November 3, 1980

November 3, 1980

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Challenges Reshape Airline Structure

U.s. Trunks Enter New Era of Stability

Challenges Reshape Airline Structure

Regionals Gain Healthy Market Share

Challenges Reshape Airline Structure

Airports Face New Set of Challenges

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Challenges Reshape Airline Structure

U.s. Trunks Enter New Era of Stability

Two years after deregulation, U. S. trunk airlines appear to be moving into a new phase of stability after route expansions, pricing wars and keen competition have combined to erode profits and raise concerns about the industry’s ability to purchase new, fuel-efficient aircraft.
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Challenges Reshape Airline Structure

Regionals Gain Healthy Market Share

Airline deregulation, which many feared would allow trunk airlines to bury smaller regional airline competitors, instead appears to be more advantageous to the regionals. While trunk airline share of the market—as measured by revenue passenger miles—is shrinking, regional airline market shares have nearly doubled since deregulation (AW&ST Oct. 20, p. 34).
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Challenges Reshape Airline Structure

Airports Face New Set of Challenges

Changing patterns of the air transportation system are severely taxing airport managements trying to keep pace with the fluidity of airline operations. Key problem areas facing the airport infrastructure and the managers of the ground system include:
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U.s. Airframe Producers Counting on Upturn

Major U. S. airframe manufacturers are betting that the current convulsions wracking the airline industry are temporary and that the patient will survive, perhaps a little slimmer, but with a renewed and healthy appetite for new equipment.
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Management

Survey Finds Little Impact of Election on Aerospace

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Challenges Reshape Airline Structure

Europeans Study Deregulation Impact

London—Deregulation of the European air transport system, if it happens at all, will be a long, slow and painful process, but European airline managements see in the meantime considerable evidence that the effects of deregulation in the U.S. will be beneficial to them by forcing a new level of efficiency to be adopted.
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Challenges Reshape Airline Structure

Fuel Efficiency Key to Engine Gains

Advancing age of airline narrow-body fleets acquired in the 1960s and the airlines’ immutable demand for increased fuel efficiency in new equipment are joining virtually to guarantee a strong market to aircraft engine manufacturers in the coming years.
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Challenges Reshape Airline Structure

Europeans Push Commuter Aircraft

European airframe manufacturers are placing a significant emphasis on the commuter/regional segment of the world’s airline market as the demand continues to grow for efficient third-level transport aircraft. European industry officials believe a strong requirement for this category of aircraft has been generated by airline deregulation in the U.S. and by the overall maturing of third-level carriers worldwide.
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Challenges Reshape Airline Structure

Commuters Move Into Small Markets

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Challenges Reshape Airline Structure

Decline in Service Laid to Deregulation

Personalized service, next to speed a major element that once distinguished air travel from the various modes of surface travel, has become a casualty of the multiple forces interacting on the international air transport industry, in the opinion of veteran air travelers, travel agents and corporate travel department managers.
October 271980 November 101980