Showing posts with label Airlines. Show all posts
Showing posts with label Airlines. Show all posts

Wednesday, December 29, 2010

Airline Deregulation – 1978


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I flew heavily on business during the first half of the 1970s and the last half of the 1980s, both before and after Deregulation.  Schedules were much more reliable before Deregulation.  Passenger screening consisted of nothing until late 1972 when metal detectors were installed throughout the country at the direction of the FAA.  Airlines were made responsible for the screening.

Airlines were subject to government regulation from their very earliest days, 1920s to 1930s, the reasoning being that they served a function much like a public utility and that the government had paid a lion’s share of aircraft development to that point in time.  Utilities have traditionally been seen as services necessary to the smooth conduct of commerce; transportation, mail, electricity, water, sewer, police, fire, communications. 

Free market supporters, being what they are, always see functions that produce large amounts of cash flow as potentially profitable enterprises, if only they were free of government intervention and open to capitalists to work their magic.  There follows an ongoing dance between ever increasingly inefficient, bumbling government regulators, pliable politicians, and ambitions capitalists to determine if government regulation serves its initial purpose or not. 

In 1978, after nearly 50-years of airline regulation by the CAB, the government under the auspices of Messer’s Carter and Kahn, effected Deregulation amidst great fanfare.  Within a few years, during the 1980s, we lost a number of old line carriers as they merged or liquidated, leaving us with the few majors we have today.  Low cost carriers emerged and disappeared.

Competition, such as it was in a regulated environment, tended to focus on the quality of cabin service (meals & comfort) and reliable schedules.  Prices were uniform and expensive.  After Deregulation, comfort disappeared, as did meals and reliable schedules.  On the other hand, owing to the true capitalist nature, prices could range from too cheap to outrageously expensive depending on who had the upper hand in the transaction.

In a regulated environment, airlines tended to be assigned in pairs to specific routes in order to ensure service to underserved destinations and to provide a kind of measured seat availability.  Their departure and arrival times were also regulated in order to ensure smooth traffic flow.  However, it could be a challenge for a traveler to piece together a sensible schedule since it often required changing carriers on a multi-leg journey.

After Deregulation, carriers switched to a hub and spoke arrangement, much like the package carriers had been using for years.  This permitted an airline to capture a passenger for the entire journey as it made switching airlines difficult, expensive, and irrelevant (it also rendered the DFW “People Mover” even more useless than it already was).  Unfortunately, it made choosing a competently-run airline more important than ever which was difficult to do for the occasional or unsophisticated traveler.

So, here we are over 30-years down the road and airline travel, despite propaganda to the contrary, is not as comfortable and predictable as it was.  Ticket prices are lower and I suppose that’s something; but, I couldn’t imagine being trapped in a plane on a tarmac for 10-12 hours for any reason whatsoever—I don’t care what excuses are given or by whom.  The risk of that circumstance alone is enough, in my opinion, to constitute a significant decline in airline service over the past 30-years.  And the faces I would attach to that accomplishment are those of Messers Carter and Kahn, both of them Democratics. 


Wednesday, December 02, 2009

Time Passes - Part 2


Thinking about my last post a bit more, I thought something was missing. Rather than look at air transport development in a couple of 50-year increments, why not take a look in 25-year increments? That reveals a somewhat different story.

Where we were on an unmistakable, nearly century-long upward slope until the early 1980's, culminating in the SST entering service, it seems that we have really entered a plateau in the past 25-years--about the time our children were heavily involved in school. Suddenly, it seems that we no longer wanted to go to the moon any more; no more bigger, better, faster cars or planes; just bigger houses and SUV's. Fooey.



Adios

Monday, November 30, 2009

Time Passes - Part 1


Someone once wrote, “Seasons change, young man,” meaning, I suppose, that things will not stay the same, no matter how much we would like them to do so.
While writing this blog has been an interesting exercise in introspection and has been visited by a number of my old classmates, I’ve been a bit surprised to observe that not many wanted to chime in. It seems to have been more of a venue for some of their offspring to drop by to try and learn something of their parents, or uncles, or aunts, or something like that. And that’s O.K., too.
Today, I was thinking about the advances our society has made during the past 40-50 years and I was a little perplexed to think of much that has changed to any great degree. Computers arrived to our desks, of course…but it seems to me to be a dubious claim that life is better for everyone since the wide application of the computer.
Think of it…now entire airlines that once ran on schedule are shut down not only when their own computers fail, but also when the FAA computers fail. I cannot recall a time 50-years ago when much of the air traffic control system shut down on a clear day.
One way of looking at it is to consider the accompanying pictures. The jets are rotating approximately 50-years apart, yet they look very similar to each other. On the other hand, look how far we had come during the 50-years before our 63 Highlander year.
And we have the recent event where a commercial flight crew overshot their intended destination by about 100-miles or so. This, while the 2-man crew was either asleep or monkeying around with their computers, depending on what story you believe. Also note that where we formerly had 4-engines, we now have but 2; and where we once had a 3-man crew up front, we now have but 2.


Adios