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US Transportation Secretary Pete Buttigieg speaks at a news conference on November 8, 2021.
Photo: Oliver Contreras/CIP/Bloomberg via Getty Images
The misery of air travel in the United States, long a joke, now feels real. Price hikes and mass cancellations wreak havoc on travelers in late spring and early summer. Guidelines that penalize consumers, like charging families with young children who sit together, remain on the books. A highly concentrated industry can act with relative impunity; With few conglomerates left standing, it’s not like Americans have much choice in who to fly with.
It all falls on Pete Buttigieg, the star US transportation secretary and one of the few prominent Biden administration officials who hasn’t seen his popularity fall with the president. Amid rising inflation and supply chain chaos, Buttigieg appears relatively benign. But if the airline’s problems are not rectified soon, the bill may come.
Compared to controlling the billions of infrastructure dollars now being handed over to various state and county governments, Buttigieg has more direct control over the airlines. The federal Department of Transportation can only make decisions for state agencies; The same is not true for the airline industry, which has been fully federally regulated since airlines were deregulated in 1978. State courts, state legislatures, and state attorneys general have virtually no jurisdiction over the industry. As passengers on airplanes, Americans have far fewer rights than they would if they were dealing with any private business. State regulators and courts cannot touch airlines. Basically, the DOT secretary who oversees the Federal Aviation Administration is the only sheriff in town.
Buttigieg inherited many problems from DOT secretaries, Republicans and Democrats alike, who were relatively indifferent to the American consumer. Airlines have consolidated rapidly over the past few decades, with Delta, United and American Airlines leaving nearly half of the domestic market. In such an environment, these giant corporations are indifferent to customer complaints because they make big business regardless, especially when demand increases. In the year In 2020, when the pandemic first hit, airlines received more than $50 billion in federal aid — certainly necessary for the industry, if a sudden, catastrophic event like no other — but it still encouraged pilots to retire early. This came during Donald Trump’s presidency and continued under Joe Biden. Airlines can schedule flights with insufficient crew members and cancel them at the last minute for fear of retaliation from consumers or the DOT. A consolidated airline industry is encouraged to have fewer workers because shortages drive price increases to higher levels.
Buttigieg’s almost two-year tenure at the DOT must be under public pressure. No recalcitrant Congress or political establishment stands in the way. Instead, critics like the American Economic Freedom Project point out, it’s a clear lack of ambition. Buttigieg did not demand that the airlines prove they had a team to operate the flights they were promoting and selling, nor did he threaten any fines following the many cancellations. He didn’t follow the lead of Sen. Bernie Sanders, but in a recent letter, Buttigieg asked airlines to refund passengers for flights delayed more than an hour, ticket refunds and alternative transportation for passengers who experienced delays of up to four hours, and food and lodging for those with longer delays. Sanders wants fines against airlines for scheduling flights that are delayed more than two hours and not properly staffed.
That’s one theory of such a concentrated industry: The federal government wields extraordinary power over airlines and can crack down on their behavior at any time. Unlike other large corporations, private airlines are not particularly popular with Americans. Amazon or Disney evoke a warm feeling; Delta and American Airlines make security hell in crowded terminals and seats that don’t have enough leg room for toddlers. There is both a political and a moral case for justifying the need to forcefully target airlines. If Buttigieg, who works on behalf of the Biden administration, makes dramatic reforms, the president’s position could lead to a tough re-election battle in 2024.
DOT fines have made a difference before. DOT Commissioner Ray LaHood, a Republican who served under Barack Obama, fined airlines $27,500 per passenger for tarmac delays that lasted more than three hours. The airlines were outraged but could do little but comply. In addition to imposing hefty fines, Buttigieg could also support legislation sponsored by Senators Ed Markey and Richard Blumenthal to create an airline passenger bill of rights. Travelers In 2022, they won’t face severe delays, overcharges and general travel embarrassment.
Buttigieg’s DOT, however, argues that they are taking action now with a more planned future. The office has suggested a $4.5 million settlement with Air Canada over delays in refunding thousands of passengers. According to the DOT, enforcement actions have concluded investigations into ten airlines. Ten investigations are underway for refunds. The DOT has forced United Airlines to refund ticket purchases for thousands of passengers who were denied refunds. Before the Fourth of July weekend, Buttigieg met with airline CEOs to urge them to consider pilot programs and improve service. “The Department expects that when Americans buy an airline ticket, they can get where they want to go safely, affordably, and reliably. DOT’s cooperation with the airlines has contributed to some positive actions, including airlines developing more reasonable schedules and increasing employee pay to improve employment.” said DOT spokesman Benjamin Hale. “The Secretary will continue to take action to protect the rights of airline passengers and consumers and hold airlines accountable when they fail to meet their responsibilities.”
But the question will be when Buttigieg will go. Encouragement For airlines to operate Force They, with the power of the empire, to do better for the American consumer. If Buttigieg is elected, Biden will have at least two more years as DOT secretary to transition to transportation secretary fearing for the airline companies. It has potential. The question is whether he has permission.
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