A US District Judge has indicated his intention to order Southwest Airlines (LUV.N) to pay one cent to conclude a lawsuit brought by the American Alliance for Equal Rights, a conservative organization led by Edward Blum. The lawsuit challenged Southwest’s now-discontinued ¡Lánzate! Program, alleging that it constituted discrimination.
US District Judge Sidney Fitzwater rejected a request from the American Alliance for Equal Rights to further argue the merits of their case. This decision followed what the judge described as Southwest’s “unconditional surrender” through the termination of the ¡Lánzate! Program. Edward Blum, a long-time advocate against race-based considerations in American society, previously spearheaded efforts that significantly curtailed affirmative action in college admissions.
The context of this legal action includes a broader national discourse on diversity, equity, and inclusion policies. US President Donald Trump has publicly advocated for the removal of such policies across various sectors.
The ¡Lánzate! Program, initiated by Dallas-based Southwest Airlines, has provided flight benefits to approximately 1,500 Hispanic undergraduate and graduate students since 2004. Eligibility required students to reside at least 200 miles from their respective college or university campuses.
Judge Fitzwater, based in Dallas, stated that further litigation on whether the program violated a Civil War-era law prohibiting racial bias in contracting would be an inefficient use of judicial resources. He reasoned that the plaintiff had achieved its primary objective with the program’s cancellation.
In his written order, Judge Fitzwater noted, “Granting an obstinate plaintiff total victory upon the defendant’s unconditional surrender is a reasonable response to the problems and needs confronting the court’s fair administration of justice.” Both parties were given until May 28th to file any objections to this proposed resolution.
Southwest Airlines has not issued a public statement regarding the matter. Lawyers representing the American Alliance for Equal Rights also did not immediately respond to requests for comment.
Despite the nominal one-cent damage request, the plaintiff’s legal representatives argued that the case presented “issues of substantial public importance” concerning alleged intentional ethnic discrimination by a major corporation. They contended that Southwest should not be able to avoid a substantive judgment by simply offering payment.
The case is formally titled American Alliance for Equal Rights v Southwest Airlines Co., and is being heard in the US District Court for the Northern District of Texas under case number No. 24-01209.
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