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Chaos and Creation: Inside the Making of Yeezy Gap

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Chaos and Creation: Inside the Making of Yeezy Gap

It was nearly 90 levels in Instances Sq. on Thursday morning when a scene started to play out on Broadway that was so surprising it might have been a mirage: 100 folks have been wrapped across the block outdoors the Hole, ready for its doorways to open.

Inside the shop, which had been reworked right into a form of blackened cavern punctuated by digital screens, 24 industrial-size sacks have been lined up in two lengthy rows and filled with clothes from Yeezy Hole, the collaboration between the artist previously generally known as Kanye West (now merely Ye) and the large ur-American model.

For anybody following the partnership since its buzzy beginning greater than two years in the past, this was a significant growth: the primary time clients would be capable of see and contact the garments inside a retailer — albeit not hung from racks or folded on cabinets, however piled into these big baggage.

They might get to strive on the unisex tees, double-layered hoodies and long-sleeve shirts in darkish colours: tops with barely skewed, look-again proportions, typically seamless or cropped, with dropped shoulders. Once they swiveled in entrance of the becoming room mirrors, they’d see photographs of doves in flight printed throughout their backs.

In the end they’d get to evaluate for themselves how the boxy silhouettes and thick cotton differed from Hole’s typical providing — and resolve whether or not that was sufficient to shift the fortunes of the model: to make folks throughout the nation line up in anticipation, spend with alacrity and see Hole as soon as once more as a defining, disruptive staple of American vogue.

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Versus viewing it as an organization — Hole Inc. is the father or mother firm of Hole, Banana Republic, Previous Navy and Athleta — that’s at the moment wrestling with the departure of its chief govt after solely two years, together with diminishing earnings (together with a web $162 million loss within the first quarter of this 12 months) and dwindling cultural relevance.

It was that uncool issue that seemingly drove Hole to announce, in June 2020, a 10-year cope with the undeniably cool Ye and his vogue line Yeezy, with the choice to resume on the five-year mark, at which level Hole hoped Yeezy Hole could be producing $1 billion in annual gross sales. Although mass-market manufacturers have engaged in one-off collaborations with high-end designers and celebrities for years, Yeezy Hole was, in scope and ambition, in contrast to any the retail world had seen.

Besides that in its first 18 months, the partnership yielded simply two merchandise, each offered solely on-line.

It wasn’t till a 3rd occasion, Balenciaga, the French luxurious home, entered the collaboration {that a} full Yeezy Hole assortment was lastly launched this 12 months (although it was nonetheless comparatively small, with 36 types in whole unveiled in Might). This weekend, a portion of the gathering is being rolled out in about 50 shops nationwide, in cities together with Chicago, Dallas and San Francisco: a collection of eight types, with extra promised later within the 12 months.

It’s a milestone within the much-watched collaboration, however one which raises the query: What took so lengthy?

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Going into the Hole deal, Ye had a sure observe file within the fashion-for-the-masses enterprise; in 2020, the sneaker collaboration between Yeezy and Adidas introduced in almost $1.7 billion in income, in response to Bloomberg.

He had much less success in constructing a ready-to-wear model. An early try at a glitzy namesake luxurious label in Paris had fizzled, and a comeback with the extra minimal, conceptual athleisure Yeezy yielded unpredictable outcomes (together with one broadly criticized present on Roosevelt Island at which fashions fainted within the warmth). Nonetheless, there was no denying his cultural affect and compulsive watchability.

Hole’s footing was much less positive. In 2020, the model’s web gross sales (about $3.4 billion) had been declining yearly since 2013, largely according to the demise of many conventional procuring malls (and never helped by the pandemic). That 12 months, Hole Inc. mentioned it will shut 30 % of its Hole and Banana Republic shops in North America, about 350 areas in whole, by January 2024.

Business knowledge mentioned the corporate wanted one thing huge to cease the downward spiral. Ye was about as huge as they arrive.

However he was not, as Mickey Drexler, who led Hole from 1983 to 2002, instructed Yahoo Finance in 2021, “a company individual, and Hole is a giant company,” with hierarchies, techniques, calendars and fluency in SKUs. Mr. Drexler mentioned he had suggested Ye towards the deal. “It doesn’t make any sense, for my part,” Mr. Drexler mentioned on the time.

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Julie Gilhart, the president of Tomorrow Tasks, agreed. “In my expertise, Hole was all about threat administration,” she mentioned. “They didn’t wish to disgruntle anybody. And in the event you go along with Kanye, you need to know there’s threat concerned.”

One week after the Yeezy Hole deal was introduced, for instance, he introduced his run for president; a string of heated marketing campaign remarks and tweets about his household compelled his spouse on the time, Kim Kardashian West, to make a press release about his bipolar dysfunction.

However the controversy didn’t deter both facet. That they had agreed to an association through which Ye’s fortunes have been tied to these of his merchandise; he acquired inventory warrants that might vest when sure gross sales objectives — equivalent to reaching $250 million in a fiscal 12 months, — have been met, in addition to royalties. (Hole has not disclosed the road’s gross sales figures thus far.)

Ye — whose imaginative and prescient, in response to Hole, was to create “trendy, elevated fundamentals for males, girls and children at accessible value factors” — set to work, bringing on the Nigerian-British designer Mowalola Ogunlesi as design director and testing out items as early because the summer season of 2020. (Ms. Ogunlesi left after a 12 months, on the expiration of her contract.)

Based on two individuals who labored on the collaboration, the unique purpose was to have a group prepared by Singles Day, an annual Chinese language procuring occasion, in November 2020. The clothes have been conceived to be comparatively inexpensive, priced round $50.

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Pictures from that interval shared with The New York Instances confirmed brightly coloured pants, shorts, shirts, hoodies and belts, all according to the normal informal clothes related to Hole. (In a video shared on Twitter by Ye from a fitting in July 2020, a minimum of one tie-dye-effect pink and purple bodysuit is seen.) On the time, there have been quite a few “style-ups” — a vogue time period which means making an attempt out samples of clothes on our bodies to see how they appear — photographed by Nick Knight, the SHOWStudio founder and longtime Yeezy collaborator, and paid for by Hole.

However these designs have been by no means put into manufacturing, regardless of what the 2 former staff described as lengthy hours and mounting impatience from Hole over missed deadlines — and even though it’s nearly unheard-of within the business to get rid of nearly a whole assortment as soon as samples have been made.

Based on Zac Posen, who has labored with Goal, Brooks Brothers and David’s Bridal, in addition to having his personal vogue line, the “normal” ratio of pattern clothes that in the end find yourself in shops was traditionally 2 to 1 (for each two samples, one was chosen and one discarded). Although Mr. Posen mentioned he had “heard of three to 1 and even 4 to 1, that’s much less widespread as of late,” as manufacturers, particularly public manufacturers like Hole, grow to be extra oriented to the underside line.

Ye, nevertheless, was broadly identified to be each a perfectionist and a nonconformist.

“I don’t suppose his mentality is in any respect the mentality we see in additional traditional vogue homes,” mentioned Mr. Knight, the photographer. “If he desires to spend a 12 months trying into the colour blue, we’ll spend a 12 months trying into the colour blue, which is extraordinarily inspiring when so typically schedules take precedence over creativity. He doesn’t see himself in any approach constrained by deadlines or seasons. I don’t suppose he would even use the phrase ‘assortment’ for what he’s doing.”

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Referring to the 2020 designs that weren’t put into manufacturing, a Hole spokeswoman mentioned in an e-mail that “a group was not discarded; this was a part of the artistic course of. The workforce was intentional about iterating till they have been happy.” The broader purpose was “product growth, testing and studying.”

One early product that survived the artistic course of was the “spherical jacket,” a puffy jacket with no closures comprised of recycled nylon and polyester fill.

This was Yeezy Hole’s first piece, made out there for buy in June 2021, almost one 12 months after the partnership was introduced. It was offered for $200 in three colours (first blue, then black and later crimson), and those that preordered acquired the jacket about 5 months later.

Yeezy Hole’s second piece dropped on-line a couple of months later: a plain, heavy cotton hoodie in six colours for $90. Ye later claimed that after airing a business that includes the hoodie, Hole offered $14 million price of the black model. (Hole wouldn’t affirm this determine, although beforehand mentioned the hoodie broke its single-day on-line gross sales file.)

Its identify? The “excellent hoodie.”

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Between the puffer and the hoodie, Hole intervened, hiring Leonardo Lawson, the previous chief govt of the British model the Vampire’s Spouse, to assist drive technique for Yeezy Hole — with Ye’s blessing, Mr. Lawson mentioned. (Ye didn’t reply to requests for remark for this text.)

Mr. Lawson’s directive has basically been to construct a conduit between Yeezy and Hole, performing as a translator of kinds. He helped opened a Los Angeles workplace for Yeezy Hole, whose operations had beforehand been unfold out throughout a number of cities, relying on the place Ye and his core workforce have been at any given time. This “innovation studio” as we speak homes about 20 staff, mentioned Mr. Lawson, who was promoted to move of Yeezy Hole in March.

“We’re continuously flexing, relying on the wants, and serving to either side perceive what the asks are, why issues should be performed, what perhaps we can’t do,” he mentioned.

Mr. Lawson was requested concerning the early structural difficulties of the partnership. “Once I got here right here, to be sincere, I noticed it,” he mentioned. “I feel everybody is aware of and understands that Ye’s background and pedigree and vogue is admittedly working with luxurious homes and ateliers in Europe. These techniques and the way these corporations work and are arrange are very totally different than how an organization like Hole is ready up. So it was actually about bringing these two worlds collectively.”

In the meantime, Ye, who launched his album “Donda” the identical month Mr. Lawson was introduced on board, had already requested Demna to become involved.

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The mononymous artistic director of Balenciaga had labored with Ye on his first Yeezy assortment, “Season 1,” in 2015, and the 2 males have maintained an ongoing artistic dialog by way of WhatsApp and textual content — Ye’s most well-liked technique of communication — ever since.

“Ye referred to as me in March 2021 telling me he was engaged on this mission, and it was his dream for me to work along with him on it,” Demna mentioned this month. “He mentioned that is what he wants there: to carry this know-how to the model, carry the construction; fittings, atelier, patternmaker. The best way they have been doing issues was extra making an attempt them on and styling reasonably than developing.”

Although he was busy with a number of Balenciaga collections, Demna mentioned he felt the necessity to “be there for him to assist him create a strong basis for Ye’s aesthetic on which they’ll now construct. To speed up the method.” Therefore the identify of the collaboration: “engineered by Balenciaga.” They have been, Demna mentioned, engineering the prototypes within the Balenciaga studios in Paris and Zurich after he and Ye talked (or texted) by means of the concepts.

“Plenty of speaking, hundreds of photographs shared,” he mentioned of their exchanges. They talked about how Ye wished a “cloth that could be very gentle but in addition heat and makes no sound — form of like nylon, however not nylon. Issues that appeared to be unattainable or very laborious to make technically.

“Ye’s probably not desirous about vogue in any respect,” Demna mentioned. “He desires to know: ‘How can we make a brand new model of the hoodie? What’s subsequent? What can we wish to put on in 20 years?’”

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Then, Demna mentioned, as soon as “the form was there, I’d decide — OK, it’s prepared, we launch it.” At that time, he would ship the designs to Ye and the Hole groups in Los Angeles, after which they’d “begin the method on how one can industrialize them.” (Ye additionally went to Paris, and Mr. Lawson mentioned prototypes have been additionally created by the Yeezy Hole workforce in Los Angeles, and characterised the work as a three-way partnership.)

“Me being on board gave him reassurance,” Demna mentioned, “so there could possibly be a second of letting go.”

And the garments, which included a catsuit ($300), cargo pants ($220) and thigh-high boots (coming later this 12 months), might, with the assistance of the strengthened Los Angeles infrastructure, make it out of the experimental section and into the general public’s ready arms.

The primary Yeezy Hole Engineered by Balenciaga (or YGEBB, because it’s referred to as internally) designs have been made out there for buy on-line in late February.

Every week later, Ye was within the information once more, for a music video through which an animated model of himself buries Pete Davidson, Ms. Kardashian’s new boyfriend, alive.

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Hole’s most well-liked phrase to elucidate the unconventional manufacturing timeline of Yeezy Hole is “fluid.”

The work with Balenciaga “actually has been a fluid collaboration,” Mr. Lawson mentioned. The complete expertise of constructing Yeezy Hole “has been about being fluid,” and “creating new methods of doing issues, and understanding how these methods of doing issues will affect the larger Hole model and assist every little thing be just a little bit extra fluid.”

However is fluidity sufficient to assist Hole make a revenue? This spring, earlier than the most important Yeezy Hole drop thus far (the Balenciaga assortment in late Might), analysts who spoke to The Instances have been skeptical of Ye’s long-term impact on Hole as an organization.

“Anybody who was excited concerning the Yeezy partnership when it was introduced is disillusioned with the quantity of product that’s popping out,” mentioned Simeon Siegel, a retail analyst at BMO Capital Markets.

The dialogue round Yeezy Hole has largely morphed from specializing in gross sales to specializing in buzz. And Hole is investing significantly in that buzz: along with charges Ye has already been or can be paid for the gathering — and the prices of sustaining the innovation studio, in addition to its sampling and manufacturing — Hole additionally supplies help for music movies and concert events that function Yeezy Hole merchandise.

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“The Yeezy line was by no means going to be large enough to alter Hole’s fortunes,” Mr. Siegel mentioned. “It wanted to be highly effective sufficient to raise the remainder of Hole’s model, and we clearly haven’t seen that.”

With the appearance of the in-store product, nevertheless, that might change. Already 70 % of Yeezy Hole’s clients are first-time Hole clients, the corporate mentioned throughout an earnings name final 12 months.

Mr. Lawson mentioned that Hole interim management is absolutely dedicated to the Yeezy Hole imaginative and prescient. Ye himself posted a latest assertion on Instagram after a name with Hole administration calling the chief chairman Bob Martin “one of the crucial inspiring folks I’ve heard converse in enterprise.”

“Bob I would like to fulfill with you as quickly as doable,” he wrote. (This will not be the best way Mr. Martin normally units up conferences, however in response to a Hole spokeswoman, the appointment was already in movement.)

Based on Demna, Balenciaga’s work on the mission is now over, and he’s unsure what’s going to occur subsequent. However Yeezy Hole has its sights on different future partnerships, along with rising its core enterprise. There’s a construction in place to adapt and iterate for the long run: Yeezy Hole engineered by … fill within the financial institution.

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As Demna mentioned, with regards to Ye: “This was simply step No. 1. He wanted a place to begin, and that was my problem: to offer him the place to begin. However he’s nonetheless miles and miles away from the place he desires this to go.”

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Albania Gives Jared Kushner Hotel Project a Nod as Trump Returns

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Albania Gives Jared Kushner Hotel Project a Nod as Trump Returns

The government of Albania has given preliminary approval to a plan proposed by Jared Kushner, Donald J. Trump’s son-in-law, to build a $1.4 billion luxury hotel complex on a small abandoned military base off the coast of Albania.

The project is one of several involving Mr. Trump and his extended family that directly involve foreign government entities that will be moving ahead even while Mr. Trump will be in charge of foreign policy related to these same nations.

The approval by Albania’s Strategic Investment Committee — which is led by Prime Minister Edi Rama — gives Mr. Kushner and his business partners the right to move ahead with accelerated negotiations to build the luxury resort on a 111-acre section of the 2.2-square-mile island of Sazan that will be connected by ferry to the mainland.

Mr. Kushner and the Albanian government did not respond Wednesday to requests for comment. But when previously asked about this project, both have said that the evaluation is not being influenced by Mr. Kushner’s ties to Mr. Trump or any effort to try to seek favors from the U.S. government.

“The fact that such a renowned American entrepreneur shows his interest on investing in Albania makes us very proud and happy,” a spokesman for Mr. Rama said last year in a statement to The New York Times when asked about the projects.

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Mr. Kushner’s Affinity Partners, a private equity company backed with about $4.6 billion in money mostly from Saudi Arabia and other Middle East sovereign wealth funds, is pursuing the Albania project along with Asher Abehsera, a real-estate executive that Mr. Kushner has previously teamed up with to build projects in Brooklyn, N.Y.

The Albanian government, according to an official document recently posted online, will now work with their American partners to clear the proposed hotel site of any potential buried munitions and to examine any other environmental or legal concerns that need to be resolved before the project can move ahead.

The document, dated Dec. 30, notes that the government “has the right to revoke the decision,” depending on the final project negotiations.

Mr. Kushner’s firm has said the plan is to build a five-star “eco-resort community” on the island by turning a “former military base into a vibrant international destination for hospitality and wellness.”

Ivanka Trump, Mr. Trump’s daughter, has said she is helping with the project as well. “We will execute on it,” she said about the project, during a podcast last year.

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This project is just one of two major real-estate deals that Mr. Kushner is pursuing along with Mr. Abehsera that involve foreign governments.

Separately, the partnership received preliminary approval last year to build a luxury hotel complex in Belgrade, Serbia, in the former ministry of defense building, which has sat empty for decades after it was bombed by NATO in 1999 during a war there.

Serbia and Albania have foreign policy matters pending with the United States, as both countries seek continued U.S. support for their long-stalled efforts to join the European Union, and officials in Washington are trying to convince Serbia to tighten ties with the United States, instead of Russia.

Virginia Canter, who served as White House ethics lawyer during the Obama and Clinton administrations and also an ethics adviser to the International Monetary Fund, said even if there was no attempt to gain influence with Mr. Trump, any government deal involving his family creates that impression.

“It all looks like favoritism, like they are providing access to Kushner because they want to be on the good side of Trump,” Ms. Canter said, now with State Democracy Defenders Fund, a group that tracks federal government corruption and ethics issues.

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Craft supplies retailer Joann declares bankruptcy for the second time in a year

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Craft supplies retailer Joann declares bankruptcy for the second time in a year

The craft supplies and fabric retailer Joann filed for bankruptcy for the second time in less than a year, as the chain wrestles with declining sales and inventory shortages, the company said Wednesday.

The retailer emerged from a previous Chapter 11 bankruptcy process last April after eliminating $505 million in debt. Now, with $615 million in liabilities, the company will begin a court-supervised sale of its assets to repay creditors. The company owes an additional $133 million to its suppliers.

“We hope that this process enables us to find a path that would allow Joann to continue operating,” said interim Chief Executive Michael Prendergast in a statement. “The last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step.”

Joann’s more than 800 stores and websites will remain open throughout the bankruptcy process, the company said, and employees will continue to receive pay and benefits. The Hudson, Ohio-based company was founded in 1943 and has stores in 49 states, including several in Southern California.

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According to court documents, Joann began receiving unpredictable and inconsistent deliveries of yarn and sewing items from its suppliers, making it difficult to keep its shelves stocked. Joann’s suppliers also discontinued certain items the retailer relied on.

Along with the “unanticipated inventory challenges,” Joann and other retailers face pressure from inflation-wary consumers and interest rates that were for a time the highest in decades. The crafts supplier has also been hindered by competition from others in the space, including Michael’s, Etsy and Hobby Lobby, said Retail Wire Chief Executive Dominick Miserandino.

“It did not necessarily learn to evolve like its nearby competitors,” Miserandino said of Joann. “Not many people have heard of Joann in the way they’ve heard of Michael’s.”

Joann is not the first retailer to continue to struggle after going through bankruptcy. The party supply chain Party City announced last month it would be shutting down operations, after filing for and emerging from Chapter 11 bankruptcy in 2023.

Over the last two years, more than 60 companies have filed for bankruptcy for a second or third time, Bloomberg reported, based on information from BankruptcyData. That’s the most over a comparable period since 2020, when the COVID-19 pandemic kept shoppers home.

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Discount chain Big Lots filed for bankruptcy last September, and the Container Store, a retailer offering storage and organization products, declared bankruptcy last month. Companies that rely heavily on brick-and-mortar locations are scrambling to keep up with online retailers and big-box chains. Fast-casual restaurants such as Red Lobster and Rubio’s Coastal Grill have also struggled.

High prices have prompted consumers to pull back on discretionary spending, while rising operating and labor costs put additional pressure on businesses, experts said. The U.S. annual inflation rate for 2024 was 2.9%, down from 3.4% in 2023. But inflation has been on the rise since September and remains above the Federal Reserve’s goal of 2%.

If a sale process for Joann is approved, Gordon Brothers Retail Partners would serve as the stalking-horse bidder and set the floor for the auction.

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U.S. Sues Southwest Airlines Over Chronic Delays

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U.S. Sues Southwest Airlines Over Chronic Delays

The federal government sued Southwest Airlines on Wednesday, accusing the airline of harming passengers who flew on two routes that were plagued by consistent delays in 2022.

In a lawsuit, the Transportation Department said it was seeking more than $2.1 million in civil penalties over the flights between airports in Chicago and Oakland, Calif., as well as Baltimore and Cleveland, that were chronically delayed over five months that year.

“Airlines have a legal obligation to ensure that their flight schedules provide travelers with realistic departure and arrival times,” the transportation secretary, Pete Buttigieg, said in a statement. “Today’s action sends a message to all airlines that the department is prepared to go to court in order to enforce passenger protections.”

Carriers are barred from operating unrealistic flight schedules, which the Transportation Department considers an unfair, deceptive and anticompetitive practice. A “chronically delayed” flight is defined as one that operates at least 10 times a month and is late by at least 30 minutes more than half the time.

In a statement, Southwest said it was “disappointed” that the department chose to sue over the flights that took place more than two years ago. The airline said it had operated 20 million flights since the Transportation Department enacted its policy against chronically delayed flights more than a decade ago, with no other violations.

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“Any claim that these two flights represent an unrealistic schedule is simply not credible when compared with our performance over the past 15 years,” Southwest said.

Last year, Southwest canceled fewer than 1 percent of its flights, but more than 22 percent arrived at least 15 minutes later than scheduled, according to Cirium, an aviation data provider. Delta Air Lines, United Airlines, Alaska Airlines and American Airlines all had fewer such delays.

The lawsuit was filed in the United States District Court for the Northern District of California. In it, the government said that a Southwest flight from Chicago to Oakland arrived late 19 out of 25 trips in April 2022, with delays averaging more than an hour. The consistent delays continued through August of that year, averaging an hour or more. On another flight, between Baltimore and Cleveland, average delay times reached as high as 96 minutes per month during the same period. In a statement, the department said that Southwest, rather than poor weather or air traffic control, was responsible for more than 90 percent of the delays.

“Holding out these chronically delayed flights disregarded consumers’ need to have reliable information about the real arrival time of a flight and harmed thousands of passengers traveling on these Southwest flights by causing disruptions to travel plans or other plans,” the department said in the lawsuit.

The government said Southwest had violated federal rules 58 times in August 2022 after four months of consistent delays. Each violation faces a civil penalty of up to $37,377, or more than $2.1 million in total, according to the lawsuit.

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The Transportation Department on Wednesday also said that it had penalized Frontier Airlines for chronically delayed flights, fining the airline $650,000. Half that amount was paid to the Treasury and the rest is slated to be forgiven if the airline has no more chronically delayed flights over the next three years.

This month, the department ordered JetBlue Airways to pay a $2 million fine for failing to address similarly delayed flights over a span of more than a year ending in November 2023, with half the money going to passengers affected by the delays.

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