Existing comment:
Cost-Cutting Measures:
Struggling to survive, airlines cut wages and benefits, but this strategy resulted in strikes and lower productivity. Operations were streamlined and thousands of employees laid off. Some feared these efforts would compromise safety, especially if necessary maintenance was deferred to save money, but these fears proved groundless.
The Demise of Pan American:
Pan Am's level of service faltered in the 1970s, and the airline began to lose passengers. To gain a domestic network, it bought National Airlines in 1980, but the merger proved costly. The airline began selling its assets, including its lucrative Pacific routes and the famous Pan Am Building in New York.
The bombing of Pan Am Flight 103 over Lockerbie, Scotland, in 1988 dealt a further blow. America's leading international carrier since 1928, Pan American ceased flying in December 1991. |