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Frank Lorenzo criticizes Biden administration's aviation regulations

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Frank Lorenzo criticizes Biden administration's aviation regulations
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Frank Lorenzo, a notable figure in the airline industry, has authored a book set for release next week. The book details his acquisition of Continental and Eastern Airlines, his sale of the Eastern Airlines Shuttle to Donald Trump, and his eventual disqualification by the Department of Transportation (DOT) from running an airline.

In a recent op-ed in the Wall Street Journal, Lorenzo argues that current DOT regulations under the Biden administration are undermining the benefits of deregulation. He claims these regulations have made air travel more accessible with lower fares and increased flights but contends that airlines face stricter rules compared to other industries.

Lorenzo highlights specific DOT requirements for airlines to disclose fees for bags, flight changes, and cancellations on initial fare quote webpages. This rule was blocked by an appeals court in July as it exceeded the department's statutory authority. He questions whether similar requirements should apply to other retailers like Amazon.

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The Airline Deregulation Act pre-empts state regulation and common law contract claims against airlines. As such, DOT is responsible for setting and enforcing standards due to this federal oversight. Lorenzo criticizes some aspects of recent DOT fee regulations but suggests focusing on more relevant consumer information like inflight wifi quality or meal availability.

He also points out other costly regulations faced by airlines but notes that eliminating regulation without addressing liability protections is not a solution. He argues that government control over airports, security, air traffic control, slot controls, and domestic ownership rules contributes to inefficiencies and higher costs in the airline industry.

Lorenzo calls for revisiting certain features of the Deregulation Act and reducing government-imposed distortions that negatively impact air travel. He cites examples like Legend Airlines being regulated into bankruptcy to protect incumbent carriers as evidence of bureaucratic protectionism stifling competition.

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