Southwest Airlines has launched a new compensation fund for inconvenienced passengers, offering $75 vouchers to passengers whose flights were significantly delayed or canceled for reasons within the airline’s control.

The compensation fund is part of the airline’s $140 million settlement with the Department of Transportation following the airline’s December 2022 operational failure. A combination of winter weather, holiday travel, and a glitch in Southwest’s scheduling system resulted in nearly 17,000 flights being canceled or significantly delayed, affecting 2 million flights. passenger. Southwest Airlines will pay the government $35 million, on top of the $600 million it paid in refunds and reimbursements to customers affected by the holiday debacle, to cover future flyers affected by the flight error. agreed to create a $90 million voucher fund to

Under the original terms of the deal, the voucher program was scheduled to begin on Tuesday, but Southwest Airlines launched the fund on April 16. Passengers who arrive at their final destination more than three hours after their scheduled arrival time for domestic flights and six hours or more for international flights can request the voucher program. $75 coupon. This funding is only available to travelers who experience a critical incident under Southwest Airlines’ control, such as a mechanical issue or plane replacement.

To receive money, customers can: fill out the form online. Requests must be submitted within one year of flight delay or cancellation. Southwest Airlines plans to respond to customers within 30 days, said Laura Swift, a spokeswoman for Southwest Airlines. The compensation fund will be operated for three years.

The Biden administration last week announced new rules for airlines to strengthen passenger protections and increase transparency in the industry. The new regulations require airlines to streamline refund procedures for canceled flights and eliminate hidden fees by disclosing baggage surcharges and rebooking prices in advance.

In announcing these rules, Transportation Secretary Pete Buttigieg also cited Southwest Airlines’ vouchers as a customer service measure that could impact other airlines.

“This is the month that vouchers as part of the Southwest settlement really take off, and Southwest is going to really lead the market in this because we’re making the vouchers,” Buttigieg said. Stated. “It will be very interesting to see how other airlines respond, not as punishment, but as competition.”

In a statement Tuesday, DOT officials said: “Strict monitoring” Southwest’s program requires airlines to submit annual reports documenting voucher spending for the next three years.

Hannah Sampson contributed to this report.



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