WASHINGTON – An American airline will pay as much as $140 million for having stranded 2 million passengers in December last year, an episode which brought shame to the carrier.
South West Airline canceled over 16,000 flights last December owing to a major winter storm. The other carriers had recovered quickly but the airline in question completely fell apart and disrupted the plans of 2 million passengers, prompting the Department of Transportation (DOT) to impose such a hefty fine.
The penalty is by far the largest the DOT has ever imposed for consumer protection violations, according to a statement from the department.
“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 said in a statement announcing Monday’s order.
“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 said.
On the other hand, the airline claims to have improved itself for the service of the flyers, with its CEO Bob Jordan saying that the airline spent the last year acutely focused on efforts to enhance the customer experience with significant investments and initiatives that accelerate operational resiliency.
‘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,’ he said.
Under the terms of the agreement, Southwest is required to establish a $90 million compensation system – as part of the $140 million – for future passengers affected by significant delays and cancellations.
Interestingly, the airline has already paid out more than $600 million in refunds and reimbursements to travelers who faced disruptions.
In total, the airline will pay out over $750 million for the holiday meltdown, DOT said.
