I applaud SWA for standing up for a little modesty and taste. When the girl was on the Today show and stood to show her outfit, she had to adjust it by pulling on her skirt then. I can only imagine how short it must have been before she was asked to adjust it. SWA has the right to make whatever regulations they want. If I were another passenger on that flight, I would be grateful to not have to look at another person's body parts that should be covered. And if I were the next passenger to sit in her seat, I would wish she had been sitting on that blanket rather than covering up with it.
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