The Big Airline executives have come and gone again, this time leaving Washington with over three billion dollars of our tax money. But as far as the Big Airline lobbyists are concerned, the job is only half done.
This year, the federal government also happens to be updating its rules governing the Computer Reservation System (CRS) industry. Although most of us have probably never heard of them, these rules actually determine how airline tickets are bought and sold in the United States.
Not surprisingly, the very same big airlines that just took away three billion from the U.S. Treasury are now lobbying hard to slant these rules in their favor. Their preferred approach would rob traveling consumers of protections that have existed for decades.
Free and fair markets, when they are allowed to work, benefit both businesses and consumers. The current U.S. Department of Transportation rules were written with this in mind, and while not perfect, have allowed for the emergence of more choices for consumers through bargain carriers and distributors such as Southwest, JetBlue, Cheaptickets, Expedia and Travelocity.
Regretfully, the big airlines recently mounted a campaign to give themselves a blank check from the American taxpayer — no strings attached. U.S. Senators such as Ben Nighthorse Campbell, John McCain, Trent Lott, and Richard Shelby fortunately fought these attempts and made sure the airlines weren't allowed to spend our money on exorbitant executive pay packages or controversial ventures like Orbitz, the five big airlines' company store.
Orbitz has drawn scrutiny from the Transportation Department and State attorneys general, and is currently under investigation by the U.S. Department of Justice. Let's hope that in the days to come, these and other champions of consumer protection will keep an eye on Orbitz and the role that government regulatory preferences play in expanding its share of the travel services market.
Otherwise, in addition to that big check, these airlines will walk away with even more of our hard earned money and deprive us of what we most cherish — consumer choice.