Sky Turbulence: Southwest Airlines’ Record $140M Penalty for Holiday Chaos

Sky Turbulence: Southwest Airlines (LUV.N) has agreed to a historic $140 million civil penalty in connection with the December 2022 holiday chaos that resulted in 16,900 flight cancellations and left 2 million passengers stranded, as announced by the U.S. government on Monday.

The consent order from the U.S. Department of Transportation (USDOT) concludes a lengthy investigation into the significant travel disruption, offering a “strong deterrent” against future incidents, the agency stated. The settlement includes a $35 million cash fine and a three-year requirement for Southwest to provide $90 million in travel vouchers of $75 or more to passengers experiencing at least three hours of delay due to airline-caused issues or cancellations.

This settlement introduces a groundbreaking U.S. delay compensation program, scheduled to begin by April, marking a part of the Biden administration’s assertive stance on holding airlines accountable and seeking new passenger compensation requirements. Southwest clarified that vouchers would be granted “upon request.”

Transportation Secretary Pete Buttigieg emphasized, “If airlines fail their passengers, we will use the full extent of our authority to hold them accountable.”

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The massive winter storm in 2022 and the subsequent operational chaos led to numerous travel nightmares, with passengers missing important events, facing lengthy drives due to canceled flights, and some unable to receive medical treatment. Despite not admitting wrongdoing, Southwest agreed to the settlement to avoid litigation. The airline expressed gratitude for reaching a “consumer-friendly settlement” and is eager to shift its focus to the future.

This penalty, surpassing $140 million, is the largest ever imposed by USDOT, exceeding all penalties combined since 1996. USDOT found Southwest in violation of consumer protection laws for inadequate customer service assistance and failure to provide timely flight status notifications and refunds to affected travelers.

As part of the settlement, USDOT closed its “unrealistic scheduling investigation” without making specific findings. The agency credited Southwest with $33 million toward the penalty for voluntarily awarding frequent flyer points to impacted passengers.

In May, President Joe Biden announced plans for new rules requiring airlines to compensate passengers with cash for significant flight delays or cancellations caused by carriers. Despite resistance from most carriers to provide cash compensation, they committed to offering hotels, meals, and ground transportation for airline-caused delays or cancellations.

Our Reader’s Queries

What causes turbulence in the sky?

When warm air is lifted by a sloping frontal surface and rubs against opposing air masses, turbulence occurs in the frontal zone. This turbulence is particularly strong when the warm air is moist and unstable, and can become extremely severe if thunderstorms form.

What is SkyPath turbulence?

SkyPath’s unique combination of real-time data and aviation expertise allows for the most effective solution to turbulence. This issue has been a costly problem for airlines, resulting in millions of dollars in crew and passenger injuries, operational delays, and unscheduled maintenance. With SkyPath’s innovative approach, these issues can be minimized, saving airlines both time and money.

Are planes OK in turbulence?

Although airplanes are built to endure harsh weather conditions, turbulence can still pose a threat to passengers and crew members. While it is uncommon for turbulence to cause structural damage to the aircraft, it can violently jostle those on board, leading to serious injuries.

Do pilots ever worry about turbulence?

Pilots typically view altitude changes as a matter of convenience rather than safety. These adjustments are often made to provide passengers with a smoother and more comfortable flight experience.

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