Trump's Administration is Potentially More Favorable to The Airline Industry

Stricter Airline Regulations Under Biden Administration Highlight Consumer Protection

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Nov 20, 2024
Summary
  • Biden's administration enforces stringent rules on airline deals and customer protection, contrasting with Trump's business-friendly approach.
  • Delta CEO Ed Bastian sees potential regulatory relief under Trump.
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During President Biden's administration the regulations in the airline industry are more stringent than the previous administration. With Trump things are potentially eased. Below are the evident of several actions during Biden:

  • Blocking airline deals: The Justice Department blocked two major airline deals – JetBlue's proposed acquisition of Spirit Airlines, and partnership between JetBlue and American Airlines to cooperate in the Northeast. However, the acquisition of Hawaiian Airlines by Alaska Airlines was successful.
  • Customer protection rules: During Biden's presidency airlines need to offer automatic cash refund for canceled and severely delayed flights as well as improve their pricing policies for baggage and reservation changes.
  • Regulatory Scrutiny: There is also more scrutiny of proper practices in the airline industry, including how airline handle its loyalty program and fees transparency.

Under Biden, the overall regulatory is more sided to consumer rights protection and ensuring fair competition in the airline industry.

Trump campaigned on reducing bureaucracy and studying at existing regulations and the airline industry sees this that the regulatory approach under his administration could be less restrictive and more business friendly.

Ed Bastian, the CEO of Delta Airlines (DLTA) sees this as a potential of easing some of the regulatory burdens in the industry.

Now the Department of Transportation (DOT) is investigating how airlines manage their loyalty programs, including the exchange of frequent flyer points.

Disclosures

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