Transportation Secretary Pete Buttigieg is coming under fire over disasters starting from the airlines’ holiday meltdown to the train wreck that has spilled chemicals in Ohio — and critics are blaming his cozy ties with the industries he’s speculated to regulate.
Outrage over US air chaos spilled into President Biden’s State of the Union Address earlier this month. The commander-in-chief vowed to crack down on excessive fees, saying “airlines can’t treat your child like a chunk of luggage” and demanded that “airlines show you the total ticket price upfront and refund your money in case your flight is canceled or delayed.”
Lower than a month earlier, nonetheless, Southwest Airlines — which had canceled 17,000 flights over the vacation season, blaming the weather amid a breakdown in its systems — promoted five top executives under the budget carrier’s latest CEO, Bob Jordan.
That’s clear evidence that the airlines aren’t afraid of Buttigieg, critics say — despite the incontrovertible fact that the Secretary of Transportation has sweeping powers to carry them accountable.
Airlines owe customers $10 billion in refunds for cancellations over the past three years.JIM LO SCALZO/EPA-EFE/Shuttersto
Southwest Airlines canceled 17,000 flights over the vacation season, blaming the weather amid a breakdown in its systems.Getty Images
“If airlines knew there could be severe punishment, that will change behavior,” William McGee, Senior Fellow for Aviation & Travel on the American Economic Liberties Project told The Post. “In the event you’re the CEO of an enormous airline, you’re not afraid of the DOT at this point.”
The large problem: Airlines owe customers $10 billion in refunds for cancellations over the past three years — and so they’ve forked over only a tiny fraction of that. In 2020 alone, for instance, United received 10,229 consumer refund complaints. That’s despite the incontrovertible fact that under US law, airlines are required to supply customers a full refund for any canceled flights.
“If Buttigieg had been willing to fantastic the large airlines, you’ll’ve seen greater investment in customer support. (Southwest Airlines) would’ve held off on a stock dividend,” Jeff Hauser, CEO and founding father of the Revolving Door Project told The Post. “Pete could’ve influenced the maths airlines did around giving a dividend versus investing in service.”
Under US law, airlines are required to supply customers a full refund for any canceled flights.AP
In an announcement, a spokesperson for the US Department of Transportation defended the agency’s record under Buttigieg.
“DOT is taking unprecedented motion to guard the traveling public and hold airlines accountable once they don’t deliver,” the spokerperson told The Post. “And since 2021, DOT has helped get lots of of 1000’s of individuals greater than $1 billion back in refunds. Moreover, before Secretary Buttigieg took office not one of the 10 largest airlines within the U.S. guaranteed meals or hotels when the airline was the reason for a cancellation or significant delay – now 9 of the airlines guarantee that.”
To know why Buttigieg hasn’t clamped down harder, take a take a look at his day by day schedule, critics say. Through the first seven months of his tenure, Buttigieg met individually with executives from Southwest, United, JetBlue, Spirit Airlines, Alaska, Hawaiian, United, and Delta, in response to government records obtained by The Post.
Pete Buttigieg has hung out with executives from every major airline except Frontier.Bloomberg via Getty Images
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. Consumer advocacy groups, meawhile, only managed to nab one meeting, McGee told The Post.
“I don’t know what goes on behind closed doors but Buttigieg clearly hears the airlines’ perspective way more often than he hears from consumer advocates,” McGee adds.
One other notable airline that hasn’t met with Buttigieg is Frontier, which spent just 1/seventeenth of what Southwest Airlines spent on lobbying in 2022. Frontier, which received 4,329 complaints in 2020 — lower than half of what was amassed by United, for instance — was slapped with $224 hundreds of thousands 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 essentially the most egregious US offenders,” McGee said. “Frontier’s decision to withhold valid refunds deserves punishment. But so too does the continuing abuse of passengers by American, Delta, and United, whose market share dwarfs Frontier’s.”
Southwest, Delta, American and United declined to comment. Frontier didn’t return calls requesting comment.
Southwest recently promoted five top executives under the budget carrier’s latest CEO, Bob Jordan.REUTERS
Last summer, 38 attorneys general sent a letter to Congress alleging Buttigieg “didn’t respond” to 1000’s of complaints, was “unable or unwilling” to carry airlines accountable, and left a “vacuum of oversight” letting “airlines to mistreat consumers and leaves consumers without effective redress.”
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Nevertheless, insiders told The Post that lobbyists and airline executives with a presence in D.C. are consistently making the case for his or her airline — and creating sympathy with staffers and politicians alike, including Buttigieg.
“Pete is vulnerable to well-dressed people… they touch his McKinsey heart,” Hauser said, referring to the well-connected consulting firm where Buttigieg worked before mounting a profession in politics. “Buttigieg has done nothing to upset the system because he’s heavily corporate and he’s sympathetic to them.”
As of 2023, Delta has 44 lobbyists which cost the corporate $3.69 million in 2022. The Atlanta-based carrier’s PAC spent nearly $1.1 million within 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.).
As of 2023, United has 27 lobbyists, spent $2.58 million lobbying in 2022 alone and its PAC spent $315,000 on the midterms. As of 2023, American Airlines had 39 lobbyists and spent $3.75 million on lobbying within the midterm.
Insiders told The Post that lobbyists and airline executives with a presence in D.C. are consistently making the case for his or her airline.Getty Images
“These airlines have the institutional knowledge to operate in D.C…. the lobbyists know the DOT and understand it’s one giant club,” Hauser said. “You make yourself a pariah for those who don’t engage.”
It’s not nearly money but additionally connections. Southwest’s ex-CEO Greg Kelly worked on the Obama Administration’s advisory board, board member J. Veronica Biggins served within the Clinton White House and board member Thomas Gilligan cut his mouth working on the Council of Economic Advisers.
“It’s less about campaign money,” says Hauser. “It’s more for those who’re an organization that hires the proper people.. and offers your CEO the proper talking points to smooth things over you may get out of the principal’s office without being punished.”