Travelers Affected by 1986 Airline Merger Spree

In 1986, the airline industry saw a flurry of mergers and acquisitions that reshaped the landscape of air travel in the United States. According to a report by BTN’s Barbara Cook, the Department of Transportation approved 12 mergers that year, leading to a total loss of $169.4 million for the carriers, with heavy losses at People Express Airlines Inc. and Pan American World Airways dragging down the overall profit.

Consumer complaints about airline service also surged in 1986, with flight cancellations and delays being the top grievances. World Airways and People Express were identified as the main culprits, along with other major carriers like Pan Am, New York Air, and United Airlines. The Federal Aviation Administration faced pressure from Congress to address the mounting issue of flight delays, which totaled over 417,000 for the year.

As dissatisfaction with airline service grew, lawmakers proposed legislation to protect airline travelers’ rights. Senator Howard Metzenbaum introduced a bill that would require airlines to disclose information on flight cancellations, delays, and baggage policies to passengers. The legislation aimed to hold airlines accountable for their service quality and provide transparency to consumers.

Despite the challenges faced by the industry in 1986, the availability of discount fares saved passengers over $3 billion, with 90% of travelers taking advantage of reduced fares. As the year came to a close, analysts predicted fewer discounts in the upcoming year as airlines focused on improving yield management.

Overall, 1986 was a tumultuous year for the airline industry, marked by mergers, consumer complaints, and legislative efforts to protect travelers’ rights. The industry faced significant challenges but also saw opportunities for growth and improvement in the years to come.