Pete Buttigieg and the Southwest Airlines Meltdown
Excerpts from Corporate Crime Reporter
The Southwest Airlines meltdown over the holidays resulted in more than 15,000 flights canceled and upwards of one million Southwest passengers stranded.
Senators Ed Markey (D-Massachusetts) and Richard Blumenthal (D-Connecticut) called on Southwest to “fairly compensate passengers whose flights were canceled, including not only rebooked tickets, ticket refunds, and hotel, meal, and transportation reimbursement, but significant monetary compensation for the disruption to their holiday plans.”
“Southwest is planning to issue a $428 million dividend next year – the company can afford to do right by the consumers it has harmed,” Blumenthal and Markey said. “Southwest should focus first on its customers stranded at airports and stuck on interminable hold.”
But will they?
And who will hold their feet to the fire?
In most industries, if federal regulation fails, then the state Attorneys General can step in. Or customers can take to state courts to file lawsuits against the industry seeking justice.
But not against the airline industry.
The airline industry has a sole regulator – the Secretary of Transportation. Federal law preempts state law.
When it comes to airline regulation, all the power is concentrated in one office – the office of the Secretary of Transportation.
Airline consumer advocates were frustrated with the previous Secretary, Elaine Chao. She refused to meet with them. But Biden’s new Secretary, Pete Buttigieg, gave the advocates a ray of hope.
A number of consumer advocates met with Buttigieg in July 2021, about six months after he took office.
FlyersRights Comment
DOT Secretary Buttigieg called weak airline regulator, 38 state attorney generals, some senators and passenger advocates calling for repeal of 1978 law designating DOT Secretary as sole airline regulator.
