Skift Take
Incoming Southwest Airlines CEO Robert Jordan sees the pandemic’s road to healing in 4 phases: Survive, support, repair, and succeed. Right now, he says his airline is still in the stabilize phase.
Madhu Unnikrishnan
Southwest Airlines is not only dealing with the worst crisis in the history of the airline market, however it’s likewise handling a management transition. Gary Kelly, CEO since 2004, is stepping down next year, to be replaced by Robert Jordan, presently executive vice president for corporate services. Jordan is no stranger to Southwest, having actually joined the business 33 years back in its IT department.
Which informs his vision for the airline. Jordan states he plans to persevere set by Kelly. That implies more expansion into significant markets, like Chicago O’Hare and Miami, and more of a concentrate on service tourists– a minimum of in the long term– and a focus on leisure need in the near term. Like Kelly, Jordan believes service travel could take years to recuperate. This is a sharp contrast to other U.S. airline company leaders, who sound a more positive note on business travel’s healing.
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For now, though, Southwest is at a crossroads thanks to the coronavirus. Although the carrier still can boast of not having furloughed or laid off a single worker in its entire history, its personnel is much smaller sized than it was before the pandemic, due to voluntary buyouts and extended leaves of absence it provided to minimize headcount during the worst parts of the crisis. One of the first obstacles Jordan will deal with is constructing the staff back up to satisfy growing travel need. The second is facing an infection that just will not stop.
“I believe we were all confident and optimistic the worst lagged us back in the spring,” Jordan said of the revival of the Covid-19 pandemic. Still, he is confident that Southwest’s restored concentrate on leisure routes– it included 18 mainly “browse and ski” destinations throughout the pandemic– will stand it in excellent stead as travel starts to recuperate.
Jordan discusses these and more problems dealing with Southwest in the following interview.
Editors Note: This interview has actually been modified for length and clearness.
Skift: Congratulations on the brand-new role, now is perhaps the most tough time in the history of aviation. What do you see as your top obstacles and chances on Day 1? And how do you believe Southwest will browse out of the crisis in the near- and medium terms?
Robert Jordan: Thank you! I will tell you I was really humbled but extremely honored to be called the next CEO of Southwest Airlines. Never in my wildest dreams did I think that was in the cards for me. And you’re right, this is the most difficult time in our market’s history– no concern. But you understand, the airline company market is not for the faint of heart, and I think we’re all battle tested and take pleasure in the challenges this market brings. I’ve been at Southwest for 33 years and had 15 tasks over that time duration, so I have the advantage of experience to help guide us forward.
My immediate focus is to ensure a smooth shift, and I’m happy to report it is going exceptionally well. And I’m comforted in understanding that Gary is not retiring– he’ll remain on as executive chairman for numerous years, similar to Herb [Kelleher, Southwest’s creator and former CEO, who passed away in 2019] did before him. My top priorities are simple– invest a lot of time communicating and invest as much time with our workers as possible. So, because the announcement I’ve been out in the field, in training classes, in town halls, and more to listen to our people and let them get to know me better. And we’re using all of the terrific innovation tools and social networks to assist with that, as I can’t be all over. So that has been task number one, and it will continue into next year and beyond.
Skift: What is your vision for the long-term future of Southwest, and how does that vary from your predecessors’?
Jordan: I don’t believe my vision for Southwest is that different than Gary’s [Kelly, Southwest’s current CEO] I have actually worked for Gary for 33 years and have actually been intimately associated with our planning for the future. So I would not expect any radical departures progressing. Our vision is to be the world’s most enjoyed, most flown, and many efficient airline. I have actually likewise been investing a great deal of time getting 2022 organized, and getting clear about what is crucial, specifically as we continue to emerge from the pandemic.
Skift: Relying on now, however, and what will likely be an issue on Day 1: How has the spread of the Delta version altered Southwest’s calculus for the rest of the year? Have you downsized flying or locations? When do you believe the recovery will be on a more steady footing?
Jordan: The Delta version and accompanying fourth wave of this pandemic have been disappointing for everybody. I believe we were all hopeful and optimistic the worst was behind us back in the spring. The name of the game considering that the pandemic began has actually been to be versatile and pivot. We have been modifying our flight schedule regularly going all the way back to March 2020 to do our best to match supply with demand. In this present environment, we have needed to downsize our schedule to bring some stability to our operation and some relief for our individuals. Those modifications are in location through the end of this year, and we’ll continue to constantly monitor and change as need be.
We’re seeing the road to healing in four phases: Make it through, support, repair, and succeed. Today, we remain in the support stage. I wish I had a crystal ball to tell you when we’ll be back to prosperity, however I’m incredibly optimistic about our chances and success over the long-term.
Skift: Southwest, like the majority of U.S. airline companies, has actually retooled its path network because the pandemic started. What has worked, and what hasn’t? Do you see your network skewing more heavily towards leisure/visiting friends and loved ones (VFR) or organization as the airline company emerges from the crisis? What lessons has the pandemic taught Southwest about network preparation and the mix of leisure and organization flying?
Jordan: Far and away, our biggest success has actually been the aggressive growth of our footprint to launch service to 18 new airports given that the pandemic started. A lot of these have long been on our dream list, however it may have taken us a decade to eventually get to them all. We realized very quickly we had idle airplane and people that we might put to work to introduce Southwest service to these markets to win more clients and create earnings. And it’s worked extremely well– better than we even hoped.
The majority of these airports are tailored towards leisure travel, so believe browse and ski. Places like Steamboat Springs, Bozeman, Palm Springs– and the list goes on and on. However we’ve likewise discovered success releasing service to airports like Chicago O’Hare, Miami, and Intercontinental in Houston. It’s clear that leisure travel has been a focus, as we know the return of service travel can take years to recuperate.
Skift: A number of airline companies have executed vaccine requireds for staff members. Will Southwest, now that at least one vaccine has full FDA approval? If not, why? And does Southwest have a position on whether vaccines should be needed of travelers?
Jordan: As far as a required for our workers, we have not taken that action. We have strongly motivated all of our employees to get vaccinated, and we continue to do so. It’s clear from the science and data that vaccinations are the best and just course to getting this pandemic behind us, and it’s also clear that the unvaccinated are faring far even worse throughout this Delta variant than those immunized. One can never ever say never ever, however it’s my hope we don’t have to turn to requireds. [Editor’s Note: Because this interview, President Biden announced that all business with more than 100 workers should need workers be immunized or be evaluated weekly. Southwest said it intends to abide by the Labor Department’s rule.]
When it comes to passenger requireds, I believe that’s a question for the federal government to check out and answer. It’s not something we’re promoting for.
Skift: Will bags still fly totally free?
Jordan: Yes! Bags fly free and no change fees become part of the DNA of Southwest Airlines– now and constantly.
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