James Parker was appointed chief executive officer of Southwest Airlines in 2001. He had a huge task on his hands in replacing one of the founders of the low-cost carrier and was met with significant challenges right away. Let’s take a look at how he handled his responsibility.
Rising to the challenge
More commonly known as Jim, the future executive was a lawyer in San Antonio and former state assistant attorney general before joining Southwest in 1986. He was general counsel of the company when a big shakeup happened after the turn of the century.
Herb Kelleher co-founded Southwest before becoming CEO. Therefore, Parker had big shoes to fill when he replaced the industry veteran in the role during the summer of 2001.
However, a significant event would swiftly put Parker’s expertise to the test soon after he took on his position as CEO. The September 11th attacks of 2001 was a national crisis and would rock the aviation industry from top to bottom. However, despite these dark times, Reuters highlights that Southwest was the only major carrier in the United States to remain profitable during the period after the tragedies.
As a result, the airline managed to protect the jobs of all of its staff members, with no layoffs or pay cuts. Parker recognized this feat and took pride in this achievement.
The right approach
Parker explained that customers want to do business with firms that they feel comfortable with and can trust. The airline was able to achieve a bond early on with its passengers. So, this factor helped to establish a long-term relationship within the market.
Notably, Southwest offered refunds to ticket holders after 9/11 with no penalties or fees. It also would not ask any questions if travelers wanted their money back instead of flying. This was a risky move that could have put the company in financial trouble, but the decision ultimately paid off.
Parker felt that it was best to go with his gut feeling. Altogether, he believed in “doing the right thing.” In reality, only a handful of passengers requested refunds and several customers even sent the operator money to help it fight against the difficulties of the crisis.
It wasn’t only customers that wanted to help out. Many passengers were stranded in the immediate aftermath of 9/11 when services were suspended. However, several employees pulled out their own cash and credit cards to help feed and entertain these struggling travelers.
Keeping up with the company’s mission
Parker showed that he could be counted on to follow in his predecessor’s footsteps as he clearly understood the ethos of Southwest. He recognized the importance of communication and being respectful of both employees and customers.
According to Airways Magazine, Parker summarized that leadership is about:
“Defining and communicating the mission; providing guidance as to how it might be accomplished; equipping people with the proper tools (information, training, etc.); motivating and inspiring through selfless dedication and respect for others; providing both positive and negative feedback, including recognition for achievement; and, ultimately, getting out of the way and giving people the ability and authority to accomplish the mission, with the full confidence they will be supported.”
Despite the triumph of overcoming these industry challenges so soon after his appointment, Parker abruptly stepped down from his role in July 2004. He explained that the move was based on several factors, including personal reasons. However, he mentioned that being CEO was a draining job and that Southwest needed someone with the right energy and focus to lead it to the next level.
A valued presence
Sadly, Parker passed away in January 2019 at the age of 72. Gary Kelly, who succeeded Parker, summarized his qualities following his passing. Altogether, he emphasized that he was someone who led the company valiantly through one of the aviation industry’s most challenging times.
Kelly said the following about his predecessor following his death, as shared by Airways Magazine.
“Under Jim’s Leadership, Southwest successfully navigated through this dark time, preserving the job security of our People while remaining profitable under the most unlikely of odds. We will by flying the Southwest flag at half-staff this week to honor Jim. We extend our deepest sympathies to Jim’s wife, Pat, and the entire Parker family. Jim was a beloved member of our Southwest Family, and we will miss him dearly.”
Altogether, despite his short time at the helm of Southwest, the former CEO helped to minimize the damage that 9/11 could have caused on the company. There haven’t been many chief executives of the airline since its founding in 1967. However, Parker managed well to carry on the mission of his predecessor.
With the aviation industry going through another crisis, some lessons can be learned from the past. Even though the conditions are notably different today, replicating some of the practices during Parker’s tenure could prove to be helpful today.
What are your thoughts about former Southwest Airlines CEO Jim Parker’s time at the airline? Did you work with the carrier during his tenure as the chief of the company? Let us know what you think of his run in the comment section.