Us Airways' Troubles Date To 1977

[700UW]

US Airways' troubles date to 1977 and Carter's deregulation czar
The path of Kahn
Sunday, December 12, 2004

By Dan Fitzpatrick, Pittsburgh Post-Gazette

US Airways' struggle to survive began 27 years ago, with a visit from economist Alfred Kahn.

The country's chief airline regulator, Kahn controlled where carriers could fly and what they could charge. US Airways -- then called Allegheny Airlines -- was a short-hop carrier to towns in the Northeast, frequently passing over the Appalachian and Allegheny mountains. The federal government protected its routes from rivals and set fares high enough for Allegheny to cover its costs.

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Gee and I thought a certain pilot said this was a recent problem.

 

[autofixer]

Nope! I did not even apply for employment at USAir, because I knew it was a lousy company. I was hired by PI and ended up there by default. No insult intended, I am referring to way the company was(1980s), has been (1990s)and is(2000s) operated.

P. S. I read somewhere on these boards that pilot leaves would not be extended due to a pending pilot shortage; mine was just extended for 6 months.

 

[mwereplanes]

It's a great history lesson. There are many truths contained in the article. I was here before, during and after. As I recall, Colodny wanted no part of the great experiment. Once he grasped the general principle however he made it work. For a while. As did Piedmont and PSA.

But, as it points out, the brass did not fix problems as they occurred. They put buckets under leaks instead of fixing the roof. They did not adapt, they attempted to fit the square pegs into the round holes. Lorenzo did not foresee anything. He simply attempted to bust unions because he could. That is his legacy. The few new entrants who did have foresight did not have the money to last out the deep pocket majors. And, most importantly, the business travelers did not care how much it cost to go from PIT to PHL.

Much of the Lorenzo attitude still is prevelant today at U. Glass and co. are not looking for employee partners to run a kick-ass airline. They are hell bent on getting the lowest employee cost possible and hoping revenue picks up or fuel subsides as the tinker with the business model. Hoping smaller jets, less seats and more outsourcing will solve the problem.

U is doomed simply because it doesn't grasp how essential the work force is. Neither did Lorenzo. That's why he's on the outside looking in attempting to sell himself as the first guy to see the problem. I doubt he has to worry about his mortgage or retirement but my guess is his afterlife abode will be a bit toasty.

You cannot run a JetBlue or Southwest operation without a JetBlue or Southwest attitude. The U management hasn't focused on that little piece of the pie. That is one of the most essential parts of their success.

mr

 

[BoeingBoy]

P. S. I read somewhere on these boards that pilot leaves would not be extended due to a pending pilot shortage; mine was just extended for 6 months.

[post="228292"][/post]​

This company hasn't met a pilot shortage it didn't like since 1991 - as long as most of the schedule can be covered. If it looks like there will have to be too many cancellations due to not enough pilots, they'll just find new ways to "interpret" the contract to make do.

Jim

 

[Finish or Ignore]

You cannot run a JetBlue or Southwest operation without a JetBlue or Southwest attitude. The U management hasn't focused on that little piece of the pie. That is one of the most essential parts of their success.

mr

[post="228293"][/post]​

Very well put. The folks running our show have proven they can't "focus on that little piece of the pie"