Quote:
Originally Posted by WhistlePig
You’re not wrong. But, without deregulation 60% of us would be selling shoes or life insurance instead of flying airplanes for a living. Regarding what Jimmy Carter did to ALPA, remind me? I’ve read Flying the Line and the Reagan years were much more detrimental to this profession than Carter’s term.
If you look at the history of the Deregulation Act, Jimmy Carter bowed down to consumer pressure for lower airfares. Instead of mandating maximum air fare prices per route, Jimmy Carter thought he could break the airlines pricing power another way. Instead of limiting revenues or price capping, he decided to take away slots and routes. If you read the educational material in various aviation management curricula, and the countless studies, it shows that management teams didn't take the path that the Carter Administration predicted in terms of out-bidding the competition to lower air fare. Instead they cannibalized their labor and put downward pressure on labor; pilots, cabin crew, ground staff, engineers/mechanics, etc).
to be fair, Carter never anticipated Frank Lorenzo's extreme penchant for buy-divide-subdivide-bankrupt-re-combine-re-emerge creative and abusive management schemes. But, Lorenzo was born out of the Deregulation Act, and his actions is what led to the decertificaiton of ALPA in 1983 at CAL. and Richard Ferris strike at UAL in 1985. It takes a few years for legislation to be funneled through the markets and the courts. But, by the mid 1980's, Carter's legislation started the race to the bottom for professional airline pilots. Pilots have lost over 40% of their buying power ever since. We all know how many of us have lost their retirements since then, but it all started with Carter. He just didn't understand pilot labor contracts, and how the RLA would be used against us, and he didn't understand how bankruptcy courts would be also used against pilot unions. He was just blinded by the promise of lower airfares to the voters. He promised lower airfares. He kept his promise, but the effects were temporary.
Now, through all the many years of downard pressure in the industry, we're in a pilot shortage. Why? Because the profession has sucked for 30 plus years. It sucked thanks to Carter. It sucked because of Carter. Had it not been for the DRA of 78, this profession would be paying physicians pay or high end attorney pay. You never really take it back. The intrinsic value of a dollar is more valuable than a pilot really ever knows.
Congrats to the current crop of new hires. They should have a great and profitable career, barring any more democratic socialist legislation or onerous income tax hikes.
It's really about 2 major things: your buying power and the value of your retirement dollars. Carter really hurt those 2 numbers for pilots in the business from 1978 to 2013. We've been digging out ever since. A democrat leaning NMB is all we really need. Other than that, I prefer a robust economy whereby leisure and business travelers have excess dollars to buy full fare first class tickets. Bring back the magic!