17,000 Flights Canceled by US Southwest
Passengers Unaware of Flight Cancellations After Arriving at Airport
Southwest Airlines, which caused a cancellation crisis of about 17,000 flights over approximately ten days during last year's year-end and New Year period in the United States, has been fined the largest penalty in history.
On the 18th (local time), the U.S. Department of Transportation announced that it had imposed a fine of $140 million (about 182.4 billion KRW) on Southwest Airlines. This disciplinary action was taken for violating consumer protection laws by canceling 16,900 flights from last Christmas holiday through early this year, causing damage to 2 million passengers, and failing to properly respond to passengers' inquiries regarding the operational disruptions.
At the time, as flights were canceled one after another, travelers struggled to book alternative flights and find accommodations, but it was found that Southwest Airlines' customer service call center was overloaded and often unreachable by phone.
Additionally, although the airline was obligated to notify customers via text or email in case of flight changes or cancellations, a significant number of customers did not receive notifications, and some received incorrect information. Ultimately, most passengers only learned about their flight cancellations after arriving at the airport.
The Department of Transportation explained that the amount of the fine imposed this time is 30 times larger than the maximum fine previously imposed for consumer protection law violations.
Pete Buttigieg, U.S. Secretary of Transportation, said, "Today's action will set a new precedent and sends a clear message that if airlines fail to serve their customers, we will use all available authority to hold them accountable." He added, "Taking care of passengers is essential, and this penalty will serve as a warning to all airlines to take every possible measure to prevent such incidents from happening again."
Southwest Airlines has already paid $600 million (about 781.8 billion KRW) in refunds and compensation to affected passengers. The Department of Transportation also explained that $90 million (about 117.3 billion KRW) of the imposed fine will be used to establish a compensation fund for future affected passengers.
Meanwhile, last year-end in the U.S., a winter storm accompanied by extreme cold, heavy snow, and strong winds caused large-scale flight cancellations and delays. In particular, the scale of cancellations by Southwest was much more prominent compared to its competitors. On December 26 last year, Southwest Airlines canceled 2,687 flights, accounting for 66% of its total scheduled flights.
At that time, Bob Jordan, CEO of Southwest Airlines, sent a message to employees stating, "The winter storm is unprecedented across our nationwide air network," and predicted that it might take several more days to normalize operations.
Southwest's particular vulnerability to the cold wave was believed to be due to a combination of factors including airport locations, flight routes, and outdated operational systems. In response, even President Joe Biden stepped in to warn that "airlines will be held accountable," and authorities including the Department of Transportation and the Department of Justice conducted a large-scale investigation, resulting in this disciplinary action after one year.
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