New York state comptroller asks Southwest Air about plans to avoid future meltdowns
New York State's comptroller has written to Southwest, asking the carrier to explain how it plans to prevent an operational collapse like the one at the end of last year which stranded thousands of passengers. The comptroller's office oversees the state's pension system, which held 1.35m shares of the Dallas-based company at the end of March 2022. In a letter to Southwest's CEO, Bob Jordan, on Friday New York Comptroller Thomas DiNapoli said the disruption to the airline's operation is of "considerable" concern to investors as its ability to attract customers and retain employees is of "paramount importance." "The management of these basic business operations are the heart of a company's ability to provide a return to shareholders," DiNapoli wrote in the letter on Friday. A severe winter storm right before Christmas coupled with Southwest's dated technology created havoc for thousands of the airline's passengers, causing over 16,000 flight cancellations between Dec. 22 and Dec. 31. Last week, Southwest warned that it would report a loss in the fourth quarter as the mass cancellations during the peak were estimated to result in a pretax quarterly earnings hit of $725m to $825m.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-01-10/unaligned/new-york-state-comptroller-asks-southwest-air-about-plans-to-avoid-future-meltdowns
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New York state comptroller asks Southwest Air about plans to avoid future meltdowns
New York State's comptroller has written to Southwest, asking the carrier to explain how it plans to prevent an operational collapse like the one at the end of last year which stranded thousands of passengers. The comptroller's office oversees the state's pension system, which held 1.35m shares of the Dallas-based company at the end of March 2022. In a letter to Southwest's CEO, Bob Jordan, on Friday New York Comptroller Thomas DiNapoli said the disruption to the airline's operation is of "considerable" concern to investors as its ability to attract customers and retain employees is of "paramount importance." "The management of these basic business operations are the heart of a company's ability to provide a return to shareholders," DiNapoli wrote in the letter on Friday. A severe winter storm right before Christmas coupled with Southwest's dated technology created havoc for thousands of the airline's passengers, causing over 16,000 flight cancellations between Dec. 22 and Dec. 31. Last week, Southwest warned that it would report a loss in the fourth quarter as the mass cancellations during the peak were estimated to result in a pretax quarterly earnings hit of $725m to $825m.<br/>
