Operations were streamlined and thousands of employees laid off. Struggling to survive, airlines cut wages and benefits, but this strategy resulted in strikes and lower productivity. But Braniff, Eastern, and many others could not and were forced into bankruptcy and extinction. Large, well-managed, well-financed airlines, such as American, United, and Delta, weathered the storm during the 1980s. Many airlines had over-expanded and found themselves desperately fighting for a share of a decreasing market. When recession hit in the early 1980s, compounded by an air traffic controllers strike in 1981, the industry began to suffer losses. In a hub-and-spoke airline system, most flights connect through a few hub airports. Image courtesy of Delta Flight Museum. A "hub" is a central airport with flights paths radiating from it like spokes on a bicycle wheel. And if one airline dominated a hub, the lack of competition often led to higher fares.ĭelta route map showing hub-and-spoke system adopted by airlines after deregulation. But it also increased airport and air traffic congestion and eliminated many convenient nonstop flights. This strategy maximized aircraft use, increased passenger loads, and kept more aircraft flying. To increase their efficiency, airlines adopted the hub-and-spoke system using a few major airports as central connecting points. Faced with all this new competition, established airlines tried to lure passengers with lower fares and curbed costs by cutting cabin service.ĭeregulation also lifted restrictions on where airlines could fly. Some intrastate airlines, including Pacific Southwest, Air California, and Southwest, expanded too. It instantly became popular, especially with budget travelers. Image courtesy of Bob Garrard.Įastern, Braniff, Delta, Continental, Western, and Northwest also extended their networks to compete with the largest carriers. By eliminating in-flight services and maximizing employee productivity, it offered very low fares. It made the underused Newark, New Jersey, airport its hub. PeoplExpress epitomized the new airlines when it began flying in 1981.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |