How Lobbyists and Pete Buttigieg Are Fueling the U.S. Airline Crisis

Pete Buttigieg, Transportation Secretary, is under fire for disasters that range from the holiday meltdown of airlines to the flooding of the Ohio train wreck that has emitted chemicals — and critics are blaming his cozy ties with the industries he’s supposed to regulate.

The anger over the US’s air chaos reached the President Biden’s State of the Union Address this month. The commander-in chief The government has pledged to reduce excessive feesA saying “airlines can’t treat your child like a piece of baggage” That was what they wanted. “airlines show you the full ticket price upfront and refund your money if your flight is canceled or delayed.”

Less than a month earlier, however, Southwest Airlines — which 17,000 flights were cancelled during the holiday season, blaming the weather amid a breakdown in its systems — promoted five top executives Bob Jordan is the new CEO for budget carrier.

That’s clear evidence that the airlines aren’t afraid of Buttigieg, critics say — despite the fact that the Secretary of Transportation has sweeping powers to hold them accountable.

“If airlines knew there would be severe punishment, that would change behavior,” The Post heard from William McGee, Senior Fellow in Aviation & Travel at The American Economic Liberties Project. “If you’re the CEO of a big airline, you’re not afraid of the DOT at this point.”

The big problem: Airlines owe customers $10 billion in refunds for cancellations over the past three years — and they’ve forked over only a tiny fraction of that. United, for instance, received 10,229 consumer complaints in 2020. This is despite US law requiring airlines to refund customers for cancelled flights.

“If Buttigieg had been willing to fine the big airlines, you would’ve seen greater investment in customer service. (Southwest Airlines) would’ve held off on a stock dividend,” The Post interviewed Jeff Hauser (CEO and founder of The Revolving Door Project), “Pete could’ve influenced the math airlines did around giving a dividend versus investing in service.”

A spokesperson for the US Department of Transportation said that the agency had been consistent under Buttigieg.

“DOT is taking unprecedented action to protect the traveling public and hold airlines accountable when they don’t deliver,” The Post was told by the spokesperson. “And since 2021, DOT has helped get hundreds of thousands of people more than $1 billion back in refunds. Additionally, before Secretary Buttigieg took office none of the 10 largest airlines in the U.S. guaranteed meals or hotels when the airline was the cause of a cancellation or significant delay – now 9 of the airlines guarantee that.”

Take a look at Buttigieg’s daily schedule to see why he hasn’t taken a more aggressive stance, critics claim. According to records obtained by The Post, Buttigieg met with executives from Southwest Airlines, JetBlue, Spirit Airlines and Alaska during the first seven months.

Buttigieg has also met repeatedly with industry trade group Airlines For America — which represents Alaska Airlines, American Airlines, Delta, Hawaiian Airlines, jetBlue, Southwest, and United. McGee stated that consumer advocacy groups only managed one meeting with McGee.

“I don’t know what goes on behind closed doors but Buttigieg clearly hears the airlines’ perspective far more often than he hears from consumer advocates,” McGee also adds.

Frontier is another notable airline that has not met with Buttigieg. It spent only 1/17th the amount Southwest Airlines spent lobbying in 2022. Frontier, which received 4,329 complaints in 2020 — less than half of what was amassed by United, for example — was slapped with $224 millions in fines versus zero for United. The agency also went after TAP Portugal, Air India, Aeromexico, El Al, Avianca — charging these international carriers roughly $350 million total.

“This latest round of enforcement… leaves out the most egregious US offenders,” McGee added. “Frontier’s decision to withhold valid refunds deserves punishment. But so too does the ongoing abuse of passengers by American, Delta, and United, whose market share dwarfs Frontier’s.”

Southwest, Delta and American declined to comment. Frontier didn’t return calls requesting comment.

Last summer, 38 attorneys general A letter was sent by you to Congress Buttigieg alleged “failed to respond” Thousands of complaints were made. “unable or unwilling” To hold airlines responsible, and left a “vacuum of oversight” Letting “airlines to mistreat consumers and leaves consumers without effective redress.”

Nevertheless, insiders told The Post that lobbyists and airline executives with a presence in D.C. are constantly making the case for their airline — and creating sympathy with staffers and politicians alike, including Buttigieg.

“Pete is susceptible to well-dressed people… they touch his McKinsey heart,” Hauser was referring to the highly-connected consulting company where Buttigieg worked prior to pursuing a career as a politician. “Buttigieg has done nothing to upset the system because he’s heavily corporate and he’s sympathetic to them.”

The company spent $3.69 million on 2022 to hire 44 lobbyists from Delta as of 2023. The Atlanta-based carrier’s PAC spent nearly $1.1 million in the 2022 midterms — donating mainly to Congress members on the House Transportation and Infrastructure Committee that oversee the agency like Rick Larsen (D-Wash.) and Sam Graves (R-Mo.).

United currently has 27 lobbyists and spent $2.58 Million lobbying in 2022. Its PAC spent $315,000 for the midterms. American Airlines employed 39 lobbyists in 2023 and had spent $3.75 Million on midterm lobbying.

“These airlines have the institutional knowledge to operate in D.C…. the lobbyists know the DOT and know it’s one giant club,” Hauser. “You make yourself a pariah if you don’t engage.”

It’s more than just about the money, it’s also about connections. Ex-CEO of Southwest Greg Kelly was a member of the Obama Administration’s advisory boards. Board member J. Veronica Biggins worked in the Clinton White House, while board member Thomas Gilligan spent his time at the Council of Economic Advisers.

“It’s less about campaign cash,” says Hauser. “It’s more if you’re a company that hires the right people.. and gives your CEO the right talking points to smooth things over you can get out of the principal’s office without being punished.”

*As an Amazon Associate I earn from qualifying purchases