Seeking Alpha

Southwest Airlines rapped on the knuckles by DOT

  • Southwest Airlines (LUV -0.2%) got rapped on the knuckles again by the DOT for violating rules on fare advertising.
  • The carrier marketed a $59 fare from Atlanta to New York, L.A., and Chicago for routes that were already sold out.
  • Southwest must cough up $200K for the misdeed.
  • What to watch: Industry insiders think the lush profits turned up by airliners in Q1 will increase the focus on fare manipulation and misleading advertising by regulators.
Comments (5)
  • markcc
    , contributor
    Comments (1376) | Send Message
     
    Hopefully not an indication of further problems. They have been focused on the AirTran integration, which won't be complete until at least the end of the year.
    30 May 2014, 02:09 PM Reply Like
  • SoldHigh
    , contributor
    Comments (1013) | Send Message
     
    Normally not a fan of more regs, but travelers clearly need more protection from predator airlines
    30 May 2014, 02:37 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (812) | Send Message
     
    Agree, this is bad and predatory.
    30 May 2014, 05:21 PM Reply Like
  • glssmrbl
    , contributor
    Comments (537) | Send Message
     
    I don't see how advertising fares already sold can benefit Southwest. As soon as they customer sees sold out there is not opportunity to purchase the ticket.
    31 May 2014, 11:15 PM Reply Like
  • markcc
    , contributor
    Comments (1376) | Send Message
     
    glssmrbl, Southwest is still trying to maintain the customer awareness of low fares against the competition. In many cases this is true, but in others, they charge pretty much what the other airlines charge, but offer an all coach class product with no additional benefits.
    1 Jun 2014, 09:56 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs