The trump administration plans on reviewing two proposals created by the Obama administration that would allow customers to easily compare prices between airlines, and forcE airline companies to display their marketing methods. Trump’s executive order ‘Two-for-One’ regulation highlights his position on eliminating existing regulations
Airlines in support
Airline companies cheer nationwide as Trump stops a proposal that would force booking sites like Expedia or Travelocity to display the baggage fee along with ticket price and also their marketing methods.
Airlines argued that such a proposal would give the government control over how the airlines operate their business.
In 2015, airlines earned $3.8 billion solely from baggage fees. Airlines are under regulation of 13,000 rules across several agencies many of which are outdated. President Donald Trump met with CEO’s of several airlines asking about such regulations that are impeding them in job growth. Though the regulation would allow for greater transparency for the customer, stopping the regulation would be one of the first steps to eliminating ancient regulations.
JPMorgan
While airlines fully support the decision, others such as JPMorgan argue that the proposal would not have had a large financial impact.
Under Obama, the government did not seek to heavily regulate airline companies’ ability to pursue revenue by implementing things like banning baggage fees completely. In a statement by the firm, they complained of Trump’s version for important regulations.
Department of Transportation
The Department Of Transportation gave the Trump administration an opportunity to review the proposal effectively stopping it.
Airlines applauded Transportation Secretary Elaine Chao for making such decisions heavily in favor of airline companies. President of the Travel Technology Association argued against the decision claiming that the Department of Transportation needs to provide a competitive environment for airline prices and services.
Conflict exists between airlines and online travel sites.
Airlines pay online sites where their seats are sold and distributors to gather pricing data on the sites.
Although Trump’s restrictions on immigration dropped the value of airline stocks because of concerns about the impact on travel demand, stocks have continued to rise. Trump’s administration plans on cutting down regulations and improving the industry. A decision that affects many travelers.
