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In the 1990s, a global
economic recession and surging energy prices attendant the Gulf War severely crippled airline
results. In the two years ended 1992, the U.S. airline industry lost approximately $6 billion.
Many carriers were dissolved. Venerable names such as Pan Am and Eastern disappeared, and
TWA and Continental filed for Chapter 11 bankruptcy protection. Consolidation continued
throughout the decade so that by the late 1990s the top six U.S. airlines accounted for threequarters
of all domestic air traffic.4 TWA has since been absorbed by American Airlines, further
concentrating the dominance of major carriers...
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