Rapid Descent: Deregulation and the Shakeout in the Airlines
Travel reporters Peterson ( Travel Weekly ) and Glab (former managing editor of Travel Management Daily ) use their knowledge of and contacts in the airline industry to provide this account of what must be one of the most mismanaged operations in America. How else could one explain the fact that, according to the authors, U.S. airlines lost $6 billion in 1990 and 1991, a sum greater than the profits earned by the airlines since commercial aviation was launched in the 1920s. In examining how the industry got itself into such a mess, the authors argue that while deregulation put in motion the events that would shape the future of the airlines, myriad other factors played parts as well. The firing of the air traffic controllers during the Reagan administration, the downsizing of the Federal Aviation Administration and, most importantly, the merger and acquisition craze of the 1980s were some of the events that helped create a financially troubled industry. The book is enlivened by descriptions of the colorful men who ran and still run the airlines and although the authors identify no clear heroes, there are plenty of villains, most notably Frank Lorenzo and Carl Ichan who the authors suggest ruined Texas Air (comprised of such subsidiaries as Continental and Eastern Airlines) and TWA, respectively. Those who are interested in corporate wheeling and dealing will find this an enlightening and enjoyable read. Photos not seen by PW .Copyright 1994 Reed Business Information, Inc.