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WASHINGTON — Southwest Airlines is still paying for its meltdown in the course of the 2022 holidays that stranded millions of travelers — and the tab is rising.
The U.S. Transportation Department has ordered Southwest to pay a $140 million civil penalty, a part of a broader consent order after the airline’s operational failures a yr in the past.
That penalty is by far the most important the DOT has ever levied for client safety violations, in line with a press release from the division.
Robyn Beck/AFP by way of Getty Images
“Today’s action sets a new precedent and sends a clear message: if airlines fail their passengers, we will use the full extent of our authority to hold them accountable,” Transportation Secretary Pete Buttigieg mentioned in a press release saying Monday’s order.
A significant winter storm final December induced journey disruptions throughout the nation as airways canceled 1000’s of flights. But whereas different airways recovered comparatively rapidly, Southwest fell apart. The airline finally canceled 16,900 flights, stranding greater than 2 million passengers.
Since the disruption, Southwest says it has taken steps to enhance its operational resiliency and buyer care.
“We have spent the past year acutely focused on efforts to enhance the Customer Experience with significant investments and initiatives that accelerate operational resiliency,” mentioned Bob Jordan, Southwest Airlines President & CEO in a press release. “Our commitment to Customers has been central to our success across our 52-year history and has helped us become one of the world’s most admired and trusted airlines.”
Under the settlement, Dallas-based Southwest is required to ascertain a $90 million compensation system for future passengers affected by vital delays and cancellations, which counts as a part of the $140 million penalty.
The airline has already paid out greater than $600 million in refunds and reimbursements to vacationers who confronted disruptions. In whole, the airline pays out over $750 million for the vacation meltdown, DOT mentioned.
“Taking care of passengers is not just the right thing to do — it’s required, and this penalty should put all airlines on notice to take every step possible to ensure that a meltdown like this never happens again,” Buttigieg mentioned.
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