Ben Baldanza, CEO of Spirit Airlines, has come out strongly against new DOT regulations that will require airlines to guarantee their seats for at least 24 hours.
This sounds great for the consumer but there is a trade off companies make between providing an exceptional service versus price. Restaurants could give you their silverware but they don’t do it because it would drive up the price.
By forcing seats to be guaranteed, airlines will not be able to sell as many seats as they used to. They will be providing the same service but getting less income. So prices will go up.
This regulation was put in place to keep airlines from overbooking. But when airlines overbook, they are usually very good at compensating you if they change your flight. We all save money and the few people who choose to change are rewarded.
If companies take advantage of us then we, as consumers, can vote against them by not using their airlines. And with the internet, it is easier to identify the bad companies and avoid them. We don’t really need to spend millions (billions?) of dollars on bureaucrats that create regulations that are harmful to our economy..
Picture from: donkeyhotey