According to one estimate from New York University economist Thomas Philippon, monopolies and oligopolies cost the average American household some $5,000 a year.Īirlines collected $8.6 billion in baggage and change fees in 2019, six times the $1.4 billion they collected in 2007Īntitrust isn’t the sexiest of topics for a lot of people, but it’s one that shows up everywhere. And that often translates to a less-than-ideal situation for consumers. Industry across industry, just one or a handful of companies are in control.
Airlines collected $8.6 billion in baggage and change fees in 2019, six times the $1.4 billion they collected in 2007.Īirlines are hardly the only example of corporate concentration making every life harder and pricier. It’s a great deal for the airlines not so much for passengers. A shitty flight experience is the only game in town. And because there aren’t enough smaller players that can really compete with them - or stricter rules that, at the very least, make them be modestly less terrible - there’s not much ordinary people can do about it. They set the rules of the air, whether that means increased baggage fees (sometimes happening in tandem) or higher ticket prices or an end of service to smaller airports altogether. The “big four” airlines - Delta, American, United, and Southwest - control a large majority of domestic passenger travel in the US. The headlines have largely been about how this affects big tech companies, but the truth is there are monopolies and oligopolies in all kinds of industries. Last week, President Joe Biden signed an executive order intended to increase competition. But one major and constant issue is competition, or rather, the lack of it. There are plenty of reasons flying sucks.
(By the end, this trip was very gross.) It took me many weeks and multiple emails just to get back the money I’d paid to check the backpack that arrived at my destination literally the day before I went home. A few years ago, United lost my bag for nearly the entirety of a 10-day trip to Nicaragua. The fee to check luggage, or even bring it on the plane with me, is always inexplicably increasing.
Flight insurance seems like a scam, but I’m never sure if surprise cancellation or change fees could make it worthwhile. Buying the in-flight wifi is equivalent to throwing money in the trash. For some reason, I now have to pay to pick a seat. I rarely feel more squeezed as a consumer than I do when I fly.
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