Business Wars Can Southwest Airlines Survive? | Excess Baggage | 2
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Aug 20, 2025 In 2023, Southwest Airlines faces a crisis with plunging stock and jet shortages. CEO Bob Jordan makes tough calls, including hiring freezes and staff cuts. Amid labor disputes and changing passenger expectations, the airline grapples with its identity crisis. Will the shift from open seating and free bags alienate loyal customers? As Southwest navigates winter challenges and competitive pressures, it embarks on a new strategy aimed at survival—and the stakes have never been higher.
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Winter Meltdown And Its Cost
- Southwest's December 2022 meltdown canceled nearly 17,000 flights and stranded 2 million passengers over nine days.
- The crisis cost the airline over $1 billion and triggered congressional and DOT scrutiny.
Boring Systems Can Make Or Break You
- Investing in backstage systems like crew scheduling prevents catastrophic operational failures.
- Fixing neglected infrastructure is far cheaper and less damaging than rebuilding after a collapse.
Immediate Cost Controls
- When profits fall, freeze hiring and cut discretionary spending to stabilize finances.
- Bob Jordan froze hiring and slashed spending as immediate cost-control moves.