IATA Director General Tony Tyler has complained about the increasing US regulatory interference in the business of airlines, calling it a retreat from the free market principles that are the basis of deregulation and could have unintended negative consequences.
Speaking at the FAA Aviation Forecast Conference, Tyler said regulatory measures were unfairly biased against the airline industry and forced business practices on them that are not applied to other industries. “Consumers accept unbundled pricing models for everything from mobiles phones to cars,” he said.
“Unfortunately, we are seeing a US retreat from the free market principles it had with deregulation and in its place we have micromanagement that’s regulating how airlines compete,” Tyler said.
Among examples he gave were rules that require US carriers to hold a reservation for 24 hours, include all taxes and fees in the upfront ticket fee, and sell tickets via global distribution systems.
“The more you tinker with industry, the greater the chance of unintended consequences,” Tyler said.
IATA criticizes increased regulation
