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Home Economy

“Southwest Fined $140 Million: Your 2022 Holidays Won’t be Disrupted!

Daily Gold Index by Daily Gold Index
December 19, 2023
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“Southwest Fined $140 Million: Your 2022 Holidays Won’t be Disrupted!
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The holiday season brings a surge of travelers to the skies, but recent events show that even the most experienced airlines can run into snags during this time. Southwest Airlines Co, the largest domestic US carrier, has recently been penalized by the Department of Transportation for a disruption to over 2000 flights during the 2022 holiday season. Southwest is being fined a total of $140 million for delayed flights, denied boarding and mishandled bags during the winter holidays of December 2021 and January 2022. The airline has been charged with violating rules that are aimed at improving airline performance during a time of extremely high customer demand. According to the Tarmac Delay Rule, an airline cannot allow its flights to be delayed on the tarmac for more than three hours for domestic flights. Southwest Airlines has violated this rule on 2000 flights, with some reported flights even causing the airline to miss its arrivals by up to 11 hours. Additionally, Southwest also faces charges for failing to keep its passengers informed on how long the delay in their flights would be. This failure resulted in a lack of food and other supplies being provided to passengers during the unexpectedly long delays. In return, the Department of Transportation has issued a penalty of $60 million to Southwest Airlines, which will need to be paid within sixty days. The airline will also need to provide $80 million worth of customer service credits to its passengers over the course of the 2022 holiday season. These credits can be redeemed for future air fare purchases, with each customer eligible for up to $1800 worth of credits. Although Southwest Airlines has admitted to its erroneous behavior and has issued an apology, the airline has issued a statement saying that it does not agree with the monetary penalty handed down by the Department of Transportation. The company insists that the penalty is “excessive and disproportionate” and that it will appeal the ruling. The hefty fine as well as the customer service credits are a reminder of the importance of airlines remaining ever vigilant when faced with a surge in air travel during the holiday season. Southwest’s mistakes could cost the company dearly, with a penalty of up to $1.86 billion if the $140 million fine is not paid. It is essential for airlines to plan ahead during the holidays and have contingencies for unexpected scenarios. Customers put their faith in airlines to get them from where they are to where they want to travel safely, as well as in a timely manner. Airlines such as Southwest need to work harder to ensure that their passengers are having a pleasant experience, as customer satisfaction is the key to success.
The holiday season brings a surge of travelers to the skies, but recent events show that even the most experienced airlines can run into snags during this time. Southwest Airlines Co, the largest domestic US carrier, has recently been penalized by the Department of Transportation for a disruption to over 2000 flights during the 2022 holiday season. Southwest is being fined a total of $140 million for delayed flights, denied boarding and mishandled bags during the winter holidays of December 2021 and January 2022. The airline has been charged with violating rules that are aimed at improving airline performance during a time of extremely high customer demand. According to the Tarmac Delay Rule, an airline cannot allow its flights to be delayed on the tarmac for more than three hours for domestic flights. Southwest Airlines has violated this rule on 2000 flights, with some reported flights even causing the airline to miss its arrivals by up to 11 hours. Additionally, Southwest also faces charges for failing to keep its passengers informed on how long the delay in their flights would be. This failure resulted in a lack of food and other supplies being provided to passengers during the unexpectedly long delays. In return, the Department of Transportation has issued a penalty of $60 million to Southwest Airlines, which will need to be paid within sixty days. The airline will also need to provide $80 million worth of customer service credits to its passengers over the course of the 2022 holiday season. These credits can be redeemed for future air fare purchases, with each customer eligible for up to $1800 worth of credits. Although Southwest Airlines has admitted to its erroneous behavior and has issued an apology, the airline has issued a statement saying that it does not agree with the monetary penalty handed down by the Department of Transportation. The company insists that the penalty is “excessive and disproportionate” and that it will appeal the ruling. The hefty fine as well as the customer service credits are a reminder of the importance of airlines remaining ever vigilant when faced with a surge in air travel during the holiday season. Southwest’s mistakes could cost the company dearly, with a penalty of up to $1.86 billion if the $140 million fine is not paid. It is essential for airlines to plan ahead during the holidays and have contingencies for unexpected scenarios. Customers put their faith in airlines to get them from where they are to where they want to travel safely, as well as in a timely manner. Airlines such as Southwest need to work harder to ensure that their passengers are having a pleasant experience, as customer satisfaction is the key to success.
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