Major US airlines, including Delta Air Lines, American Airlines, and United Airlines, have declined to commit to boosting travel benefits for military personnel, according to Transportation Secretary Pete Buttigieg. Buttigieg had urged airlines to do more for military personnel and vowed to publicize the issue on a dashboard, but the airlines have not made clear and enforceable commitments. Airlines for America, a trade group representing the largest US passenger airlines, argues that the dashboard fails to reflect the numerous benefits carriers already offer to service members. The clash between the Biden administration and the airlines follows previous disputes over upfront disclosure of airline fees.
This development comes as large US airlines and their unions are urging the Biden administration to halt the approval of more flights between the US and China due to what they perceive as 'anti-competitive' policies imposed by China on US carriers. The airlines and unions claim that China closed its market to US carriers at the start of the pandemic and implemented rules that continue to impact American operations and airline crews. They argue that the US government should establish a policy to protect US aviation workers, industry, and air travelers. The request was made in a letter to Secretary of State Antony Blinken and Transportation Secretary Pete Buttigieg, signed by the CEO of Airlines for America and the presidents of the Air Line Pilots Association, the Allied Pilots Association, and the Association of Flight Attendants. The number of flights between China and the US has been increasing, but it remains significantly lower than pre-pandemic levels. The Biden administration recently allowed Chinese airlines to increase their round trips from 35 to 50 per week, following a promise from China's aviation authority to seek an increase in flights by US carriers. The US airlines argue that Chinese airlines have an advantage by flying shorter routes through Russian airspace, which has been off-limits to US carriers since Russia's invasion of Ukraine. They also claim that Chinese airlines receive certain protections from the Chinese government as they are state-owned. The US industry groups warn that without equal access to China's aviation market, American carriers will lose flights to Chinese airlines. [44b096f3] [2e77b8ec]
In a separate development, Lithuanian air carriers or aircraft registered in Lithuania have been granted permission to fly into the United States and operate within its territory. Lithuanian Transport and Communication Minister Marius Skuodis announced that all Lithuanian companies that operate in the US airspace, or wish to do so, will be able to do so from Lithuania without having to register their aircraft in other countries. This move provides Lithuanian airlines with direct access to the US market and eliminates the need for them to go through the process of registering their aircraft in other countries. The decision is expected to benefit Lithuanian airlines and strengthen their presence in the international aviation industry. [9e7151e0]
The U.S. Department of Transportation (DOT) has issued an order to cancel the agreement between Delta Air Lines and Aeromexico, which has facilitated 45 million passenger trips between the U.S. and Mexico since 2016. The decision was made due to recent changes at Mexican airport facilities that created an anti-competitive environment. The cancellation of the agreement will impact airline routes out of Salt Lake City International Airport, including flights to Mexico City, Guadalajara, and Monterrey. The agreement supports almost two dozen routes between the U.S. and Mexico. Utah business and political leaders argue that the cancellation will have widespread negative impacts on the state's economy and the consumers and communities that rely on the airline routes. They have written letters to Transportation Secretary Pete Buttigieg, urging reconsideration of the order and highlighting Mexico's importance as Utah's second-largest trading partner. The DOT decision is seen as punishing Utahns and applying unnecessary pressure on the state's economy. Mexico has become a vital trading partner for Utah, and many businesses rely on Mexico for manufacturing and near-shoring opportunities. The cancellation of the agreement is expected to lead to devastating consequences for the economy, consumers, and communities that rely on these routes. Delta CEO Ed Bastian and Aeromexico CEO Andrés Conesa have called for alternative solutions to address concerns over Mexican airport management without harming the cooperation agreement between their companies. [ddfe75d8]
Mexican carrier Aeromexico is temporarily suspending its route from Mexico City to Quito, Ecuador from July 1 to Dec. 18. The suspension is due to the fallout after the arrest of Ecuador's former Vice President Jorge Glas, who had been living in the Mexican embassy in Quito. Mexico and Ecuador broke diplomatic relations over the incident, and both have since stopped processing visas, passports, and other documents in the other nation. Routine consular procedures must now be carried out in neighboring countries. [b76d13f6]
In 1991, the struggling travel industry faced financial difficulties. Eastern Airlines, Midway, and Pan American all operated their final flights that year. TWA implemented desperate pricing tactics to generate cash. The federal government proposed rules to spur airline competition. The United States officially entered the Persian Gulf War in January 1991, leading to a drop in business travel and increased security measures at airports. The National Business Travel Association held its first global convention in Germany just prior to the war. The war and a mild recession in the U.S. in 1991 resulted in a decline in hotel room demand. Airlines and hotels struggled financially, leading to the discussion of direct corporate deals and customized agreements. Travel buyers implemented austerity measures and focused on managing demand and enforcing compliance. Lifeco and Prism introduced pre-trip reporting capabilities to prevent nonessential travel and identify noncompliant bookings. American Express Travel Related Services provided quality data to Texas Instruments, enabling global supplier negotiations. Airlines initiated various promotions and discounting strategies, but direct airline deals began to decline. In December, American Express Travel Related Services and Lifeco announced a merger, setting the stage for a global-sized future for travel management. [c27aceb1]