The Check In: Airline Deregulation

-Congress today held a hearing
questioning airline executives
about what changes they plan to make
in light of some horrific incidents lately on airlines
like United, Delta, and American,
because while those events prove shocking to most people,
after nearly 40 years of government deregulation
in the airline industry, perhaps they shouldn't.
So, how did we get here?
Well, it's time for "The Check In."
[ Cheers and applause ]
Now, although Trump denounced the United Airlines incident,
it may be a bit difficult for him to relate
to how awful air travel is these days,
since he's now flying on Air Force One
and, before that, had his own private airplane.
-Trump's own plane, perhaps the most ostentatious.
it has gold-plated seatbelts,
a bathroom with gold-plated fixtures,
onboard home theaters, even a special VIP lounge.
-He has a VIP lounge in his private airplane.
That's a rich thing inside of a richer thing.
It's like keeping the keys to your Maserati in a Fabergé egg.
Also, imagine getting on a private plane
and finding out you're not on the list
for the whole private plane.
"Yeah, I'm sorry, bro. I just don't see an Eric on here."
"Dad! Dad! I'm not on the list!"
[ Laughter ]
Now, United Airlines CEO Oscar Munoz
was asked about the debacle on his plane,
as well as the bizarre incidents on other airlines
and had this reaction.
-[ Sighs ] The industry is getting a black eye.
Yeah, "black eye"
probably not the best choice of words right now.
"I would say currently the whole industry
is being dragged down the aisle with its belly exposed."
And Munoz also referred to the United situation
as "a system failure."
And he's not wrong when he says that
because in this system, anyone can be kicked off
an overbooked flight against their will.
in fact, according to the Department of Transportation,
in 2015 alone, 46,000 customers
were involuntarily bumped from flights.
You might not know about it, but it's a policy
to which you agree to when you book your tickets.
-In the fine print, you can be asked
to leave a flight, involuntarily,
without any compensation as you decide it.
-Even worse, in the fine print,
it also says ass-kickings are like checked luggage --
Only the first one is free. After that, they're $50 each.
[ Laughter ]
So, how did it come to this?
Well, years ago, only the wealthy and privileged
could afford to even get on an airplane.
But that all changed when President Carter
signed the Airline Deregulation Act in 1978
which basically removed government control
over everything from prices to routes,
which also meant the government could no longer
keep prices of flights artificially high.
And this was good for travelers
who could now make much quicker trips to visit relatives,
unless they hated those relatives,
in which case air travel robbed you
of the 15-hour drive where you could psych yourself up
to deal with your passive-aggressive mother-in-law.
"Good to see you, Lydia."
"Good to finally see you, Kevin."
"Kids, get back in the car!"
[ Laughter ]
But with cheaper fares, the airlines had to figure out
how to make up for the lost income.
So over time the seats became smaller,
the food became either inedible or nonexistent,
and everything in general got worse.
Remember the mile-high club?
There was a time where people
actually wanted to have sex in an airplane bathroom.
Now airplane bathrooms are so small,
if you get an erection, you have to open the door.
[ Laughter ]
And that...
will ruin the mood.
And some experts have drawn a link
between how the airlines operate these days
and the deregulation of the industry in general.
-You saw this week United Airlines
with that horrible situation.
Those are a direct result of deregulation going so far
that companies literally have no regard
to their employee-- For their customers. Excuse me.
And no fear of repercussions if they treat them badly.
-To make matters worse,
according to reports since deregulation,
the airline industry lost a collective $60 billion,
and more than 160 airlines filed for bankruptcy.
And even a former airline C.E.O. said that market forces alone
cannot and will not produce a satisfactory airline industry.
That's right -- airline customers
don't develop brand loyalty
the way they do with other products.
Your pilot might as well say, "Hey, folks, we know you have
a lot of choices when you fly, so thanks for choosing
the cheapest flight you could find on KAYAK."
[ Laughter ]
Because, let's be honest -- the main reason airline travel
is so awful is that we, the customer,
are okay with it being awful
as long as the ticket prices are low enough.
If there was an airline that offered $50 round-trip tickets
to any destination in America as long as the pilot
could open-hand slap one passenger of his choosing,
in the face,
that airline would never have an empty seat.
You would just click on it and say, "I like those odds."
[ Laughter ]
So, whatever solution there may be,
it will probably have to come from the government.
Unfortunately, it probably won't come from our government.
Because Trump made this promise
to U.S. airline industry executives
less than a month after he took office.
-You're gonna be so happy with Trump.
Think you already are.
So we want to help you realize these goals by rolling back
burdensome regulations, and you people are regulated
probably as much as almost anybody,
although I can think of a couple of industries
that are even worse.
-"Like, for example, the phony university industry --
that's worse."
[ Laughter ]
"I mean there are so many regulations
on phony universities,
it's almost impossible to keep them in business."
[ Laughter ]
And, by the way, Trump has also promised
to privatize air traffic control,
calling the system, "Totally out of whack."
So, who does the president turn to for advice
when it comes to our airlines,
airports, and air traffic control issues?
-I have a pilot who's a real expert.
My pilot -- he's a smart guy --
and knows what's going on,
said the government is using the wrong equipment.
-And before you trust Trump's pilot, remember,
this is Trump's doctor.
[ Laughter and applause ]
So, I wouldn't be surprised if this is Trump's pilot.
♪♪
[ Laughter ]
No, Trump has already taken steps to dismantle
Obama-era rules to try to make the airlines more transparent
by putting on hold a proposal
to require more disclosure of passenger fees.
And according to reports and filings,
delaying the implementation of a separate regulation
requiring airlines to disclose when they mishandle wheelchairs
and motorized scooters for the disabled.
Because if there's one thing our Founding Fathers believed,
It was you had the right
to [bleep] with someone's wheelchair and not admit to it.
[ Laughter ]
And although some regulations are burdensome and ineffective,
Trump seems to blame them
for pretty much all the government's problems.
And about a month into his presidency,
he had already signed an executive order aimed at
rolling back regulations across government agencies.
And here's how he made the case for that.
-We're gonna be cutting regulation massively.
Now, we're gonna have regulation,
and it'll be just as strong and just as good
and just as protective of the people
as the regulation we have right now.
-What?
[ Laughter ]
We're gonna get rid of regulations massively,
but it will still be as good as what we have now?
That's like your surgeon telling you
he's gonna cut off both your legs, but don't worry,
you'll get around even better than before --
as long as you don't bring your wheelchair to the airport.
[ Laughter ]
So, sure, some rules need to be eliminated and reassessed,
but having government regulations
is why we feel safe breathing the air,
eating the food we buy at the grocery store,
and getting on an airplane.
If we deregulate the industry any further,
all of our airlines could end up looking like this.
♪♪
This has been "The Check In."
[ Cheers and applause ]

The Check In: Airline Deregulation

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