1970-2000 Airline Congestion and Watergate Lead to 1977 Deregulation Legislation

 

Intrastate Airlines not Regulated by CAB and Airline Marketing Swell Air Passenger Counts

 

1949+ PSA in California, Trans Texas, Southwest Intrastate Airlines Outside CAB Authority

 

1972 Braniff and American Illegal Nixon Campaign

 

1970+ Airport Congestion Soars with Passengers and New Jets and Needed Airport Infrastructure

 

1973+ Phil Bakes and Stephen Breyer Watergate and Illegal Campaign Contributions Lead to CAB

Airline Executives Oppose Deregulation Except United's Ferris and frontier Ally Feldman

 

Kennedy and Cannon Lead Air Deregulation Legislation, Carter Signs March 1977, Appoints Kahn to head CAB

 

Airlines Respond to Deregulation by Slashing Fares, Expanding Routes, Starting or Acquiring Airlines

 

1971-80 Lorenzo Cuts Wages after TransTexas Acquisition, Starts NY Air, Burr Leaves to Build People Express

 

1978 PanAm Buys National for Domestic Routes, Bidding War Gives Lorenzo $30 million, used for NY Air start

 

1973+ Crandell joins American, uses Sabre IT to dominate high yield revenue growth, compete with price cuts

1975+ Beats charters with Super Savers, 1979+Sabre terminals to travel agents, 1982 starts Frequent Flyer miles

1980 President, 1981 moves from NY to DFW, 1987 CEO, passes United, Low wages to new union hires

 

Lower fares, more travelers, union resistance yields volatility, little profit as technology shifts from planes to IT

 

August 1982 Air Controller Firing Changes US Competitiveness in non-Airline industries, Air unions resist

 

1982 Lorenzo Acquires Continental, Cuts Union Wages, PanAm Gets Wage Cuts, Fights Laker domestic low fares

 

1985 Ferris suffers pilot strike, gets PanAm Pacific, diversifies to Hilton, Hertz, Southwest to Midway, CA

 

1986 Eastern Sold to Lorenzo after Borman Decade of Rise, then fall, Bryan IAM and union challenges

 

Despite hijacking and terrorist attacks, strikes, labor and bankruptcy turmoil, FAA safety record remains great

 

1991 UAL's Wolf and Delta let PanAm cease operations after buying routes

 

2000+ Deregulation bankruptcies and failures lead to US airline megamergers except Southwest

Unanswered Resolution of Major Issues of Balance of Technology, Management, Unions

Pilot issues still not resolved at most surviving mega mergers

 

American Horton and US Air Parker Merge without Pilot Seniority Clarity, Unlike Delta Northwest

United Continental majority pilot owned, Delta pilot-management stability, Southwest success as Kelleher retires

 

Technology of faster and higher curtailed with Concorde profit failure, emphasis on fuel efficiency in 787

767, 777 and 787 Success Critical to Boeing Future, Airbus with A 380 and other competitive planes

 

Boeing's McNerney Struggles with Materials, Systems, Batteries of 766 and Future of 747/777

 

Ongoing complexity of government support issues of Airbus 300 and 380 and Boeing preferences and practices