Pete Buttigieg, Once Attacked for Southwest Debacle, Cracks Down Hard on the Airline - The Messenger
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Pete Buttigieg, Once Attacked for Southwest Debacle, Cracks Down Hard on the Airline

DOT’s $140 million penalty against Southwest is 30 times larger than any previous penalty for consumer protection violations

U.S. Transportation Secretary Pete Buttigieg on May 23, 2023 in Washington, DC. Chip Somodevilla/Getty Images

Transportation Secretary Pete Buttigieg faced widespread criticism this time last year when Southwest Airlines canceled 16,900 flights, leaving more than two million passengers stranded.

This holiday season, he’s changing the narrative.

Heeding calls for a tougher response to poor airline service, the Department of Transportation on Monday announced a record $140 million civil penalty against Southwest Airlines. 

The penalty for numerous violations of consumer protection laws is 30 times larger than any previous DOT penalty for such violations, according to DOT.

“This is a message to the entire airline industry: they must take care of passengers, or we'll use the full extent of our authority to hold them accountable,” Buttigieg wrote on X, formerly known as Twitter.

The penalty comes as more than 115 million people are expected to travel at least 50 miles away between Dec. 23 and New Year’s Day this year, a 2.2 percent uptick since 2022 and the second-highest number since AAA began tracking holiday travel in 2000.

Buttigieg – a former Democratic presidential candidate who hasn’t ruled out running again – came under fire last year for failing to crack down on the airline industry amid consumer complaints about flight disruptions and airlines not paying refunds.

Senate Commerce, Science and Transportation Committee Chair Maria Cantwell, D-Wash, said during a February hearing that the airline sector “needs a more effective policeman on the beat.”  Her office later clarified that she was referring to the need for more resources and manpower in DOT's consumer protection office, according to The Hill.

William J. McGee, a senior fellow for Aviation and Travel at the American Economic Liberties Project, told The Messenger he was Buttigieg’s “biggest critic” last year during the debacle – and he said it was warranted. But now he’s applauding DOT.

“They took a year but they did a thorough investigation,” he said. “This is really a significant action on their part… In size and scope, we’ve never really seen anything like it for just one airline.”

The penalty follows DOT’s investigation into Southwest’s operations during the 2022 holiday season. It is in addition to more than $600 million in refunds and reimbursements that DOT already ensured Southwest provided passengers facing disruptions during the meltdown last year. In total, Southwest will pay more than $750 million for the holiday meltdown, with most going to passengers for refunds, reimbursements, rapid rewards or future compensation, according to DOT.

“Southwest shares with the DOT the goal of delivering the highest standard of service to the traveling public and is grateful to have reached a consumer-friendly settlement,” the company said in a statement.

The former mayor of South Bend, Indiana, has been emphasizing his commitment to consumer protection heading into the holidays, encouraging travelers in need of assistance to visit FlightRights.gov, which includes dashboards with airline policies for cancellations, delays and family seating.

“We have helped passengers get $2 billion in refunds and counting,” he said in a recent interview with Travel + Leisure. “So if you do need our help, we are here to have your back."

McGee said he and other consumer advocates met with Buttigieg twice in the spring and expressed their concerns and recommendations.

“We’re not there yet. We still have a lot of work to do,” McGee said. “But this is … a very big first step, that DOT has shown that it will get tough with airlines.”

He added that he hopes other airlines are watching as millions of people get ready to fly for the holidays.

“They ruined the holidays for a lot of people last year,” he said. “We hope it doesn’t happen this year.”

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