Southwest fined $200,000 for deceptive TV ads

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700UW

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Nov 11, 2003
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DALLAS Southwest Airlines is being fined $200,000 for advertising a fare sale too good to be true.
The U.S. Department of Transportation said Thursday that in TV ads last October the airline promised flights from Atlanta to New York, Chicago and Los Angeles for just $59 — but didn't make any seats available at that price.

Read more here: http://www.charlotteobserver.com/2014/05/29/4940226/southwest-fined-200000-fine-for.html#storylink=cpy
Second time they have done this:
 
http://www.charlotteobserver.com/2014/05/29/4940226/southwest-fined-200000-fine-for.html#.U4ezBigpfng
 
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In mitigation, Southwest states that it believes the Atlanta fare sale was beneficial to consumers both in Atlanta and across Southwests system. Southwest states that over 14,000 consumers in Atlanta and 313,000 consumers nationwide benefited from the sale, the department said in its full order.

In addition, Southwest states that the mention of three cities that were not part of the fare sale in the audio portion of the TV advertisement was an inadvertent error that resulted from a flawed review of advertising copy language, DOT stated.

Southwest states that it regrets this mistake and as soon as the company became aware of it, Southwest immediately took steps to pull all of the incorrect advertisements off the air, the vast majority in the same day. Southwest states that this mistake was unintentional and safeguards have been put in place to ensure such an error does not occur in future sales, the department said.

Southwest Airlines spokeswoman Brandy King offered the same explanation.

Unfortunately, the audio portion of the TV advertisement incorrectly stated three cities that were never intended to be a part of the $59 sale (New York, Los Angeles and Chicago). As soon as we became aware of our mistake, we pulled all incorrect advertisements off the air, King said.

Despite our error, the sale provided significant savings to consumers in Atlanta and across the country with more than 300,000 consumers saving millions of dollars, she said.


http://aviationblog.dallasnews.com/2014/05/dot-fines-southwest-airlines-200000-for-violating-advertising-rules-in-atlanta.html/
 
I'm sure WN is trying to regain its footing but the DOT is very particular about airline fare advertising and there are indeed very specific requirements about making sure that all parts of the advertising are fully accurate and match inventory availability.

The focus, as WNMech notes, was likely the audio portion. Putting fares on TV or radio further complicates the process.

It is worth noting that DL's traffic results released today say that DL is experiencing particular revenue strength in ATL, a market that WN is now being fined for advertising ultra-low fares which haven't been available.

The $149 from ATL to LAX is much more in line with what that market supports while $49 from MDW to MEM and BWI to BOS is a steal even for those distances.

The fare rules indicate there are a number of DAL markets on sale as well.
 
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I also know that the complaint had nothing to do with DL's traffic report and revenue strength in ATL.
 
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again, the connection is that DL noted particular strength in ATL while at the same time AirTran dba WN is discounting those same markets.

the parts of the traffic release that have no relevance to WN are covered in the DL thread.
 
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WT.  You need to stop your BS.  If you do not then you will be reported on a daily basis by myself, and others if you continue.  It will happen if you continue.  And, I will encourage it.  Consider this your warning...
 
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warning because I am noting that WN/FL is putting ATL markets on sale while DL is noting that ATL is generating particular strength?

I'm sorry if the truth is a little too much for you to handle.

Do you really think that DL's improved ATL strength for months is in markets like ATL to DSM and MSN?

WN has been pulling back capacity and DL has been benefitting. Sorry if that grates at you.
 
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inconvenient.png
 
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sorry, but I didn't post about WN's fare sale and wouldn't have even mentioned it.

but since the topic was opened, it is worth noting that WN was trying to advertise markets which are competitive with DL and where DL says its revenue is particularly strong.

I'm not sure why the results for either DL or WN should be a surprise. FL knew they had to have as large of a hub as possible at ATL; WN has taken the opposite result with far fewer flights with the 3 or more flights/day that are necessary to convince business travelers to fly WN compared to DL.

As I have noted, WN has a bright future but their track record, ability, and/or willingness to successfully compete in highly competitive hubs of other airlines is not strong.

it isn't a surprise that they are advertising new DAL markets; it is surprising that they have to discount as a aggressively as they are in a market where they are already significantly cutting capacity.
 
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swamt said:
WT.  You need to stop your BS.  If you do not then you will be reported on a daily basis by myself, and others if you continue.  It will happen if you continue.  And, I will encourage it.  Consider this your warning...
+1
 
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again, discussing business issues involves touching on things that may or may not be what some people want to read.

I am still trying to understand why WN is advertising major markets from ATL at very deeply discounted prices while DL is saying that they are seeing strong revenues from ATL.

I'm not sure if DL is seeing strength in the same markets that WN is discounting but these are some of DL's top markets.
 
WorldTraveler said:
again, discussing business issues involves touching on things that may or may not be what some people want to read.
 
Nice spin.
Discussing business issues is one thing.
Twisting every single thread/topic into a "that's cool but DL is superior" thesis is something else.
 
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