The question that will haunt the company for a long time is why Southwest’s system failed when those of other major airlines held up relatively well. Analysts say Southwest’s point-to-point network, which is quite different from the hub-and-spoke system used by its peers, made it more difficult to restart operations.
But they also say Southwest’s technology, despite years of efforts to modernize it, was lacking. And Mr. Jordan will likely be asked why he hasn’t done more to make the systems strong enough to withstand the weather and technology disruptions that have dogged Southwest in recent years, including two massive flight cancellations and delays last year.
While Mr. Jordan served as CEO for a short time, he has long been a member of Southwest’s senior leadership team, which would have given him ample opportunity to understand the company’s strengths and weaknesses. He started with the company as a computer programmer, helped develop its frequent flyer program, and helped integrate AirTran Airways’ planes and crews after Southwest acquired that company.
Robert W. Mann Jr., a former airline executive who now runs the consulting firm RW Mann & Company, said Mr. Jordan was “in the hot seat right now.”
But analysts were skeptical that Southwest could change quickly. They say the company’s management suffers from “Southwest exceptionalism,” or a stubborn belief that their unique approach to running an airline is the best. Although Southwest has its origins as an upstart taking on sleepy incumbents, analysts say decision-making can move at icy speeds. “The airline has always been very cautious about changes,” said Mr. Angel.
Southwest’s approach usually works well and has contributed to the company’s strong financial performance over the past five decades, analysts say. This allowed aircraft to be deployed more quickly for their next flight. Long-term shareholders have done well. Southwest’s stock is up 217 percent over the past decade, outpacing the broader stock market and its top-performing rivals. But this month, Southwest’s stock, down almost a fifth, underperformed the market and its peers.
There is no evidence that Mr. Jordan is vulnerable. But poor crisis management has seriously weakened other airline executives.
