May 19, 2024

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Ted Cruz called automatic airline refunds “stupid.”  Senators disagreed

Ted Cruz called automatic airline refunds “stupid.” Senators disagreed

While Senator Ted Cruz (R-Texas) recently called requiring automatic refunds for canceled flights a “stupid idea,” his Senate colleagues disagree. Lawmakers are moving to strengthen the aviation reauthorization bill after Cruz and three other lawmakers were criticized for trying to undermine President Joe Biden’s new aviation regulations.

last week, I mentioned the crane Cruz, Sen. Maria Cantwell (D-Wash.), Rep. Sam Graves (R-Mo.), and Rep. Rick Larsen (D-Wash.) — all of whom were funded by the aviation industry — introduced a new FAA reauthorization system. an agreement This will require customers to submit a “written or electronic request” for a full refund for a canceled or significantly delayed flight.

The provision has received backlash because it would undermine the Biden administration’s promise to simplify the refund process for airline customers — which has become a bigger problem for consumers like airlines. They routinely sold tickets on flights They have no ability to work.

Tuesday, Reuters Reportedly, lawmakers in Congress have agreed to revise the FAA’s deal to ensure customers automatically get refunds if they don’t want to commit to a significantly delayed flight or accept a rebooked flight.

Following The Lever’s report, Cruz defended his introduction of must-pass legislation during an interview with CNBC, blaming “one tweet” by Sen. Elizabeth Warren (D-Mass.) for inciting the controversy. He then proceeded to claim that most airline passengers don’t want their money back when airlines cancel their flights.

“Most consumers, if a flight is cancelled, they don’t want their money back right away, they want to book a new flight,” he said, scraping away the last vestiges of logic as he pointed out that “almost all conservatives say, ‘Well, keep me in mind.'” On the next trip, and the rule says no, you should automatically give the money back, no matter what the customer wants, that’s honestly a stupid idea.

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Tuesday, The crane Reportedly, financial statements from Southwest Airlines and Delta Air Lines indicate that the two companies have an estimated $2 billion and $6 billion each in unused flight credits, respectively. According to February Filing with the Securities and Exchange CommissionAccording to the post, Hawaiian Airlines generated $312 million from 2020 to 2023 from unused and expired passenger tickets.

Common

In 2020, A investigation By Warren, then-Senator. Kamala Harris (D-Calif.) and other senators estimated that “airlines could be holding on to more than $10 billion of hard-earned money from American travelers,” in the form of unused travel vouchers.

“If these companies return these funds to the public, it will provide a significant incentive to struggling families,” they wrote in a joint statement. “That’s why we’re once again urging airlines to end their anti-consumer policies and provide genuine refunds during this emergency.”