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Southwest Is Modernizing Its Technology With Help From Amazon After Holiday Melt...

 1 year ago
source link: https://finance.yahoo.com/news/southwest-modernizing-technology-help-amazon-140000098.html
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Southwest Is Modernizing Its Technology With Help From Amazon After Holiday Meltdown

Matt Day and Mary Schlangenstein
Wed, March 8, 2023, 11:00 PM GMT+9·3 min read
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(Bloomberg) -- Southwest Airlines Co. will use Amazon.com Inc. servers to help process fare searches, crew scheduling and other software tasks, a modernization of its technology that comes months after a meltdown stranded thousands of the airline’s passengers.

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Amazon Web Services will become Southwest’s “preferred cloud provider,” the e-commerce giant said on Wednesday, calling the move a “large-scale migration” of the airline’s digital infrastructure to the cloud. Southwest will use AWS to power elements of its website and mobile app, store data and run internal analytics. The companies declined to discuss financial terms of the multiyear deal.

Southwest already runs some software on AWS, including gate management and departure control programs, said Lauren Woods, the low-cost airline’s chief information officer. “We definitely have plans to do other critical-for-operations and future required-to-fly applications, bringing those into AWS,” Woods said.

Southwest faced widespread criticism from customers and industry regulators and was called before a congressional committee after it scrubbed more than 16,700 flights in the final 10 days of December. At the time, the Dallas-based airline was contending with a powerful winter storm that moved across the northern US, grounding flights and causing Southwest to lose track of its aircraft and flight crews.

The situation became so bad that the airline canceled the majority of its schedule over several days to reset its flight network, affecting more than 2 million passengers. The meltdown will cost the airline at least $1.15 billion over two quarters due to scrapped reservations, reduced bookings and higher costs.

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