Source: CSPAN
WASHINGTON–Southwest Airlines has been fined $140 million for its operational meltdown during the 2022 holiday travel season, the U.S. Department of Transportation (DOT) said Monday.
That is about 30 times larger than any previous fine against an airline.
The DOT said they will also require Southwest to start issuing a $75 flight credit to any passenger whose arrival is delayed more than three hours when it is the fault of Southwest, which includes mechanical issues. The airline has also been told to reserve $90 million in vouchers to cover the $75 credits.
“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 and former South Bend Mayor Pete Buttigieg said in a statement.
The Department says they will use the majority of the fine to pay customers affected by future Southwest flight cancellations and other delays.
“We’re pleased to have reached this consumer-friendly settlement, which includes a new, industry-leading policy to compensate Customers during significant delays and cancellations,” said Southwest Airlines in a press release.
A member of the Democratic Party, Buttigieg was the 32nd mayor of South Bend, Indiana, from 2012 to 2020.
President-elect Biden named Buttigieg as his nominee for Secretary of Transportation in December 2020. His nomination was confirmed on February 2, 2021, by a vote of 86–13, making him the first openly gay Cabinet secretary in U.S. history.
