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Airline executives criticize DOT regulations; Buttigieg defends passenger protections

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Airline executives criticize DOT regulations; Buttigieg defends passenger protections
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Airbus A380 | Airbus

In recent years, the Biden administration has implemented laws aimed at enhancing passenger rights. However, airline executives have expressed concerns about these regulations, viewing them as excessive. They anticipate that the incoming Trump administration will adopt a more business-friendly approach.

Delta Air Lines and Southwest Airlines leaders have openly criticized the Department of Transportation (DOT) under President Biden for introducing rules that they claim disadvantage airlines while benefiting passengers. Delta's CEO Ed Bastian remarked on the potential shift in regulatory focus with the new administration: “[We expect the new administration] take a fresh look at the regulatory environment, the bureaucracy that exists in government, the level of overreach that we have seen over the last four years within our industry."

The DOT's recent regulation mandates airlines to provide automatic cash refunds for canceled flights and significant delays. This rule aims to simplify refund processes for travelers who previously faced challenges in obtaining their money back from airlines.

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Southwest Airlines CEO Robert Jordan expressed hope for less aggressive regulation from future transportation authorities: "We are hopeful for a DOT that is maybe a little less aggressive in terms of regulating or rule-making."

Another rule requires airlines to disclose fees more transparently during price advertisements, allowing consumers to make informed decisions. Many airlines opposed this regulation and initiated legal action against it. A federal judge has temporarily halted its enforcement pending litigation.

Additionally, an ongoing investigation by the DOT into recent devaluations of airline loyalty programs has drawn criticism from some carriers.

Transportation Secretary Pete Buttigieg addressed these criticisms during a news conference on Thanksgiving travel. He stated: "I know that some airline CEOs have expressed hopes that the next administration will be less passenger-friendly and more corporate-friendly than this administration. The passenger protections that we have put in place deservedly enjoy broad public, bipartisan support. I just don't run into a lot of people who are against the idea that you ought to get an automatic refund without any hassle, for example." He noted that companies like Delta continue to report substantial profits despite heightened consumer protection measures.

Delta remains one of America's most profitable airlines, earning $4.6 billion last year and $2.6 billion in just nine months this year.

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