Tag

Operational Failures

All articles tagged with #operational failures

business2 years ago•2 min saved

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

Southwest Airlines has been fined a record $140 million by the Department of Transportation (DOT) for its 10-day holiday service meltdown in 2022, which left over 2 million travelers stranded. The fine was imposed for numerous violations of consumer protection laws, including inadequate communication with passengers and delayed refunds. Southwest has already paid $600 million in refunds and reimbursements, and the service meltdown cost the company nearly $1.2 billion. The DOT will use most of the fine to create a $90 million fund to compensate future affected passengers, while $35 million will be paid to the US Treasury. Southwest has acknowledged its mistakes and promised improvements in customer service and operational resilience.

via CNN|

#business #customer-service #department-of-transportation

transportation2 years ago•2 min saved

Southwest Airlines Slapped with $140 Million Fine for Holiday Meltdown

Southwest Airlines has been ordered by the U.S. Transportation Department to pay a $140 million civil penalty for its operational failures during the 2022 holidays, the largest penalty ever levied for consumer protection violations. The airline canceled 16,900 flights, stranding over 2 million passengers, while other airlines recovered relatively quickly from a major winter storm. As part of the consent order, Southwest is required to establish a $90 million compensation system for future passengers affected by significant delays and cancellations, bringing the total payout for the holiday meltdown to over $750 million.

via NPR|

#fine #operational-failures #passenger-compensation

finance2 years ago•2 min saved

Robinhood to pay $10M settlement for investor failure.

Robinhood will pay over $10 million in penalties for operational and technical failures that harmed investors, according to the California Department of Financial Protection and Innovation. The settlement was the result of an investigation by securities regulators from seven states into complaints of Robinhood's system outages that caused users to miss out on trades while many of its services were unavailable. The DFPI order accuses Robinhood of "negligent dissemination of inaccurate information to customers" and failures related to services available to customers and transparency with regulators. Robinhood "neither admits nor denies" the regulators' findings.

via Cointelegraph|

#finance #investors #operational-failures