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What Happened Last Recession?  
User currently offlineTeej13 From Canada, joined Feb 2001, 486 posts, RR: 0
Posted (12 years 9 months 2 weeks 1 day 23 hours ago) and read 943 times:

Up until this year, the world's been enjoying some prosperity, as a result we saw a huge expansion of airlines. Remember though, there was some massive expansion of airlines in the mid 1980s as the industry shed its regulatory roots. Because of this, there is very little experience of free-market airlines in tough economic times.

What happened to the industry ten years ago? Which carriers bit the bullet, and which barely made it through? Does anyone remember? There were still a lot of state-owned airlines then, but I'm interested in comparing the contraction of our last recession with this one...

Cheers,
T.J.

5 replies: All unread, jump to last
 
User currently offlineRealHigh From United States of America, joined Jul 2000, 1022 posts, RR: 15
Reply 1, posted (12 years 9 months 2 weeks 1 day 23 hours ago) and read 934 times:

We lost Pan Am

User currently offlineMcdougald From , joined Dec 1969, posts, RR:
Reply 2, posted (12 years 9 months 2 weeks 1 day 22 hours ago) and read 920 times:

The early '90s were a rotten time for the airlines. Pan Am and Eastern went to their graves. Continental somehow lurched on with one foot constantly in the grave, as did TWA. American CEO Bob Crandall complained to a reporter in '93 that he hadn't had any fun for the past three years. Northwest looked shaky. Canadian just barely cheated death in 1992-93, while Air Canada was rather sickly itself.

If you don't remember much of the early '90s, be thankful. After the colourful '80s, the early '90s was like living under an omnipresent gray cloud mass. Unemployment in Canada zoomed from 7% in the summer of '90 to nearly 12% in the summer of '92. Brian Mulroney's disapproval rating hit 80 percent. The great depressant of political correctness was on the march, dampening people's sense of humour just when they needed it most. Dark themes dominated at the box office and on the Top 40 charts. In his book, To Hell With Picasso And Other Essays, writer Paul Johnson wrote up an excellent summary of the recession years in "No Ta-ra-ra-boom-de-ay This Decade".

At least political correctness is on the retreat, so hopefully we'll be able to laugh about something and occasionally escape from reality this recession. That alone should provide a little bit of hope.  Smile



User currently offlineSingapore_Air From United Kingdom, joined Nov 2000, 13737 posts, RR: 19
Reply 3, posted (12 years 9 months 2 weeks 1 day 22 hours ago) and read 912 times:

Do you include the Asian Economic Crisis 1998?


Anyone can fly, only the best Soar.
User currently offlineTeej13 From Canada, joined Feb 2001, 486 posts, RR: 0
Reply 4, posted (12 years 9 months 2 weeks 1 day 21 hours ago) and read 909 times:

Mcdougald,

That illustrates my point well. thanks. What I'm trying to show is that despite the impact of 9/11, this recession will rebound, and within a couple of years, we'll all be arguing about which airlines will be buying which aircraft to expand their operations, etc. Consumer confidence will return, especially once the new security measures all implemented.

Our job, as airline fans, is to convince everyone to fly!!  Big thumbs up


User currently offlineMcdougald From , joined Dec 1969, posts, RR:
Reply 5, posted (12 years 9 months 2 weeks 1 day 11 hours ago) and read 883 times:

You're welcome.

The economy does tend to go in cycles. We'll presumably have a sharp downturn, but as long as it is treated like a cold -- take something to ease the symptoms, but otherwise get some rest and wait for it to run its course -- a recovery will follow. You probably know more about that stuff than I do anyway.

I liked Bush's posing in front of the plane to encourage people to get on a plane and go to Disneyworld. It won't solve the industry's problems, but at least it's a bit of a morale booster in tough times. It's a far better approach than that taken during the early '90s recession where morale was allowed to rot, even though the economic medicine taken did turn out to pay benefits later in the decade.

In contrast to the Buy Nothing Day coined by some campus radicals intent on giving out bad advice ten years ago, I'd suggest we could use a Buy Something Day this time 'round.  Smile



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