A Southwest Airlines executive apologized for the company's holiday season meltdown in front of a panel of senators on Thursday.
The airline company canceled nearly 17,000 flights and stranded more than two million customers between December 21 and December 31 following a winter storm, far more than any other airline. The Senate Commerce Committee questioned executives in a hearing that focused on those disruptions.
"Let me be clear, we messed up," Southwest Chief Operating Officer Andrew Watterson told senators. "I want to sincerely and humbly apologize to those impacted by the disruption,"
"In hindsight, we did not have enough winter operational resiliency," Watterson explained.
The Southwest executive assured the committee that the company has been working to improve its systems.
"We are doing a system-wide review of our preparedness for winter operations and will implement any measures necessary to mitigate the risk of an event like this occurring in the future," Watterson said.
The company has budgeted $1.3 billion for 2023 investments, upgrades, and maintenance of their IT systems.
Democratic Senator Ed Markey, unsatisfied with the executive's explanation, demanded the airline company give a "cash hardship payment" to those affected.
Some Republicans, however, were more sympathetic with the airline company.
"I've had multiple conversations with senior leadership at Southwest. I'm confident they understand it was an epic screw-up and that they are committed to doing everything possible to prevent its recurrence," Sen.Ted Cruz of Texas said.
Watterson testified the airline had reimbursed 273,406 customers, and that every impacted customer had been emailed flyer points, along with an apology.
But, the airline company would not pay customers directly for their inconvenience unless it was "reimbursement of a flight they took in the disruption," Watterson said.
The U.S. Transportation Department is also investigating Southwest for its flight scheduling throughout the disruption.
Bobby Zagotta, CEO of Bitstamp USA, joins Cheddar News' Closing Bell, where he discusses what he expects to see from Bitcoin and other cryptocurrencies amid a volatile period in the market, and explains how his crypto exchange is helping investors.
Markets started the week on a rocky note: the major indexes at most points during the day were double digits off of their highs, on the path to their worst performances since March 2020 and for the Nasdaq, since October 2008. Investors were skittish about the Federal Reserve's meeting this week, where the central bank is expected to announce more details about its plans to hike interest rates and taper asset purchasing this year. Art Hogan, Chief Market Strategist at National Securities, joined Cheddar News' Closing Bell to discuss today's market meltdown, why investors were feeling pressure, what to expect from the Fed, and more.
AT&T announced it's offering two tiers of high-speed internet, 2 gigs, and 5 gigs, to its fiber customers in more than 70 metro regions. AT&T Consumer CEO Thaddeus Arroyo joined Cheddar to talk about the newly available speed upgrades for 5.2 million of its customers, and where the rollout goes from here. "Over the course of 2022, we'll rapidly continue to retrofit the rest of the base," he said. "And importantly now is, as we build-out, we've talked about building out to cover 30 million homes and businesses by the end of 2025, we're going to continue to ensure that every new location that we stand up has this multi gig capability."
Autonomous driving tech company Waymo is partnering with transportation and logistics business J.B. Hunt. The two firms are teaming up to bring autonomous shipping to the highways. Head of commercialization for trucking at Waymo, Charlie Jatt, joined Cheddar to discuss how the companies are combining their strengths. "We, of course at Waymo, are working on the technology side of affairs, and J. B Hunt brings critical operational and commercial expertise," Jatt said. "And together we're going to work to deploy the first fully autonomous Class 8 truck hauling goods for one of their customers in the coming years in Texas."
Amid a rough week for Peloton's stock, as well as its image — its bikes being the cause of death for two fictional TV characters now — an activist investor is calling for a change in upper management. Chief investment officer of Blackwell, Jason Aintabi, petitioned in a letter that Peloton’s CEO, John Foley, must be fired. Joining Cheddar to discuss the ultimatum, Hatem Dhiab, a portfolio manager and managing partner at Gerber Kawasaki Wealth and Investment Management noted the conditions leading to the demand for Foley's removal. "The stock is basically 85 percent below the high," he said. "I think there is some change that needs to happen, and that's just the reality."
Talent Resources Sports is partnering with ABG Entertainment to host Sports Illustrated The Party during the weekend of Super Bowl LVI, featuring musical performances by Kygo, Jack Harlow, and other guests. David Spencer and Mike Heller, co-CEOs and founders of Talent Resources Sports, joined Cheddar to discuss the details behind putting on the event. “We’re just really pumped that after all of the things that got canceled people will finally have a place to let some steam off in such an exciting moment, such a charged moment with the Super Bowl,” Mike Heller said about putting on the live event after previous COVID-related cancellations.
Mayors in cities like Miami and New York City are considering introducing cryptocurrencies as a way to reduce economic inequality. Miami Mayor Francis X. Suarez has even pushed for distributing Bitcoin dividends to the city's inhabitants.
As companies look toward the metaverse concept to further move their companies online, Shep Ogden, CEO and co-founder of Offbeat Media, spoke with Cheddar about questions investors should be posing to businesses like how customized the metaverse experience will be. "One of the best things that people can do, or companies can do, to be competitive is really find those influencers within the community that are very deep in the space," Ogden added.