Although the ValuJet crash took with it the public's confidence in upstart airlines, the barrier to entry is still relatively low. Capital, pilots, planes and entire outsourced airline service industries are readily available. The response of companies such as Delta to this challenge defines the predicament of the large carriers today. Passenger complaints rose to record levels. The company recently admitted that it had gone too far in cutting back passenger service and vowed to make amends.
Labor remains the single largest controllable cost for an airline.
And while the labor situation seems to wax touchier and more problematic each day, airlines are also turning to more empirical ways to save money. By selling directly to consumers, they avoid commissions. Many have implemented ticketless travel, and some are offering discounted weekend and other specialty fares on the Internet. All this cost cutting has accompanied one other remarkable change in the way airlines do business. The mid-1990s have seen the major carriers, in effect, stop picking one another's pockets.