‘17,000 flights canceled in 10 days’… Southwest Airlines hit by a record $140 million fine bomb

Southwest Airlines, which caused 17,000 flight cancellations in the U.S. for about 10 days at the end of the year and New Year last year, was fined the largest ever.

The U.S. Department of Transportation announced on the 18th (local time) that it has fined Southwest Airlines $140 million. The move is a disciplinary measure for violating the Consumer Protection Act by canceling 16,900 flights last year and failing to respond properly to operational disruptions that damaged 2 million passengers by the Christmas holiday and the beginning of this year. At that time, travelers struggled to book alternative flights and find accommodation facilities as flights were canceled one after another, but Southwest Airlines’ customer service call center was overloaded and often failed to connect to the phone, according to the survey.

In addition, if a flight is changed or canceled, it is obligated to inform customers through text or e-mail, but many of the airline’s customers were not notified and received the wrong information. Eventually, most passengers found out that their flights were canceled only after arriving at the airport.

The Department of Transportation explained that the amount of fines imposed this time is 30 times larger than the maximum amount previously imposed on cases of violations of the Consumer Protection Act. “Today’s action will set a new precedent and sends a clear message that if the airline fails to respond to customers, it will mobilize all its powers to hold them accountable,” U.S. Transportation Secretary Pete Buttigieg said. “It is essential for airlines to take care of passengers, and this punishment will caution all airlines to take all measures possible to prevent such accidents from occurring again,” he added.

Southwest Airlines has already paid 600 million U.S. dollars in refunds and compensation to affected passengers. The transportation ministry also explained that 90 million dollars out of the latest fines will be used to fund compensation for affected passengers.

Meanwhile, massive flight cancellations and delays occurred in the U.S. at the end of last year in the wake of a winter storm accompanied by freezing cold, heavy snow, and strong winds. Southwest’s flight cancellation scale was particularly noticeable compared to its competitors. On Dec. 26, last year, Southwest Airlines canceled 2,687 flights, or 66 percent of the total flights scheduled.

“Winter storms are unprecedented across our national air network,” Southwest CEO Bob Jordan said in a message to employees at the time, predicting that it could take a few more days to normalize operations.

Southwest was particularly vulnerable in the cold wave because of a combination of airport locations, routes and outdated operating systems. In response, even President Joe Biden warned that he would hold airlines accountable, and authorities, including the Ministry of Transportation and the Ministry of Justice, conducted a major investigation and imposed the disciplinary action in a year.

JENNIFER KIM

US ASIA JOURNAL

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