$11M Southwest Airlines fine waived by DOT

Southwest Airlines will no longer have to pay its remaining $11 million fine after the US Department of Transportation (DOT) waived the installment. The decision came as part of a record-breaking $140 million penalty for the airline's operational meltdown during the 2022 holiday season.

The waiver allows Southwest to keep the credit it received for improving its on-time performance and completion factor, which was achieved through a $112.4 million investment in Network Operations Control (NOC). The DOT cited that this structure enables the benefits of the airline's investment to be shared with the public rather than being imposed as a government monetary penalty.

The Biden administration initially imposed the massive fine in 2023, which is the largest ever levied against an airline. Most of the penalty required Southwest to enhance its technology and procedures to increase reliability and compensate passengers for future cancellations or significant delays.

Southwest has undergone a major operational turnaround over the past two years, resulting in industry-leading on-time performance and completion rates without cancellations. The airline's efforts were affected by a massive winter storm that battered the US during the 2022 holiday season, leading to over 16,900 cancelled flights and stranding more than 2 million passengers.

In addition to the fine, Southwest agreed to pay approximately $600 million in refunds and reimbursements to customers when the penalties were first imposed.

I'm so used to seeing these big airline fines, I thought this was gonna be a total disaster for Southwest . But now that the US DOT waived part of the fine, it's like a weight's been lifted off their shoulders . I mean, $140 million is still crazy talk, but at least they won't have to pay that whole chunk upfront anymore .

I'm actually kinda proud of Southwest for all the changes they made and the investment they put into their NOC system . It's not like they just sat around twiddling their thumbs after that winter storm hit - they really rolled up their sleeves and got to work ️. And let's be real, who doesn't love free refunds? That whole $600 million settlement is still a bummer for passengers, but at least the airline didn't go bankrupt trying to pay it all back .

It's funny how much things have changed since I last took a flight. Back then, cancellations were super rare and you never had to deal with that dreaded "unknown" status on your boarding pass . Now, we're used to flights getting cancelled or delayed like it's nothing . But hey, at least the airlines are working hard to improve their tech and stuff .

so southwest is getting off scot-free? that's a pretty big deal considering they had one of the worst holiday seasons in 2022. i mean, 16,900 cancelled flights is crazy! but i guess the dot decided to let them keep the credits for improving their on-time performance and all that jazz... it seems like it was worth it for southwest since they've clearly turned things around, but i'd love to see more info about how this whole thing went down

omg i just had the craziest dream last night that i was on a plane and we landed but it wasn't our destination ️ i was like "wait where's my phone?" and i looked around and everyone else was looking confused too meanwhile, have you guys tried those new avocado toast at the food court in the mall? i had the most amazing one yesterday with fresh cherry tomatoes on top

I think this is a good thing for SWA . I mean, they've had a major operational meltdown and still managed to turn it around like no one's business . The fine was huge but I feel like they earned it kinda... Not that I'm saying they were perfect or anything , but it's not like they just got lucky. And now this waiver thing is giving them a break? Yeah, good for 'em . It shows the DOT isn't just about slapping fines around for the sake of it . They're actually thinking about how to benefit the public too . Plus, all that money they paid back to customers? That's like, customer love . So, yeah, I'm not gonna badmouth SWA .

I feel kinda bad for Southwest , they went through a huge struggle last year but their efforts are really paying off now ! It's awesome that they got to keep some of the credit from improving their on-time performance . The DOT made a good call by waiving the fine, it makes sense to share those benefits with the public rather than keeping them as a penalty . Southwest's investment in Network Operations Control (NOC) really paid off and it's great that they got to keep some of that progress ! It's also super impressive that they were able to turn their operations around so quickly .

I'm glad they waived that fine for Southwest . I mean, think about it, they had a major meltdown last year during the holidays, over 16,900 flights cancelled... that's crazy . But then they went out and invested $112 million in Network Operations Control (whatever that means) and suddenly their on-time performance is industry-leading? It's like they flipped a switch or something .

And to be fair, it makes sense for the government to let them keep the credit they earned for improving, rather than just taking all that money . I remember when I traveled with Southwest last year and they were actually pretty reliable . So yeah, good on them for making it right .

I'm not mad that they're getting out of paying a chunk of that fine, but can you believe that thing with the winter storm caused 16,900 flights to get cancelled? That's crazy! I mean, I feel bad for those passengers who got stuck, but Southwest really stepped up their game and fixed all these issues. It's kinda awesome that they were able to turn things around like that .

And I guess it makes sense that the DOT is letting them keep the credit they earned from improving their operations, rather than just taking the fine as cash . That way, the benefits of their hard work get shared with everyone, not just the government. Southwest really deserves some props for all they've done to turn around their service .

It's still wild that that fine was $140 million, though . But hey, at least they got a second chance to prove themselves. Now let's see if they can keep up this momentum and become the most reliable airline in the US

So, I think this is a pretty cool development for Southwest Airlines . The fact that they get to keep the credit they earned for improving their on-time performance is a big win for them. It makes sense from a business perspective - why would you want to give up the benefits of hard work and investment? The DOT's decision also highlights how important it is for airlines to have some flexibility in dealing with operational issues like winter storms . It's not like they just got off scot-free, but they do get to keep a chunk of what they earned. Plus, it's all part of the bigger picture of Southwest having made a major turnaround over the past two years - they should be proud of that .

the fact that southwest is getting a break on this massive fine feels like a big win for the airline it's not surprising though given how far they've come in improving their operations over the past two years, all while dealing with some crazy weather conditions last year 16k cancelled flights is wild but i guess the dot was thinking that keeping the credit southwest earned for improving its on-time performance would be a better use of funds than slapping them with even more money maybe it's a way to incentivize other airlines to get their act together too

omg what a huge win for southwest air i mean, $140 mil is a lot but at least they get to keep that $11 mil fine and it's not like they didn't pay most of it already, right? 112.4 mil into NOC was like a game changer for them imo anyway, i'm glad the dot finally understood what's up and decided to waive it. southwest has come so far in two years and i think this is just another testament to their hard work plus, all that $600 mil in refunds will definitely make a difference for customers let's keep rooting for these airline folks

omg what's up with these fines? i mean dont get me wrong southwest is on top of things now but $140 mil is crazy! that's like a whole lotta cash for one airline. and yaaas they got away with paying half of it back lol but its interesting to see how the dot made this decision tho. basically they wanna make sure the public benefits from southwest's improvements rather than just taking a chunk of change as a fine. makes sense, i guess

this makes sense i guess, they fixed their issues so why not let them keep the credit for it? seems like a good way to reward them for making changes but still crazy that they got hit with 140 million in fines, that's wild

can you believe this?! like they're just giving southwest a free pass after they totally messed up last year's holiday season $11 million goes from being owed to the gov but it'll actually be used for their NOC upgrade, which is kinda cool I guess? idk about the whole "benefits for public" thing tho... seems like it just sets a bad precedent that we're just gonna let airlines get away with stuff whenever they mess up

I'm low-key surprised the US DOT decided to waive that massive fine for Southwest Airlines . I mean, they totally bungled it during the 2022 holiday season, but they've made some solid changes since then... and it's kinda admirable they're taking responsibility for their past mistakes . Plus, the fact that they invested $112.4 million in NOC is a big plus . It makes sense to keep the credit they earned from improving their on-time performance, rather than just taking more cash from taxpayers . Maybe the DOT was trying to avoid giving the public a bad taste in their mouth by waiving the fine? Either way, it's good to see Southwest getting some breathing room !

I'm not entirely convinced about this waiver ... I mean, $140 million is still a huge fine! It's just that it got split up into installments, but still, it's a lot of money . And what if Southwest's "operational turnaround" was just a PR stunt ? They're still flying the same planes, using the same technology... how much of that $112.4 million actually fixed anything?

OMG u no how crazy this is!! So like they're sayin that southwest can just keep the cash they earned 4 improvin their on time perfomance lolol... thats like gettin a free pass for bein good at showin up on time!!! i mean its not like they got away scott free or anythin but still its a biiig win fer them.

I'm loving this news , can you imagine having that kind of financial burden lifted off your shoulders? It's like a weight has been taken off their wings . I mean, they've had two years to get it right, and now they don't have to pay out that last chunk of cash. It makes sense though - the credit they got for improving those operational procedures should count for something. Like, if you're already investing a ton in making your service better, shouldn't you get some recognition for that?