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If there’s one thing companies know, it’s if they’ve wronged a lot of people, they have to do a whole lot to own up to their mistake(s), make it right, gain their trust and get their patronage again. And that’s not just me saying that. Forbes, Harvard Business School and even the U.S. Chamber of Commerce have all said roughly the same thing in recent years.

Michelin is a prime example. In 1999 the tire manufacturer badly mishandled a layoff and restructuring announcement. It provoked labor protests and even a federal law to prevent their gaffe from ever happening again. The company, which had been a trusted name for generations, was seemingly Public Enemy #1. Instead of digging their heels and doubling down (like, say, Elon Musk), the company developed a 10-year turnaround plan, which they did while closely collaborating with workers. Not only did they regain the public’s trust, but by 2019, it was ranked #8 in Forbes’ survey of The World’s Most Reputable Companies.

Fast forward to late 2022. Southwest had a meltdown of epic proportions during the Christmas holiday season. A massive winter storm caused some flight cancellations, which could be expected of any airline in that position. However due to Southwest’s unusual point-to-point route system (most airlines use a “hub-and-spoke” system), on top of inadequate staffing, and an antiquated employee scheduling system, the airline’s problems snowballed out of control.

By the end of the 9 days, they had canceled more than 16,700 flights between December 20th and 29th, and both passengers and employees were frustrated by the airline’s lack of communication both during and immediately after the cancellations.

Southwest lost a LOT of people’s trust due to that fiasco. NPR reported that besides the $800 million they lost in a combination of the actual flight cancellations, compensating customers who bought tickets on other airlines and dispensing extra frequent flier miles (about $300 worth per passenger), the airline also had expected to lose over $300 million in revenue in the first quarter of 2023, simply because people didn’t trust them anymore. And with good reason.

Since then, the airline has done a LOT to start changing things.

• They’ve taken responsibility for what happened

While the meltdown was happening, Southwest deflected and said the problem was the weather. However they eventually changed their tune. Different high-ranking members of the company have since apologized profusely for what happened, multiple times. Southwest’s COO Andrew Watterson even told U.S. senators “We messed up.” That’s a direct quote.

• They’re spending money to really fix things

Southwest had been warned that their employee staffing software was running on band-aids and crossed fingers; it was bound to have a meltdown during an inopportune time and it had been strongly suggested more than once to upgrade the system. However the “suits” didn’t want to spend the money.

Now they have. They’ve hired more staff (which was another issue) and have committed to spending billions to improve its technology.

So here’s the good news:

It’s early, but things seem to be working better

It had only been a little more than 6 months since Southwest’s meltdown of the century, but the airline was thrilled to announce they got through the busy July 4th holiday without any problems.

“During the July Fourth Holiday, from Friday through Tuesday, the Southwest Team operated more than 20,000 flights and achieved a flight completion factor of greater than 99%,” the airline shared in a press release. “The airline also welcomed more than 2.5 million travelers during the five-day holiday period.”

Southwest added that they’ve also been on a hiring spree.

“Southwest prepared for the busy summer travel season by hiring more than 6,700 new employees in the first half of 2023, while working months in advance to align operational strategies, staffing, and network coordination in support of the airline’s peak-season.” the airline continued.

They’re also looking at the future – including the winter season.

“We are reinforcing our airport infrastructure, increasing available equipment, and bolstering overall winter preparedness at key airports where there is potential for severe winter weather in order to help our employees function more effectively in severe weather,” the company wrote.

They’re also in the midst of making changes to that antiquated technology, saying, “We are implementing new tools that provide pilots additional real-time insight into the amount of time they have to depart after an aircraft has been deiced.”

Southwest also said it is “reprioritizing our timeline for upgrading tools and technology that will help us recover our operation faster during extreme weather.” Those include:

• A software upgrade that will be able to reassign crews during disruptions.
• Increased phone system call capacity so they can better handle large call volumes from both customers and flight crews.
• Improving the tool responsible for electronically notifying flight crews of their new flight assignments and allowing them to electronically acknowledge changes in their work plan.

As Forbes et al, have said, it takes time for a company to rebuild trust. So far Southwest seems committed to rebuilding that trust with both customers and employees. Hopefully, they can continue on that path.

Feature Photo: Southwest.com

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