The Transportation Department on Monday announced a $140m fine against Southwest Airlines over a meltdown last winter that disrupted travel for about 2m people during the holiday season. Of the $140m, Southwest Airlines will pay $35m to the federal government. For the remaining amount, the department is giving the airline credit for providing frequent-flier points as an apology to customers affected by the problems and for agreeing to give out tens of millions of dollars in vouchers to those affected by future delays and cancellations. The fine is roughly 30 times what had previously been the department’s largest penalty against an airline for consumer protection violations, a $4.5m settlement with Air Canada in 2021 over customer refunds. “Today’s action sets a new precedent and sends a clear message: If airlines fail their passengers, we will use the full extent of our authority to hold them accountable,” Transportation Secretary Pete Buttigieg said in a statement. “Taking care of passengers is not just the right thing to do — it’s required, and this penalty should put all airlines on notice to take every step possible to ensure that a meltdown like this never happens again.” The department said that Southwest had run afoul of federal law by failing to provide prompt customer service, flight notifications and refunds to passengers. In an order laying out the fine, the agency said that Southwest disagreed with the government’s conclusion that it had violated the law but agreed to the penalty to avoid litigation. The airline struck a more conciliatory tone in a statement, saying that it was “grateful to have reached a consumer-friendly settlement.” Bob Jordan, the CE, said the company had worked since last winter to improve its service. “We have spent the past year acutely focused on efforts to enhance the customer experience with significant investments and initiatives that accelerate operational resiliency, enhance cross-team collaboration and bolster overall preparedness for winter operations,” Mr. Jordan said. As part of the announcement on Monday, the Transportation Department said it would require Southwest to hand out at least $90m in vouchers to customers who experience severe disruptions caused by the airline in the future. <br/>
unaligned
A $140m US penalty slapped on Southwest Airlines Monday for a holiday meltdown last year has sent a "warning shot" to other carriers, but consumer groups argue more is needed to protect passengers, including legislative action. US airlines have for now avoided European-style rules that require carriers to compensate passengers for certain significant flight delays or cancellations, although President Joe Biden aims to require such payments. The Southwest settlement with the US Department of Transportation includes a $35m cash fine and a three-year mandate for the Dallas-based airline to provide $90m in travel vouchers of at least $75 to passengers with significant delays caused by the carrier. The DOT said it provides a strong "deterrent." But consumer advocates like Teresa Murray argue the DOT and US Congress need to do more to make airlines accountable. She said airlines must be responsible with their scheduling and be asked to accommodate passengers when their flights are canceled or delayed. Murray, consumer watchdog at US Public Interest Research Group, also urged Congress to give the states the authority to enforce existing consumer protection laws. "We book flights, we trust the airlines to get us where we want to go," Murray said in an interview. "A lot of times it seems like the airlines just consider us to be ticket numbers - seats on a plane. We actually have lives." Southwest has been in the eye of a storm after a blizzard last December forced the company to cancel almost 17,000 flights, disrupting travel plans for about 2m customers.<br/>
Mediterranean operator Air Corsica has emerged as a customer behind an order covering a pair of ATR 72-600 turboprops. The airframer says the order was originally confirmed during the Paris air show in June. ATR states that the aircraft will be delivered over the first half of next year, giving the carrier a “fully harmonized” fleet of seven -600s. The aircraft will be fitted with Pratt & Whitney Canada PW127XT engines, an upgraded version of the type’s powerplant which was certified last year. Air Corsica conducts services from four Corsican airports to destinations including Nice and Marseille. “This order marks an important turning point for Air Corsica, which places a special focus on sustainable development, Corsican passenger satisfaction and connectivity – regional in particular,” says supervisory board president Marie-Helene Casanova-Servas. Air Corsica became the first carrier to receive a -600 with the PW127XT engine towards the end of last year.<br/>
India's budget carrier SpiceJet said on Tuesday it will submit an offer with the resolution professional of Go First after due diligence to "create an airline in collaboration" with the bankrupt carrier.<br/>
AirAsia X chairman Mahmood Fawzy has stepped down after over a year in the role, following the carrier’s exiting financially distressed status. Mahmood’s tenure as airline chair ended 15 December, and the airline has appointed Fam Lee Ee – currently deputy chair – to be acting chair until the “imminent” appointment of a new successor. Mahmood was appointed to the board in June 2022, and became AirAsia X chair in August the same year. He was tasked with addressing the airline’s Practice Note 17 (PN17) status – a categorisation for troubled businesses by the Malaysian stock exchange. At the time, AirAsia X was still heavily impacted by the Covid-19 pandemic, during which international travel restrictions grounded nearly its entire fleet. The low-cost, medium-haul carrier has since turned its financial position around, culminating in the successful uplifting of the PN17 status in November, following consecutive quarters of profitability. AirAsia X founder and executive director Kamarudin Meranun paid tribute to Mahmood’s “invaluable contributions”, adding: “His vision and dedication have been instrumental in reshaping AAX as a world-leading low-cost mid-range airline and we stand poised to continue our journey as a trailblazer in the aviation industry, leveraging the strong foundation laid under his stewardship.”<br/>
Australian start-up Bonza has wet-leased two Boeing 737 Max 8 aircraft from sister unit Flair Airlines, as part of efforts to shore up capacity after months of operational snags. The two aircraft will be deployed at its new Gold Coast base, operating services to 14 domestic points including to Melbourne, Mackay and Darwin. Both Bonza and Canada-based Flair are backed by Miami private equity firm 777 Partners and operate 737 Max 8s. Cirium fleets data shows Flair to have a fleet of 17 737 Max 8s. “In the short term Bonza will use the two aircraft…to service the Gold Coast base [while] its other aircraft continue to fly thousands of customers to their destinations from the airline’s Sunshine Coast and Melbourne bases,” the airline says on 19 December. Australia’s Civil Aviation Safety Authority greenlit the plans to use Flair’s 737s and crew, adding that the approval was given after Bonza “demonstrated how it is safely integrating the Canadian-registered aircraft and crew members into its operation”. The new aircraft brings Bonza’s fleet size to six 737 Max 8s. The airline, which began operations in early 2023, had touted bullish expansion plans, targeting an initial route map of 27 routes to 17 domestic cities with a fleet of four aircraft. <br/>