Biden Administration Goes After Airlines With Executive Order

President Joe Biden on Friday signed a sweeping Executive Order aimed at reeling in corporate powers, including cracking down on airlines and their many fees.

In the near term, that means refunds on services promised – but not delivered – by U.S carriers, such as when passengers’ baggage fails to arrive with them or when the Wi-Fi or in-flight entertainment system is not working.

“Consumers deserve to receive the services they pay for or to get their money back when they don’t,” Transportation Secretary Pete Buttigieg said.

Biden also directed Buttigieg to consider rules that would force airlines to disclose their dreaded ancillary fees up front, including baggage, seat changes and selection, and cancellation fees.

Biden wasn’t picking on airlines. His sweeping EO also includes businesses involved in agriculture, technology, healthcare, banking and shipping, with the idea to dismantle monopolies.

“Let me be very clear: Capitalism without competition isn’t capitalism,” Biden said before signing the order in the White House State Dining Room. “It’s exploitation.”

Existing federal law says passengers are entitled to a fee if their checked bags are lost. The Transportation Department’s proposal would require that airlines refund checked bags when delays go beyond 12 hours for domestic flights and 25 hours for international flights.

Another proposed rule would require airlines to “promptly provide” a refund when ancillary services such as Wi-Fi aren’t provided.

“Reduced competition contributes to increasing fees like baggage and cancellation fees,” the White House said in a statement. “These fees are often raised in lockstep, demonstrating a lack of meaningful competitive pressure, and are often hidden from consumers at the point of purchase.”