For many travelers whose holiday travel has been disrupted by the crash at Southwest Airlines, a big question arises: How – and how much – will they be compensated for their troubles?
Transport Minister Pete Buttigieg made his point clear in a pointed letter to the airline’s chief executive, Bob Jordan: “The cancellations and significant delays since at least December 24 are due to conditions under the airline’s control” – in other words, not the weather – and He said he expects the company to reimburse passengers for things like meals, hotel rooms and alternative forms of transportation that aren’t normally met when there are weather-related delays and cancellations.
Experts say “Control” is the keyword. Controllable issues are things like maintenance and crew positioning, “things that are uniquely within the airline’s control,” said Bob Mann, an airline industry consultant. Ultimately, the airline’s legal obligations may depend on what happens when something beyond the company’s control, such as a snowstorm sweeping across the country, causes a problem within the airline’s control, such as Southwest’s technological and planning errors.
Either way, it could cost the company millions of dollars. “I think there are probably two million customers affected at this point,” said Mr Mann. “They’re looking at five to six hundred million dollars in potential liabilities.” This is where the money can go.
What does Southwest legally have to provide to passengers?
According to the Department of Transportation dashboard, “If an airline cancels a passenger’s flight for any reason or makes a significant change in flight, airlines are required to promptly refund a ticketed passenger, including those with non-refundable tickets. the passenger chooses not to accept the alternative offered, such as rebooking on another flight.”
Therefore, if your flight was canceled or significantly delayed and you chose not to fly to the Southwest, your ticket will need to be refunded. Southwest advises travelers who have not yet been refunded to file a claim via the company’s website.
What about spending while waiting for a flight to finally take off?
In an email to The Times, Southwest said passengers facing a cancellation or significant delay between December 24, 2022 and January 2, 2023, will be able to “submit receipts for consideration” via email or on the company’s website. “We will honor reasonable requests for refunds for meals, hotel and alternative transportation,” the email said.
No clear definition of what would be a “reasonable” request was given. But Southwest is facing pressure to be generous in its compensation.
In a letter sent on Thursday, Mr Buttigieg said the Department of Transport “will take action to hold Southwest accountable” if the airline fails to honor its commitments to passengers stranded due to conditions under its control. In the past, the airline had promised to provide meals for passengers who had to wait three hours or more for a new flight, and hotel accommodation for passengers experiencing an overnight delay, and ground transportation to and from hotels.
Will passengers who have booked flights on other airlines be reimbursed for these flights?
They are in a more complex category.
Although Southwest says in its email that it will honor “reasonable requests” for “alternative transportation”, Southwest does not generally rebook passengers on competitors’ flights, unlike legacy airlines such as Delta Air Lines and American Airlines, among others.
However, Mr Buttigieg said in his letter that “Southwest will honor reasonable requests for reimbursement for alternative transportation such as other airline tickets, Amtrak or rental cars.”
“It will be on a case-by-case basis,” Mr Mann guessed. “Booking an expensive flight may indicate that you have a serious obligation to the airline that you cannot miss,” he said. “My advice is to keep your receipts, use the Southwest tool and see how it goes,” he said.
“I had to rebook at United,” said Michael Quidort, 32, who was traveling to Chicago from Raleigh, NC, when his Southwest flight was cancelled. He said he paid United $295, but his original flight was $140, and when he tried to file a claim, the Southwest system kept crashing. He plans to keep trying, but says he’s “not so hopeful” that he’ll be repaid. “Everything was messed up with them, and I don’t have much faith that they’re going to turn this around anytime soon,” he said.
What will be the cost of the vacation I can’t take?
Reimbursing passengers for meals and alternative transportation is one thing, but there is also a human cost to the airline’s downfall, said Katy Nastro, travel expert at Scott’s Cheap Flights, who warns members about airfare deals. “Some people don’t have the flexibility to take time off whenever they want,” she said. “Your vacation is one of the only times you can count on and plan and save for a trip.”
It is unclear how people will be compensated for these losses.
Ms. Nastro also wondered if non-refundable travelers, including Airbnbs and all-inclusive hotels, would be covered by Southwest’s vague refund policy. “I don’t know,” she said, “but there are many such cases.”
What about lost bags?
Caroline Neary’s flight from Houston to West Palm Beach, Florida has not been canceled or delayed. However, Ph.D. the student arrived home on time, his luggage still has not arrived; she wore her mother’s clothes for the holidays she. She said she spent $500 on clothes, toiletries, and a suitcase to complete her trips. Ms Neary said she spoke to Southwest on Monday to report the lost luggage, but did not expect to see her again for weeks. “Allegedly in Baltimore,” She said via text message.
Southwest said travelers can report lost bags on its website. Mr Buttigieg stated in his letter that “Southwest is required to reimburse passengers up to $3,800 for demonstrable direct or indirect damages resulting from loss, damage or delay in delivery of passenger baggage.”
Is flying to the Southwest risky in the near future?
“Business-wise, Southwest has weathered Covid quite well,” said Blaise Waguespack, professor of management, marketing and operations at Embry-Riddle Aeronautical University. “They were one of the first major movers to return to profitability.”
Still, he warns that the next few months may be tough for the company, and therefore for passengers. “Even if the weak backend team goes out and buys the latest and greatest system to replace their planning system, it still takes several months to hand over,” he said.
Personally, he’s taking his chances. “I have Southwest tickets for next month and I won’t be canceling them.”
Mr Waguespack said “it is not possible” as to concerns over the possibility that this event could bankrupt the airline. With a profitable third quarter, it “could handle any fee it decides to offer,” he said.
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