Southwest hit with record penalty over infamous meltdown
Southwest Airiness agreed a huge $140 million penalty over its infamous system meltdown a year ago.
The US Department of Transportation civil penalty is the highest ever and is a ‘a strong deterrent’, the US DOT said.
The airline’s operational meltdown stranded two million passengers with 16,900 flights cancelled during last year’s Christmas holidays.
The disruption lasted more than a week.
Southwest will pay a $35 million cash fine and set aside a $90 million fund for ‘future Southwest passengers affected by cancellations or significant delays.’
The incident has already cost the airline about $1 billion in extra costs for passenger compensation, added labor costs and upgrades to its systems.
“This sends a message that every airline has to make the proper investments in having a good enough system and customer service,” Transport Secretary Pete Buttigieg said.
“If airlines fail their passengers, we will use the full extent of our authority to hold them accountable”.
“It was a historic storm that led to a historic week of operational disruption,” Southwest CEO Bob Jordan said.
The DOT said Southwest violated consumer protection laws by failing to provide adequate flight status notifications and prompt compensation.
Related News Stories: 2022 Southwest Airlines scheduling crisis - Wikipedia All content Archive | December 2023 | IT Pro Southwest Airlines' $140 million fine over 16,900 canceled flights ... Tornado Survivor Stories SMU Scandal: The 1987 NCAA Death Penalty | TIME 23. The Great Depression | THE AMERICAN YAWP Millions of U.S. Cellphones Could Be Vulnerable to Chinese ... Boeing's tragedy: The fall of an American icon | Euronews FAA is Investigating New Incident Involving a Boeing 737 Max 8 Jet ... Sitemap: July 18, 2011
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
San Antonio on the Rise: David Gonzalez Talks Travel, Culture, and Growth
Anna Marie Presutti on San Francisco’s Tourism Revival and Global Outlook
Exciting Giveaway Alert! ...
24-hour strike to paralyze air transport in Italy on September 26
France prepares for a massive strike across all transports on September 18
Japan to reign more on over-tourism by tightening rules for foreign travelers
Morocco on track for another record-breaking tourism year in 2025
Strikes to hit in July the transportation sector across Europe