Thanks Alfred E.

There was a time in Australian aviation history when we had a two airline duopoly and airfares were heading into the stratosphere with no sign of ever coming down. It was a time when $500 dollars would hardly get you interstate let alone returned. It was a time when Greyhound in its halcyon days, had people changing into pyjamas to take overnight trips interstate. It was a time when only the largest corporations afforded corporate travel and you knew most of the people in the Qantas lounge.

Today we fly in unregulated skies where competition rules and you have the choice of where you spend your money and where you risk your life. Those unregulated skies are a tribute to Alfred E Kahn who passed away recently, aged 93. It was Alfred E working under the Carter administration who courageously tackled the Civil Aeronautics Board in 1978 to deregulate the US airline industry and bring in a competitive open sky environment that eventually made its way to Australia. Under protection of the old US board, airlines were guaranteed a 12% return on flights that were 55% full. Even the worst run airlines and there were a lot, could make money under those circumstances.

The eventual deregulation in 1978 made it possible for new carriers to fly the skies and Southwest, Jetblue and much later our own LCCs Virgin Blue and Jetstar were born. Competition increased and along with providing lower fares and the birth of the budget traveller it also created financial woes for the legacy carriers operating in the open sky policy. Some airlines disappeared and many were cut down to size once the dollar ruled. Alfred E had most of them pegged right when he saw planes as "marginal costs with wings" and the shake out continues today with many legacy carriers still looking for partners to survive, as witnessed by mergers like the recent United, Continental pairing.

When carriers like Southwest and our own Compass (mark 1 & 2) decided to fly the deregulated skies they not only went after the legacy carrier passengers but also after the bus and car passengers who could not believe they could now fly interstate, for the price of a tank of petrol. The halcyon days of bus travel were over and a new niche market of traveller came into their own. Pyjamas and pillows were eventually left behind as bus passengers realised how much time they had spent sitting next to the toilet in abject darkness on long trips and that Melbourne was now only an hour away.

Without Alfred E we would still be saving up for that interstate trip or worse packing the PJs for that long overnighter.

Thanks Alfred E.