What has brought this industry to the state it is in now is deregulation. That nasty little man, Alfred Kahn........well he got what he wished for but look what he has wrought! He must bear the sole responsibility for this mess. He is so full of hubris that he still calls People Express (what the heck is that????) his "baby". The poor kid died and he didn't even notice. Aviation history will not be kind to him nor should it be. He will be viewed as an egotistical idiot savant who picked on the wrong field and ruined it. Do you really think he cares about "career expectations"? No, he wanted cheap fares and didn't care what had to happen to get them. I think he is a latent airline CEO with hemroids.
Standing right behind Kahn are most of the airline CEOs who mostly come from other industries and don't know diddly about running an airline. So what else is new?
But the line pilot is the real hero today. Back when flying was a real career, the job was fun, satisfying and well paid. Only those old enough to understand all that means can identify. However, to fly for flying sake is a reward that no amount of money can compensate for. The love of flying runs deep in a pilot's soul. In the end, that is what keeps pilots going. I
http://www.psa-history.org/awa/history.html?11563b30
Unofficial History of America West
The tenacity of the management team was proven when February 1983 rolled around. Financing finally became available for startup airlines,
partially due to the success of PEOPLExpress, and $18.75 million was raised through an Initial Public Offering.
A combination of ideas were used in the formation of America West. Cross-utilization of employees,
brought to new extremes by PEOPLExpress, would be a major feature of America West. Pilots would also work dispatch, while Customer Service Representatives (CSR) would work as flight attendants, ramp agents, gate agents, ticket agents, or reservation agents - depending on the day. Unlike PEOPLExpress,
Another feature of America West, borrowed from PEOPLExpress and PSA, was on-board ticketing. Passengers could buy tickets before their flight, or onboard. Gate desks were replaced with a large, circular counter, called the "Seat Assignment Center" - but quickly nicknamed the Queen Mary. While on-board ticketing was a good idea at the time, it led to more problems - such as breaking change, or balancing out the tickets. On-board ticketing survived a year, before being replaced with a traditional ticketing system.
By the end of 1984, a traditional ticketing and computer system was put into place (
SHARES, or System One)
each employee, unless state law prevented it, was required to purchase stock in America West when they were hired, usually 20% of their first year's salary. Many employees took loans from the company to purchase their required stock, and these loans were repaid through payroll deductions - an unusual way to fund growth.
The house of cards was about to collapse. On top of high oil prices, high fuel consumption on the 747, low yields, a high debt load, and no improvement in sight, the airline filed for bankruptcy on June 27.
The signs had been obvious. Pay and hiring freezes were first established,
followed by a 10% pay cut for all employees, and the elimination of free cocktails, newspapers, and free flights for employees. Service to 10 cities had been cut before the filing. Morale came crashing down, as
high-flying America West, the darling of deregulation, fell to earth. Bankruptcy would prove to be a long, turbulent process, costing Beauvais and Conway their leadership roles in the airline, as well as all employee-owned stock. Many employees found themselves in the unenviable position of having to pay back loans on worthless stock to the company if they left.
The first major cutback occurred in September, when the fleet was reduced to 103 aircraft (from 126). Debtor In Possession (DIP) financing was obtained from lessors G.P.A. and Kawasaki, in return for Airbus 320 lease options. Northwest Airlines also contributed $15 million in financing, secured by the Honolulu-Nagoya route authority
NLC, You wittle scamp you! You mess on this forum and you think that is fun?? Well, whatever floats your water wings....
