Southwest Airlines Fined Record $140 Million Over 2022 Holiday Meltdown
NDTV
The US transport department said that Southwest failed to provide prompt customer service, flight notifications and refunds to passengers affected by the meltdown.
The transport department in the US has fined Southwest Airlines $140 million (Rs 1,166 crore) for its operational meltdown during the 2022 holiday season. According to New York Times, the meltdown last winter disrupted travel for about two million people. Of the $140 million, the airline will give $35 million to the US federal government. The rest of the amount will be given as frequent-flier points as an apology to customers affected by the disruption, and the airline has also agreed to give tens of millions of dollars in vouchers to other customers.
The fine is 30 times the previous penalty against an airline for consumer protection violation. It was imposed in Air Canada ($4.5 million settlement) in 2021.
"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," NYT quoted Transportation Secretary Pete Buttigieg as saying in a statement.
