Economy US Senate Grills the Airline Industry over Junk Fees & Price Gouging

Rhood

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A group of senators and executives from five of America’s major airlines sparred on Wednesday at a hearing of the Senate Permanent Subcommittee on Investigations, which issued a report last month arguing that airline fees, for services like checking bags and choosing seats, had raised costs for passengers and left them without recourse.

Sen. Richard Blumenthal, D-Conn., said he thinks the federal government should review and perhaps fine the airlines for their use of what he called junk fees.
Blumenthal, the chairman of the Senate Permanent Subcommittee on Investigations, said seat fees were pure profit for the airlines because they don’t have to create new seats or incur other expenses by allowing customers to pick where to sit.
Some senators expressed frustration during Wednesday’s hearing when airline executives could not explain how they set the amount of various fees. They said the vagaries of airline pricing make it hard for consumers to budget for trips.
“We’re all captives on your airplanes at a certain point. You just say, ‘You want to pick a seat? We’re just going to charge you some random amount more,’” Sen. Maggie Hassan, D-N.H., said. “It would be good if you guys could be transparent about what you do and why.”

Sen. Josh Hawley, R-Mo., sparred with executives of Frontier Airlines and Spirit Airlines, which paid employees $26 million in bonuses for spotting customers whose carry-on bags were too big to fit under a seat. The passengers were forced to pay a fee (up to $77 on Spirit and $99 on Frontier) to use an overhead bin.
“If people want to know why it’s such a terrible experience to fly, this is news for them today,” Hawley told the airlines executives Wednesday. “Your airlines are paying millions of dollars to your employees to harass people who have already paid!”

Frontier Chief Commercial Officer Robert Schroeter and his counterpart at Spirit, Matthew Klein, said ensuring that people follow the rules was a matter of fairness to all passengers.
When Hawley asked why bag fees may vary from one customer to another, Schroeter said Frontier must cover its costs.
“Overall, our job is to generate the most revenue we can so we can keep profitable as an airline,” he said.
 
Hawley is such a piece of shit. He'll grandstand like this, and then when it comes to enacting any regulations that would actually address this problem, he'll find some excuse not to vote for any of them.
 
Biden said like 2 years ago they would correct all the bs fees with airlines and other business . It was one of the things I liked about him ..
anyways Airlines are garbage. From their customer service, service and policies ..
 
Biden said like 2 years ago they would correct all the bs fees with airlines and other business . It was one of the things I liked about him ..
anyways Airlines are garbage. From their customer service, service and policies ..

They have to give full refunds now. That is huge in and of itself because they were robbing tons of money from people with their "no refund" clauses and how they worked even when you missed a plane because of their own errors. But I'm sure the coming deregulation will fix that problem...for the airlines.
 
They have to give full refunds now. That is huge in and of itself because they were robbing tons of money from people with their "no refund" clauses and how they worked even when you missed a plane because of their own errors. But I'm sure the coming deregulation will fix that problem...for the airlines.
What regulations make them do full refunds now ?
 
These congressional hearings are nothing other than publicity stunts.

Yeah they're entertaining but hardly anything actually changes because of them.
 
Hawley is such a piece of shit. He'll grandstand like this, and then when it comes to enacting any regulations that would actually address this problem, he'll find some excuse not to vote for any of them.

He's strutting and peacocking for the lobbyists so they pay him more to do nothing.
 
They have to give full refunds now. That is huge in and of itself because they were robbing tons of money from people with their "no refund" clauses and how they worked even when you missed a plane because of their own errors. But I'm sure the coming deregulation will fix that problem...for the airlines.

They try not tell you that though, and when checking out they'll label the base ticket price everywhere as "non refundable" and try to sell you a "trip protection" upgrade.

Knowing full well they have to refund you if the flight is cancelled.
 
They try not tell you that though, and when checking out they'll label the base ticket price everywhere as "non refundable" and try to sell you a "trip protection" upgrade.

Knowing full well they have to refund you if the flight is cancelled.
Capitalism!! Gotta love it
 
These congressional hearings are nothing other than publicity stunts.

Yeah they're entertaining but hardly anything actually changes because of them.

They lead to votes. Things dont change because of how the votes go. If more Americand paid attention to the hearings, then tracked the votes of their representatives, a lot of politicians would be out of jobs.
 
Here's a recent clip of Hawley aggressively grilling airline executives on their incentivized targeting practices on baggage fares.

"Do you pay employees a bounty on carry on bags?"



It sounds good, but is he just grandstanding here? This is private industry and I don't believe what the airlines are doing is illegal (though scummy) as they are trying to increase profit. Is the party of less regulation really going to introduce more regulation in order to fight the airline industries capitalistic practices?
 
It sounds good, but is he just grandstanding here? This is private industry and I don't believe what the airlines are doing is illegal (though scummy) as they are trying to increase profit. Is the party of less regulation really going to introduce more regulation in order to fight the airline industries capitalistic practices?
If you take tax payers money for a bailout or for subsidies then you shouldn’t be allowed to fuck with said tax payers by ripping them off at every corner.
 
There's a thread already posted about this

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It’s amazing how there is no degree of support for capitalism unless it’s the whole fucking package.

Nuances afforded the left are forgone with conservative ideology.

How embarrassing.
 
Of course it's grandstanding. These hearings exist for viral views. They accomplish next to nothing.
 
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