How Southwest Airlines Melted Down

At WSJ, "Airline executives and labor leaders point to inadequate technology systems as one reason why a brutal winter storm turned into a debacle":

When Southwest Airlines Co. LUV 0.93%increase; green up pointing triangle reassigns crews after flight disruptions, it typically relies on a system called SkySolver. This Christmas, SkySolver not only didn’t solve much, it also helped create the worst industry meltdown in recent memory.

Airline executives and labor leaders point to inadequate technology systems, in particular SkySolver, as one reason why a brutal winter storm turned into a debacle. SkySolver was overwhelmed by the scale of the task of sorting out which pilots and flight attendants could work which flights, Southwest executives said. Crew schedulers instead had to comb through records by hand.

The airline has said SkySolver works well during a more typical disruption and had helped it manage recent hurricanes and snowstorms. But the scale of this past week’s storm, coupled with a network that still hasn’t been fully restored in the wake of the Covid-19 pandemic, gummed things up. Even as it tried to solve one set of problems, new ones would emerge.

Crews and planes were out of place. Phone lines jammed up, and Southwest pilots and flight attendants trying to get assignments couldn’t get through to the scheduling department. Some shared screenshots on social media that showed hold times of eight hours or more—which meant they could wait a full workday for instructions while flights were stuck for the lack of a crew. The airline was scrambling just to figure out where its crew members were located, union leaders said.

“There just was not enough time in the day for them to work through the manual solutions,” Chief Operating Officer Andrew Watterson said in an interview.

Southwest prides itself on a laid-back culture and exceptional customer service. Now that reputation has been badly damaged. It canceled more than 13,000 flights since Thursday, stranded passengers and bags across the country, snarled Southwest’s crew members and drew fire from federal officials. Chief Executive Officer Bob Jordan, who has been in the job for less than a year, publicly apologized. Mr. Watterson has been in his job since October. Both are longtime company executives.

The storm hit cities like Denver and Chicago that are at the heart of Southwest’s operation, and where many of its employees are based. To be sure, many of the challenges Southwest faced were similar to those encountered by other airlines: Ground equipment and jet bridges froze, fuel congealed due to the subfreezing temperatures and staff needed to rotate inside more frequently. But rival airlines recovered more rapidly.

In the wake of the mess, Transportation Secretary Pete Buttigieg and federal lawmakers have stepped up calls for more stringent consumer protection measures. Southwest’s shares have fallen 11% this week, outstripping declines for other airlines. Citigroup Inc. analysts said that fourth-quarter earnings for the airline could take a 3% to 5% hit.

“We’ve talked a little over the last year about the need to modernize the operation and invest,” Mr. Jordan wrote Monday in a memo to employees. “This is why.”

In a November meeting with reporters, the CEO noted the airline had expanded faster than its technology. “I do think the scale and the growth of the airline got ahead of the tools that we have,” he said.

This isn’t the first time that a disruption has ballooned at Southwest, and the carrier’s struggle to put its operations back together shows how its increasingly complicated network needs a better technology foundation. Union leaders have criticized the airline for being too slow to make changes, and Southwest executives have said their systems are being updated.

Southwest’s pilots union for years complained that SkySolver often spits out fixes that don’t make much sense, sending crews on circuitous journeys around the country as passengers to meet flights, a practice known as “deadheading.”

In one example during the storm, the system assigned a pilot to deadhead on a flight from Baltimore to Manchester, N.H., and then back to Baltimore the next day, without ever flying a plane, according to Casey Murray, president of the Southwest Airlines Pilots Association labor union.

“The company has had its head buried in the sand when it comes to its operational processes and IT,” Mr. Murray wrote in a message to members Monday...