Smart Meetings October 2022 Digital Issue - 42

the tide of airline consolidation. By utilizing its
existing licensing and rulemaking authority, the
department can improve experiences for travelers
and help bring down exorbitant ticket prices
driven in part by anticompetitive mergers. "
The letter points out that " some delays are
inevitable, but consistently delaying flights for
reasons within an airline's control is an unfair
and deceptive practice.... The Department has
the authority to tackle this problem by issuing
a rule...that imposes fines on airlines for the
delays they cause. "
The letter went on to say that the recently
announced merger of JetBlue and Spirit (which
would create the fourth largest airline in the
United States) was likely to result in higher
fares, less competition and a dampened experience
for flyers. It asked the DOT to step in and
look at how consolidation is affecting consumers
and will likely continue to do so.
Finally, at the end of a summer of bumpy
rides, on August 31, over 30 U.S. Attorney
Generals wrote to Nancy Pelosi, Chuck
Schumer, Kevin McCarthy and Mitch McConnell
saying that, " The airline industry has failed their
customers. "
" Over the past couple of years, our offices
have received thousands of complaints from
outraged airline passengers about airline customer
service-including about systematic failures
to provide required credits to those who
lost travel opportunities during the pandemic.
The Colorado Attorney General's Office, for
example, received more consumer complaints
about Frontier Airlines than any other company
in 2020, " the statement read.
The letter went on to critique the unique
immunity the airlines have from state lawsuits-a
law that means the DOT must regulate domestic
airlines and oversee consumer protections.
" Unfortunately, " it said, " the agency has thus
far failed to respond and to provide appropriate
resources in those cases. Americans are justifiably
frustrated that federal government agencies
charged with overseeing airline consumer
protection are unable or unwilling to hold the
airline industry accountable and to swiftly investigate
complaints submitted to the US DOT. "
The AGs then pointed out that increasing
consolidation also hurts consumers by offering a
smaller competitive base from which to choose.
It ended with a plea for other outside agencies
(the Department of Justice, for instance, or
the Federal Trade Commission) to step in and
take a part in overseeing airline accountability.
42
OCTOBER 2022 * smartmeetings . com
CALLS FOR A STICK
Are all these " strongly worded letters " doing any
good?
William J. McGee, senior fellow for aviation,
American Economic Liberties Project says,
" Absolutely not. [Buttigieg] has greater authority
than he is using both on the issue of fighting for
consumer refunds and flight cancellations. We've
never seen a summer like this one in terms of
sheer number of delays and cancellations. "
McGee clarifies, " We know he's met with the airlines.
We know he's talked with them. But he needs
to do more. They've not responded to the carrot.
Now it's time for the stick. "
McGee added, " What he's done is simply not
enough and quite frankly It's naive to suggest that
they'll do something voluntarily. They won't. "
McGee says Buttigieg's " stick " includes " the
power to impose penalties on the airlines, " something
the Secretary has shied away from pursuing
up to now.
" Overwhelmingly the problems are the airlines'
faults, " McGee explains. " It's about shortage of
pilots. We gave them $54 billion, with one caveat.
Make sure you keep your staffing up. They found
a loophole. They encouraged early retirements, so
now there's a shortage of pilots. "
" Buttigieg has the power to force them to
open their books. Why are they canceling flights?
The airlines are taking money for flights they are
canceling. Why are you you booking flights that
you can't operate? People should not be finding
out on the way to the airport that their flights are
cancelled. "
McGee says, " The airline industry and its trade
group is not acknowledging what the real problem
is. There will always be weather. It is on the airlines
and they aren't being truthful about the causes. For
the airlines to blame this on air traffic control and
weather is disingenuous. "
McGee says that Buttigieg and other politicos'
" strong words " are largely ineffectual. " If you're
an airline CEO, you're not afraid of the DOT or
Secretary Buttigieg. Why would I be concerned? "
McGee blamed part of the problem on
unchecked consolidation. " The airlines are arrogant,
they act with impunity. And it's largely because of
consolidation. We've never had so few airlines in
the U.S. as we do now. American, Delta, United
and Southwest control 85 percent of the US market.
It's unprecedented. "
McGee's organization, the American Economic
Liberties Project, wants a moratorium on all airline
mergers.
" They are harmful for consumers, " he says.
Smart Meetings October 2022 Digital Issue

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