Word: airs
(lookup in dictionary)
(lookup stats)
Dates: during 1970-1979
Sort By: most recent first
(reverse)
Almost exactly a year ago, Congress passed the Airline Deregulation Act, which in the name of free market economics all but stripped away the bureaucracy that had controlled and coddled the U.S. air travel industry for 40 years. Generally, the skies were opened to many new carriers, and operators were given unprecedented freedom to change routes, flight schedules and even their fares. Result after twelve months: a spurt of competition that has brought benefits for travelers as well as some headaches, but that may be cut short by new financial woes afflicting the industry...
...increased competition brought on by deregulation has cut average air travel costs. Traffic is up by 13.5% for the first nine months of this year, on top of a 17% increase in 1978, and about half of all air travelers now pay discount fares. The flood of flights has overstrained airports, creating booking, check-in and departure delays. Planes are packed, and even first-class seats can be difficult to get because more and more passengers are paying the premium rates to avoid the crowding and hassle of cabin class. But despite this booming business and a 32% increase...
...John Zeeman, vice president of passenger marketing at United: "If we did not have deregulation we would have been hurt worse. We have problems catching costs but we are now more flexible and can better respond to the market." The real test of that will come next year, when air travel is expected to drop as the recession begins to bite deeper. "The jury is still out," says Edwin Colodny, chairman of USAir (formerly Allegheny). "There will be no full answer on deregulation until the industry has gone through a full economic cycle, up and down...
Another beneficiary has been Air Florida, one of the many smaller carriers across the country that have been able to spread their wings under deregulation. Two years ago, it was just another rickety one-state airline, linking six Florida cities with half a dozen planes. Today it is an aggressive regional carrier that serves 23 cities, including Washington, D.C., Philadelphia and New York, with a fleet of jets. This fiscal year it turned its first real profit: $2.4 million. Says Chairman C. Edward Acker: "Without deregulation we'd still be tiny. It has given us the ability to move...
...When Air Florida expanded to New York and Washington, it undercut its bigger competitors by offering one-way fares of just over $50 (since raised to $70). In a kind of backhanded salute to its aggressiveness, Eastern and other carriers struck back with lower fares on instate routes. They forced Air Florida to reduce sharply its Miami-Tampa flights and all but abandon the Miami-Orlando run, but the airline retaliated, charging Eastern with "predatory pricing" before the CAB. Eastern spokesmen denied the Air Florida challenge, saying, "They're a gnat. We didn't even know they were...