Update: I created a Whitehouse.gov petition for a traveler’s bill of rights here. Please take a minute to sign it and send to your friends and family!
The petition is limited to just 800 characters, but you can read the explanation of the demands below:
Originally posted on 3/18:
US Airlines are seeking more than $50 billion in bailouts and they’ll likely get it:
The United States will be powerfully supporting those industries, like Airlines and others, that are particularly affected by the Chinese Virus. We will be stronger than ever before!
— Donald J. Trump (@realDonaldTrump) March 16, 2020
But that’s not all.
Boeing wants $60 billion and hotels want a $250 billion bailout.
Those bailouts come from the taxpayers pockets. That’s you and me.
It’s fair to say that COVID-19 was an unpredictable once in a century event, but it’s still surprising that a travel industry that went through 9/11 and the Great Recession in the past 20 years didn’t do a better job preparing for the next major disruption.
AA CEO Doug Parker famously said in 2017 that he didn’t think American would ever lose money again. That’s why American spent more than 100% of their free cash flow over this past decade, spending $12.5 billion on buybacks of its own stock. Other airlines were not far behind as the industry spent a whopping 96% of their free cash flow over the past decade on stock repurchasing!
That type of head in the sand thinking is why so many airlines are in big trouble.
Luckily for them, mergers and acquisitions have made the airlines into monstrosities that are too big to fail. No matter how poorly they plan, they’ll still be bailed out.
The same goes for Boeing and the major hotel chains.
Mergers have decimated consumer benefits, while ensuring that the travel behemoths never go out of business.
Go ahead President Trump and bail them out. But ask consumers what they want in return for bailing them out.
The free market would normally sort most of this out, and things were just fine before airlines and hotels gobbled up the competition. However consolidation has emboldened the travel industry to devalue and strip away consumer benefits without consequence.
Here are some ideas off the top of my head, in no particular order, that should be conditions for accepting tens of billions of dollars in taxpayer funded bailout money:
- No more basic economy fares. These didn’t lower fares as promised, they just added restrictions and took away even more dignity from economy passengers.
- Families with kids under 13 need to be seated together. Airlines are upselling more and more of their seats. Families with kids should always be seated together in advance and not made to embarrassingly scramble on the plane. And traveling companions shouldn’t need to spend extra to sit together.
- Mileage programs should have published award charts. Airline and hotel mileage programs still have award charts, but Delta, United, and Hilton for example hide them from consumers to keep them in the dark. They should be forced to publish them.
- Devaluations should be announced at least 6 months in advance. Some programs treat their miles like the bank of Zimbabwe. If airlines and hotels want our help, they should treat consumers with respect and let us know what they plan on devaluing our mileage balances well in advance.
- Resort fees and destinations fees should be banned. Hotels want a bailout? They should have to agree to not charge hidden resort fees. Worse yet are the city hotels charging a destination fee. Be up front with your pricing and fair to consumers.
- Fuel surcharges and carrier imposed surcharges should be banned. These charges are to avoid paying taxes and add costs onto mileage award tickets that were once advertised as free awards.
- Stop shrinking airline seats. Airline seats are getting narrower even as passengers are getting wider. The distance between seats keeps shrinking. Is it time to regulate a minimum seat width and pitch?
- Stop shrinking airline bathrooms. Boeing’s 737MAX airplanes were unpopular even before consumers realized they were poorly engineered death traps, because Boeing and the airlines configured them to be horribly uncomfortable. Slimmer seats with less legroom then ever. And teeny tiny bathrooms where you can’t maneuver or wash your hands without getting soaked. Just like MCAS didn’t have to be designed to fail, the configuration of these planes don’t have to be designed by wannabe Torquemada engineers. Fix the problem just like you’re fixing MCAS!
- Give passengers back a free bag. Once upon a time everyone got 3 free bags, then is became 2, then 1, then none, and then the cost of bags started skyrocketing. In turn, people started bringing more and bigger carry-ons, which actually delays boarding-which ironically costs the airlines money. You want bailout money? Bring some humanity back and give everyone a free checked bag and a free carry-on bag.
- Change/Cancellation fees should be capped at a percentage of the fare. Many change fees today exceed the cost of a ticket, rendering tickets worthless if you need to make a change. And yet airlines can change the rules on the fly and make us wait 12 months to get a refund if they make changes to our flights. Airlines should agree to cap change and cancellations fees at a reasonable percentage of the fare paid, such as a $150 change fee with a cap of 30% of the actual cost of a ticket.
- Add Passenger Rights Regulations. Europe’s EU261 requires cash payments for delayed flights, cancelled flights, overbooked flights, downgrades, lost or delayed baggage, and more. US airlines can get away doing nothing in many of these cases. This should be rectified.
- Remove Deregulation Act Protections for airlines. The airlines can do pretty much whatever they want because the deregulation act prevents consumers from suing them in most cases. It’s time for these protections to be rolled back as airlines have abused consumer knowing they can’t be held accountable. United for example has blatantly lied about written lifetime million miler benefits, SilverWings lifetime membership benefits, and lifetime club benefits, but they can get away with it due to the deregulation act.
- Remove airport slot controls. Many airports limit the number of takeoff and landing slots. This inhibits normal competition and makes it hard for new airlines to launch.
- Require airlines to provide refunds when they cancel flights. Airlines are currently refusing to offer refunds on flights that they cancelled. They should be required to offer refunds when they cancel or change flights.
Do you want to see conditions added to a bailout? Click here for the contact information of your elected representatives and let them know!
What conditions would you want in exchange for bailing out the travel industry?
Don’t bail them out
Then there won’t be an aviation industry.
i disagree particularly from the hotel standpoint. If they go bust and under once this is all over you will have people ready to buy the hotels back from the banks that foreclosed on them and reopen
Good idea, let Marriott be the first one. Bonvoy Marriot
And we’ll lose our miles….
Great list!! But why would there be no aviation industry? if there is money to be made there will be plenty investors. And why wouldn’t any of the international airlines serve domestically?
Ever? I highly doubt that would be the end of the airline industry.
Of course there will be an aviation industry. The airlines will go bankrupt, and others will buy then and reorganize. Existing shareholders will lose value, but the assets exist.
The planes don’t disappear into thin air. The routes don’t disappear into the atmosphere. Someone will buy the inventory from the airlines going out of business. And start a new airline. If united went out of business maybe 3/4 smaller airlines will take its place. More competition means consumers win. The same way little me needs to plan for a rainy day so do giant corporations. Bailing them out makes them more reckless, they’ll take more risks at no risk to themselves. Don’t bailout any industry.
Correction, Dan: There won’t be a domestic aviation industry temporarily until either foreign or domestic companies buy them out for pennies on the dollar.
Have you lost your mind? You think if we dont bail them out airline travel would cease to exist?
It would not exist in the form its in now, with nonstop service from the US to cities all over the globe.
Great, well if that isn’t economically viable, it shouldn’t exist. I dont see why taxpayers should subsidize nonstop service for people who want to fly all over the globe.
Let them sell the stocks they bought back!!! So they made a Bad investment by buying them back!!!
Yes, there will. AA goes under, sells their assets for pennies on the dollar, a new airline buys it all for almost nothing. Claw back executive bonuses and excessive payments. Disruptions, yes — but ultimately a better world.
Maybe for a year. Then it will reemerge like a phoenix.
I couldn’t agree more, Dan perfectly said.
dang those sound great
I agree Dan please talk to the president Im sure him or his son in law already follow you
Alas, I don’t have those connections.
i wish you did, lol
I am not so sure Dan, where do you think the White House gets cheap toilet paper from if they’re not getting your alerts?
not yet you dont
I’m sure someone that follows you can make that connection.
DM some guys on Twitter? Jason Greenblatt? Turx? Etc.
Spot on, and a great read. Thanks for sticking up for the consumer.
EU 261 equivalent
#11 🙂
Want on time departures or partial refunds if not! No excuses! Space out the departures and cap the airline gate fees racket!
#11
Let them fail. The hard assets will still be there. Let a new company form. They don’t deserve a penny
Cant argue a bit or agree more!
That would be the problem; let them fail so all investors lose out then they reorganize in bankruptcy w/o any consequences
Many good points. I don’t think airlines should be bailed out at all. Let them declare bankruptcy and start over. Overall they are clueless in what consumers should expect. Maybe new management is what they need, not a bushel of our money with no strings attached.
@dan, Brilliant!
(This was predicted… and I love that Trump calls it the Chinese virus)
+1
Boo. You do know there has been a recent increase in hate crimes on random Asian-Americans, right?
@Dan most importantly if an airline cancels a flight they should reimburse customer similar to European laws.
#11
https://www.dansdeals.com/more/dans-commentary/bail-airlines-hotels-boeing-ask-return/#comment-1457475
Great Article!!! Yes we should ask for most of your list as we will be sporting the bill and increasing value for the shareholders with our tax dollars
Dan, you can bail them out with your miles/points.
More like, he should bail them out with his money so his points don’t go obsolete
“I’m not saying all of these ideas should be implemented”
Well I say most certainly do, do everything listed! It’s outrageous!
Allow selling of points
Ma man
Maybe write up a sample letter to send to our politicians, I bet more ppl will send it that way
or a petittion that people could sign
Totally agree with all of it!!! Even if only some of it would be implemented, the traveling world will be in a much better place.
I actually strongly disagree with most of your suggestions. I think anything that is included “for free” is really just absorbed in the price, causing price increases.
There’s no such thing as a free lunch!
Charging “À la carte” allows the no-frills passengers to get a better deal.
(I typically fly alone, with nothing more than a backpack. I (like MANY others) have no need for baggage allowance, snacks, seat selection, etc)
My 2 cents.
Hey Dan,
why don’t you open an airline with all these things you mentioned. we (still) live in a free country and private airlines should operate how they want. don’t like it, don’t use them.
having said that, they shouldn’t get any bailout money. they should be responsible for their mistakes and mismanagement. every company should have cash aside for a rainy day.
if they need to go thru bankruptcy and/or being bought out. so be it.
Airlines control slots at airports especially when its their hub, limited amount of slots
Very hard to open brand new airline
You really think the airline industry is a free market???
BETTER KSML!
Sent the president a link hope he joins def
I am glad banning basic economy scored first place on your list (even if you ordered them randomly 🙂
Basic economy is downright dehumanizing. (especially as passengers could be paying near full fare and still be classed basic.)
DDF
No more stock buy-backs!
keep Dreaming
Definitely agree. If they are taking our money, they need to give us something in return.
How do these bailouts work – they get straight cash payments from the government?
Why can’t the government at least give it as a loan, so when the company is back up and booming in a few months/years, they have to pay it back.
why can’t it be a tax break for them?
It is given as a loan. GM paid back the entire loan when they were bailed out by Obama, plus more.
more room for competition is the most important thing imo, these airlines are not afraid to go bust because no one can compete thanks to slot restrictions and many other anti competitive measures
Airlines and hotels have the money for expansive lobbyists and lawyers so they get to make the rules, they literally own the law makers.
We consumers don’t have that power.
If the airlines and hotels receive mega buck. What about the mom and pop travel agencies?
Ironic how the last decade of airline buybacks is so close to the $50B bail out request. Basically a transfer of cash from tax payers to stock holders.
Yup, just crazy.
I would not be surprised if Buffett picks up 2 airlines now…
I heard he already said he’s investing 50b in delta..
And no offense @dan but your list is heavily weighted towards miles and benefits which is not what is wrong with this industry, they are not a right. merely a benefit introduced to gain customers, dont like it ? dont take it.
What we do need is to make the playing field more even in many ways, and by extension the more competition will force the airlines to treat costumers fairly
The real problem is that the US allowed the mega-mergers, creating the problems of today.
Slot controls are an airport issue though, not an airline issue. So I’m not sure how that’s part of bailout conditions.
that ship has sailed. what we can ask now in return for our money is cap executive pay in tandem with frontline employee pay cuts, more competition, limits on debt etc.
I am not a financial expert but these executives were behaving in a way that is reckless because they knew they will be bailed out, so while i agree they should be bailed, severe restrictions should be put in place to protect employees first (not cushy executives and shareholders) and open the market to competition!! miles and benefits are way down on the list
Sent this to both of my Senators!
Make any loans senior to all other debt and restrict any stock buybacks until every red penny is paid back.
Oh.. and most of the stuff you said above.. 🙂
How can do that to the current debt holders? Very unfair to them. Probably illegal to ilegal too.
How can you do that to the current debt holders? Very unfair to them. Probably illegal ilegal too.
Great article here in Crains Chicago
https://www.chicagobusiness.com/joe-cahill-business/real-cost-bailing-out-airlines
Totally agree. I need 1 billion myself..
Dan,
You are spot on in this article. Airlines should not get a bailout unless they realize why they are still in business. Its because of us the consumers whose tax dollars will be used to save them. Your conditions in order to save them should be built in before and money comes their way.The bailout saves jobs but at the same time there is no fiscal responsibility if you always know in the back of your mind the government will help.
With all your ideas the price of a ticket will triple. You know that.
Agree with your 12 items Dan, very well put. Especially like the airline seat size minimums and EU 261 like regulations.
Maybe once and for all they will allow a transfer/sale of a ticket to another person in case you can’t fly?? Never understood that rule…
Bump. I’m on on this one
Spot on!
I do disagree with #3.
Airlines have the right to have whatever crappy loyalty program they see fit, we can then vote with our wallets. Loyalty programs are not a right.
They can be crappy, but they should be honest to consumers being asked to bail them out.
Any change/cancellation fees should also apply to the airline. If they change and/or cancel a flight they should have to refund (or even pay out if the fee is more than the original ticket) just like they expect the passengers to do.
I think Dan mentioned the most compelling reason that the airline and hotel industries should not be bailed out. They have consolidated to such a degree of monopolies that their bankruptcy is the only way to really return consumer rights and dignity to this sector, these guys need to be humbled!
The second but equally important point is that US taxpayers do not need to pay for their greedy stock buyback initiatives. They were greedy, it blew up in their faces and now they have to eat it!
Great article Dan and thanks so much for posting the kids activities, it should be a zechus for you and your family!
@Dan spot on. Expanding on #11, I would like to see an interline agreement between the big 4 so passengers can get to their destinations quickly during IRROPS.
I say NO BAIL OUTS! The reason they are irresponsible with their spending is because they know that if they ever were in trouble they’d be bailed out. Stop bailing them out and they’ll learn!
If my business fails I don’t get bailed out l, they shouldn’t either. That’s simply not fair!
I agree, but what will me and you have out of this if they don’t get?
Realistically lazy. If you formulate an actual letter to forward or cut and paste, a lot more people will take action.
+1
Does someone want to write up a sample letter and post it here for people to send to their politician?
Thanks
What form will the bailout take? It should be in the form of equity or a loan which would be repaid. This is similar to the auto industry bailout. Kind of on the fence as to whether I trust the government to take on any positions on the boards of these airlines which would allow them to push for some of these changes.
they should nit be bailed out there will be an industry because someone/s will buy their assets and hire their workers.
@Dan, how about you begin a change.org petition?
I don’t think they should be bailed out. Once they inevitably collapse, someone else will be there to pick up the scraps and start a “new American airlines” or a “new Delta.” If you want to impose these suggestions on the airlines, they would find some other way to charge their customers. Greed is greed. What this industry needs is new management who understand business and consumer loyalty. Thanks for all your updates during this time
The only way this will have a chance to make a difference is if there is a petition, and I’m sure it will go viral.
Dan, can you please start a petition, no one can write it up better than you.
Preferred shares held in the appropriate government trust; paying a 6-8% annual dividend. This is what Buffet typically expects for offering this ‘bailout service’. This would be a government ‘takeover’ of private industry, but could be balanced by a requirement of these preferred shares to be bought back by the company over the next 20 years.
1, EU 261 type of rule
2, Limits on diminished legroom
3, Limits on adding seats across beyond original model. ie, 3-4-3 on 777 is a no no.
4, Mandates regarding size of lavoratory.
5, Mandate airlines reissue shares on the market TODAY equal to number of shares bought back in the last 3 years.
6, Clawback bonuses that were based on share price raised by buybacks. No mercy on Delta which squandered 2 months pay on bonuses recently.
7, No bonuses till 24 months after all loans repaid.
I do not advocate for free seat selection or free baggage, it is a cost and many passengers do not avail of this. I do recommend fair treatment of carry on bags. If they fit the rules then no airline employee should have the right to ban them unless they were on board and proven no room. Although not a US airline, LH has been caught refusing carry on baggage that fit their rules.
I can attest to the varacity of your last sentence.
Amazing!
Tag senator Chuck Schumer. He usually goes hard on the aviation industry.
If the airlines are not bailed out, I would postulate we will no longer have fares such as $259 r/t to TLV, $19 fares on JetBlue along with the plethora of price mistakes that Dan & co post for us. The entire DD community will have nothing to do but buy things from Amazon (along with constant reviews on how to change S&S delivery dates)
Traffic to the DD site will drop from 500 quintilian hits per day to just under 500 since we can’t fly anywhere anyhow.
If and when the fare deals do come back, everyone will forget all the past learned lessons and call airlines to confirm price mistakes, be confused about booking infants, question when booking TLV-JFK-Antarctica if they can not fly the last leg, etc etc.
So I say BAIL THEM OUT 🙂
No bail out whatsoever. And all your good points should come with lucrative loans
SEATS not sardine chutes. Give us seats and honesty and enough air to breathe in the cabin
Boeing is not in the same boat as the airlines. Even if the airlines get a bailout, Boeing killed themselves. Nothing to do with the Covid.
Dan, you can bail them out with your points alone
#13 Allow name changes. If they have my money there should be a way for them to allow this if i want to transfer this ticket to someone else.
Name changes is a TSA safety rule as far as I heard
it should be enough to give 24 hour notice of name change
Tsa don’t control airline reservations.
In the airport everything it’s bcs 9/11
The bagg fee also it’s bcs 9/11
And fuel surcharge also bcs of fuel hike in 2008 when it went up to 160 a barrel.
Its been under 50 usd for a good 10 years we are still paying.
Cant them apply for low interest loan first.
What about pay cut for the upper levels?
Something to start with before talking about bail out.
Dont see the managements do something before asking for a handout.
Look at Singapore. Voluntary pay cut for SQ management staff starting from the top down. Even the government is taking pay cut starting from the top.
Dan don’t forget abt the airlines chucking people off flights for no good reason Dr. Dao etc.,and many cases with jewish passengers
Onshore Customer Service
I think WN, B6, and maybe DL will be okay.
As for everyone else: KARMA BABY!
No to Bailouts. The airline industry made 100 BILLION dollars on ancillary fees in the last 10 years as well as spend BILLIONS on stock/share buybacks. The shareholders made the money and now they have to pay upon the risk that they took and not at taxpayer expense. Where does it end? You forgot the native american casinos want 18 Billion as well and the cruise lines. What is hollywood going to ask for a bailout after a movie flops? This is not capitalism. It is socialism for private profits and capitalism for losses.
Congress is so disgusted with this that there is a bill to stop the ancillary fees but even it does not go far enough. Check the Forbid Airlines from Imposing Ridiculous (FAIR) Fees Act of 2016 and should be reintroduced.
If they get a penny of taxpayer money, it should be with the conditions of no ancillary fees for 5 years, no share buybacks forever (it was illegal until clinton got into office), no change fees as well. Southwest does most of this and they are making money.
If we bail them out, this will be the end of the american empire.
Interesting question. My two cents: almost all of the measures you list would reduce airline competition, profitability and innovation, likely increasing prices.
Additionally, if you want ppl to invest in future, you need to provide governmental support today via some kind of bailout. If not, and if you do the above items that decrease profitability, then although there used to be value in the assets, who would buy them only to operate at lower margins, made still lower due to no leverage? Additionally, if you dknt provide support even to a strategically important industry such as airlines, then creditors will no longer fund companies, likely causing a seizing up of credit conditions and another financial crisis.
Additionally, if you allow bankruptcy, not only will all labor contracts be renegotiated likely causing retrenchment for the airlines, but also all third party contracts too: so expect downsizing among GDSs, baggage handlers etc.
So what should be done? Increased regulation to avoid the recurrence in future: that means
1) requiring better liquidity to be able to withstand a longer time without revenues – ie more cash kn hand. That would be in favor of creditors too who are necessary to keep happy, but penalize existing shareholders because cash drag reduces margins.
2) second, create a maximum allowable leverage (debt) – this in other words means less future buybacks and dividends, which in the past was funded by debt. It would also mean the airlines would be stronger in future and have more unencumbered assets to realize cash from banks in event of crisis
3) most importantly, any bailout must be in the form of equity ie the government takes ownership of a piece of the airline in equal measure to its bailout size at today’s share price. This means that if there is a quick snap back in conditions and everything looks chunky sorry again, the airlines dnnt simply pay back the money with 3% interest: instead the taxpayer has a full share in the recovery and existing shareholders effectively have sold a pro rate share at the reduced price – effectively giving back the dividends and buybacks.
First reasonable answer here. Well done, sir
Very reasonable. Well thought out.
How about a credit every year, for say 5 years, good for 1 up to 1 rt, coast to coast, ….. Good for any airline. And yes – give us back the bags.
https://petitions.whitehouse.gov/
Umm, shouldn’t the question be, why isn’t the government bailing us out? Why is always socialism for corporations but not for citizens?
Dan – you are 100 percent right. Can we start a petition with this article? If all your readers sign on it… We will be in the right start. PLEASE??
Love your list. As I was reading it and thought about what to add, I saw you already had it on list. Who are you sending this to? Can we copy and paste to our elected officials?
The initial question is worded very poorly. We should think of the tens or hundreds of thousands of employees who are the backbone of these industries rather than immediately trying to extract some sick quid pro quo in return for livelihoods. This isn’t a time for joyous airing of grievances or grave dancing.
What about the 330 million people that are bailing them out, are we permitted to think on their behalf?
If you want to sacrifice tens of thousands of employee families to “stick it to” a few handfuls of executives with generational wealth who will be fine regardless, well…congrats.
Love all your ideas! How can we make this happen?
We should ask for leg room on all planes
And let’s tell the truth. The US government got paid back in full plus interest from the 2008 financial “bailout”. Truth is more powerful than fear.
And all the executives at AIG got Huge bonuses because of taxpayers, but the taxpayers did not.
Taxpayers got paid back in full plus interest. If your taxes didn’t skyrocket, then you shouldn’t have been shocked you didn’t get a huge personal payment check.
No industry — not airlines, not hotels, not cruise ships — should be bailed out. They can stay in business by borrowing at rock-bottom rates, using their assets as collateral. Taxpayer money should be used to bail out people, not corporations.
Who exactly do you think make up corporations? 5 c-suite level billionaires? Or tens of thousands of working people with families?
I understand the bailout – the bailout helps the millions upon millions of American who rely on the airlines.
I want something in return: for at least the next 10 years (including any new airlines), no baggage fee in excess of $20, no less than 35″/89 cm of legroom in coach, no charge for
carry-on, no more than $50 change fee, and no more than $10 for a seat assignment.
Since this administration is advocating SOCIALISM, I don’t expect we’ll get anything . . like a return to free modification of tickets, free checked bag . . in return.
Carl, I’m afraid you are right.
Dan, you nailed it as usual. Can I copy your article to start a petition on Change.org or the White house website?
Require at least 1 daily flight from N12 (Lakewood NJ airport) direct to TLV. As well as a free shuttle flight every 30 minutes taking off from Ocean Parkway in Brooklyn to JFK (Rd clousure will be required during take off and landing)
I’ll add one: Parking fees for hotels. They could really set you back (especially on award nights).
At least they should charge similar prices to nearby lots and garages.
Heres a letter version of this article that i put together to send to our elected officials. LETS DO THIS
To whom this may concern:
It came to my attention that the airline and hospitality industries are requesting a federal bailout in light of the effect coronavirus had on their operations. I humbly suggest that some or all of the following reforms are introduced as conditions to give back to we the people for supplying our tax money for the bailout:
1) NO MORE BASIC ECONOMY FARES. These didn’t lower fares as promised, they just added restrictions and took away even more dignity from economy passengers.
2) FAMILIES WITH KIDS AGE 13 AND UNDER MUST BE SEATED TOGETHER. Airlines are upselling more and more of their seats. Families with kids should always be seated together in advance and not made to embarrassingly scramble on the plane. And traveling companions shouldn’t need to spend extra to sit together.
3) MILEAGE PROGRAMS SHOULD HAVE PUBLISHED AWARD CHARTS. Airline and hotel mileage programs still have award charts, but Delta, United, and Hilton for example hide them from consumers to keep them in the dark. They should be forced to publish them.
4) DEVALUATIONS SHOULD BE ANNOUNCED AT LEAST 6 MONTHS IN ADVANCE. Some programs treat their miles like the bank of Zimbabwe. If airlines and hotels want our help, they should treat consumers with respect and let us know what they plan on devaluing our mileage balances well in advance.
5) RESORT FEES AND DESTINATIONS FEES SHOULD BE BANNED. Hotels want a bailout? They should have to agree to not charge hidden resort fees. Worse yet are the city hotels charging a destination fee. Be up front with your pricing and fair to consumers.
6) FUEL SURCHARGES AND CARRIER IMPOSED SURCHARGES SHOULD BE BANNED. These charges are to avoid paying taxes and add costs onto mileage award tickets that were once advertised as free awards.
7) STOP SHRINKING AIRLINE SEATS. Airline seats are getting narrower even as passengers are getting wider. The distance between seats keeps shrinking. Is it time to regulate a minimum seat width and pitch?
8) STOP SHRINKING AIRLINE BATHROOMS. Boeing’s 737MAX airplanes were unpopular even before consumers realized they were poorly engineered death traps, because Boeing and the airlines configured them to be horribly uncomfortable. Slimmer seats with less legroom then ever. And teeny tiny bathrooms where you can’t maneuver or wash your hands without getting soaked. Just like MCAS didn’t have to be designed to fail, the configuration of these planes don’t have to be designed by wannabe Torquemada engineers. Fix the problem just like you’re fixing MCAS!
9) GIVE PASSENGERS BACK A FREE BAG. Once upon a time everyone got 3 free bags, then is became 2, then 1, then none, and then the cost of bags started skyrocketing. In turn, people started bringing more and bigger carry-ons, which actually delays boarding-which ironically costs the airlines money. You want bailout money? Bring some humanity back and give everyone a free checked bag and a free carry-on bag.
10) CHANGE/CANCELLATION FEES SHOULD BE CAPPED AT A PERCENTAGE OF THE FARE. Many change fees today exceed the cost of a ticket, rendering tickets worthless if you need to make a change. And yet airlines can change the rules on the fly and make us wait 12 months to get a refund if they make changes to our flights. Airlines should agree to cap change and cancellations fees at a reasonable percentage of the fare paid, such as a $150 change fee with a cap of 30% of the actual cost of a ticket.
11) ADD PASSENGER RIGHTS REGULATIONS. Europe’s EU261 requires cash payments for delayed flights, cancelled flights, overbooked flights, downgrades, lost or delayed baggage, and more. US airlines can get away doing nothing in many of these cases. This should be rectified.
12) REMOVE DEREGULATION ACT PROTECTIONS FOR AIRLINES. The airlines can do pretty much whatever they want because the deregulation act prevents consumers from suing them in most cases. It’s time for these protections to be rolled back as airlines have abused consumer knowing they can’t be held accountable. United for example has blatantly lied about written lifetime million miler benefits, SilverWings lifetime membership benefits, and lifetime club benefits, but they can get away with it due to the deregulation act.
Thank you for considering my suggestion and may we all get through this difficult period in good health of body and spirit.
i think on balance the government supports these readers rather than the readers pay taxes, so your opinion shouldn’t matter
There was a talk in the media that the airlines make more money from the credit cards than from the flights. Having routes is just a היכי תמצא to have a credit card with their logo.
Rock on Dan! Can we PLEASE PLEAEE start a petition?? Change.com??
When we the tax payers are allowing any business to set prices, make us pay for the fuel when they didn’t Lock prices and continue to add costs because they can, they don’t have to account for paying the CEO 11.7 million and buy own stock that lose money then nothing changes and they are to blame for not having 2 weeks of reserves to pay employees. Easy to get more money so a bad business never goes bankrupt. We’re all enabling bad behavior every time they cry poor me spent it and lost it now bail me out as a spoiled child is rewarded so they get what they want. Learning is to fail that’s better then abusing those paying for less and are putting our health at risk. I have tons of free tickets but not worth the pain to fly on American
No free money to airlines/hotel chains = no tax cuts, only loans should be granted with tax payers owing a stake. No stock buy back ever. Keep the money for the next disaster even if it means piling up cash. No bonuses for top execs until they repay the loans with interests. All corporate profits go towards repaying loans.
Full refund on any cancellation because of Coronavirus. SW not doing this as of today, even for senior citizens.
Yasher Koach! Send this to the White House, David Friedman, Jason Greenblatt, Jared Kushner or anyone else with access to the President’s ear. How about lower or no CC annual fees on these branded CC.
Nikki Haley resigns from Boeing board because she opposes a federal bailout.
“I cannot support a move to lean on the federal government for a stimulus or bailout that prioritizes our company over others and relies on taxpayers to guarantee our financial position.”
Signed! Thanks Dan
Signed – Thanks!
Signed. Thanks @Dan!
Dan,
Why is your petition not updating? I signed. My wife signed. Still says only 1 person signed.
Your millions of mileage points will go with the airlines that goes bankrupt. Food for thought
I think your petition is broken. ive signed and verified and still showing that no one has signed
Signed!
Signed
I agree with dan theyre are getting very petty and its pissing me off theyre so cheap these days charging you for everything soon theyll impose a bathroom fee !!!!!
We signed and it doesn’t show up. Why?
I just think everyone on this blog should keep their mouths shut while businesses are going through such terrible times as everyone here is a moocher
They irresponsibly spent all their cash and their now coming to US to fund them we can ask for whatever we want in exchange for OURs and our children’s money.
While I agree to your list of demands when it comes to airlines I believe that cruise companies should not get a penny. They are all incorporated in other countries, they all fly foreign flags, pay no taxes to the US, have mostly foreign crew, don’t follow US labor laws and also are not an essential service such as an airline. They are merely a luxury category. No bailouts whatsoever for them.
Agreed.
Signed
signed Why does it say only 1 signed?
Don’t bail them out, buy them. The American people can reap all future benefits in an annual dividend.
signed!
If you would like to put all these restrictions on airlines be prepared for them to need to be bailed out many more times.
Its funny how you have 158 comments here and only 1 signed the petition which was me
Many people signed. There’s an issue with the website. It won’t update
It’s funny how there is 158 comments here but you don’t read them where people say the signed the petition but it’s not showing up.
you claim airline execs put there head in sand not preparing more responsibly just in case such a rainy day~I think you answered the question with your other comments ab knowing they will get more CHARITY so why not use your money for buybacks etc.to the fullest extent and allow feds to support!! dosent take a genius! max profit matters!
Hope it works!
Dan I hope your petetion doesn’t cost thousands of people their jobs.
Airlines spend billions buying back their own stock.
They can afford to not treat their passengers like garbage.
Why to bail them out,!
Why they feel untitled to our taxes…
Its a private business like any other.
And I think they are abusing the system with their numbers.
Is this a donation or a long term free loan?..
Let them sell share.
Signed! Dan thanks for all the great work
I know a few people that signed and it shows one signature. Not sure why
I don’t really expect a “deals blogger” or his readers to understand Wall Street finance but, in case you’re interested, it would not actually have been possible for any of the major US airlines to “have enough cash” to survive the likely outcome of this pandemic. For all the blather about “financial irresponsibility,” the US airlines have been remarkably responsible with keeping huge sums of money in cash since 9/11. Before 9/11, having a billion in cash was considered a lot of reserves. Now, big USA airlines keep 7 or 8 times that. It was all designed to make them capable of withstanding a catastrophic event like 9/11. The problem is that the current situation is at least 5 or 10 times as bad as 9/11. Demand is immediately going to zero for an indefinite time. No capital-intensive intensive industry could ever plan for such a doomsday scenario; honestly, the only things worse I could imagine are widespread nuclear war or alien invasion.
But wait, you say. What if instead of keeping $7 or $8 billion in cash, they had halted all their stock buybacks and dividends and instead kept, say, $40 billion. Just in case of a worldwide nuclear war (or the world’s greatest pandemic). The problem is that in a free market economy, this could never work for a publicly traded company. Airline stock valuations are notoriously low because of the perceived risks of the business. The capitalization of many US airlines has not been much more than their cash on hand, and investors don’t highly value excess cash sitting around for some highly unlikely 100-year-event. If American, for example, had kept $40 billion in cash sitting in a bank account, a corporate raider or “shareholder activist” would have undoubtedly seized control of the business, “looted” this excess cash, and left the company with even fewer reserves. That’s what happens in capitalism. Preposterous amounts of excess cash in a business is inefficient and unsustainable. Thinking otherwise is simply naive.
End of the economics lesson. You can now go back to listing your pie-in-the-sky “consumer demands.”
I have an MBA, thanks for asking.
The airlines don’t have to be so arrogant as to refuse refunds when they cancel flights or force families to pay extra to sit together.
Now they’re asking for $50 billion from you and me. We have all the right in the world to refuse it unless they treat their customers with respect.
It’s not pie in the sky to ask them to play fairly or let us know with proper warning when they’re devaluing their currency.
+100
Everyone obviously wants to get more than they pay for. Airlines are very efficient and operate with low profit margins. The price of air travel is remarkably low. For you, I’m guessing, it’s about zero! Can you go into a supermarket or clothing store or car dealership and buy things for zero dollars? I doubt it. Yet, you somehow feel the airlines are taking advantage of you. It doesn’t make sense, but humans often believe things that are objectively irrational.
Absurd argument. There’s obviously an opportunity cost to use miles, namely 2% of the amount spent on a credit card.
The airlines recognize revenue regardless of the currency you pay with. That doesn’t mean they don’t need to pay fair or should be shielded from lawsuits.
Again, what is your actual cost of air travel? Are you getting “ripped off” why you fly? Of course you are not: you are getting a deal of a lifetime. Sure, airline travel is WAY too complicated, and many airline rules (especially those pertaining to frequent flyer programs) are as needlessly complicated as the tax code. But these arcane rules and practices clearly benefit YOU! You are gaming a complex system of rules. The people they don’t benefit are the average Joes who don’t have the intellect or time to figure them out. If air travel policies were truly “fair,” you would pay much more to travel and the “little people” would pay a little less. That’s the real world; you are free to live in a fantasy world if you like.
Good point. But it’s the credit card companies who are buying miles and who are inefficiently pricing their cards, no?
Why is anyone inefficiently pricing anything?
Airlines get paid in full and then some by the banks.
The banks get paid in full and then some by their credit card products.
Any argument to the contrary is based on lack of knowledge. The fact that consumers can do well in the system doesn’t have to mean anything is inefficient.
Or In a capitalist structure you first ask warren buffet if he would buy $50 billion worth of convertible preferred shares and not for freebies from the government. Oh wait!!!?? where did he get that money why diddn’t he spend it on overpriced share buybacks or risk losing his company???
Mr Buffett has said many times that he is supportive of buybacks. It seems that your point hinges on Mr Buffets opinion so thought you uought to know that it isn’t what you think it is
If you read Mr. Buffets letters you would know he is of the opinion that he can create more than the worth of a dollar for every dollar he invests. He also wrote that he would not put himself in the position that he would need to depend on others generosity. Furthermore you would know that he is in the opinion that share buybacks are only worth it if the shares are cheap. If you every read anything from Benjamin graham (considered one of buffets mentors) you would know that he writes explicitly against company mangers who don’t give dividends and instead destroy the value of their stockholders shares. Furthermore my comment had nothing to do with his opinion and more to do with borrowing money from him just like 2008 and the recent oxy preferred shares issue.
As a financial advisor I always recommend a six month emergency fund to everyone. The airlines maintained about a two week emergency fund. They couldn’t have even survived another 9/11 event today. And as far as preposterous amounts of cash being unsustainable, go tell that to Apple, Microsoft, Berkshire, and the endowment funds of multiple Ivy League universities. All of these institutions have crazy amounts of money sitting in the bank and they do very well, despite outside pressure to spend more of it.
They will get all this free money to keep them in business. When this is all over we won’t get any deals. It will be a win win for them and a loss for the consumer. If they don’t get as much they will still make their money back at the end of this crisis.
Why a loss for the consumer? Would you prefer they go bankrupt and you stayed home? I think what you really mean is that you’d like to benefit in some way here, even though you’re not really a counterparty here. Let me ask another question, why are we so worried about the 50billion airline bailout but not as much about the 250billion hotel bailout? Aren’t there some free room nights that you guys want?
Doesn’t take my signature
Something’s wrong
I am in favor of bailing out the airlines and hotels, as long as they pay taxes.
I am not in favor of bailing out the cruise industry, they are registered abroad to avoid taxes. Furthermore, I think Carnival (Princess) should be held criminally liable for each cruise ship they sailed after the first coronavirus-impacted (Diamond Princess) one. At least two more (including one in the water now) have had COVID-19 outbreaks. They put profit before people. People died because they were on those cruises. That is not okay.
Carnival shouldnt responsible of the people stupidity
They put fun and vacation before their life.
Very good point. They’re all registered in Liberia. I would say to let Liberia bail them out. But there is no sense to make this short term liquidity issue cause mass layoffs for ANY industry. The fed can create unlimited money- let’s do that just this year.
Even if the airlines have to agree to all these conditions, I am sure they will find other ways to treat us bad. They’ve proven pretty good at that until now. And even if not, they will for sure increase fares dramatically if they have to make such changes.
send it also to other bloggers
Thank you Dan! I signed the petition.
@dan love the optimism and the requirements but sadly pretty sure this is a go fight city hall situation.. we are not likely to see these changes not that I wouldn’t love to… and yea I’ll sign the petition
Thanks dan just signed
Sticky this to the top please!!!!
+1
+1000
@Dan, I agree 100%. One more line has to be added, name change fees. If it is a TSA rule how could they change for a fee? I once changed my wife’s name on in the airport (travel agent misspelled) and ElAl charged me $250
I’m still not fully understanding the need to bail them out, or in other words, why the airlines are too big to fail.
Many of them have already once gone through chapter 11.
Will there not be companies ready to gobble them up? Warren Buffett seems interested in buying delta anyway. Are jetblue and southwest also about to fail? I’m sure they’d love the chance to cheaply buy some more routes, slots and planes. Maybe Southwest will go back to EWR.
It seems the bailout will happen though. So I guess these consumerist policies are the best we can push for.
What’s the rationale to allow them to devalue miles at all?
I think most importantly, once you buy a ticket, you can gift or sell it to whomever you want. You own it. Same for points. If the TSA wants, they can put in a time limit.
Where do i sign the petition??
Why should we demand no basic economy, it’s a way for people to get cheaper tickets. No one is forcing anyone to but basic economy it’s ban option for those who are willing to do with less. The Truth is just get the airline CC and most restrictions aren’t applicable.
Read:
No more basic economy fares. These didn’t lower fares as promised, they just added restrictions and took away even more dignity from economy passengers.
How can you say these don’t lower fares?without it we’d pay economy fares
Because they didn’t.
The same $45 NYC-FLL and $99 NYC-LAX fares that have been around forever simply got slapped with basic economy labels
So what’s the problem? Willing buyer willing seller. You’re not putting in free popcorn but I have to say that some of your points (and also maybe the totality of your approach) seem equally absurd to me
The problem is that airlines have this kind of pricing power due to mergers and due to slot controls that inhibit free market competition.
Thus they can act like an oligopoly without consumers having any recourse.
Now they’re here hat in hand. If they want our money, it’s time to reintroduce competition and the rules of the game that existed back when competition existed.
“The rules of the game that existed back when competition existed” and all the wonderful free suitcases and free drinks all came with extremely high ticket prices. ook back some years and you will see, that even adjusted for inflation tickets are just getting cheaper and cheaper by the year.The only way airlines can offer dirt cheap tickets as they do is by simply cutting the quality of service- or in english “you get what you pay for”-always was like that and always will be.
what happens if we don’t get the required amount of signatures we are way short
Seats should be freely transferrable. Not clear to me why if I bought a seat I shouldn’t be able to buy and sell that seat on the secondary market.
Signed it!
> Needs 99,052 signatures by April 23, 2020
They should nationalize the airlines (not that different than all these regulations you are suggesting). Another option is give employees of the airlines more control. Strong unions and reps on the board. Punish the CEOs and Board directors.
Sure, give the whole airline to employees. Thus you have Delta on the ropes just after blowing most of its profits the last three years on bonuses to employees. Most employees got two months just in the past year. Those 2 months pay would keep all employees getting paid till May with no bailout.
Thank you @dan for forward thinking in how yo use the situation for consumer advantages (really rights, like you write).
@DAN
what do you gain for requesting US airlines not to charge fuel surcharges on award tickets when they anyways don’t. the problem is foreign carriers like Lufthansa and Austrian, the request should be to make a law like brazil that any award ticket originating in brazil is not allowed to have fuel surcharges
am I right?
American does for travel on BA and Iberia.
Delta does for travel on select airlines and for awards originating from Europe and other places.
Any airline can add them when they feel like it.
@Dan, how many readers do you have daily on the blog? Trying to figure out the numbers for the petition..
Readers is irrelevant. Getting even 1% of readers to take an action is the challenging part.
Aww, c’mon, I was hoping you wouldn’t avoid giving out the numbers..
This article send to imply that the airlines are getting even worse now not better..
Cutting out food and drink on flights.
https://amp.cnn.com/cnn/2020/03/25/business/us-airline-in-flight-changes/index.html
Haha! This is awesome. So you think they should continue to operate their meals while they are in process of going bankrupt. Maybe you’d like your meal delivered to your home?
With respect, this is emblematic of how the demands of the people on this thread are wide of the mark. The purpose of this bill is not to help customers, it’s to help businesses, employees and the economy. It’s not a time for “whataboutery”
It’s bad enough I have to eat airplane meals on the plane, now you want me to eat them at home as well?? No thanks, I definitely don’t want them delivered to my home. The beverages on the other hand, now that’s a different story. I could definitely do with a pallet or two of soda cans especially now in quarantine..
Well said 🙂
Came here to post this. FromAA
For the safety of our customers and flight attendants, we’re temporarily suspending food and beverage service on flights under 2,200 miles (typically less than 4½ hours). Limited beverages will be available upon request. On flights over 2,200 miles (typically longer than 4½ hours), we will continue to offer a streamlined food and beverage service.
Airline CEOs recently promised to stop stock buybacks and paying dividends in exchange for help from the federal government.
I would add that you have longer then 24 hours to cancel a ticket once you book
Don’t bail them out
Unless we get other bloggers to post this I don’t see us getting even the minimum 100k signatures
Well written post, just seeing this now!
Put together very well, and I see there’s many who disagree! Yeh such a petition will be quite hard to achieve!
Unless people actually make a move and read and pass on to another 5 people!