Government shutdown 'would be a mess': Secretary Pete Buttigieg

In this article:

Secretary of Transportation Pete Buttigieg sat down with Yahoo Finance Executive Editor Brian Sozzi, who is at the Goldman Sachs Communacopia & Technology Conference, to talk through the current state of travel in the U.S.

Despite challenges with airlines and the customer experience, Buttigieg is optimistic about the safety of modes of transportation, specifically in aviation, stating "flying is the safest form of travel in the United States." Buttigieg also weighed in on the looming government shutdown, saying it "would be a mess for the U.S. economy."

Click here for more of Yahoo Finance's coverage from the Goldman Sachs Communacopia tech conference.

Video Transcript

BRIAN SOZZI: Mr. Secretary, always nice to get some time with you here. So we're done with the summer. We're getting ready into the fall travel season. But before we even start our fall travel, we had news this week about United Airlines having trouble, or computer glitches, or whatever it might have happened. There have you talked to United Airlines, and do you think that is indicative of airlines underinvesting in their platforms?

PETE BUTTIGIEG: Well, you never want to generalize too much from one case, but, you know, this is not the first time this year that we've heard about technology issue. The issue that we saw earlier at Southwest Airlines. We had an issue with the FAA. So clearly in terms of keeping the aviation system operating smoothly with the pressure that it's under, there's going to need to be continued attention to technology.

I did speak to the United Airlines' CEO yesterday as the situation was developing. They were able to get on top of it pretty quickly and get service back to normal. But certainly, I think it points to the role that technology increasingly plays not just on board technology and, of course, we spend a lot of attention here at the department certifying and looking after the safety of aircraft technology itself. But everything around that from dispatch systems that airlines use for their operations to the various communication systems that the FAA uses for hours.

And of course, across all of that our top priority is always going to be safety. And then once safety is seen to, then you got to make sure that the operations are looked after. But the good news is overall, you look across the Labor Day weekend at the end of a summer that saw an all-time record high in terms of the number of Americans getting onto airplanes. We saw less than 1% of flights canceled, less than 2% of flights delayed. We're not satisfied or sitting back resting comfortably, but very encouraged by the results that we saw that holiday weekend, and generally speaking, over the course of the summer.

BRIAN SOZZI: These tech delays, Mr. Secretary, that seemingly come out of nowhere, should flyers just expect these things to happen this fall and even into next year as technology plays a greater role in our lives?

PETE BUTTIGIEG: Well, the big thing I want flyers to know is that when there's a situation that an airline is responsible for, and certainly a mechanical failure or an IT failure, delaying or canceling your flight is an example of that. You have recourse. We are enforcing customer service agreements that are dramatically improved compared to where they were just a year and a half ago after everything passengers went through last summer and the pressure that we put on airlines.

So we're encouraging passengers to go to flightrights.gov so you understand if you do get stuck in a situation like that an airline is responsible for, what you can expect and what you can be guaranteed in terms of coverage for how you get rebooked having your expenses covered while you're on the ground meals, hotels, that kind of thing. The best scenario, of course, is for that kind of disruption not to happen in the first place. When it does happen, we want to make sure passengers know that our department has your back.

BRIAN SOZZI: "The New York Times" recently reported, Mr. Secretary, close calls or an increasing number of close calls on the tarmac. Why do you think this is happening? You know, we haven't had a major aviation disaster in some time, but I think consumers seeing these stories are like, wow, what's going on here, and what could be done to prevent something catastrophic from happening?

PETE BUTTIGIEG: Well, a lot goes into maintaining the safety record of our airspace. We have the safest, most complex aviation system in the world. Amazingly, flying is actually the safest form of travel by far in the United States. But we don't take that for granted or sit back with that, which is why now even a situation that was out of the norm, let alone an actual incident, is going to get the kind of attention that used to be reserved for when there was an actual collision in the past-- something that hasn't happened in over a decade in the United States. And again, lots of work goes into keeping it that way.

Keeping it that way for the future includes making sure we have the right kind of technology. It means making sure that there is the right kind of training and attention we're pushing a lot right now on situational awareness, communications, sterile cockpits, good hygiene that everybody whether in the tower or in the flight deck needs to maintain.

The other thing I would add is that what would not help us in the progress we're making right now is a government shutdown. You know, this is a very good and important example of why non-defense spending in the federal budget is very important. If we went through a shutdown, a lot of the progress that we have been making on building up air traffic control staffing and readiness and training would be stopped in its tracks.

We would lose the momentum that we've gained over recent weeks and months, and it would send us in the wrong direction. So one of many-- many reasons we're looking to Congress to do what it takes to fund the FAA, fund the government, and keep things moving.

BRIAN SOZZI: There has been some chatter on the other side of the aisle-- the Republican side-- maybe they should push for a government shutdown. Just from your vantage point, how terrible would that be for the US economy? You're talking about, you know, flights being ground to a halt potentially, and a lot of other things that could be really damaging.

PETE BUTTIGIEG: Look, this would be a mess for the US economy. Even if they keep the bare minimum up and running in terms of having the air traffic control towers open, we would lose the trainees who are part of the operation there. A shutdown even lasting a few days or a week could set us back by months in terms of the training pipeline for controllers because everything that goes into building that kind of experience and keeping it current.

So you look at aviation, which is in the neighborhood of 5% of our GDP, that alone would be dealt a really serious blow to the momentum that we've been seeing from a shutdown. It's one of many, many examples why this is not-- you know, they're playing with live fire here. This is not theoretical. This is not academic. This is direct damage to the US economy that can and, in our view, must be avoided and be prevented.

I don't think there's any justification for playing political games with something as important to our economy and as important to our economic and national security as keeping the federal government up and running and serving the American people.

BRIAN SOZZI: And lastly, Mr. Secretary, I know this doesn't fall under your direct purview, but we're at a pretty interesting moment in the UAW negotiations with the major automakers. If an agreement isn't reached and these workers go on strike, maybe that's one less car produced, maybe one person won't be able to get to work, what do you think that does to our economy, and does it feel like a very big moment for the labor movement in this country?

PETE BUTTIGIEG: I think the moment you're seeing with the labor movement is a recognition that there are big changes and developments coming to the auto industry, and the UAW wants to make sure that workers benefit from those changes. Look, I grew up in a town that was shaped not just by the auto industry generally, but by the achievements of the UAW specifically, were the hometown to Local 5 and Local 9 back in South Bend.

And so I've seen directly how the middle class and the prosperity of whole communities is shaped by the ability of autoworkers to get a fair share of the wealth that they create. Now, of course, they need to be at the table working with the auto companies that have a business to run and need to make sure that that sector succeeds.

And so our role has been engaging the parties and urging them to come to a negotiated solution that spares the American economy the impact of a strike, and that also ensures that workers do right by the extraordinary opportunity in front of us. You Know, not that long ago, a few years ago, we were talking about a manufacturing recession here in the United States.

Now, we're seeing a manufacturing job boom. I was just back in Indiana, where I grew up, and drove the road from South Bend to Indianapolis past a massive facility under construction outside of Kokomo that is just one example of the auto supply chain and industry construction and development happening right now. We need to make sure we keep the momentum for that economic manufacturing growth. And as the UAW is seeking to ensure, have that development happen in a way that benefits American workers.

BRIAN SOZZI: Transportation Secretary Pete Buttigieg, always great to get some time with you. Thank you for talking about a lot of really important issues with Yahoo Finance all the time. Thank you so much.

PETE BUTTIGIEG: Same here. Always good to be with you. Thanks

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