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Airlines, like any business, are susceptible to market fluctuations and economic difficulties. The economic structure of the airline industry may contribute to airline bankruptcies as well. One major element in almost every airline bankruptcy is the rejection by the debtor of its current collective bargaining agreements with employees.
Construction declined by a similar 300,000. Unemployment rose to a recession peak of 7.8% in June 1980, however, it changed very little through the end of the year, averaging 7.5% through the first quarter of 1981. [8] The official end of the recession was established as of July 1980. [1]
Meanwhile, the scheduled airlines still had to deal with those non-scheduled airlines successfully flying passenger service. Their low fares had tapped into a vast market of potential customers which the CAB's strict fare regulations made inaccessible to scheduled carriers.
The early 1980s recession was a severe economic recession that affected much of the world between approximately the start of 1980 and 1982. [ 1 ] [ 2 ] [ 3 ] It is widely considered to have been the most severe recession since World War II until the 2007–2008 financial crisis .
During airline deregulation in the late 1970s and early 1980s, labor disputes and high debt loads strained the company under the leadership of former astronaut Frank Borman. [2] Frank Lorenzo acquired Eastern in 1985 and moved many of its assets to his other airlines, including Continental Airlines and Texas Air Corporation .
Airlines are trying out a range of tactics to lure crews to in-demand flights and boost hiring. Delta announced plans to hire more than 1,000 pilots by summer 2022 to cope with the travel increase.
People Express Airlines, stylized as PEOPLExpress, was a low-cost airline in the United States that operated from 1981 until it merged with Continental Airlines in 1987. Its headquarters was in the North Terminal (later Terminal C) of Newark Liberty International Airport (EWR) in Newark, New Jersey .
The Airline Deregulation Act of 1978 removed many of the previously mentioned controls. Prior to deregulation, it was required that airlines first seek regulatory approval to serve any given route. [13] Thus incumbent airline operators could raise barriers to the challenge of new competition.