Economic Liberties Applauds More Permanent Airline Refunds Solution in FAA Reauthorization

May 8, 2024 Press Release

Washington, D.C. — In response to news that the updated FAA Reauthorization bill now maintains and codifies the U.S. Department of Transportation’s (DOT) recent automatic refunds rule, countering attempts last week to weaken the provision, the American Economic Liberties Project released the following statement.

“We’re thrilled to see that Congress has put forth a revised FAA Reauthorization bill, which among other crucial provisions, will ensure that passengers receive automatic refunds when an airline fails to deliver as promised,” said William J. McGee, Senior Fellow for Aviation and Travel at the American Economic Liberties Project. “If an airline screws up the onus should be on them—not the passenger—to make sure it’s corrected. The DOT’s recent rule does exactly that, and Congress’ bipartisan effort to codify it will lead to one of the strongest airline passenger consumer protection laws in recent history. Congratulations to the DOT, along with Senators Warren, Hawley, Markey, and Blumenthal, for winning this fight to protect passengers, and sending a historic shot across the bow toward Too-Big-To-Care airlines and their army of lobbyists. That said, there is much more to be done by both the DOT and Congress to further protect passengers and rein in the airlines, and we look forward to working with them to do so.”

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.