Just in time for this year's Christmas travel rush, Secretary Pete Buttigieg's Department of Transportation (DOT) has slapped Southwest Airlines with a $140 million civil penalty for its disastrous handling of Christmas travel. last year.
According to the Washington Examiner“last year's debacle” cost Southwest “nearly $1.2 billion between the fourth quarter of 2022 and the first two months of 2023.”
How BizPac Review reported, in December 2022, thousands of Southwest customers were left stranded when, on the day after Christmas, the airline canceled 2,886 of its flights, a figure that represented 70 percent of its schedule .
In total, the airline canceled “nearly 17,000 scheduled flights between December 21 and 29, affecting nearly 2 million customers, as a winter storm halted operations at major airports, overwhelming the its programming crew,” The Examiner reports.
The Department for Transport is investigating “unacceptable” Southwest flight cancellations https://t.co/9eZatLGanE pic.twitter.com/E7KSRyYcV9
— BPR (@BIZPACReview) December 27, 2022
“USDOT is concerned about Southwest's unacceptable rate of cancellations and delays and reports of a lack of prompt customer service,” the agency said on what was then Twitter. “The Department will examine whether the cancellations were controllable and whether Southwest is complying with its customer care plan.”
After a year-long investigation, Buttigieg is now praising the record fine.
“Today's action sets a new precedent and sends a clear message: If airlines fail their passengers, we will use our full authority to hold them accountable,” he said.
The examiner breaks down the surprising penalty:
The fine includes a $35 million payment directly to the government, to be paid over three years, and is the largest fine ever imposed by the DOT for violations of consumer protection laws. Southwest has already paid more than $600 million in refunds and refunds to affected travelers and is expected to pay $750 million in compensatory damages.
Of the record $140 million fine, $72 million will be offset by a voucher credit to future travelers through 2027. The DOT is crediting airlines with $33 million in frequent flyer miles to affected passengers.
“This is a message to the entire airline industry: They must take care of passengers, or we will use all our authority to hold them accountable,” Buttigieg wrote to X.
This is a message to the entire airline industry: they must take care of passengers, or we will use all our authority to hold them accountable. https://t.co/Ir6HsPb3lU
— Secretary Pete Buttigieg (@SecretaryPete) December 18, 2023
Southwest issued a Press release on Monday in which he characterized the fine as an “agreement” with DOT.
“Southwest shares with the DOT the goal of providing the highest level of service to the traveling public and is grateful to have reached a consumer-friendly settlement that acknowledges past compensation that goes beyond customer requirements and incorporates a future commitment for Southwest Customer service with a new industry-leading compensation policy,” the airline said. “The remainder of the settlement will be settled in a one-time payment of $35 million in cash to be paid over a three-year period to the DOT. Southwest appreciates the recognition that it has moved quickly to serve customers, it has learned from the event and can now change his whole approach to the future.”
Following the “disruption from Winter Storm Elliott,” the airline said it “immediately took steps to serve customers and employees, striving to meet its own high standard of customer service, as well as regulatory requirements” and “quickly launched operations-wide efforts to take care of the customer.”
“As part of today's announcement,” the airline stated, “Southwest is introducing a new industry-leading policy that provides additional compensation (in the form of a voucher of $75 or more), upon request, during controllable cancellations and delays that cause customers to arrive at their final destinations three or more hours after their scheduled arrival. The policy will be implemented by April 30, 2024.”
“This new policy for compensating customers leads the industry and underscores Southwest's dedication to its award-winning customer service,” he added.
“We have spent the past year very focused on efforts to improve the customer experience with significant investments and initiatives that accelerate operational resiliency, improve collaboration between teams and improve overall preparedness for winter operations “, Bob Jordan, president and CEO of Southwest Airlines. , said “Our commitment to customers has been central to our success throughout our 52-year history and has helped us become one of the world's most admired and trusted airlines.”
DONATE TO BIZPAC REVIEW
Please help us! If you're sick of letting radical tech execs, bogus fact-checkers, tyrannical liberals, and the lying mainstream media have unprecedented power over your news, consider donating to BPR to help us fight back them. Now is the time. The truth has never been more critical!
Success! Thanks for donating. Please share BPR content to help fight lies.
We have zero tolerance for comments that contain violence, racism, profanity, profanity, doxing, or rude behavior. If a comment is spam, instead of replying to it, click the ∨ icon below and to the right of that comment. Thank you for engaging with us in a fruitful conversation.
English 
Español de Venezuela 