Southwest crisis reveals clubby world of airline leaders

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Southwest crisis reveals clubby world of airline leaders
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Behind the technical issues that led to Southwest Airlines' December meltdown is an insular management team that critics say lacks the imagination and technology expertise to help avoid such crises.

A Southwest Airlines employee helps a traveler search for bags amongst hundreds of other checked bags at baggage claim at Midway International Airport as Southwest continues to cancel thousands of flights across the country Wednesday, Dec. 28, 2022, in Chicago.

“It makes you wonder if there isn’t sort of a correlation or cause and effect here, where you’ve got a fairly entrenched, stagnant board, a grow-your-own leadership team since it was a very small, scrappy airline,” said Keith Meyer, global leader of the CEO and board practice at executive search firm Allegis Partners. “A founder-based culture can only take it so far.”Southwest is full of lifers. Bob Jordan, who took over as chief executive officer in February, has been with the airline 34 years.

The airline, which began flying between a handful of cities within Texas in 1971, has grown into a behemoth that has carried more domestic passengers than any other airline in recent years. That expansion has added complexity to its keep-it-simple business model, and resulting cost pressures mean it often can’t offer the cheapest fares.

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