![]() ![]() Only $35 million of the total amount will be paid to the US Treasury. Most of the fine will be used to create a new $90 million fund that will compensate “future Southwest passengers affected by cancellations or significant delays caused by the airline,” according to the DOT. “If airlines fail their passengers, we will use the full extent of our authority to hold them accountable,” he said. In a statement, Transportation Secretary Pete Buttigieg said the fine “sets a new precedent” while sending a message to other carriers. On an after-tax basis, it reported the service meltdown cost $914 million. In additional to customer compensation, the airline faced additional labor costs and lost revenue that continued into February. The company said the service meltdown cost it nearly $1.2 billion between the fourth quarter of last year and the first two months of 2023. ![]() Southwest has already paid $600 million in refunds and reimbursements to passengers, the DOT said. It said the agreement includes “a new, industry-leading policy to compensate customers during significant delays and cancellations.” Southwest said it was “pleased” to reach the settlement with the DOT and that it is committed to delivering the highest quality of customer service. The agency says it levied the fine “for numerous violations of consumer protection laws during and after the operational failures,” including not communicating with passengers, failing to provide adequate customer service and not refunding passengers quickly enough. Those flights made up nearly half of Southwest’s flight schedule during the busy holiday travel period. The Department of Transportation’s announcement of its largest-ever civil penalty comes about one year after cascading issues at Southwest led to the cancelation of nearly 17,000 flights. "Evolving to a fully remote workforce brings increased flexibility, both in attracting and hiring new Employees from across the country, and in scheduling current Employees who have worked at record efficiency in a remote work environment," Southwest said in a statement.The federal government is fining Southwest Airlines $140 million for last year’s historic, 10-day-long holiday meltdown that stranded more than 2 million travelers. Southwest and other airlines are scrambling to hire new staff as travel demand roars back after a two-year slump. The closures make Southwest the latest company to weigh whether in-office work is necessary, effective and attractive for workers in a post-pandemic culture. The organization didn't immediately return a request for comment Thursday. The union said in its note that Southwest made the decision without union input. The physical locations where agents were based will now be open to other departments for repurposing, a company spokesperson said. The agents' main job is to help travelers with reservations and trip changes. It has more than 3,200 customer service and reservations agents based in Albuquerque, Atlanta, Chicago, Houston, Oklahoma City, Phoenix and at Southwest headquarters in Dallas. 1, Southwest said, though the airline added that most reservations agents have been working remotely throughout the pandemic. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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