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Comment by Grombobulous

20 hours ago

Where I find this subject difficult to converge to is the exact point of “things should be” lies.

I would be in agreement with you that more customer protections are usually a good thing and that most jurisdictions on this planet really don’t have enough of them. Certainly I would agree that airlines shouldn’t be allowed to engage in as many anti-consumer games as they play in the status quo.

That said, I think we can both understand that there has to be a limit at some point to the risk internalization that a business can be reasonably expected to bear just to exist and sell products. Otherwise, it pushes costs higher for everyone and makes competition more difficult to come by.

It also limits product choice because many consumers prefer to choose higher risk options specifically to save on cost.

If airlines have to charge 10% more now because they have to compensate everyone’s hotel, car rental, and wasted DisneyWorld tickets for every canceled/delayed flight (I’m not saying you are advocating for such a thing, just a hypothetical), and I’m a customer who has a flexible schedule and never utilizes those compensations, now I’m just paying 10% more to get no additional protection for me personally.

This concept is essentially imposing a risk tax on all of society to normalize risks, and it might be argued that such a tax is not very progressive or productive.

Regardless of where we decided to specifically draw the line, any increase in compensatory duties imposed on airlines will increase pricing for their services. The airline industry is the perfect case study for that idea because it’s essentially a zero-margin business. Almost every US airline loses money flying and makes up for those losses with credit card programs. So if they have to start compensating for more scenarios, our ticket prices are going up, guaranteed. It’s not like Apple where imposing mandatory replaceable batteries or a 2 year warranty would barely change the economics of their business and greatly benefit consumers.

My main idea was not to bring up a bunch of irrelevant strawman examples, they were more to point out the fact that acceptable harm or risk is something of a universal concept in commerce. It’s not reasonable to ask beer companies to pay for every health complication of alcoholics just like it’s not reasonable to ask airlines to pay for every consequence of a delayed flight. This is because the level of risk was already agreed to by society: everyone knows that beer is bad for your health[1] just like everyone knows flights sometimes get delayed or canceled.

[1] The only reason the tobacco industry got into legal trouble is because they lied about their knowledge of its unhealthiness and addictive qualities.

In agreement with your points, but I think something even more pertinent to airlines compared to beer companies, is that a brewery is almost incentivized to create alcoholics. The only natural distinctives are at the extremes. Extreme alcoholics die and therefore stop buying booze, and social backlash to extreme levels of liquor consumption can cause profit-hampering regulations or outright prohibition. But in general, a person who empties a six pack every night after work is ideal for Coors.

Contrast this to airlines. They have ZERO incentives to delay your flight. They have zero incentive to divert passengers to another airport. They have no incentive to cancel, or otherwise prevent their plane from getting to its destination. Their interests are fully aligned with yours in this regard.