How Did Southwest Airlines Respond To The 9/11 Crisis

The 9/11 crisis threw the multi-billion dollar airline industry into a tumultuous panic. As fear spread among the public, airline passenger traffic dropped, revenues faltered, and consumer experience floundered. The airline industry was going through a violent contraction, one that cost $55 billion dollars, according to The New York Times. In addition, the crisis altered the airline industry’s environment. For instance, airline industry faced new uncertainty and pressure from legislation and regulation. The government shut down airports, implemented security measures, and designed new safety protocols for airlines to follow. This changed the way people traveled. It made the experience tedious, repetitive, and exhaustive for many passengers. People now had to wait …show more content…
Southwest Airlines embraced the brunt of the crisis through a strategy that would focus on its customers and employees. For example, the first decision Southwest Airlines made was to allow customers to cancel their flights and request refunds. James Parker, the CEO of Southwest Airlines during the 9/11 crisis, mentioned that the decision was based off a gut feeling and no analysis at all. The airline was surprised when the flood of refund requests never arrived. Instead, it received praise and sympathy through the form of monetary donations. Such a response catalyzed the creation of a customer-experience oriented strategy. To create an enjoyable experience for the customer, Southwest knew that it must first make its employees happy. Unlike other airlines, Southwest did not cut down on jobs and pay. It instead implemented plans to share company profits with its employees. Soon enough, employees were going out of their way to make customers happy. Southwest Airlines posted 4th quarter profits in 2001, proof that its strategy