranded. Southwest has hired consultancy Oliver Wyman to investigate the disruption, Jordan told Reuters in an interview. Southwest's board has set up a new Operations Review Committee to oversee management following last month's systems collapse, Jordan said. With the exception of 1% of bags, the airline has delivered all the luggage which went missing back to customers.

☆ Key Senate Democrats push Southwest CEO for answers on holiday meltdown
▼ + stars: | 2023-01-13 | by ( Rebecca Picciotto | ) www.cnbc.com time to read: +2 min

Southwest Airlines Executive Vice President Bob Jordan speaks as he is interviewed by CNBC outside the New York Stock Exchange (NYSE) in New York City, U.S., December 9, 2021. The questions push for details about the causes of the meltdown, including Southwest's outdated software and staffing failures. The mass cancellations came alongside an intense snowstorm and elevated holiday travel demand, which posed a challenge to many airlines. The senators' letter also highlights Southwest's use of funds, claiming it neglected to update company-wide systems that have long been out of date. "Southwest has long known that its software was outdated, and the Southwest Airlines Pilots Association had warned that such a debacle was inevitable unless Southwest invested in new scheduling systems," the letter says.

☆ U.S. senators press Southwest to answer questions on holiday meltdown
▼ + stars: | 2023-01-13 | by ( ) www.reuters.com time to read: 1 min

WASHINGTON, Jan 13 (Reuters) - A group of 15 U.S. senators on Friday demanded Southwest Airlines (LUV.N) Chief Executive Bob Jordan answer questions about the low-cost carrier's holiday meltdown that led to nearly 16,000 flight cancellations. "The airline must examine the causes of this disaster and ensure it never happens again," said the letter led by Democratic Senators Ed Markey and Richard Blumenthal asking for answers about the software it uses for crew scheduling and why did the company "fail to invest funds to modernize these systems to ensure that it could effectively coordinate crew and flight schedules after major storms and during major travel periods?" Reporting by David Shepardson; Editing by Chizu NomiyamaOur Standards: The Thomson Reuters Trust Principles.

☆ Southwest shareholders are suing the airline, saying it hid the problems that caused its winter meltdown
▼ + stars: | 2023-01-13 | by ( Sinéad Baker | ) www.businessinsider.com time to read: +3 min

Southwest shareholders are suing the airline following its mass flight cancellations in December. The lawsuit accuses it of downplaying or not noting previous issues in its scheduling system. The company cancelled almost 17,000 flights in December and said its scheduling system was a factor. Southwest cancelled significantly more flights than any other airline during the severe December weather. The vice captain of the Southwest Airlines Pilots' Association accused former Southwest Airlines CEO Gary Kelly, who stepped down in January 2022 but is still the company's executive chairman, of turning the airline "into a headquarters-centric cult."

☆ Southwest Airlines CEO Bob Jordan takes responsibility for the company's holiday flight meltdown: 'It just can't happen again'
▼ + stars: | 2023-01-13 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Southwest Airlines CEO Bob Jordan took responsibility for the recent holiday chaos, saying this " just can't happen again." Shareholders filed a class action lawsuit on Thursday against Southwest over the flight disruptions. "I have put everything on the table here because it just can't happen again," Jordan told Reuters. Southwest has engaged consultancy Oliver Wyman to investigate the operational failures and has set up a new committee to review its operations, Jordan told Reuters. New York State Comptroller Thomas DiNapoli last Friday demanded to know how the carrier plans to prevent another operational meltdown.

☆ Southwest and Twitter are on a similar flight path
▼ + stars: | 2023-01-11 | by ( Robert Cyran | ) www.reuters.com time to read: +3 min

NEW YORK, Jan 11 (Reuters Breakingviews) - Twitter has slashed about three-quarters of employees since Elon Musk completed his buyout. But it’s also possible Twitter is building up what software developers call “technical debt” – where today’s underinvestment becomes tomorrow’s liability. The holiday meltdown at Southwest Airlines (LUV.N) is an example of how technical debt can build up even in non-technology companies. Twitter doesn’t have airplanes to keep aloft, but it too could be building up a kind of technical debt. The company had about $6 billion of operating costs in the four quarters before it went private, compared with $5 billion of revenue, which suggest there was fat to cut.

☆ The New York state pension fund overseer has asked Southwest Airlines to explain how it plans to prevent future operational catastrophes, like the one over the holiday season
▼ + stars: | 2023-01-10 | by ( Huileng Tan | ) www.businessinsider.com time to read: +2 min

The New York State comptroller pressed Southwest Airlines to explain how it plans to avoid another operational meltdown. The carrier canceled more than 16,700 flights between December 21 and 31, amid the holiday travel season. The New York state pension fund is one of the top-100 largest investors in Southwest. A spokesperson for the comptroller's office told WSJ it's waiting for a response from Southwest, but had no immediate plans for action. The New York State Comptroller office and Southwest Airlines did not immediately respond to Insider's requests for comment sent outside regular business hours.

☆ New York state comptroller asks Southwest Air about plans to avoid future meltdowns
▼ + stars: | 2023-01-09 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +2 min

CHICAGO, Jan 9 (Reuters) - New York State's comptroller has written to Southwest Airlines Co (LUV.N), asking the carrier to explain how it plans to prevent an operational collapse like the one at the end of last year which stranded thousands of passengers. The comptroller's office oversees the state's pension system, which held 1.35 million shares of the Dallas-based company at the end of March 2022. DiNapoli asked the company to share its plan to "correct these failures - not just in the immediate term, but for the coming years." A Southwest spokesperson told Reuters earlier that the airline is focusing on improving its technology for scheduling crews. Reporting by Rajesh Kumar Singh in Chicago Editing by Matthew LewisOur Standards: The Thomson Reuters Trust Principles.

☆ Southwest is giving workers bonus points worth about $400 to say sorry for the 'physical and emotional toll' of the holiday meltdown
▼ + stars: | 2023-01-08 | by ( Stephanie Stacey | ) www.businessinsider.com time to read: +3 min

Southwest is giving its 66,000 workers 25,000 SWAG points to redeem in its employee store. CEO Bob Jordan told staff: "I'm sorry about the damage to your confidence and trust." According to The Dallas Morning News, the 25,000 SWAG points could be converted into gift cards worth about $400. In the memo, Jordan told workers: "I'm sorry for the physical and emotional toll. Southwest Airlines did not immediately respond to a request for comment from Insider.

☆ Southwest will soar again into open U.S. skies
▼ + stars: | 2023-01-06 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, Jan 6 (Reuters Breakingviews) - The costs of Southwest Airlines’ (LUV.N) Christmas debacle landed on Friday. The company expects that some 17,000 flight cancellations will eat away between $725 million and $825 million of fourth-quarter pre-tax profit, creating a net loss in the period. Despite experiencing major disruptions before, $20 billion Southwest always manages to resume cruising altitude. Southwest, United Airlines (UAL.O), Delta Air Lines (DAL.N) and American Airlines (AAL.O) account for about two-thirds of the market. The Southwest enterprise now trades below 4 times expected 2023 EBITDA, a discount to peers.

☆ Southwest estimates its December meltdown will cost it up to $825 million in lost revenue, passenger reimbursements, and other costs
▼ + stars: | 2023-01-06 | by ( Sam Tabahriti | ) www.businessinsider.com time to read: +2 min

Southwest estimated Friday that its December operational meltdown will cost it up to $825 million. Expected costs include lost revenue of up to $425 million and passenger reimbursements, the airline said. Southwest said Friday it expected a negative pre-tax impact of between $725 million and $825 million for the fourth quarter "as a result of the operation disruptions." It said a "significant proportion" of this would come from an estimated revenue loss of between $400 million and $425 million. The rest would come from passenger reimbursements, premium pay and additional compensation to employees, and other costs, it said.

☆ Southwest has no solutions for recent debacle, faces up to $1 bln revenue hit - union official
▼ + stars: | 2023-01-05 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +4 min

On the call, details of which have not been reported before, Nekouei said the company offered no immediate solutions. Before the recent crisis, Southwest had cultivated a reputation for reliable customer service, humorous flight crews and low-cost flights. Southwest, which has said it is making "solid progress" to return operations to normal, had no immediate comment on Thursday. Nekouei said the union's calculations suggest the latest debacle could result in an up to $1 billion revenue hit for the carrier. The pilots union has called that so-called "deadheading" practice fatiguing and inefficient.

Southwest finished first in economy and budget airline rankings published by the consumer research firm last May. Analysts say that Southwest's position among consumers remains strong despite the airline leaving hundreds of thousands of passengers stranded over the Christmas holiday weekend. "People think you're getting great value for the money," said Michael Taylor, managing director for travel, hospitality and retail at J.D. On Tuesday, the airline said it would issue 25,000 rewards points to anyone whose flight was affected. Taylor at J.D.

☆ Southwest Airlines Offers 25,000 Points to Passengers Hit by Travel Meltdown
▼ + stars: | 2023-01-04 | by ( Dawn Gilbertson | ) www.wsj.com time to read: 1 min

Southwest Airlines Co. on Tuesday began doling out 25,000 frequent-flier points to travelers affected by its holiday meltdown. The bonus miles, which the airline notes are in addition to ticket refunds and reimbursement for expenses, were accompanied by a letter from Southwest Chief Executive Bob Jordan .

☆ Southwest is giving 25,000 frequent flier points worth $300 to passengers impacted by the airline's holiday travel meltdown
▼ + stars: | 2023-01-04 | by ( Jordan Hart | ) www.businessinsider.com time to read: +3 min

The airline is currently offering affected passengers 25,000 frequent flier points valued at over $300. The offer has caused long wait times for some passengers trying to claim points, reports say. The estimate includes both lost revenue from refunds and reimbursements for expenses like hotels and rental cars, CNBC reported. While Griff reported a 15-minute wait to receive points, another traveler told WSJ he had an estimated wait time of over an hour to redeem the 75,000 points offered to his party of three. In the email, Jordan reminded recipients that Rapid Rewards points don't expire, have no blackout dates, and can be used on Southwest gift cards.

☆ U.S. Senate Commerce chair plans hearings after Southwest Airlines meltdown
▼ + stars: | 2023-01-04 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

WASHINGTON, Jan 4 (Reuters) - U.S. Senate Commerce Committee chair Maria Cantwell on Wednesday said the panel intended to hold hearings after Southwest Airlines' (LUV.N) recent meltdown that led to nearly 16,000 flight cancellations in the week ending Dec. 29. The FAA's operations must be reauthorized by Sept. 30 and the measure has traditionally been used to advance aviation reforms. The Southwest flight cancellations have been cited by some lawmakers as evidence that Congress needs to strengthen protections for air travelers. Buttigieg has repeatedly vowed to hold Southwest "accountable" if it fails to fulfill commitments to customers for "controllable delays and cancellations." That one would require airlines to provide non-expiring vouchers when passengers are unable to fly for certain pandemic-related reasons.

☆ Southwest reports progress on flights, refunds, White House watching
▼ + stars: | 2023-01-03 | by ( David Shepardson | ) www.reuters.com time to read: +3 min

The White House said Southwest "failed its customers" and added that the government would seek to fine the low-cost Texas-based airline if it does not appropriately reimburse customers for their losses. Southwest said that during the New Year holiday weekend ending Sunday it operated 11,092 flights, or 99.1% of scheduled flights. Southwest had canceled 59, or just 1% of its flights on Tuesday, according to FlightAware. "Southwest Airlines failed its customers -- point blank," Jean-Pierre, adding the Transportation Department "will seek fines from Southwest if it doesn't cover" required costs. Southwest was sued on Dec. 30 by a passenger who said it failed to provide refunds to passengers left stranded.

☆ Southwest Airlines is sued for not providing refunds after meltdown
▼ + stars: | 2023-01-03 | by ( Jonathan Stempel | ) www.reuters.com time to read: +3 min

REUTERS/Shelby Tauber/File PhotoNEW YORK, Jan 3 (Reuters) - Southwest Airlines (LUV.N) has been sued by a passenger who said it failed to provide refunds to passengers left stranded when an operational meltdown led the carrier to cancel more than 15,000 flights late last month. Capdeville, a Marrero, Louisiana resident, is seeking damages for passengers on Southwest flights canceled since Dec. 24, and who did not receive refunds or expense reimbursements. The meltdown at Dallas-based Southwest has been blamed on staffing shortages and outdated flight scheduling software. The carrier largely restored normal operations on Dec. 30, several days after other airlines had recovered from the storm. The case is Capdeville v Southwest Airlines Co, U.S. District Court, Eastern District of Louisiana, No.

☆ Southwest Airlines schedule stabilizes after holiday meltdown but costs are still piling up
▼ + stars: | 2023-01-03 | by ( Leslie Josephs | ) www.cnbc.com time to read: +3 min

Pristine Floyde searches for a friend's suitcase in a baggage holding area for Southwest Airlines at Denver International Airport on December 28, 2022 in Denver, Colorado. Southwest Airlines stabilized its schedule over the weekend after about 16,000 cancellations, but its systemwide holiday meltdown could cost it hundreds of millions of dollars. For comparison, from Dec. 21 through Dec. 29 Southwest had scrubbed about 45% of its operation, a far bigger share than other major airlines, according to FlightAware. Now come two more difficult tasks for Southwest: going through thousands of passenger reimbursement receipts and improving the internal technology that contributed to the meltdown. The Dallas-based airline is scheduled to report results on Jan. 26 but is likely to preview the meltdown's costs before then.

☆ Southwest Meltdown Shows Airlines Need Tighter Software Integration
▼ + stars: | 2023-01-02 | by ( Belle Lin | ) www.wsj.com time to read: +6 min

Southwest’s software wasn’t designed to solve problems of that scale, Chief Operating Officer Andrew Watterson said Thursday, forcing the airline to revert to manual scheduling. Unlike some large rivals with hub-and-spoke networks, Southwest planes hopscotch from city to city, which may have been another complicating factor. Mr. Alamzad said the most serious IT challenge airlines face stems from the applications developed in silos by vendors or the airlines themselves. Southwest recently completed an upgrade of its new reservation system and had been working through multiyear upgrades to systems used in its operations. Other carriers have given priority to upgrading customer-facing reservations platforms and flier loyalty programs over operations systems, Mr. Alamzad said.

"There'll certainly be an impact to the fourth quarter," Chief Commercial Officer Ryan Green told reporters on a call on Thursday. While other U.S. airlines got back to their feet relatively quickly, Dallas-based Southwest is still limping back to normalcy. Employee unions say they have repeatedly warned Southwest management that the airline's technology systems badly needed upgrades. Flight attendants have been complaining about technological failures at the airline for years, according to Lyn Montgomery, president of the Southwest Airlines Flight Attendants Union, a local 556 of the Transport Workers Union. The comments echoed those of the Southwest Airlines Pilots Association, which said leadership had failed to adapt operations to address repeated systems failures, despite years of calls for improvements by the union.

☆ Southwest Airlines operations back to normal after being crippled by storm
▼ + stars: | 2022-12-30 | by ( ) www.reuters.com time to read: +2 min

WASHINGTON, Dec 30 (Reuters) - Southwest Airlines (LUV.N) 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. "Let me just be straightforward here: the storm had an impact but we had impacts beyond the storm that obviously impacted Southwest very differently," Jordan said in an interview with ABC's "Good Morning America." Map shows U.S. airports where an average of at least 25% of flights by Southwest Airlines were cancelled from Dec. 19 to 28. Southwest Airlines has promised to reimburse passengers for expenses such as hotels and car rentals in addition to refunding tickets and said there would be a still-undetermined hit to its earnings. The Southwest chief executive said he had a "great conversation" with Buttigieg and their goals were aligned.

☆ Biden admin to hold Southwest accountable if it fails to fulfill pledges to customers -Buttigieg
▼ + stars: | 2022-12-29 | by ( ) www.reuters.com time to read: 1 min

WASHINGTON, Dec 29 (Reuters) - The Biden administration will hold Southwest Airlines (LUV.N) "accountable" if it fails to fulfill commitments to customers for "controllable delays and cancellations," Transportation Secretary Pete Buttigieg said on Thursday, after the airline canceled thousands of flights in the wake of winter storms. In a letter to Southwest CEO Bob Jordan dated Dec. 29, Buttigieg also said the company has agreed to honor "reasonable" requests for reimbursement for alternative transportation for passengers whose flights were canceled or delayed between Dec. 24 and Jan. 2. Southwest did not immediately respond to a request for commentReporting by David Shepardson; Writing by Alexandra Alper; Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

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