Tech Glitch Leaves Southwest Airlines' Best Customers in the Lurch
Last summer, Southwest Airlines (NYSE: LUV) suffered a major technology outage. This forced the carrier to cancel about 2,300 flights over the span of four days during the height of the peak summer travel season.
In the past week or so, Southwest has encountered another IT glitch. This time, the problem is that many A-List and A-List Preferred customers aren't getting the boarding priority they are entitled to. While the scope of this issue is much smaller -- it isn't causing any flight delays or cancellations -- it is negatively affecting Southwest's best customers. That's troubling, because these customers' loyalty is critical to Southwest Airlines' success.
Southwest Airlines is unique among U.S. airlines in having an open seating policy. Instead of assigning seats in advance, Southwest gives each customer a boarding position in one of three groups: A, B, and C. Within each group, customers are assigned numbers between 1 and 60. The A group boards first, in numerical order from 1-60. The B group boards next, followed by the C group (also in numerical order).
Source: Fool.com
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