BusinessMirror

Southwest Airlines memos showed growing alarm on eve of epic winter storm

- By Ryan Beene With assistance from Steven T. Dennis / Bloomberg

AS a winter storm bore down on a broad swath of the US, a staffing crisis was brewing for Southwest Airlines Co. in Denver. Chris Johnson, the carrier’s vice president of ground operations, declared a “state of operationa­l emergency” at the airport after “an unusually high number” of employee absences, according to a December 21 message to ramp workers seen by Bloomberg News.

It was just the beginning. The so-called bomb cyclone kicked off a cascade of disruption­s that have battered Southwest’s operations over the past week, forcing the carrier to cancel thousands of flights and stranding holiday travelers who now face days of waiting.

The chaos is still unfolding. As of Tuesday afternoon, Southwest had scrapped more than 60 percent of its Wednesday schedule, plus about 20 percent of its trips for Thursday, according to Flightawar­e data.

And although no airline was spared the storm’s wrath, rivals such as Delta Air Lines Inc., American Airlines Group Inc. and United Airlines Holdings Inc. largely returned operations to normal this week.

Chief Executive Officer Bob Jordan apologized again late Tuesday in a video posted by Southwest, saying the company reduced its schedule to gain time to reposition aircraft and crews.

“We’re optimistic to be back on track before next week,” Jordan said.

Southwest shares fell 6 percent on Tuesday, the most since July, to extend their 2022 decline to 21 percent. US authoritie­s and lawmakers, meanwhile, are scrutinizi­ng the carrier’s response to the storm, which analysts at Citigroup estimate could shave as much as 5 percent from Southwest’s fourth-quarter profit.

Customers complained on social media of spending hours in line or on hold to book alternate flights, only to find few alternativ­es. Pilots and flight attendants, meanwhile, faced lengthy waits for work assignment­s and hotel accommodat­ions as the storm and its subsequent disruption hobbled the carrier’s crew scheduling systems and left the company’s fleet of Boeing 737s out of position across the country.

Management messages to Southwest employees seen by Bloomberg News highlight how the chaos unfolded, and how the carrier struggled as the systems used to coordinate a vast network of airplanes, destinatio­ns and f light crews were first overwhelme­d and then failed to recover.

The airline confirmed the authentici­ty of the memos, and in previous statements has apologized to customers and tried to explain what led to the crisis.

“Part of what we’re suffering is a lack of tools,” Jordan, a 34-year Southwest veteran, said to employees late on Christmas Day. The company’s crew scheduling system is one area in need of investment, he said.

“We need to be able to produce solutions faster. We need to be able to communicat­e with each other where it doesn’t involve a phone call,” Jordan said.

Cold front

THE effects of the storm were building well before Christmas. By the evening of December 21, frigid temperatur­es, high winds and heavy precipitat­ion were disrupting Southwest operations in Denver, limiting the number of flights the carrier could handle safely, Chief Operating Officer Andrew Watterson said in one message.

The carrier suspended operations at Chicago’s Midway airport, meaning both locations had fewer flights shuttling crews between their home bases and assignment­s, he said.

By December 23, 90 percent of Southwest’s routes had been affected by weather. Yet, Watterson said, actions to deal with the chaos had positioned the carrier for fewer cancellati­ons on Saturday, Christmas Eve.

“As long as there’s not another disruption, we’ll start the day in a much better position,” Watterson said.

Yet by late December 23, Southwest was “heavily disrupted, undoing all of the work ” to position crewmember­s, Watterson said in an update the next day.

Foggy San Diego

UNEXPECTED fog triggered a ground stop and delays in San Diego. A glitch slowed refueling in Denver. Southwest’s Dallas Love Field stronghold was packed with parked aircraft to ease congestion at northern airports battered by cold, without enough gates to accommodat­e them.

Many flight crews began December 24 either out of position or resting under US aviation safety rules, leaving the airline with “no choice but to implement additional cancellati­ons,” Watterson said.

By Christmas Day, hundreds of Southwest flights were awaiting crew assignment­s even as improving weather helped alleviate a majority of its ground operationa­l woes and competitor­s were restoring their schedules.

Supporting crew scheduling had become the company’s “larger focus,” with teams working extra shifts to troublesho­ot problems with an “allhands on deck ” approach, Watterson said in a December 25 update. The airline is in the process of upgrading its crew systems. The work by teams struggling to overcome the crew and scheduling chaos is “highly manual” and can’t be addressed with more people alone.

“Our current systems are overmatche­d in situations of this scale,” Watterson said.

In his video Tuesday night, Jordan said the company would double down on plans to upgrade systems “so that we never again face what’s happening right now.”

Official questions

ONCE Southwest gets its planes back in the air, it will have to answer questions from lawmakers and US transporta­tion officials.

Jordan spoke Tuesday with Transporta­tion Secretary Pete Buttigieg, who conveyed the Department’s expectatio­n that Southwest meet its obligation­s to passengers and workers and take steps to prevent a situation like this from happening again.

“This has clearly crossed the line from what’s an uncontroll­able weather situation to something that is the airline’s direct responsibi­lity,” Buttigieg said Tuesday on the NBC Nightly News.

Newspapers in English

Newspapers from Philippines