It’s great to be a big, greedy, and negligent company under the rules of the Trump administration. That means you are able to squeeze out the most money out of consumers while providing them with poor service without being held accountable. Just take a look at Southwest Airlines, which had its final payment of $140 million fine to the U.S. Treasury waived off.
Southwest Airlines Receives an Unexpected Gift
During the peak holiday season in 2022, Southwest experienced a meltdown that saw 15,000 flights being canceled. This caused more than two million passengers to be stranded at airports, with many being unable to get home for Christmas or the New Year. The U.S. Department of Transportation (DOT) responded by slapping a $140 million fine, the largest one in history, on the airline. As part of the agreement, Southwest agreed to pay $35 million to the U.S. Treasury in three installments and the remainder of the sum to travelers in the form of vouchers.
Southwest already made two payments of $12 million, but it will get to keep the final $11 million in its pockets. Earlier this month, the U.S. Department of Transportation announced it is waiving that portion of the fine. According to the department, this unprompted gift is “in the public interest” and “incentivizes airlines to invest in improving their operations and resiliency, which benefits consumers directly.”
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No Worries, Big Airlines, Trump Has Your Back
Southwest CEO Bob Jordan was one of many big company executives who cheered when Trump was re-elected to the office in 2024, projecting a more favorable regulatory environment for the industry. His belief turned out to be justified, as the Trump administration swiftly tipped the scales in favor of airlines. The consumer protection efforts were halted, while many initiatives from the Biden era were snipped in the bud. The initiatives were led by Trump’s new United States Secretary of Transportation, Sean Duffy, who was previously a prominent lobbyist for the airline industry.
Back in May, the Justice Department decided to abandon the lawsuit against Southwest, which alleged that the airline’s “chronic delays” were a result of “illegal, unrealistic scheduling practices.” Describing the move, the DOT said that the lawsuit was never supposed to be brought up. Duffy also later withdrew the cash compensation rule, a Biden administration proposal that would guarantee passengers cash compensation alongside several amenities in case of delayed flights.
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Customer Isn’t the King in the U.S.
In most other parts of the world, the customer is the king. But in the U.S., at least in the world Trump wants to build, the kings are the companies. Customers are just viewed as servants who should be happy, they even have the right to use the service or goods, as bad as it is.
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