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Pete Buttigieg Goes After United & Other Airlines for Their Frequent Flyer Programs: "A Clear Form of Corporate Welfare"
Pete Buttigieg, a leading Democratic presidential contender, has taken aim at the frequent flyer programs offered by major airlines like United Airlines, Delta Air Lines, and American Airlines, labeling them "a clear form of corporate welfare." Buttigieg made these remarks during a recent stop on his campaign trail, as he seeks to shift attention to the perceived mistreatment of everyday consumers.
"This is a prime example of how the corporate elites can manipulate the system to further their own interests at the expense of the little guy," Buttigieg declared. "By padding their bottom lines with special treatment for frequent flyers, they’re essentially gaming the system and sticking the middle and working classes with a bad deal."
The focus on frequent flyer programs marks a significant shift in the ongoing debate about the influence of corporate money in American politics. As a mayoral candidate in South Bend, Indiana, Buttigieg has made his own policies and governance record central to his campaign. With the Democratic primary still far from settled, the shift to corporate accountability signals his readiness to tackle bigger economic and social issues.
"But this isn’t just a theoretical issue; it affects everyday Americans," Buttigieg emphasized. "You and I, as average taxpayers, are effectively propping up these airline profits, while they enjoy an extraordinary level of favorability within the system."
Proponents of frequent flyer programs, including industry executives, contend that they foster competition among airlines and drive loyalty, ultimately benefiting passengers and contributing to economic growth.
On the other hand, many critics argue that frequent flyers disproportionately benefit from loyalty rewards, with others having less access to similar offers due to the limitations. Supporters of the system like that it provides benefits beyond standard ticket purchases.
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The DOT and Pete Buttigieg are going after United and other airlines for questionable practices in their frequent flyer programs. What do you guys think about the DOT officially investigating this matter? About time or government overreach?
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Overreach. The only thing this is going to do is reduce the availability of frequent flier/rewards programs/availability overall. This is no different than, say, Starbucks changing from a free drink every 12 purchases (of any size) to a stars/points based system that was a free drink every 100 stars, to now it costing 200+ stars for a free drink.
Loyalty programs are not a public service, they are not a right, and the terms of them do change.