Originally Posted by
galaxy flyer
Phying Phil,
I wonder what you liked about the regulated era? Companies didn't make huge profits or even guaranteed profits. They competed by offering chef-prepared meals, free drinks, etc all of which ate into profits. Pilots suffered regular furloughs until advanced seniority; I flew with several that hated "summer employment". If your lines route was hurt by a recession, too bad--furlough time. In our dynamic economy there would be NO chance at jumping into markets like Williston, ND because the oil industry was hot there.
Strikes were common enough and airlines paid the struck carrier under mutual aid pacts. NW and National made profits during strikes. PAA went bust mostly because it thought it owned Washington until it didn't.
Load factors were in the 50% range; flying was luxury few could afford so pilot employment would be much less than today. Consumers would be hurt because travel would out of reach.
Overall, not good for the public or pilots.
GF
Airlines were guaranteed profit margins of up to 12%, and could bill the government retroactively for it. Just like today, some managed that money better than others.
PAA went bust because they had no domestic network to feed all of their 747's, and when the price of oil began to climb, along with the Lockerbie bombing and then the first Gulf War, Pan "Am" became Pan "Ain't."
Re-regulation would
definitely not be good for the public.