The owners of the airport at Amarillo, Texas, decide early in 1929 to offer a passenger service to Oklahoma City. Employing 4 Lockheed Model 5 Vegas, the company begins revenue flights in January, which continue until the Universal Aviation Corporation purchases the operation in July.
AMAV: Martin State Airport, 701 Wilson Point Rd., Baltimore, Maryland 21220, United States; Phone (410) 391-1738; Fax (410) 687-9368; Year Founded 1990. AMAV is set up at Baltimore in 1990 to provide passenger services upon demand to destinations throughout the U. S. and Canada. By 1998-2000, the company operates 1 each Cessna 550 Citation II and Beech King Air 90.
AMBASSADOR AIRLINES: United States (1963-1968). Ambassador is established at Las Vegas, Nevada, in 1963 to provide non-scheduled passenger charter flights to Palm Springs, California. Employing Beech 18s and Aero Commander 500s, the company expands its route network to San Diego, Oxnard, and Bakersfield during the next five years.
Scheduled flights commence in April 1968, but cannot save the company, which folds a few months later.
AMBASSADOR AIRLINES, LTD.: United Kingdom (19921994). Ambassador is organized in late 1992 as the air transport division of the U. K.’s seventh largest tour operator, Best Travel Group, Ltd., to offer passenger charter services to regional and Mediterranean destinations. The inaugural fleet includes 2 leased Boeing 757-236s, 1 of which is subleased to Nationair, Ltd. in Canada.
The aircraft are subleased to Avianca (Aerovias Nacionales de Colombia, S. A.) in 1993. On April 1, operations are inaugurated on behalf of the Colombian carrier. The carrier’s own charters are launched on May 1 from Newcastle and Larnaca.
In fiscal difficulty for some time, the parent organization, Best Travel Group, collapses on November 29, 1994, following the failure of a late rescue bid. The subsidiary carrier must also cease operations and face liquidation. The bond the airline had posted with the Civil Aeronautics Authority covers the cost of repatriating 3,000 stranded passengers.
AMBER AIRWAYS, LTD.: United Kingdom (1988). The Welsh charter carrier Amber Airways, Ltd. inaugurates services in May 1988 with a single Boeing 737-2Q8 chartered from the International Lease Finance Corporation. Following the completion of the tourist season at the end of October, the operator is purchased by competing British charter operator Paramount Airways, Ltd. No traffic or financial figures are available.
AMBICAAIRLINES, LTD.: India (1947-1949). The aviation department of the Ambica Steam Navigation Company is transformed into an air transport company on January 27, 1947. Service is started between Bombay and Morvi via Rajkot with 2 Douglas DC-3s. Thrice-weekly Bombay-Ahmedabad via Baroda flights begin in June.
Service between Bombay and Bangalore via Poona and Belgaum is launched in early 1948. In early fall, the company’s DC-3s commence a multistop route from Bombay-Amritsar via Baroda, Ahmedabad, Palan-pur, Jodhpur, and Bikaner. Financially unsuccessful, the company ceases operations and is liquidated on February 7, 1949.
AMC AVIATION, LTD.: 14 El Oubour Building, Saleh Salem Street, App 87, Cairo, Egypt; Phone 20 (2) 2915 818; Fax 20 (2) 2565 966; Code 9V; Year Founded 1994. AMC Aviation, Ltd. is established by Ashraf Aboughazoula at Cairo in 1994 to offer passenger and cargo charters to regional destinations. Operations commence with a single Boeing 737-266C.
Operations continue in 1995-1999, during which years President Aboughazoula also charters 1 Boeing 737-266C and 2 Boeing MD-90-30s.
Nonscheduled flights continue in 2000; in the spring, another MD-90-30 is leased.
During takeoff from Bologna on an August 29 charter to Cairo, Flight 1129, the MD-90-30, suffers a compressor stall that requires an emergency landing. As the jetliner is putting down, two tires burst. After the plane comes to a safe stop, it must be towed back to the gate; no injuries are reported.
AMELIA AIRWAYS: 2500 NW 62nd Street, Hangar A, Ft. Lauderdale Executive Airport, Ft. Lauderdale, Florida 33309, United States; Phone (954) 771-3151; Fax (954) 771-8053; Year Founded 1993. Amelia is established at Ft. Lauderdale’s Executive Airport in 1993 to offer on-demand passenger services, with emphasis on air ambulance flights, in Florida, Texas, Virginia, and South Carolina. Simultaneously, the company also sets up stations at Miami and West Palm Beach. One each Piper PA-31-350 Navajo Chieftain and PA-23T Aztec rotate between the three bases. Flights are operated through the remainder of the decade.
AMERER AIR, GmbH.: Airport Linz, Flughatenstr. 1, Horsching, 4063, Austria; Phone 43 (7) 221 88776; Fax 43 (7) 221 64753; Code AMK; Year Founded 1995. Heinz Peter Amerer establishes this allcargo company in 1995 to fly scheduled and charter flights throughout Europe, often under contract to forwarders and large express operations such as TNT Worldwide Express.
By 2000, the workforce stands at 50 and the fleet includes 1 Fokker F.27-500 and 3 Lockheed L-188AFs. Destinations visited include Linz, Liege, and Belfast.
AMERICA TRANS-OCEANIC COMPANY: United States (1916-1921). Frustrated transatlantic flight backer Rodman Wana-maker, a wealthy New York City department store owner, establishes America Trans-Oceanic Company (ATO) in 1916. Wanamaker, in 1917, establishes bases for his company at Port Washington, on Long Island, New York, and West Palm Beach, Florida, in hopes of starting commercial services as soon as World War I ends. He also becomes an agent for Glenn Curtiss’s flying boats and acquires a Curtiss Flying Cruiser, the civil version of the H-14 flying boat.
Following the signing of the Armistice on November 11, 1918, Wanamaker in early 1919 secures additional financial backing and purchases 1 each Curtiss HS-2L and H-16 flying boats, adapted to civil standard from their military configurations. On June 19, the Prohibition Act becomes law and, during the summer, former naval aviator David McCulloch, who had piloted the USN’s NC-3 during its unsuccessful May attempt to fly the Atlantic, is appointed general manager and chief pilot. John M. Miller is the second pilot with George A. Page Jr. as a pilot/mechanic.
While modification of the H-16 is underway, the large steam yacht Ballymena hauls 30 visitors from south Florida to Bimini. In the late fall, a contract is signed with the Bimini Bay Rod and Gun Club and the Bahama Development Company making ATO the “official airline” of both concerns. Plans are made to inaugurate daily roundtrip revenue service to North and South Bimini Islands, just 50 miles from Miami, and to a second destination, Havana, Cuba, where knowledgeable passengers will find that alcoholic beverages are not subject to American Prohibition. Painted to resemble the Big Fish—a whale shark landed earlier by the Rod and Gun Club’s president, Capt. Charles Thompson— the H-16, which is indeed christened the Big Fish, is converted to provide seating for 2 crew and 14 passengers, is delivered on December 19.
ATO, like Aeromarine Airways, PBA (Provincetown-Boston Airline), and Naples Airlines, which will follow it over the years, is a seasonal undertaking. The first revenue flight to Bimini from the company’s base at the Front Boulevard on Miami Bay by the Big Fish is completed on February 24, 1920. When not in flight, the H-16 is moored to a buoy offshore and guarded by a youth with a rowboat, who is also employed to take passengers, crew, and fuel to the Curtiss. On March 9, the H-16, with every seat occupied, carries the record number of passengers for a seaplane flight to date on its afternoon service from Bimini and Miami and receives front-page coverage in the next day’s Daily Metropolis. ATO stops flying in Florida on May 1.
For the summer tourist season, the Big Fish and its smaller companion are transferred up to Long Island, where they fly passengers between the company’s Long Island base and the lake region in upper New York State. When the Big Fish returns to Florida, it is given a new paint job by pilot Page, who affixes the shark scales more regularly along the fuselage and draws the craft’s name on each side of the bow below large “eyes.” For the season, 4,000 passengers are reported carried over 80,000 revenue miles.
A second flying season is undertaken during the winter of 1920-1921 and a second summer of New York frequencies is begun in late June of the latter year. At this point, the Curtiss-Metropolitan Airplane Company, which had been formed to take over the airline, acquires ATO. Unhappily, the Big Fish must be written off following a hard landing on the Hudson River in July that crushes the bottom of its hull. The Curtiss is beached and stripped. Unable to earn a profit with only one seaplane, ATO, which has had the honor, according to some, of offering the first international air passenger service by a U. S. carrier, stops trading. The Bimini route will be restarted by Aeromarine Airways.
In late June 1927, former ATO owner Wanamaker is finally able to participate in a transatlantic flight when he provides backing for Comdr. Richard E. Byrd’s New York to Paris flight in the Fokker C-2 America.
AMERICA WEST AIRLINES: 4000 East Sky Harbor Blvd., Phoenix, Arizona 85034, United States; Phone (602) 693-0800; Fax (602) 693-5546; Http://www. americawest. com; Code HP; Year Founded 1981. The second-largest of the deregulation-spawned new entrants (after PEOPLExpress) , the largest to survive, and the only one to achieve major airline status, America West is founded by Edward R. Beauvais and seven associates in the summer of 1981. It is incorporated under Delaware law on September 4 with Phoenix as the principal hub and certified by the CAB two months later.
Future President Michael J. Conway joins the company from Continental Airlines in November as executive vice president. Two years of work, which continues into 1982, results in capitalization of $20 million ($18 million coming as the result of 2.68 million shares being sold in public stock offering), a workforce of 277, and 3 former Pacific Western Airlines, Ltd. Boeing 737-200s. In December, there is but $1,800 left in company coffers.
Among the new hires of 1983 is Patricia Burr, the first woman appointed to a financial manager’s position at Continental Airlines and within a dozen years, America West’s corporate treasurer. Regularly scheduled, low-fare service begins to Colorado Springs, Kansas City, Los Angeles, Wichita, and Phoenix on August 1.
On October 1, flights begin to Omaha, Nebraska, and Ontario, California, followed by thrice-daily frequencies to and from Las Vegas. Services are initiated on December 1 to Albuquerque, Des Moines, Oklahoma City, San Diego, and Tulsa.
By year’s end, the company’s 10 new Boeing 737-200s are flying into 13 cities and have transported 304,347 passengers. Revenues of $18.2 million are realized, but expenses, including start-up costs of $3.6 million, total $26.46 million. As a result, the company is left with an operating loss of $9.78 million.
In 1984, the first full year of operation, the workforce totals 806. Frequencies are launched from Phoenix to Palm Springs on February 1. The same day, Executive Vice President Conway succeeds the original president, Michael Roach. In March, $ 15-million worth of preferred and $9.6-million worth (1,07 million shares) of common stock are sold.
On June 1, new markets are entered at Austin, Durango, San Jose, and Tucson. Flights begin to San Francisco on July 15 and to Burbank on September 14. San Francisco flights are suspended on October 27, but new service is initiated to Oakland the next day just as service to Tulsa and Kansas City is being discontinued.
The first international route is opened on November 1 to Calgary, Alberta, Canada. Two weeks later, the company enters markets at El Paso and Salt Lake City. Seasonal ski flights to Montrose, Colorado, begin on December 8 and on December 15 a new route is opened to Grand Junction.
Daily departures from Phoenix reach 78 during the year and America West transports 2,397,953 passengers and 90,000 FTKs. Revenues of $122.6 million are earned, but expenses are $131.12 million. The operating loss is $8.53 million and a net loss of $15.4 million is suffered, brightened somewhat by a $1-million net profit in December.
Sensing better times ahead, the company by 1985 has increased the number of employees from 280 to 1,650 and its fleet from 3 737-200s to 21. The first 2 B-737-3Q8s are delivered on February 28 and enter service to noise-sensitive California airports. Service to Palm Springs is suspended on March 15, but opened to Edmonton, Alberta, Canada.
On April 1, service is initiated to Orange County and Santa Ana and to Sacramento; 10 days later, a third public offering of stock (3.9 million shares) brings in $25.3-million additional capitalization. In late May, a multifaceted Northwest Airlink marketing alliance is started with Northwest Airlines, providing a direct link from America West’s cities to the latter’s entire domestic and international system via connections at Phoenix and Los Angeles. Air cargo services are started on July 1.
Flights to Pueblo, Colorado, begin on November 15. On November 19, a single assailant, waving a lighter and an electrical switch, takes over Flight 261, a B-737-2Q8 with 63 passengers, which is on the ground at Sky Harbor International Airport, preparing to depart Phoenix for Ontario, California. Taken in hand by the captain, the man is escorted off the aircraft and turned over to security guards. Upon examination, the would-be pirate will be found to be mentally unstable and sent to a psychiatric facility.
On December 31, the company serves 26 cities with a workforce of 2,527 and a fleet of 3 B-737-300s, 24 B-737-200s, and 5 B-737-100s; orders remain outstanding for 10 Dash-300s and 12 Dash-200s.
Customer bookings skyrocket 113.8% to 5,126,000 and 930,000 FTKs are operated. Revenues increase 96.9% to $241.3 million, costs rise 69.8% to $222.63 million, and an operating profit of $18.67 million is generated. A net gain of $11.38 million is also achieved.
Airline employment rises 72% in 1986 to 4,246. Flights to Sioux City commence on January 14, followed by service to Cedar Rapids on February 15 and Springfield, Missouri, on April 27. Development of a hub at Las Vegas begins on July 1 as the 10 p. m.-1 a. m. low, unrestricted fare service called Nite Flite is launched from Phoenix to Albuquerque, Los Angeles, Oakland, Ontario, Phoenix, Salt Lake City, and Tucson. Two weeks later, frequencies are initiated to Chicago (MDW).
A corporate-sponsored employee child-care program is started on August 25. Ground is broken on September 11 for a new Technical Support Facility at Phoenix. Nite Flite fares are introduced in October on departures from Las Vegas to San Diego, El Paso, Colorado Springs, and Pueblo.
Flights begin to Denver and Reno on November 15, followed a month later by additional services. The new offerings are two direct flights from Seattle to Phoenix, two to Phoenix via Oakland, two to Phoenix via Las Vegas, two from Portland to Phoenix via Las Vegas, and one direct from Portland to Phoenix.
At year’s end, airline employment is up to 4,596, the fleet totals 46 B-737s, orders are outstanding for 9 B-757-200s and 22 B-737-300s, and 35 cities are in the route network. Passenger boardings climb 39.3% to 7,140,160 and freight also advances. Revenues ascend 36.5% to $329.67 million, expenses move ahead by 46.2% to $325.72 million, and the operating profit is down to $3.95 million. Net gain drops to $3.02 million.
The workforce increases by 74.3% in 1987 to 7,400. America West begins new roundtrip service to Midland and Odessa, Texas, and Moline and Quad Cities, Illinois, on January 15. Also in January, roundtrips are added to and from Chicago (MDW), Omaha, and Colorado Springs and new Nite Flite destinations include Seattle, Portland, Sacramento, Calgary, and Edmonton.
In February, 18 daytime nonstop frequencies are opened from Las Vegas to Los Angeles (LAX), Burbank, Ontario, and Orange County. On March 2, a new market is opened at Yuma, Arizona.
Originally operated by Republic Airlines, the first 4 B-757-2S7s are delivered on May 1. Routes are inaugurated to Chicago (ORD) plus Flagstaff and the Grand Canyon Arizona on May 20.
Long Beach joins the route network on June 1, the same day a satellite reservations center is opened at Reno. Based on dollar accrual, the company’s first frequent flyer program, FlightFund, is started on June 10.
The inaugural B-757-2S7 transcontinental service is begun on July 1 with flights to New York (JFK) and Baltimore (BWI). Simultaneously, nonstop B-757-2S7 flights commence from Tempe to Chicago (ORD). Twice-daily frequencies are initiated from Chicago (MDW) to New York (JFK) and BWI. Employing 3 new de Havilland Canada DHC-8s, turboprop flights begin in June from Flagstaff and Grand Canyon National Park in Arizona to Las Vegas and Phoenix.
Another public stock offering of 3.03 million shares is made on August 11, netting $31.7 million; Transpacific Enterprises (Pty.), Ltd., an affiliate of Ansett Airlines of Australia (Pty.), Ltd., purchases the entire 20% interest. The first luxury lounge operated by the carrier opens on September 15 and is named the “Phoenix Club.” The same day, daily roundtrip B-757-2S7 service is initiated to New York and BWI from Phoenix and Las Vegas.
Two months later on November 15, flights begin to Lubbock. Daily roundtrip service commences on December 1 from Oakland to Las Vegas. Simultaneously, nonstop roundtrip service is begun from Oakland to Calgary, while another service originates in Edmonton and continues to Oakland via Calgary and then on to Las Vegas.
A package tour division, AmeriWest Vacations, is started on December 14, offering charter flights to Nevada gambling destinations. As of December 31, the fleet totals 19 B-737-300s, 40 B-737-200s, 7 B-757-2S7s, and 3 DHC-8-102s. Forty-five cities are served from the Phoenix and Las Vegas hubs. Competition at the latter point is now reduced as Sunworld International Airways transfers its operations to a new hub at Reno.
Although enplanements swell 57.3% to 11,121,607 and revenues rise 74.9% to $576.63 million, the attempt to move into East Coast while securing dominance of the Phoenix and Las Vegas hubs cities proves costly. Expenses skyrocket 87.9% to $611.99 million and the operating loss is $35.35. A net $45.67-million loss is suffered.
Airline employment grows another 19.4% in 1988 to 8,142. Attempts by ALPA, AFA, and the TWU to organize workers during the year all fail. Frequencies to Chicago (MDW) are suspended on January 5, but, later in the month, daily nonstop service is initiated from San Francisco to Calgary and Edmonton. The 660,000-sq.-ft. Phoenix Hangar and Technical Support Facility is opened on February 23 while flights to Springfield end on February 29.
A “value pack” coupon book is introduced in March. Each book contains tickets good for 10 nonstops between 8 of the airline’s western destinations for $230. Also in March, two Baltimore-New York (JFK) daily nonstop roundtrips are launched. A new laser baggage system is unveiled at Phoenix on April 13.
Flights begin to Minneapolis (MSP) on May 1, with a daily roundtrip from Las Vegas, and on May 15, the carrier joins lATA. On June 23, America West is named the official airline of the NFL Phoenix Cardinals and begins a long-term charter arrangement for the transport of the club to its road games.
Fast Check Parking is inaugurated for passengers at Phoenix in July; customers may park, check baggage, and receive their tickets and seat assignments at the satellite parking facility and then board a free airport shuttle bus. The company’s fifth birthday is celebrated on August 1 and service to Las Vegas is reestablished on September 11, along with thrice-daily nonstop, roundtrips from Kansas City to Phoenix.
Four daily roundtrip frequencies are started from Las Vegas to Boise (Idaho) on October 16. Also in October, the Phoenix to Minneapolis (MSP) frequency is increased to thrice daily.
The carrier provides special service from its markets to Vietnam veterans wishing to visit Washington, D. C. for the dedication of the Vietnam War Memorial on November 11. The same day a route request (eventually unsuccessful) is filed with the U. S. DOT for the inauguration of service from Honolulu to Sydney, Australia. Seasonal (December-March) ski service is opened on December 17 to Steamboat Springs, Colorado. Thrice-daily Phoenix to Kansas City flights also begin in December, along with a daily nonstop run from Kansas City to Las Vegas. Gateways increase during the year to 47 and the fleet receives 10 B-737-300s and removes 15 B-737-200s. Flight frequencies are cut 10% on certain routes and part-time help is cut back, although an additional 200 full-time employees are recruited.
Passenger boardings swell 19.9% to 12,795,163 and cargo skyrockets 96.9% to 24.09 million FTKs. Revenues shoot up 35.52% to $781.46 million, expenses rise 24.73% to $763.32 million, and the operating profit is a welcome $18.14 million. Cost-cutting measures and well-considered expansion, along with well-maneuvered debt swaps, lead to a $9.36-million net profit.
The workforce grows by 38.2% in 1989 to 11,250 and the fleet is increased by the addition of 10 B-737-300s, 3 B-757-200s, and 2 B-747-206Bs. The latter are half of a purchase made from KLM (Royal Dutch Airlines, N. V.). One DHC-8-102 is withdrawn.
A route request to serve Tokyo is filed with the DOT on April 11, but will not be approved; additional slots are, however, achieved at both New York (LGA) and Washington, D. C. (DCA). Also in April, the carrier issues $54-million principal amount of 20-year 11.5% convertible subordinated debentures in a private placements accomplished by Werthein Schroder & Co.; even after the issuance, $103.6-million aggregate principal amount of debentures are outstanding.
America West offers $726 million for the Eastern Air Lines Air-Shuttle and 10 B-757-200s; the offer is increased to $751 million on May 10, but withdrawn on May 24. A route application is filed with the DOT in June requesting Honolulu to Tokyo authority.
On July 1, new twice-daily roundtrip service is introduced from Palm Springs to Las Vegas and from Phoenix to New York (LGA) via Omaha and Wichita. Thrice-daily roundtrips commence from Palm Springs to Phoenix and from Washington, D. C. (DCA) via Omaha and Wichita; however, several slots at the first two destinations, acquired on a temporary basis following the collapse of Eastern Air Lines, must be surrendered.
A third satellite reservations center is opened near Baltimore (Hanover) on August 1. The FlightFund frequent flyer program becomes mileage-based on September 1. Later in the month, introductory fares of $298 to $742 are announced for the new Hawaii service, upcoming shortly. At the same time, a contract is signed with GTE Airfone, Inc. for the installation of the Seatfone system in the entire B-757 fleet. Also, an agreement is reached to become official airline of the Phoenix Suns NBA team and to sponsor a new sports complex for the Suns to be named America West Arena.
As the result of a mass strike by Australian pilots, 3 B-737-300s, complete with crews, are wet-leased to Ansett Airlines of Australia (Pty.), Ltd. at month’s end to fly domestic services; in return, America West dry-leases 3 B-737-377s from the Australian airline.
Santa Barbara service is begun on October 1 and later in the month the company signs a contract with MedAire, Inc. for the provision of day-round medical consultation. Seating assignments up to 30-days in advance of departures is now offered. The first ex-KLM (Royal Dutch Airlines, N. V.) B-747-206B arrives at Phoenix on October 26.
San Antonio joins the route network on November 1 as the airline also begins nonstop service from Kansas City to Omaha. A second nonstop daily from Las Vegas to Denver and two new nonstops from Las Vegas to Kansas City are also added. Daily Las Vegas to Newark B-757-200 flights follow on November 6 as do two new daily nonstop roundtrips from Newark to Phoenix and from Washington, D. C. (DCA) to Kansas City.
Daily long-haul Jumbojet Bird of Paradise flights are begun by the first former Dutch B-747-206B from Phoenix and Las Vegas to Honolulu on November 16, the same day seasonal (December-April) B-737-200 ski service at Sun Valley and Vail are launched. Four-times-per-day DHC-8 service starts from Phoenix to Santa Barbara in December.
After landing at Tucson from a December 30 service from Phoenix, a B-737-204 with 5 crew and 125 passengers overruns the runway, collides with a concrete structure, loses its nosegear, and skids to a stop 3,803-ft. from the end of the concrete. Although the aircraft is damaged beyond repair, there are no fatalities.
Customer bookings increase by 5% to 13,431,310 and cargo skyrockets 71% to 41.19 million FTKs. Revenues jump 27.75% to $998.31 million, expenses boom upward 24.48% to $950.19 million, and the operating profit is $48.11 million. Net gain more than doubles to $20.01 million.
Airline employment jumps 27.8% in 1990 to 13,704 and the fleet grows to comprise 77 B-737s, 11 B-757-200s, 4 B-747s, and 12 DHC-8s. Orders are outstanding for 4 B-747-400s, 10 B-757-200s, 15 B-737-300s, and 10 DHC-8s, while lease-purchase requests are made for 74 Airbus Industrie A320-200s. The carrier stands 20th in the world in fleet size.
The DOT reclassifies America West from national to major carrier status on January 1. It is now the nation’s 11th largest airline. The next day, the company inaugurates daily flights from Houston to Las Vegas and thrice daily from Houston to Phoenix and Palmdale and Lancaster, California. A code-sharing agreement is signed on January 7 with California Air Shuttle; under its terms, the new small regional will initiate feeder flights linking its Oxnard base with Las Vegas, Sacramento, San Francisco, and San Jose. The arrangement will fail with the commuter late in the year.
On January 16, Jose Manuel Gonzalez-Gonzales, claiming to have a bomb, hijacks Flight 727 and demands to be flown to Havana. The B-737-200 aircraft en route from Houston to Las Vegas makes a refueling stop at Austin, Texas. There a police officer climbs through an escape hatch and overwhelms the pirate who is taken to a hospital.
During the month, the company receives the “Labor Relations Award” from Air Transport World magazine. In February, service from Washington, D. C. (DCA) is reduced to one daily roundtrip.
On March 15, daily roundtrip frequencies are initiated from Boston to Las Vegas and Phoenix, followed by Bakersfield on April 15. The DOT grants Tokyo rights to Continental Airlines on April 25 and America West is given backup authority. Service from Phoenix and Las Vegas to San Francisco, halted in 1984, is resumed on May 1. During the month, two new marketing programs are announced: a Chairman’s Club for members of the FlightFund frequent flyer program and a Senior Saver Pack for senior citizens. In conjunction with its inauguration of London to Los Angeles service on May 16, Virginia Atlantic Airways, Ltd. begins participation in the FlightFund program.
A market at Dallas (DFW) is started on July 15 and an employee support group known as The Cactus Club is started on August 1. Five days later, Iraq invades Kuwait and fuel oil prices begin to rise. Membership in FlightFund exceeds the million mark on August 23. Also in July-August, a daily roundtrip is added from Albuquerque to Oakland, San Diego, and Las Vegas; from Las Vegas to Oakland; from Phoenix to Lincoln, Oakland, and Palm Springs; from San Diego to Las Vegas; from Seattle to Reno; and a second flight from Phoenix to Honolulu.
Beginning on September 14 and continuing for five months, American West and Ansett Airlines of Australia (Pty.), Ltd. flight attendants participate in a work exchange program.
A multiparty transaction completed on September 28 permits an order for the lease or purchase of 74 Airbus Industries A320s. Also in September, a daily roundtrip is begun nonstop from Chicago to Phoenix and from Dallas (DFW) to Las Vegas and thrice-daily nonstops commence from Dallas (DFW) to Phoenix. The following month, one roundtrip daily is launched from Las Vegas to San Diego and two from Las Vegas to San Francisco; one is added from San Francisco to Phoenix. The holiday tour division is renamed America West Vacations on October 31.
The America West Airlines Foundation is established on November 1 as a nonprofit, educational-support fund. Meanwhile, the introduction of child-care programs for employees will result in the carrier’s listing in Working Mother magazine as one of the 60 best corporations for single parents. Phoenix operations are relocated on November 11 to the newly opened Barry M. Goldwater Terminal 4. Twice-daily roundtrips are added from Las Vegas to Grand Junction in November, along with daily roundtrips from Los Angeles to Las Vegas, Phoenix to Oakland and Palm Springs, and direct from Las Vegas to New York.
A half-price “50% Off Any Fare Anywhere” ticket sale is conducted at Phoenix on December 8 and results in 100,000 customers. Rain checks must be handed out for redemption the following month. Flights for skiers are resumed on December 15 from Los Angeles and Phoenix to Vail and from Phoenix to Steamboat Springs on December 22. Airline employment is 14,000 on December 31, not including 10 flight attendants from Ansett Australia (Pty.), Ltd., engaged since November in a work-exchange program with a similar number of AWA customer service representatives. The route network now includes 62 cities.
Passenger boardings leap ahead by 16.3% to 15,624,000, making AWA the world’s 19th largest airline in terms of enplanements. Freight skyrockets 132.99% to 95.96 million FTKs. Revenues kick upward by 32.39% to $1.32 billion, but expenses grow even faster, by 42.42% to $1.35 billion. The operating loss is $31.63 million and the company’s net loss is $74.67 million, largely as the result of increased fuel prices caused by the Kuwait situation. Still, the revenue figure is a historic one as the carrier becomes the first company to generate $1 billion in just six years of operation.
The “50% Off Any Fare Anywhere” tickets are redeemable beginning on January 7, 1991; flights cease to Sioux City on January 31. Also in January, the company inaugurates service from Long Beach to San Jose and from San Francisco to Santa Ana. A fourth roundtrip is added from Phoenix to Long Beach and one more roundtrip is introduced from Phoenix to Palm Springs and to Yuma. Thrice weekly B-737-300 service is introduced from Phoenix to Steamboat Springs and daily from Phoenix to Vail. In other business, the airline receives an FAA repair-station certificate, allowing it to perform maintenance for other airlines.
The first non-Western Hemisphere destination is inaugurated by a B-747-206B on February 1—Nagoya, Japan. The same day, nonstop Orange County-San Francisco return service begins. The first A320-232 is placed in service on a nonstop Phoenix to Chicago (ORD) service on February 11. Pay cuts begin for certain employees, primarily officers and managers, during the month ranging in severity from 10 to 25% and in order to make capacity available for a Mideast airlift, the Nagoya service is suspended at month’s end.
Contract flights for the return of Operation Desert Storm soldiers from Saudi Arabia begin on March 7. Deep discount fares for military personnel will be offered during the next nine months. Company pilots during the month reject unionization by a vote of 743-285. Winter season flights to Vail cease on March 31 and to Steamboat Springs on April 6.
Lubbock and Midland and Odessa service is halted on April 7 and during the month the company is forced to halve its capacity-growth plans for the year. Thrice-weekly Nagoya services resume in May and on June 1 aircraft lease payments are deferred in an effort to conserve cash. On June 27, as a result of the effects of the recession, high fuel costs, and the Gulf War, America West faces a severe cash-flow crisis and files for Chapter XI bankruptcy reorganization.
Thrice-daily nonstop flights are initiated from Phoenix to St. Louis on July 1, the same day an across-the-board pay freeze is imposed. New York (LGA), San Antonio, Bakersfield, Palmdale/Lancaster, and Grand Junction service is dropped on August 1 as a 10% pay cut is imposed on anyone not given a pay cut in February. The Fresno, Santa Barbara, and Grand Canyon frequencies are halted on August 25, but five days later on August 30, twice-daily B-737-300 flights begin from Atlanta to Las Vegas and Phoenix. The U. S. Bankruptcy Court approves a new $55-million financing package and, although Edward R. Beauvais remains board chairman, President Michael J. Conway is appointed CEO on September 15.
Fiscal assistance in the form of debtor-in-possession financing is provided by GPA Group and Northwest Airlines, with the former contributing $35 million and the latter the remainder. The largest portion of the aid will pay the Irish lessor for chartered A320s. In addition to cash, the company announces a joint marketing program with Northwest Airlines and also negotiates a two-year option to purchase the Honolulu-Nagoya route for $15 million.
Also in September the company begins to code-share with Northwest Airlines on flights linking the Minneapolis-based carrier’s transpacific services to the routes from Las Vegas to San Francisco, Phoenix to Los Angeles, and Tucson to San Francisco via Phoenix. Service to Pueblo is halted on October 1 and on October 31 the new joint marketing and code-sharing alliance with Northwest Airlines comes into effect, providing the Minneapolis-based megacarrier with access to the Southwest.
Another $23-million debtor-in-possession financing from Kawasaki Leasing International, Inc. is approved by the U. S. Bankruptcy Court on December 10. On December 14, the company begins nonstop B-737-300 thrice-weekly frequencies from Phoenix to Steamboat Springs. The next day, service is started to a new hub at Columbus with nonstop flights to the Ohio capital from Boston, Las Vegas, Phoenix, and Washington, D. C. (DCA). A five-times-per-week schedule is kicked off from Phoenix to Vail on December 21. Also in December, the Hanover, Maryland, satellite reservations system is transferred to Kansas City.
As might be expected, cost-cutting measures have resulted in a change of year-end statistics. The workforce is down by 11.4% to 12,000 and 2 B-737-200s, 1 B-747-206B, and 6 DHC-8-102s have been withdrawn and replaced by 16 A320-232s chartered from GPA, Ltd.. The number of served cities declines to 47.
Customer bookings ascend 8.2% to 16,907,000 and cargo jumps 9.7% to 105.29 million FTKs. Although revenues climb 7.45% to $1.42 billion, expenses swell 12.67% to $1.52 billion and cause a $104.65-million operating loss. The net loss deepens to $222.01 million, a 191% increase over the previous year.
Service is resumed to Chicago (MDW) on February 1, 1992 and launched to Orlando and Tampa. Flights to Nagoya, Japan, from Honolulu end on April 15 as the route authority is transferred to Northwest Airlines, with which AWA has a marketing agreement. A code-sharing and frequent flyer arrangement is entered into with Aeromexico (2) (Aerovias de Mexico, S. A. de C. V.) on June 1, the same day codeshared new flights begin to Mexico City from Phoenix; flights also begin to Milwaukee. Service to Cedar Rapids is suspended on July 7.
Chairman Beauvais resigns on July 17 and is succeeded by President/ CEO Conway. The new leader announces a cutback of 1,500 jobs (to save $7 million per month), the deletion of 15 aircraft, and the retirement of the Jumbojets from the Phoenix-Honolulu run and their replacement with 2 Lockheed L-1011 Tristar 1s wet-leased from American Trans Air. With the beginning of the National Football League (NFL) regular season, the carrier finds itself with exclusive contracts to transport two teams, the Phoenix Cardinals and the Kansas City Chiefs.
The Calgary route is suspended on August 25 and flights to Moline and the Quad Cities end on September 8. The U. S. Bankruptcy Court approves $53 million in expanded debtor-in-possession financing on September 9 from a consortium of Arizona lenders, GPA, Ltd., and Ansett Worldwide Aviation Services, Ltd. The state of Arizona provides a $1-million loan and local businesses provide another $7 million.
The board of directors is reconstituted from seven to nine members on September 17 with Chairman Beauvais voted off and Phoenix-area businessman William A. Franke elected to replace him. A code-sharing arrangement is entered into with Mesa Airlines on October 1, as new markets are opened at Farmington and Gallup, New Mexico. The Arizona cities of Kingman and Prescott become carrier destinations on October 15, followed by Sierra Vista and Fort Huachuca on November 1 and Bullhead City and Lake Havasu City on November 15. Seasonal ski service (December-March) is opened to Telluride in Colorado on December 19. As of December 31, company employment is down to 10,500. The fleet now includes 56 B-737s, 12 B-757-200s, and 18 A320-200s; gone are the B-747s and DHC-8s. The number of destinations rises by 10, but recession impacts both traffic and finances.
Passenger boardings decline 10.3% to 15,172,757 and freight falls 30.1% to 73.67 million FTKs. Revenues drop 8.6% to $1.29 billion, which is the lowest amount earned by any U. S. major and smaller, indeed, than that of the country’s third largest all-cargo operation, Airborne Express. Expenses slide 9.9% to $1.36 billion, and the net loss is cut to $74.81 million. The operating loss is cut in half to $131.76 million. Looking for something to cheer about, statisticians point out that the $294.6-million stockholder’s deficit—the deficit of the nation’s smallest major—was still better than that of Continental Airlines or Trans World Airlines (TWA).
Honolulu service ends on March 31, 1993, and a Mexico City sales office is opened on April 16. A first quarter operating profit of $17.2 million and net profit of $2.1 million is announced on April 26. On August 1, the company celebrates its tenth anniversary; it is the only major carrier born of deregulation to survive. The carrier now becomes the official airline of the new MGM Grand Hotel and theme park in Las Vegas.
In early October, the U. S. Bankruptcy Court grants a seventh extension, through mid-February, of the airline’s exclusive right to present a reorganization plan. Simultaneously, the debtor-in-possession lenders agree to extend the maturity of their loans until next July. On October 8, the Mesa Airlines code-sharing agreement is expanded into the creation of America West Express commuter service. All of the DHC-8-102s previously withdrawn are transferred to the new enterprise.
The third attempt to unionize the airline’s pilots is successful as the carrier’s pilots vote 802 to 224 on October 21 to join the Air Lines Pilots Association (ALPA). Also in October, AWA Partners, an investment partnership led by the Pritzker family of Hyatt hotel fame (and former owners of the second Braniff, Inc.), offers to insert $150 million of equity into the bankrupt airline and help it create the reorganization necessary to emerge.
On December 1, new uniforms are introduced by flight attendants and other customer-service personnel. Additionally, a contract is let with Flight Phone Corp. for FlightLink entertainment and communications systems for passengers. Service is inaugurated to Indianapolis on December 15, with nonstop service to Las Vegas and Columbus. Systemwide at year’s end, employment totals 11,000. The fleet total is down by one plane, as a B-757-200 is withdrawn. Sixty-seven cities are served with 270 departures from three hubs. During the year, the company raises debtor-in-possession financing of $131 million and obtains payment deferrals from suppliers of $140 million.
On December 31, Chairman William Franke and other members of the board dismiss President/CEO Michael Conway in a power struggle over which group should be asked to help the company emerge from Chapter XI bankruptcy. Conway and New York financier Michael Steinhardt have joined forces in an unsuccessful takeover bid and Conway refuses to vacate his board seat.
Customer bookings decline another 2.9% to 14,739,644 and cargo is off by 25.4% to 54.92 million FTKs. Revenues rise 1.7% to $1.36 billion and expenses fall 12% to $1.2 billion. As a result, a $121.05-million operating profit is made, followed by net gain of $37.18 million.
Airline employment is increased by 3.4% in 1994 to 11,595. The fleet now includes 1 each B-737-112, B-737-2A6, B-737-281, B-737-291, B-737-2E3A, B-737-2K6A, B-737-2M8, B-737-2Q8, B-737-2U9A, B-737-3G7, B-737-297A, and B-757-225; 2 each B-737-222s, B-737-2T4As, B-737-284As, and B-747-206Bs, 3 each B-737-204s, B-737-275As, B-737-377s, and B-757-2G7s, 6 B-757-2S7s, 11 B-737-33As, 12 B-737-277As, and 21 B-737-3G7s.
After the selection of former Aloha Airlines head A. Maurice Myers as president on January 1, Conway resigns from the board of directors in early February. Chairman Franke (who assumes the CEO mantle) and the board, also in February, choose as their corporate savior AmWest Partners, a group formed around the Texas-based Air Partners I. P. investment organization which, together with Air Canada, Ltd., acquired majority interest in Continental Airlines in November. Mesa Airlines is also an AmWest associate, and its president, Larry Risley, is one of 10 new members added to an expanded 15-member board of directors. The winning group pledges investments of up to $220 million in return for minority 35.5% shareholding and 71.2% voting interest.
The company begins taking reservations on February 28 for four daily nonstop flights from Philadelphia to Columbus and Las Vegas that begin on April 18.
A competing bid by Michael Steinhardt is allowed to expire during the month as Air Partners I. P. increases its offer by $25 million, winning support from the carrier’s unsecured creditors. Under the new proposal, those creditors will receive up to 59% of total equity (or partake in a share of $100 million to be set aside for them), existing stockholders will obtain 5%, and Air Partners will still take 35.5% shareholding.
After 38 months of Chapter XI reorganization and a record 6 consecutive profitable quarters, the company emerges from formal bankruptcy on August 25; $240 million in unrestricted cash is on hand and the longterm debt has been reduced from $957 million to $550 million. The major immediately enters into a code-sharing agreement with Continental Airlines.
At the same time, a code-sharing pact is signed with another rescuer, Mesa Airlines. To celebrate the event, a B-757-2S7 is given a special “Teamwork” livery designed by the 11-year-old child of a company employee. To recognize the spirit of teamwork and cooperation that allowed the airline to end bankruptcy, childlike human figures adorn a white fuselage between the cockpit windows and wings with the word “teamwork” in similar childlike script written above the windowline. Rolled out on August 29, the Boeing is quickly nicknamed “The Romper Room.”
In September, the carrier’s flight attendants vote to join the Association of Flight Attendants (AFA).
On October 1, the company begins implementation of its alliance with Continental Airlines. In addition to reciprocal frequent flyer participation, joint marketing and purchasing, shared airport facilities, and consolidated ground handling, the two carriers code-share to a variety of domestic destinations via CA’s Houston and Newark hubs and AWA’s hubs at Las Vegas and Phoenix.
At the same time, AWA delays acquisition of 24 A320s for 2 years. On a positive note, AWA becomes the last U. S. major to join the Air Transport Association of America. During the same month, flight attendants formally join AFA.
A leased B-757-2G7 is acquired in late November, along with a B-737-3Y0; the former, City of Las Vegas, is painted in a special livery based on the state flag of Nevada, prominently featuring the state motto “Battle Born” as part of the color scheme.
In December, fleet service employees refuse to join the Transport Workers Union and mechanics vote not to be represented by the Teamsters. Negotiations begin with the AFA on a new contract—they will drag on for almost three years.
The City of Las Vegas enters service on December 15. Also during the month, service is halted to Lansing and Flint; however, it is started from Phoenix to Chicago (MDW) as well as to Mazatlan and Los Cabos, Mexico.
On the year, passenger boardings recover, growing 6.3% to 15,668,798 while freight moves ahead by 18% to 64.8 million FTKs. Revenues jump 6.3% to $1.4 billion, while expenses rise only 4.8% to $1.26 billion. Consequently, the pretax gain swells to $146.37 million and there is a net profit of $62.32 million.
On January 9, 1995, the company announces that it must lay off 1,100 employees to cut costs. During the remainder of the year, overall employment declines 18.7% to 8,712.
Beginning on February 2 and continuing through April 23, the carrier and Continental Airlines implement a second phase of their 1994 agreement. During these weeks AWA performs ground handling and customer service functions for Continental at the airports at Salt Lake City, Albuquerque, El Paso, Tucson, Seattle, and Omaha. Continental returns the favor for AWAat Baltimore, Philadelphia, Chicago (ORD), Orlando, and Tampa. As a result of the changes, 157 Continental and 130 America West employees are offered transfers to cities where the new jobs are created.
Officials announce, on February 15, the initiation of fare cuts for travel over all of its routes. The fares are immediately matched by American Airlines and, within two days, by Northwest Airlines, United Airlines, USAir, Trans World Airlines (TWA), and Continental Airlines. Also, under its 1994 pact with Continental Airlines, AWA and CA increase by 30 the number of dual-designator airports the two carriers visit.
In accordance with its January 9 announcement, the company, on March 3, begins to layoff the first of some 700 employees. During the month, the company begins to operate a unique “night hub” operation at Las Vegas, with almost half of its 86 daily departures flying out between 8 p. m. and 5 a. m. These frequencies, especially the 8-plane 1 a. m. “bank,” appeal to leisure passengers traveling to and from the city’s casinos.
On April 20, the airline receives its fourth B-757 in a special paint scheme. Christened the City of Phoenix/City of Tucson, the Dash-23A wears a livery based on the colors of the state flag of Arizona. Also in the spring, a contract is signed with Mesa Air Group for new America West Express service. Mesa creates a Desert Sun Airlines (2) division, which begins flying to Des Moines and Spokane from Phoenix with a pair of Fokker 70 regional jets.
A new five-year contract is signed between the company and its ALPA-represented pilots in May. The arrangement includes an annual 6.9% pay increase, a single-pay scale based on seniority, and a 10% boost in productivity.
In mid-July, the company announces that it will add first-class to all of the planes in its fleet that do not already have it. The service is seen by the company, as it is by others, as a way to reward loyal passengers with service upgrades. The decision is also taken to outsource all major maintenance.
An aggressive program to increase growth over the next two years is revealed in September. The number of departures from Phoenix, for example, will be significantly increased over the present 173 per day. In addition, more planes will be added and pilots hired.
The fifth state-flag logo jet is received in November; the B-757-2S7 City of Columbus wears a colorful livery taken from the pennant flag of the Buckeye State of Ohio.
Plans are announced on December 3 for the layoff of 500 employees, including half of the carrier’s mechanics; at the same time, the company signs a five-year contract with the Tramco; the airline will outsource all of its heavy maintenance to this subsidiary of the BF Goodrich Company.
A class-action lawsuit is filed against the airline on December 28; it claims that nearly 400 workers have been discharged because of unionorganizing activities on behalf of the Teamsters. Also during the year’s last week, an agreement is signed with TRAMCO of Everett, Washington, for heavy maintenance over the next five years. As a result, 500 AWA employees will be laid off.
Enplanements jump 7.5% to 16,848,329 and cargo moves ahead by 7% to 70.65 million FTKs. Operating income accelerates by 10.1% to $1.55 billion and costs move up 10.6% to $1.39 billion. Operating profit climbs to $154.73 million, but net gain falls to $53.78 million, due largely to a restructuring charge of $10.5 million associated with the maintenance outsourcing decision.
Airline employment is increased a dramatic 10.8% in 1996 to 9,652 and 8 new aircraft are acquired. Holiday Inn, on January 1, joins the company’s FlightFund frequent flyer program. The same day as the company begins to expand its Nevada hub, flights commence from Las Vegas to Mexico City. Roundtrips from Phoenix begin on January 19 to Reno, Seattle, Mexico City, and Los Cabos.
During the month, America West Vacations begins to offer vacation services to Tampa and Orlando from Boston, Houston, and Newark and from Cleveland to Las Vegas; the flight portion is handled by Continental Airlines. The airline itself handles a new “Fly & Ride” package for visitors to the Phoenix area.
To dramatize it’s changed image and economic recovery, America West unveils a new paint scheme and logo early in the year, the first change in corporate image since the carrier was founded. This change is most visibly seen in the carrier’s new aircraft livery. Employing the greens and reds of the Southwest in their tail design, aircraft are given billboard-sized America West titles on the forward sides of their fuselages. It will require two years to repaint the entire fleet.
The company’s contract as official airline of the Anaheim Angels (formerly the California Angels) major league baseball team is reconfirmed.
Frequencies are initiated on February 15 from Phoenix to Burbank and Newark and from Las Vegas to Detroit; Las Vegas to Vancouver services begin on February 18.
When, beginning February, the 4 A320-231s that Midway Airlines (2) has chartered from ORIX Corporation must be returned, two of the European-built aircraft are turned over to America West and are flown under contract by Midway crews. Another is acquired under sublease from the Irish operator Translift Airways, Ltd.
On April 7, A320-231 daily roundtrip service is inaugurated from Las Vegas to Newark. A third nonstop Phoenix to Atlanta service begins the same day.
Angered by the company’s December outsourcing decision, mechanics vote on April 17 in favor of union representation by the Teamsters. The airline asks a federal judge to review the election, noting that federal election officials have allowed 400 mechanics to vote who had earlier been dismissed by the airline. The election results will stand.
On April 18, a new code-sharing alliance is formed with British Airways, Ltd. (2), which will link AWA’s network of U. S. routes with BA’s new transatlantic service to Phoenix. The pact also includes reciprocal frequent flyer participation.
A third nonstop Las Vegas to New York (JFK) route is started on May 15 and the same day new nonstops commence from Phoenix to Philadelphia and Boston. The next day, a B-757-225 is unveiled in the bright orange and purple colors of the Phoenix Suns NBA team, with a huge basketball painted on its tail.
Richard R. Goodmanson becomes executive vice president /chief operating officer on June 1. He begins a series of employee meetings designed to reassure workers. A fifth Phoenix to Colorado Springs frequency begins on June 6. On June 15, thrice-daily roundtrips are inaugurated from Phoenix to San Antonio with one daily roundtrip launched from Las Vegas to Anchorage via Seattle. In addition, low-fare, late-night flights are added to various destinations from Las Vegas.
The FAA office in Phoenix assigned to the airline is tasked to carry out, in the wake of the May Valujet Airlines disaster, a safety inspection of AWA from June 25-July 12. It is announced on July 1 that the company has hired a total of 118 new pilots during the preceding 12 months. The June-July period is plagued by numerous operational problems, including an increase in flight delays and cancellations, a pilot shortage, and difficulties in obtaining more jetliners. Staff morale is reflected in the company’s eighth place finish in July on-time performance figures.
On the plus side, another B-757 theme plane, a former Northwest Airlines Dash-2S7, is unveiled, depicting the logo of the Arizona Diamondbacks, the new major league baseball team that has chosen AWA as its official airline. The British Airways, Ltd. (2) dual-designator service is inaugurated on July 1 with the U. K. major flying into Phoenix and on to San Diego with one of its DC-10-30s.
Results of the June-July safety inspection are released during the last week of August. The carrier is cited for overworking certain operations and maintenance employees, poor oversight of vendors, improperly manifested cargo, and its need to more carefully handle hazardous materials, especially oxygen canisters.
In September, the company commits an error that is translated by the media into a major public relations blunder. In order to fulfill a charter contract with the Anaheim Angels baseball team, the company forces 53 passengers off Flight 543, a Dallas to Phoenix flight, when the regularly assigned team plane breaks down. All of the passengers are booked on an American Airlines flight and given $150 each for their inconvenience.
On November 15, daily flights are inaugurated from both Phoenix and Las Vegas to Miami and Ft. Myers. Daily nonstop roundtrips are started on November 22 from Phoenix to Acapulco. During the month, the company’s sole B-737-112 is unveiled wearing not only the airline’s new markings but colors of the Phoenix Suns basketball team as well.
Electronic ticketing is introduced during the fall. A nearly disastrous $45.7-million third quarter loss is suffered as costs from the previous year’s outsourcing decision are combined with what are termed “poor revenue management decisions.” The situation is corrected by the end of the fourth quarter.
Customer bookings accelerate 7.9% to 18,178,072 and 69.02 million freight FTKs are operated, a 7.7% increase. Revenues jump 12.2% to $1.73 billion and costs climb 19.7% to $1.67 billion. Operating gains drop to $68.66 million. Largely as a result of a $65.1-million special charge related to restructuring of an earlier Airbus order, the net profit drops to $8.5 million.
The employee population is reduced a slight 0.4% in 1997 to 9,615. The umbrella company, America West Holdings, is established on January 1; the new concern will operate the airline as a subsidiary and expand America West Vacations and charter operations into a leisure travel subsidiary. Newly elected officers include William A. Franke as chair-man/CEO, Richard R. Goodmanson as president, and W. Douglas Parker as senior vice president/chief financial officer.
Goodmanson becomes CEO in February, the same month he surrenders his Australian citizenship in favor of the U. S. Work is begun on overnight maintenance bases at John Wayne-Orange County Airport in California and at Columbus, Ohio. By freeing up demand for routine maintenance upon its Phoenix facility, the airline will be able to offer an additional four flights per day.
Daily nonstop roundtrip A320-231 service from Phoenix to Cleveland begins on March 1, along with a daily nonstop A320-231 roundtrip between Cleveland and Las Vegas. On March 31, the carrier is fined $20,000 by the DOT for two violations of government advertising rules. Half is due by September, with the other half to be forgiven if no further occurrences are reported within a year.
While on final approach to Las Vegas on April 18, the TCAS alarm sounds on Flight 66, a B-737-3G7 with five crew and 120 passengers, indicating that it is on course for a midair collision. The pilot climbs sharply to avoid disaster, missing a private Beech 99 freighter by 200 feet; one flight attendant is injured.
Nearly 100 angry mechanics picket shareholders at the company’s May annual meeting, held at the Arizona Historical Society Museum. Displeased flight attendants crowd the auditorium wearing inflammatory T-shirts. Chairman Franke acknowledges that employee morale has suffered in the process of turning the company around..
Flights from Cleveland to Washington, D. C. (lAD) commence on July 8. Simultaneously, daily A320-231 nonstop service is inaugurated between Phoenix and Washington, D. C. (lAD) and Las Vegas.
Complementing the carrier’s existing afternoon nonstop from Phoenix to Boston, America West, on September 4, adds a second daily nonstop return flight over that route. It is followed on September 10 by a second daily nonstop from the Arizona base to Philadelphia.
In an effort at growth through fleet renewal, AWA, during the second week of September, places a $2.07-billion order for 22 A319s and 24 A320s, plus 40 options. The earlier order for 24 A320s suspended at the time of the carrier’s bankruptcy is included. Daily A320-231 nonstops are initiated from Phoenix to Baltimore on September 25; return service from Baltimore to Phoenix starts next day.
Airbus Industrie agrees to assist financially with the purchase of between 12 and 16 aircraft and to provide backup funding for the remainder should the need unexpectedly arise. The local ALPA chapter is simultaneously assured that only AWA pilots will be allowed to fly these owned aircraft once they are in service.
On October 26, nonstop daily B-737-3G7 roundtrips commence from Columbus and Miami and Columbus and Ft. Myers. During the first week of November, America West Holdings Corp. announces its intention to build a new $37-million, 225,000-sq.-ft. headquarters at Tempe, Arizona.
A tentative agreement is reached on October 31 between management and the carrier’s flight attendants, represented by a local Master Executive Council of the AFA. The settlement will be voted upon by the full membership.
AWA on November 1 expands its pact with British Airways, Ltd. (2), adding Las Vegas and Columbus, Ohio, as connecting points on the dual-designator London service. Also during the month, a tentative agreement is reached with the AFA on a new five-year contract.
The DOT reports on November 25 that the carrier, according to its figures, has had the fewest reports of mishandled baggage of any U. S. major between January and September.
On December 10, USA Today reports the newly released DOT 10-year report of on-time percentages for the nation’s 10 major airlines, with a note that the airlines, themselves, began reporting mechanical delays in 1995. The industry average since record keeping was begun in September 1987 is 79.3%; AWA demonstrates an 82.1% achievement, good for second place behind Southwest Airlines (2).
The flight attendants vote on December 17 to reject the tentative agreement.
Passenger boardings for the year inch up 0.8% to 18,331,354 while cargo moves ahead by 4.7% to 72.29 million FTKs. Operating revenues rise 7.8% to $1.87 billion, while expenses climb 2.5% to $1.71 billion. The year’s best financial performance ever is climaxed with record profits: $161.82 million (operating) and $74.97 million (net).
At the beginning of 1998, AWA is the 17th largest airline in the world in terms of passenger boardings and 22nd in operating profit. The fleet now includes 104 aircraft, of which 80.8% are Stage III certified, and consists of 63 B-737s, 14 B-757s, and 27 A320-231s.
The Mesa Air Group ownership stake is repurchased in January. At the same time, the state-theme color scheme of the B-757-2S7 Arizona is revised.
A second daily A320-231 nonstop return service is initiated on February 17 between Phoenix and Baltimore (BWI).
Also in February, Chairman/CEO William Franke is appointed to a new two-year term. For the second straight year, the company is named No. 1 in customer service on U. S. short-haul flights in a survey by J. D. Power & Associates/Frequent Flyer magazine.
As a result of a rejection of their tentative contract the previous October, the carrier’s flight attendants, represented by the AFA, resume negotiations with management in March under the supervision of a federal mediator.
Disappointed with the service it has received from Mesa, America West Airlines determines during the first quarter to conclude its codesharing agreement with America West Express (Mesa Air Group), effective April 2. When it is learned that former Mesa executive vice president and current Virgin Express Airlines, S. A. CEO, Jonathan Ornstein, has become involved with Mesa on a management basis, AWA relents, agreeing to rescind the termination notice and enter into an interim dual-designator pact. A long-term code-sharing alliance will be negotiated after Ornstein takes over as Mesa’s CEO on May 1.
World History
