FareCompare.com » RickSeaney.com » The White House vs. The Airline Industry

October 8, 2007

The White House vs. The Airline Industry

Filed under: Airlines, News, Airline Fees — Rick Seaney @ 3:03 pm

Over the past few weeks, I’ve been following developments regarding the government’s role in air travel.

Travelers were pushing for a definitive Passengers Bill of Rights, and the House responded, but their legislation was more focused on the allocation of funds to the FAA and certain tax increases than on the passenger experience.

Many within the House Committee on Rules and the DOT see a need to limit the time stranded passengers can remain on the tarmac and a need to take care of air traffic and scheduling issues that led to this summer’s dismal performances by major airlines, but the recent bill didn’t necessarily address these changes.

Click “more” to see if the White House can help.

In an effort to make the airlines commit to more specific policies, President Bush has sought the aid of Transportation Secretary, Mary Peters. As reported by Business Travel News Online, proposals such as “government-mandated flight reductions, the establishment of new capacity caps and congestion pricing” might all soon be on the table. But what if the airlines aren’t willing to play ball?

“‘We’re going to address customer concerns and address congestion,’ Peters said, adding that nothing is off the table in DOT’s review. ‘Our preference is to get a bill and work with the industry, but if we can’t do that, we’ll follow the president’s mandate.’”

The idea of greater government involvement hasn’t sat well with the airline industry since deregulation in the 1970s, and while Congress’ moves certainly garnered the attention of the industry, potential action from the White House has prompted a more direct response:

“‘Congress should resist calls to force airlines to reduce flights or impose economic measures to curb passenger demand simply because this approach is expedient,’ Air Transport Association president and CEO James May said during the House subcommittee hearing.

In a letter to Peters, May said congestion pricing would lead to higher fares, and “drive away average travelers in favor of just those who can pay top dollar and reduce service to smaller communities. That is not what the public wants.”

Have things gotten so bad that it’s time for the President to step in, or is this a case in which the industry should be able to monitor itself? Also, to go back to a favorite question of mine, are better on-time rates and more substantial passengers’ rights policies worth it, if you have to deal with airfare hikes? Let me know what you think.

No Comments »

No comments yet.

RSS feed for comments on this post. | TrackBack URI

Leave a comment

XHTML ( You can use these tags): <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong> .

 
 
 
Find:
 
 
 
 
Find Fares
 

RickSeaney.com

 

Be the first to know when airfare prices drop.

Admin Login
 
 
Sign Up
Flights
Articles
Almanac
My Trips
 
FareCompare helps you get the best deal on airfares