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The learned helplessness of Pete Buttigieg
Section 41712(a) or bust.
The apocalyptic airline meltdown over the Christmas break stranded thousands of Americans, ruining their vacations and costing them a fortune in unexpected fees. It wasn’t just Southwest Airlines’ meltdown, either — as stranded fliers sought alternatives, airlines like AA raised the price of some domestic coach tickets to over $10,000.
This didn’t come out of nowhere. Southwest’s growth strategy has seen the airlines add more planes and routes without a comparable investment in back-end systems, including crew scheduling systems. SWA’s unions have spent years warning the public that their employer’s IT infrastructure was one crisis away from total collapse.
But successive administrations have failed to act on those warnings. Under Obama and Trump, the DoT was content to let “the market” discipline the monopoly carriers, though both administrations were happy to wave through anticompetitive mergers that weakened the power of markets to provide that discipline. Obama waved through the United/Continental merger and the Southwest/AirTran merger, while Trump waved through Virgin/Alaska.
While these firms were allowed to privatize their gains, Uncle Sucker paid for their losses. Trump handed the airlines $54 billion in covid relief, which the airlines…