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Monday, April 29, 2024

Federal Government Restricting Opportunities for Low-Cost Consumer Flights

 As summer approaches and Americans start planning their trips, they are once again faced with the harsh reality of the high cost of travel. This burden is particularly heavy for working-class families, who often find themselves priced out of the market. The lack of competition in the airline industry has led to the exclusion of smaller carriers that would offer more affordable travel options to these families, especially those residing in smaller cities who are seeking a brief weekend escape.

A solution to this issue exists; that being ultra-low-cost carriers (ULCC) which provide reduced fares and more nonstop travel options.

Unfortunately, these benefits of ULCCs have been overshadowed by an overlying issue: the Department of Transportation's opposition to proposed joint ventures between these budget-friendly airlines. Such collaborations among affordable carriers would revolutionize the industry by fostering competition and enhancing cultural ties between the United States and other countries, through an increase in nonstop routes, particularly to Mexico— one of the most popular international destinations for American travelers.

Most importantly, these joint ventures would expand access to reasonably priced flights and provide more options for working-class Americans in underserved cities.

Smaller airports are facing significant losses in service and frequency due to the absence of direct flights, which directly affects residents in surrounding areas. This is felt across small-to-mid-sized cities throughout the United States, in states like Illinois, West Virginia, Nebraska, Pennsylvania, and more. As a consequence, local economies are suffering, and Americans are being penalized with limited options for affordable direct travel.

As I recently wrote about in the Morning Call, these airlines aim to provide some of the lowest fares possible, focusing specifically on increasing nonstop flights. ULCCs, which include companies like Allegiant Air, Avelo, and others, cater to small-to-mid-sized city markets by offering conveniently-scheduled and low-priced flight options for travelers. Approving joint ventures offers clear benefits for American consumers and businesses, a straightforward and bipartisan decision that the Biden administration should readily support, yet is refusing to.

Rather than acknowledging the advantages of these joint ventures, the Biden administration has opted to halt the evaluation of such proposals, citing geopolitical apprehensions. In doing so, the administration is discounting the importance of American voters, those who ultimately determine the outcome of U.S. elections.

Considering the significance of this election year, it would be wise for the Biden administration to set aside these political considerations and recognize that joint venture solutions offer tangible benefits to everyday Americans, who are eagerly seeking policies that can provide financial relief after two years of steep inflation. Joint ventures, like the one suggested by Allegiant Air and Viva Aerobus, would greatly benefit these demographics nationwide. Such collaborations would establish connections between cities across the U.S. and Mexican resort destinations, allowing hard working parents and their children to enjoy summer vacation just like other American families.

The tourism industry would not be the only beneficiary of joint ventures. Bilateral relationships between the U.S. and other nations would be strengthened as well by fostering greater cultural connectivity, and streamlining air travel options for border-divided families.

In a tight election year, if Biden’s Administration chooses to ignore this issue, it could cost him severely at the ballot box. The President and his team need to recognize that they are essentially “shooting themselves in the foot” by not approving such joint ventures. They can and should do better.

Joint ventures, such as those put forward by airlines like Delta or Allegiant Air, represent a significant step towards making air travel more affordable and accessible for working-class Americans. This aligns perfectly with the Biden administration's key values of encouraging competition, lowering costs, and aiding underserved communities.

By stopping these joint ventures, the administration harms those that it claims to help, while simultaneously missing a chance to bolster bilateral relationships on a global scale. The time has come for the Biden administration and the Department of Transportation to set politics aside and prioritize basic things that everyday Americans can greatly benefit from.

Granting approval to these joint ventures presents a mutually beneficial outcome that would advantage working-class Americans in small and medium-sized cities across the country while concurrently promoting international collaboration.

Ryan Costello is a former U.S. representative from Pennsylvania.He served on the Transportation and Infrastructure Committee and was vice chair of the Aviation Subcommittee.

https://www.realclearpolicy.com/articles/2024/04/29/federal_government_restricting_opportunities_for_low-cost_consumer_flights_1028151.html

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