Reuters
Published Jan 13, 2023 10:24AM ET
Updated Jan 13, 2023 12:41PM ET
By David Shepardson
WASHINGTON (Reuters) - A group of 15 U.S. senators on Friday demanded Southwest Airlines (NYSE:LUV) Chief Executive Bob Jordan answer questions about the low-cost carrier's holiday meltdown that led to nearly 16,000 flight cancellations.
"The airline must examine the causes of this disaster and ensure it never happens again," said the letter led by Democratic Senators Ed Markey and Richard Blumenthal asking for answers about the software it uses for crew scheduling and why did the company "fail to invest funds to modernize these systems to ensure that it could effectively coordinate crew and flight schedules after major storms and during major travel periods?"
The senators, including Banking Committee Chair Sherrod Brown, Foreign Relations Chair Bob Menendez, Finance Committee Chair Ron Wyden and Budget Committee Chair Bernie Sanders, asked for details the total number of refunds requested and expenses reimbursed.
Southwest said Friday it appreciated the senators concerns
"and share in the commitment to ensuring Southwest’s customers are properly cared for and that actions are taken to mitigate risks of this happening again."
Commerce Committee Chair Maria Cantwell earlier this week pledged to investigate the meltdown.
The U.S. Transportation Department is forwarding thousands of Southwest consumer complaints as part of its ongoing investigation. Transportation Secretary Pete Buttigieg, who met virtually with Jordan on Jan. 6, has repeatedly vowed to hold Southwest accountable if it fails to adhere to the promises made to reimburse passengers.
Southwest has warned it would take a quarterly profit hit of as much as $825 million because of the meltdown.
Jordan told Reuters on Thursday the airline is looking at all options to ensure the operational meltdown it suffered last month is not repeated and hired consultancy Oliver Wyman to investigate the disruption, Jordan told Reuters in an interview.
Southwest's board has set up a new Operations Review Committee to oversee management following last month's systems collapse, Jordan said. General Electric (NYSE:GE) Co is updating the company's software which will automate its crew scheduling systems, he said.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.