Business
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.
“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.
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.
Business
Lone survivor of fiery Cybertruck crash was trapped by electronic doors, lawsuit says
The only survivor of a Cybertruck crash in Piedmont is suing Tesla, saying the vehicle’s electronic doors failed to open while he was trapped inside, surrounded by flames.
On Nov. 27, 2024, Jordan Miller was riding in the passenger seat when the driver, who was speeding, lost control and crashed into a tree at Hampton Road and King Avenue. The vehicle burst into flames, killing three college students, including the driver, Soren Dixon.
In a complaint filed in Alameda County Superior Court in 2025, Miller sued Dixon’s estate and the estate of Dixon’s grandfather, Charles Patterson, who was the registered vehicle owner. Toxicology reports showed that Dixon had a blood alcohol level of 0.195%, more than two times the legal limit.
On Tuesday, Miller amended the complaint to add Tesla as a defendant, alleging product liability claims. Lawyers for Miller said his injuries would have been much less severe if he was able to escape the vehicle earlier.
After the crash, a friend who was driving behind the Cybertruck desperately tried to free Miller from the burning vehicle, but could not open the doors because there were no external handles. The electronic controls to open the doors did not work, the complaint said.
The friend used a tree branch to strike the vehicle’s front window several times until it broke and he was able to remove Miller. Miller suffered severe burns to his legs, airways and lungs, and broke four vertebrae. He was in an induced coma for five days following the collision.
The lawsuit alleges that Tesla was aware its Cybertruck doors could fail in emergency situations.
“As the manufacturer and designer of the Cybertruck, Tesla knew of the serious risk of trapping Tesla owners, drivers, and passengers in their electronically powered vehicles for over a decade when involved in a collision,” the amended complaint said. “Despite having been on notice of the many serious injuries and/or fatalities caused by the defective design of their vehicles, including the Cybertruck, Tesla continued to manufacture and sell such dangerous vehicles.”
The complaint said Tesla has received accounts dating back to 2016 of victims becoming trapped in burning Tesla vehicles due to the failure of the electronic doors. Rescuers often struggle to open Tesla doors following crashes because there are no external handles.
Parents of the other two passengers killed in the crash sued Tesla last October. Tesla did not immediately respond to a request for comment.
California Highway Patrol investigators said that speeding and driver impairment led to the deadly crash. The three students killed each had cocaine in their systems, according to the Alameda County coroner.
The Cybertruck, Elon Musk’s futuristic electric pickup, was unveiled in 2019. Though it attracts looks with its unique design, it’s been the subject of several significant recalls in recent years. In 2024, nearly 4,000 vehicles were recalled for a faulty accelerator pedal that could become dislodged and stuck. Last year, U.S. regulators recalled more than 46,000 Cybertrucks, warning that the truck’s exterior panels could detach while driving.
Business
Disney’s new CEO says his focus is on storytelling and creativity
Disney has a new captain, and his eyes are on the stars.
Taking over the reins from Bob Iger on Wednesday, new chief executive Josh D’Amaro signaled a bold shift for the entertainment giant: a future where emotional storytelling remains the “North Star,” but cutting-edge technology provides the fuel.
From ESPN to the Magic Kingdom, D’Amaro said in his first letter to employees as the top boss that his mission is to turn a century of nostalgia into a more personal, high-tech reality for fans worldwide.
“Used thoughtfully, it can empower our storytellers, strengthen our capabilities, and help us create more immersive, interactive and personal ways for people to experience Disney,” he wrote in the Wednesday morning note.
D’Amaro also said he wants the sprawling company, which includes film and TV studios, a tourism division, streaming services and live sports programming, to operate as “one Disney,” saying the global businesses all play a role in deepening consumers’ relationship with the Mouse House.
That connection people have with Disney’s brand is key to the company’s future. Consumers have more film, TV and experiences to choose from than ever, meaning Disney needs to distinguish itself among competitors.
To do that, D’Amaro plans to focus on the emotions consumers feel when they encounter Disney. As an example, he reminisced about his own first visit to Disneyland more than 40 years ago.
He recalled the joy on his father’s face as the two rode Peter Pan’s Flight together. And when they soared over the miniature version of London on the ride, he remembered his father leaning in and saying, “See, I told you. It feels like we’re flying!”
“That feeling of flying I had on Peter Pan all those years ago is still real to me,” he wrote in the Wednesday morning note. “And today, I am honored to move forward with all of you — with ambition, optimism, and absolute confidence in what we can build together.”
That new era also included a goodbye to Bob Iger, who handed over the reins Wednesday and now moves into a senior advisory role for the rest of the year before his planned retirement.
The company paid tribute to Iger in a video during Disney’s annual shareholders meeting Wednesday morning.
With clips from his earliest public appearances as Disney’s CEO, a highlight reel of the acquisitions the company made under his tenure and even a nod to his previous career behind the anchor desk, the video highlighted Iger’s legacy at the company and the role he played in bulking up Disney’s franchises, global theme parks, sports and streaming platforms.
When asked in the video about where he’ll go from here, Iger laughed and replied, “To Disneyland.”
In a pre-recorded speech, Iger said his time at Disney has spanned much of his life and that he never expected to become CEO of the company — much less twice.
“Over the years, we experienced extraordinary change and faced real challenges that were particularly profound in the last three years,” Iger said. “It was daunting at times, but through it all, what sustained me was the passion I saw every day from great storytellers, innovators, leaders and people around the world.”
In his parting remarks during that speech, he expressed confidence in the new leadership team of D’Amaro and Dana Walden, who is now president and chief creative officer of the company.
“I will be cheering on Josh, Dana and all of you as I sail off into the sunset,” he said. “So thank you for the trust you placed in me, for the memories we created together, and for allowing me the honor of serving. It has meant more to me than I can say.”
Business
Why Tech Giants Are Ditching the Power Grid
It is the industrial version of what homeowners might do to get through a hurricane. Only in this case, some technology companies are planning to rely on off-grid gas power for many years.
This is happening as electricity is becoming a major political issue, with fights breaking out over how much energy costs, where it comes from and who ought to pay for what. Data centers, which consume huge amounts of energy, are at the center of these debates.
Going off grid was no one’s first choice. Off-grid power generally costs a lot more, partly because developers need to install more equipment than will be used at any one time in case machines break or need servicing. A lot of this gear is also less efficient than the airplane-size machines used at big power plants, meaning it needs to burn more gas to generate the same amount of electricity.
But in some states, it might take years to get permission to plug new power plants into the grid.
By the end of 2025, an estimated 39 percent of the gas power capacity being developed in the United States was designed to serve data centers on-site, according to the Global Energy Monitor, a nonprofit organization that tracks energy projects. That is up from 5 percent at the end of 2024.
“Necessity is the mother of invention,” said Joe Kava, a consultant who previously led global data center development for Google. “The hyperscalers are not going to be curtailed because they can’t get power,” he said, using a term that refers to large tech companies.
Power plants have bloomed in New Albany, Ohio, near Columbus, as if overnight. It was little more than a year ago that Sloan Spalding, the mayor, learned that a data center developer wanted to build the town’s first gas-fired power plant. Now, three are under construction, all meant to exclusively power data centers, and at least one other is planned.
“Frankly, we were all a little surprised,” Mr. Spalding said.
Together, the plants that are already under construction are expected to rely on about 61 engines, 30 small turbines and 16 other generators, regulatory filings show. All of that equipment burns natural gas to generate electricity, but each operates differently. That does not include battery storage systems to manage demand fluctuations and diesel generators for backup power in emergencies.
It is the kind of equipment you might expect in remote oil fields. Were they connected to the grid, the machines being installed in New Albany could potentially power around 600,000 homes. Another power plant that was proposed last week would be big enough to provide electricity for an additional 200,000 homes or more if regulators approve it.
“For better or for worse, we are the pioneers in this process,” Mr. Spalding said. “There’s not a lot we can do to stop it.”
Tech giants generally say they don’t want to build or operate power plants. In some places, the companies are fighting efforts to require data centers to rely on their own power sources or reduce energy consumption when electricity systems are under strain.
But the tech industry’s appetite for energy has become almost insatiable because of artificial intelligence, and there are only so many places where companies can draw large amounts of power from the grid quickly. Wait times vary by region, but it now takes an average of four years or more for data centers to connect to U.S. grids, according to JLL, a real estate services firm.
One of the first companies to go it alone was Elon Musk’s xAI, which opened a data center in Memphis in 2024, powering it with more than a dozen gas turbines rolled in on flatbed trucks. The Southern Environmental Law Center later claimed the company flouted permitting requirements and violated the federal Clean Air Act in Memphis and at another location in Southaven, Miss. xAI, which eventually received permits for some turbines in Memphis and stopped using others, did not respond to requests for comment.
Dozens of natural gas plants being built to serve data centers will be off the grid
An armada of off-grid power plants
By that point, tech companies were flocking to Ohio, so much so that the main electric utility serving the Columbus area stopped accepting data center applications for new grid connections in March 2023. The state quickly became one of the first battlegrounds between utilities and some of the world’s most valuable companies.
It was against that backdrop that some developers started going off-grid in New Albany, which is near the western edge of a large natural gas deposit.
EdgeConneX, a Washington-area data center developer that did not respond to requests for comment, is behind one of the power plants. Williams Companies, an Oklahoma pipeline operator, is building at least two for Meta, Facebook’s parent company.
Meta has agreed to buy the power that Williams generates for at least a decade, said Chad Zamarin, Williams’s chief executive.
“Whether they use it or not, we will get paid,” Mr. Zamarin said.
The power deal is among the most expensive that Paul Zimbardo, an analyst at the investment firm Jefferies, said he had come across. Meta may have agreed to pay Williams $140 to $160 per megawatt-hour, the investment bank estimated, well above the price of grid power.
Last week, Williams told regulators that it wanted to build a third power plant in New Albany for an undisclosed customer.
These plants will not affect the price of electricity for Ohio residents because the facilities are not connected to the grid, though higher gas demand could drive up fuel prices over time.
Meta said the local utility’s pause on serving new data centers, which ended last year, influenced its decision to go off grid. The company, which has pledged to fully offset its greenhouse-gas emissions by 2030, is buying renewable energy to compensate for the electricity it gets from fossil fuels, said Ryan Daniels, a company spokesman.
Companies are gravitating to gas because it can theoretically generate electricity all day, unlike the wind or sun. And smaller gas generators and engines can be installed much faster than nuclear power plants.
Power capacity of publicly disclosed equipment
Natural gas will provide most of the onsite power for U.S. data centers
That worries Noah Malik, who lives several miles from New Albany’s new plants. “By building this infrastructure, you’ve cemented that dependence on fossil fuels,” said Mr. Malik, who is 25.
Most of the off-grid power plants being planned around the country are either under construction or about to be, meaning the full environmental effects have yet to be felt.
New Albany’s new power plants are expected to release more nitrogen oxides — a group of pollutants linked to respiratory diseases like asthma — for each unit of electricity they produce than the larger gas plants that power most of Ohio, according to an analysis of regulatory filings and manufacturer data by the Environmental Defense Fund. That analysis, performed for The New York Times, accounts for the emissions controls that the developers have said they would install.
“I do worry about the near-term impacts of this choice on air quality and communities today,” said Mark Brownstein, a senior vice president at the Environmental Defense Fund. “Why exactly are we rushing?” he added. “There is a concern that haste is making waste here.”
A Williams spokesman said the company would “meet and exceed all state-established requirements to protect public health and the environment.” A spokesman for the Ohio Environmental Protection Agency said it modeled air quality to assess the facilities’ cumulative impact and ensure compliance with federal standards before giving developers permission to build the plants.
Noise levels must remain within five decibels of ambient levels, said a spokesman for the Ohio Power Siting Board, which also reviews major energy projects.
A big question is how long this gas power frenzy will last. Manufacturers of gas turbines and related equipment have been wrestling with how much money to invest in new manufacturing lines. Their big concern is that, by the time the new capacity is ready, demand for the equipment might have weakened significantly.
Baker Hughes, an oil field service company that makes the kinds of turbines being used off grid, is betting on strong data center demand for at least several years. It is one of many oil and gas companies that have piled into the power business as oil field work has slowed.
“We don’t see this being a fad,” said Lorenzo Simonelli, the company’s chief executive.
Industry analysts and executives also question whether power plants built alongside data centers will remain competitive if it becomes easier to connect to the grid.
Siemens Energy makes some of the equipment that the New Albany power plants plan to use. But even that company’s chief executive, Christian Bruch, is skeptical about using smaller machines as permanent power sources.
“These will not be long-term installations,” Mr. Bruch said in a recent interview, discussing the broader trend. “Is it good in terms of efficiency? And is that a smart power supply solution? Absolutely not.”
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