Biden, DOT, and Dems Move Toward Re-Regulation of Airlines

Speaking on behalf of Delta Air Lines, United Airlines, American Airlines, Southwest Airlines and others, the airline industry trade group Airlines for America (A4A) has condemned a series of proposed regulations that the Biden White House alleges will promote competition among air-carriers. A4A asserted Biden and his fellow Democrats need to “get the facts straight,” and stated unequivocally that the proposed regulations—as opposed to stimulating competition and benefitting passengers—would serve only to drive up the cost of air travel.

On Wednesday, 01 February 2023, the White House rolled out Biden’s proposal to eliminate so-called junk fees—hidden or unexpected costs for airline services—that the White House claims are costly to consumers and encumbrances to competition.  Included in the White House’s grandstanding was an announcement that the Department of Transportation was to publish new rules banning airlines from charging family members additional fees to sit beside young children. The announcement echoes a July 2022 notice by which the DOT arbitrarily set forth a policy dictating that airlines would henceforth guarantee children under age 13 are seated next to an accompanying adult at no additional charge.

Speaking at the White House Competition Council Meeting, Biden stated: "Some airlines charge extra to pick your seat, including for parents who just want to sit next to their child on the plane, and charge extra … You don’t know that going in, though. And it’s wrong."

A4A hotly disputed Biden’s claims, however, stating with the conviction peculiar to expertise that the former vice president had his facts wrong.

"The White House proposals are short-sighted and would inevitably drive-up costs and reduce choices for the consumer," A4A averred. "The federal government should be focused on 21st Century policies and procedures that drive our nation’s aviation system forward, rather than making efforts that threaten to reduce access and affordability for consumers."

A4A went on to state its member airlines "make every effort to accommodate customers traveling together, especially those traveling with children, without additional charges."

Under the Biden administration, the Department of Transportation has launched numerous initiatives intended to increase air-carrier transparency and improve airline customer service. Controversial Secretary of Transportation Pete Buttigieg highlighted these efforts in a November 2022 Fox News op-ed in which he noted his agency had created an Airline Customer Service Dashboard to let consumers compare the services offered by airlines in the event of flight cancellation or delay. Buttigieg further stated the DOT had introduced a proposal that would require airlines to preemptively disclose hidden fees that customers might consider such prior to purchasing tickets.

On 01 February 2023, Buttigieg appeared on CNBC's appositely titled Squawk Box for purpose of discussing the DOT’s proposed measures and taking personal credit for using his office to force airlines to provide additional benefits to passengers, including refunds for canceled or delayed flights and vouchers for meals or hotel stays precipitated by such. Buttigieg called on Congress to address "nickel and dime'ing" by airlines.

In response to subject remarks, A4A released a point-by-point rebuttal impugning Buttigieg's comments. The trade group argued that many of the policies to which Buttigieg referred were in place long before the Airline Customer Service Dashboard, and that "there is no evidence of market failure or unfair or deceptive trade practices in this area." A4A pointed out the 11 largest U.S. passenger airlines issued $32.3-billion in customer refunds—roughly $900-million per month—between January 2020 and December 2022. The cited figures included $11.2-billion in 2022 alone—a sum that exceeded 2019’s payouts by nearly fifty-percent.

To the subject of fees, A4A—by dint of empirical data—established that domestic air travel was 55-percent less expensive in 2021 than it had been in 1979—the year after airline deregulation. Additionally, A4A illustrated that in 2022, inflation-adjusted fares averaged 6.8-percent below 2019.

"U.S. airlines have maintained this level of affordability while facing unit costs that in 2022, for A4A member carriers, were 31-percent higher than in 2019," the group asserted, observing that the unprecedented spike in the price of jet fuel engendered by the Biden administration’s energy and economic policies had proved a major contributing factor to airlines’ dramatically increased operating costs.

Notwithstanding A4A’s data, Democratic lawmakers have heeded the Biden administration's call for new regulations. On 01 February, in coordination with Biden’s "junk fees" missive, Democratic senators led by Senators Richard Blumenthal (Democrat, Connecticut) and Ed Markey (Democrat, Massachusetts) reintroduced a pair of bills called the Airline Passengers' Bill of Rights and the Forbidding Airlines from Imposing Ridiculous (FAIR) Fees Act.

The former legislation would require airlines to compensate passengers, refund ticket fees, and create alternate paths to recourse following flight delays or cancellations attributable to air-carrier shortfall, error, or nonfeasance. Under the Airline Passengers' Bill of Rights, air-carriers would also be required to pay customers blocked from boarding overbooked flights at least $1,350—apiece—and immediately refund baggage fees for damaged or lost luggage.

The FAIR Fees Act would prohibit airlines from charging unreasonably high fees for basic services the likes of checked bags, seat selection, and ticket changes. After the fashion of most hastily contrived, overreaching legislation, the term unreasonable remains wholly subjective and at the discretion of federal lawmakers.

Both the Airline Passengers' Bill of Rights and the Forbidding Airlines from Imposing Ridiculous (FAIR) Fees Act were introduced in the last (117th) Congress but failed to receive votes.

"U.S. airlines strive to provide the highest levels of customer service, and it is in each carrier’s interest to provide a positive flight experience for all passengers," A4A affirmed, repudiating the regulations proposed by Biden’s White House, Buttigieg’s DOT, and Democratic senators. "Instituting government-controlled pricing, establishing a private right of action, and dictating private sector contracts would decrease competition and inevitably lead to higher ticket prices and reduced services to small and rural communities,” A4A concluded.

FMI: www.airlines.org