The whisper of smoke from Herb’s cigarette wafted in the air just long enough for him to let out one of his signature belly laughs. “Jason, I think you’ll...
FILE - A ground operations crew member walks past a Southwest Airlines jet sitting at a gate, Dec. 28, 2022, at Sky Harbor International Airport in Phoenix. With its flights now running on a roughly normal schedule, Southwest Airlines is turning its attention to luring back customers and repairing damage to a reputation for service after canceling 15,000 flights around Christmas.
The conventional wisdom has become that the airline’s traffic stoppage was due primarily from its utilization of an out-of-date software system or a lack of foresight on behalf of company management. While those were unquestionably contributing factors, they do not tell the entire story.as a financial analyst prior to my time attending law school, I have some insight that might help to provide additional information about what happened.
When Herb and Rollin King were crafting the business strategy of the airline, they determined that what people wanted from air travel were inexpensive, short-haul flights that enabled travelers to sleep in their own beds at night after a day of business travel. Southwest Airlines, which would fly “point-to-point,” from Dallas to Houston to San Antonio and back home, was born.
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