=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/c/a/2007/09/27/BUKOSEK49.= DTL --------------------------------------------------------------------- Thursday, September 27, 2007 (SF Chronicle) Southwest's recent troubles just minor turbulence George Raine, Chronicle Staff Writer There's every expectation that by year's end Southwest Airlines will report its 35th consecutive year of profitability. But that doesn't mean there's no turbulence on the horizon. For the first time in memory, the much-beloved discount carrier is experiencing some real criticism. It all started in July when a young, female passenger on a Southwest flight was told her outfit was too revealing. As one can expect, there was a rash of complaint and commentary on both sides of the issue. And then Southwest changed its signature feature - the cattle-call boarding process that most everyone either loves or hates - and said it is dropping preboarding for families with small children. Combined, the events had some people questioning whether Southwest was turning its back on its core values. Criticizing a woman's dress? From a company whose flight attendants used to wear hot pants? And changing the boarding policy? Ostensibly, to attract more business travelers? It all didn't add up for a company that has been hugely successful for decades, avoiding many of the pitfalls that have crippled larger carriers in recent year. The Chronicle set out to find out what was going on at Southwest. What we found was a company receiving bad PR for some policy changes and a gaffe by a supervisor, but a company that is still doing just fine. It's been an odd patch lately for Southwest, and while this run of quirky publicity may amount to minor turbulence of the "this-too-will-pass" variety, many consumers have been upset by the company that trades common stock under the symbol "LUV." Southwest, like any brand, must do what is necessary to hold onto its customers, and while the airline says it is on track this year to fly more than the 96.3 million passengers who boarded in 2006, there's been ample fodder for complaint by passengers and others given to opining about airline industry missteps. The biggest controversy Southwest stirred up recently surrounded the decision to abandon preboarding for families with small children, ticking off countless parents "There are lots of reasons to fly Southwest and preboarding is one of them," said Rachel Anderson of Berkeley, the mother of 3-year-old twins. By doing away with the privilege, "They seem to be floundering a bit as they try to figure out who their core customer is," she said. "I'm looking at other options now." It was the spiking of the preboarding privilege for families - although they will still get somewhat preferential treatment, boarding right after the first group gets on the plane in the airline's famous open seating system - that recently stirred the most passions. It was announced Sept. 19, while Southwest was also saying it is tweaking its boarding practices. Southwest said it looked at and then rejected the idea of assigning seats and is staying with open seating, in which passengers select their seats once they get aboard. But they're refining the way passengers board to try to alter the offensive perception of a cattle call. In that change, passengers will receive a boarding pass with a letter and a number, and will board in the order in which they checked in. Passengers can still do this online, beginning 24 hours before a departure. They'll board in groups of five based on boarding letter and number and queue in two lines each in the A, B and C groups. The airline believes this will allow people to board more quickly. The idea was broadly approved of by consumers, the airline says. But the loss of the preboarding privilege for families was not. Analysts believe the move stems from Southwest's effort to attract business travelers, which spokesman Chris Mainz acknowledged. "There has been a focus by Southwest to attract and retain business travelers and so I do think (the boarding practice change) will address that and allow customers to be more productive at the gate," without the necessity to remain fixed in boarding queues, he said. But young families say they're antagonized as Southwest finds its new model. Especially considering the company lists "stick to what you are good at" and "keep it simple" as the first and second of its six secrets of success. Families with children 4 and under - they've boarded first at Southwest since its founding in 1971 - will be eligible to board with the A group if they have A boarding passes, but generally the change is to accommodate all passengers, the airline said. Mainz, the Southwest spokesman, said the process was tested in San Anton= io and young families did not feel put out and were still able to take seats together. "We're hopeful the business traveler, the leisure traveler and families alike will give the new procedure a chance," said Mainz. Christopher Elliott, who specializes in travel and customer service at National Geographic Traveler, said he thinks Southwest would need to offer not only preboarding but also a first class section in order to attract significant numbers of business travelers. "I don't see them doing that any time soon," he said. Beyond the boarding problems, others wonder whether Southwest is abandoning a core philosophy that has driven it since its inception. That core belief is to put employees first, customers second and shareholders third, said Mainz. The theory is, "If you treat employees well and we create a fun working environment, they're going to enjoy themselves and will treat customers with great service. Those customers will keep coming back and that should make shareholders happy," said Mainz. "It's a true trifecta - a win, win, win," he said. Some people wondered whether Southwest walked away from the employee-fir= st philosophy when it made a very public apology to 23-year-old Kyla Ebbert, the San Diego college student and Hooters waitress who on July 3 was told by a Southwest supervisor, while preparing to depart on a flight from San Diego to Phoenix, that her attire was too revealing. Ebbert, annoyed, made an adjustment, placed a blanket over her legs and shortly thereafter was on the "Today" show, in the same attire, and then on "Dr. Phil," where she rejected an offer from Southwest for two free tickets and said she'd never fly the airline again. Gary Kelly, Southwest's chief executive, didn't let it end there. He tap= ed a double entendre-laced radio ad that aired this month in the airline's major markets, begging Ebbert's forgiveness, asking her to come back and announcing fares would be lowered "in celebration of hot pants and miniskirts alike." "In an effort to get at the naked truth we have finally been caught with our pants down," said Kelly, in the ad. The incident in which the Southwest employee objected to Ebbert's miniskirt and the rest of her attire "represented a clash of values that is not at all uncommon in today's diverse marketplace," said David Stewart, dean of the A. Gary Anderson Graduate School of Management at UC Riverside. "There is likely a need with Southwest for some employee training to prevent this happening again," said Stewart. "But the follow-up was brilliant. It was a very creative and effective recovery." To some, the incident was much ado about marketing. "I think it was more of a publicity stunt than an apology," said Elliott, of National Geographic Traveler, "which doesn't mean that management doesn't support employees. I think folks at Southwest are having a good laugh at this whole episode. And there is every indication that they are pleased with the free publicity they're getting." If that's the case, it is making lemonade out of lemons, and something else Southwest has done right, said Joe Brancatelli of New York, who produces a website and newsletter for business travelers. "No other airline can match their profit record," he said. "I'm willing = to cut Southwest management some slack. The legacy airlines can't make money for 35 days, let alone 35 years." Southwest by the Numbers 3,300 Approximate number of daily departures 33,000 Number of employees $499 million Net income in 2006 96.3 million Passengers carried in 2006 $9.1 billion Operating revenue in 2006 63 Destinations 93.8 million Bags of peanuts served in 2006 1.6 billion Gallons of jet fuel consumed in 2006 Source: Southwest Airlines E-mail George Raine at graine@xxxxxxxxxxxxxxxx -------------------------= --------------------------------------------- Copyright 2007 SF Chronicle <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> If you wish to unsubscribe from the AIRLINE List, please send an E-mail to: "listserv@xxxxxxxxxxxxxxxxx". Within the body of the text, only write the following:"SIGNOFF AIRLINE".