Airline De-Regulation, explain, pre and post.

**mirrodie** · 2007-02-20, 12:49 AM

You know, I never really understood the term.

Perhaps some of the sage gentlemen here, who saw the period in action, can explain what exactly air travel was like prior to this term and subsequent to it?

I think it'd help edumacate some of the younger snappers like myeslf. ;)

I am looking forward to your collective wisdom to once more grace the forums. :)

Thanks in advance,
Mario

**tipek** · 2007-02-20, 01:14 AM

Then maybe you should read "Hard Landing" ? :) You will experience that period of time in first person. Seriously, in that book you can learn everything about Deregulation. In two weeks I will check on you if you read that book ;)

Rafal

**Alex T** · 2007-02-20, 01:54 AM

Originally Posted by tipek

Then maybe you should read "Hard Landing" ? :) You will experience that period of time in first person. Seriously, in that book you can learn everything about Deregulation. In two weeks I will check on you if you read that book ;)

Rafal

I agree, Hard Landing is an excellent book and coveres EVERYTHING you need to know.

Alex

**Nonstop2AUH** · 2007-02-20, 05:26 AM

Long story short, my 2 cents worth:

Pre-deregulation : Going back to when commercial aviation was a 'new' industry, the Civil Aeronautics Board set fares, so airlines had to compete on service. This is what many oldtimers remember as the good old days, when almost any flight was kind of a special experience, friendly employees, meals of course in all classes and souvenirs for the kids and such. Downside for consumers was that fares were set at high levels that only the wealthy (or upper middle class at least) could afford, and CAB decided who could fly where.

Post-deregulation: CAB went away, airlines were allowed to compete on price, which led to lower fares that just about anyone could afford, and more choice for consumers from new competitors like People Express. However, it also required the existing industry to deal with a high cost structure set under the prior regulated system, and in the process cut back on service levels in certain ways to stay competitive. Lines at the airport got longer, passenger amenities started to disappear, employees stopped smiling alot etc.

See also:
http://en.wikipedia.org/wiki/Airline_Deregulation_Act

**mirrodie** · 2007-02-20, 11:29 AM

Can you summarize HARD LANDING and what I asked in this post?

I have a 1 month old son at home.....reading and personal time is non-existent!

**FlyingColors** · 2007-02-20, 02:04 PM

CAB was one of the best things for the business.

Everyone got "a fair slice of the pizza" and airlines competed with SERVICE.
Pricing was not as bad as some may think.
It was only until the insane de-regulation rates came into effect- immediately the flying public expected full service and minimum fees.
I recall PeopleExpress 747 service EWR-London, round trip for $99.00

Pricing is a strange market, because, no matter how low a price is- your always going to get the crowd that's never satisfied with any deal. And that's what the majority of the flying public has learned, and stooped to.

Nowadays the "flying experience" somehow magically transforms regular adults into totally unreasonable whiners, fit throwing, bitching, pushing, rude, crude sub humanoids. And what the hell is the trend of using a single ticket to move your entire household?!
Flying is somewhere between a cattle car with wings or a bus full of imbeciles.

Later I'll post some pics to convey the attitude of that wonderful era.
Pride. Class. Good taste. Professionalism. Legacy.
Even stability. Crews were not constantly preoccupied with "getting axed" They worked knowing their with a great company and some day retirement will be there's.

It truly was the good old days.

**T-Bird76** · 2007-02-20, 08:23 PM

Originally Posted by FlyingColors

CAB was one of the best things for the business.

Everyone got "a fair slice of the pizza" and airlines competed with SERVICE.
Pricing was not as bad as some may think.
It was only until the insane de-regulation rates came into effect- immediately the flying public expected full service and minimum fees.
I recall PeopleExpress 747 service EWR-London, round trip for $99.00

Pricing is a strange market, because, no matter how low a price is- your always going to get the crowd that's never satisfied with any deal. And that's what the majority of the flying public has learned, and stooped to.

Nowadays the "flying experience" somehow magically transforms regular adults into totally unreasonable whiners, fit throwing, bitching, pushing, rude, crude sub humanoids. And what the hell is the trend of using a single ticket to move your entire household?!
Flying is somewhere between a cattle car with wings or a bus full of imbeciles.

Later I'll post some pics to convey the attitude of that wonderful era.
Pride. Class. Good taste. Professionalism. Legacy.
Even stability. Crews were not constantly preoccupied with "getting axed" They worked knowing their with a great company and some day retirement will be there's.

It truly was the good old days.

That couldn't have been said better.

**Nonstop2AUH** · 2007-02-20, 08:51 PM

Flying Colors - Great answer, you seem to have the insider perspective whereas I just remember that flying was more fun when I was a kid than it is today.

That said, the government is not interested in whether or not I enjoy my travel experience, the objective is to foster competition and low prices that more people can afford. It's the same logic that deregulated long distance telecom among other industries. If I want a comfortable trip with amenities, I accept the fact that I will probably have to pay for business class (although economy on certain foreign airlines is more like it used to be here). Sure I miss my meals in domestic coach but so be it.

Free market economics of the type embraced by the leaders of this country require that a) government not interfere with competition between private businesses and b) low price and consumer choice are more important than labor or industry stability.

**mirrodie** · 2007-02-20, 08:53 PM

OK, I am starting to get a sense of it.

Now, one question...

"It was only until the insane de-regulation rates came into effect- immediately the flying public expected full service and minimum fees.
I recall PeopleExpress 747 service EWR-London, round trip for $99.00 "

So just to clarify, that INSANE, it really is INSANE, deal, just just AFTER De-regulation, right?

**FlyingColors** · 2007-02-21, 01:01 AM

Hungry?

Service:

Touch of pride,style:

**PhilDernerJr** · 2007-02-21, 02:08 AM

Great posts, Mike. So is it safe to assume that you think deregulation should never have happened?

What's your take on what the industry would be like today if it didn't?

**mirrodie** · 2007-02-21, 10:17 AM

Great post Mike but put the magazines away.

Considering the audience, its likely your pages will stick together by day's end. :)

**Nonstop2AUH** · 2007-02-21, 06:27 PM

Great to see that old stuff and especially good to see Frank Borman again, my dad met him once on an Eastern flight when he was in charge and got me an autographed picture of this astronaut/CEO....I guess it says alot about the industry that today, the CEOs are all MBAs and former banker types, compared to the old days when they were pioneering aviators and such.

**FlyingColors** · 2007-02-21, 06:48 PM

Originally Posted by Nonstop2AUH

Great to see that old stuff and especially good to see Frank Borman again, my dad met him once on an Eastern flight when he was in charge and got me an autographed picture of this astronaut/CEO....I guess it says alot about the industry that today, the CEOs are all MBAs and former banker types, compared to the old days when they were pioneering aviators and such.

Yeah, don't forget drunks too :?