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Holiday Meltdown

All articles tagged with #holiday meltdown

business2 years ago

"Southwest Airlines Slapped with $140 Million Fine for Holiday Meltdown"

The U.S. Transportation Department has fined Southwest Airlines $140 million, the largest penalty ever imposed on an airline for consumer protection violations, for a holiday season meltdown last winter that disrupted travel for about two million people. Southwest will pay $35 million to the federal government, while the remaining amount will be credited for providing frequent-flier points and issuing vouchers to affected customers. The department stated that Southwest violated federal law by failing to provide prompt customer service, flight notifications, and refunds. The airline, which disagreed with the government's conclusion, agreed to the penalty to avoid litigation. Southwest has since made efforts to improve its service and plans to implement a policy requiring the issuance of at least $90 million in vouchers to customers experiencing severe disruptions caused by the airline.

business2 years ago

Southwest Airlines Slapped with $140M Fine for Holiday Meltdown

Southwest Airlines has been fined $140 million by the Department of Transportation for multiple violations of consumer protection laws during and after a holiday meltdown that left millions of passengers stranded. The airline failed to provide adequate customer service assistance, timely flight status notifications, and prompt refunds to affected passengers. The fine includes a $35 million payment to the US Treasury, but Southwest will receive a $33 million credit for issuing Rapid Rewards points to affected passengers. The airline also established a $90 million compensation system and will provide transferrable vouchers for passengers experiencing significant delays. Southwest denies any wrongdoing and has paid over $600 million in reimbursements to affected travelers.