Originally Posted by
CALFO
This is the type of thinking that drives large corporations to bankruptcy. When you blame external factors for your own shortcoming you are leading yourself down the path of further degradation.
Take another look at the 1990's (perhaps you were playing with paddles, but I was working in the industry). United, Delta, and American (but particularly United) outgrew the market. The rapid advancement that the UAL pilots experienced at that time was the result of poor management. CAL also grew in this period, but nowhere near the extent of UAL. When the economy turned, CAL was is a much better position because they did not overextend in the late 90's. UAL got bit.
Rather than blaming deregulation, take a real look at what went on back then. As much disdain as I have for management, I am relieved that they are not recklessly growing the airline.
I'm acknowledging, not blaming external events such as degregulation. None of the major carriers adapted well to the changes that began with deregulation. Fortunately, the first waves of low cost competitors in the 80s and 90s were poorly managed (People Express, Valujet) and fell apart. The mid to late 90s saw a surge in revenue that fell off dramatically after the tech bust and 9/11. That, along with much improved LCC competition (with help this time from Internet ticket searches) doomed the old business models once and for all. CAL went into this environment with the lowest legacy cost structure by far. Hardly surprising after a second CH11 in the early 90s, which undoubtedly contributed to CAL's more measured growth afterward.