06:40:03 EDT Sat 27 Apr 2024
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Globe/AP say Air Canada sees how U.S. regulation works

2023-12-19 08:03 ET - In the News

Also In the News (C-ONEX) Onex Corp

The Globe and Mail reports in its Tuesday edition that Southwest Airlines will pay a $35-million (U.S.) fine as part of a $140-million (U.S.) settlement to resolve a federal investigation into a debacle in December, 2022, when the airline cancelled thousands of flights and stranded more than two million travellers over the holidays. An Associated Press dispatch to The Globe says that most of the settlement will go toward compensating future passengers, which the U.S. Department of Transportation considers an incentive for Southwest to avoid repeating last winter's mess. The government said the assessment was the largest it has ever imposed on an airline for violating consumer protection laws. U.S. Transportation Secretary Pete Buttigieg said the settlement demonstrates his agency's resolve to make airlines take care of their passengers. "This penalty should put all airlines on notice to take every step possible to ensure that a meltdown like this never happens again," he said. Southwest said it was "grateful to have reached a consumer-friendly settlement" that gives the airline credit for compensation it already provided to customers. The assessment stems from nearly 17,000 cancelled flights a year ago.

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