The question that will haunt the company for a long time is why Southwest’s system is broken while the systems of other major airlines are still operating relatively well. Southwest’s point-to-point network, which is quite different from the hub-and-spoke system used by its peers, makes it more difficult to restart operations, analysts say.
But they also say Southwest’s technology, despite years of efforts to modernize it, is flawed. And Mr. Jordan will likely be asked why he doesn’t do more to make systems robust enough to cope with the weather and technological disruptions that have dogged the Southwest in recent years. including two mass flight cancellations and delays last year.
Although Mr. Jordan was the CEO for a short time, he has been a member of Southwest’s senior leadership team for a long time, which will give him many opportunities to understand the point. company’s strengths and weaknesses. He started at the company as a computer programmer, helping develop the company’s frequent flyer program and assisting with the matching of AirTran Airways planes and crews after Southwest. acquire that company.
Robert W. Mann Jr., a former airline executive who now runs consulting firm RW Mann & Company, said Mr. Jordan “is in the hot seat right now.”
But analysts doubt that Southwest can change that quickly. They say the company’s management suffers from “Southwest exceptionalism,” or a stubborn belief that its unconventional approach to running an airline is best. Although Southwest has its roots as an upstart taking over sleepy incumbents, analysts say its decision-making can happen at breakneck speed. “Airlines have always been very cautious about change,” Mr. Engel said.
Southwest’s approach has always worked, and it has contributed to the company’s strong financial results over the past five decades, analysts say. For example, it allows planes to be used faster for their next flight. Longtime shareholders have done well. Shares of Southwest have surged 217% over the past decade, outpacing the broader stock market and its best-performing rivals. But this month, shares of Southwest, down nearly a fifth, have underperformed the market and its peers.
There is no evidence that Mr. Jordan is vulnerable. But poor crisis management has severely undermined other airline executives.
