TEXAS INTERNATIONAL AIRLINES (TXI): United States (1969-1982). On April 1, 1969, the corporate identity of Trans Texas Airways is changed by its new owners, Minnesota Enterprises. At this point, W. Lloyd Lane succeeds Robert Sherer as president. To avoid confusion with Trans International Airlines, the abbreviation TXI is chosen. The fleet, however, remains the same: 7 DC-9-10 Pamper Jets and 25 CV-600 Silver Clouds.
Flight 600, a CV-600 en route from Alexandria, Louisiana, to New Orleans on May 30, is subjected to an unsuccessful attempt by a man, claiming to be armed with a grenade, to divert it to Havana. Criminal charges are dropped as the man, deemed insane, is committed to a psychiatric hospital for two years.
As if in honor of the name change, a TXI Douglas DC-9-10 becomes the first revenue airliner to land at newly opened Houston (IAH) on June 8; full meal service begins aboard the jetliners the same day. In December, several DC-9-30s joins the fleet.
Enplanements this year are 2,080,080. Revenues are $51.36 million; however, expenses are $55.11 million. As a result, losses are suffered: $3.57 million (operating) and $5.09 million (net).
The employee population in 1970 is 2,230 (a 6.4% increase) and R. L. Sicard becomes executive vice president at the beginning of the year. A DC-9-10 is involved in an accident at Harlingen, Texas, on January 11, while the new DC-9-30s are employed to inaugurate nonstop operations from Albuquerque to Los Angeles on January 15.
In addition, five Beech 99s are acquired to service, beginning in March, the small communities of east and west Texas, including Bryan, Waco, Temple, Victoria, Galveston, Longview, and Lufkin. Also in March, direct Houston to Salt Lake City flights begin. Direct Houston to Monterrey, Mexico, service is also instituted.
Passenger boardings increase 3.7% to 2,235,000 and freight traffic accelerates a healthy 49.5%. Despite this flurry of activity, the finances of the carrier, never strong, continue to erode. Although income advances 20.6% to 62.12 million, costs (led by increased fuel prices) soar 19.1% to $65.6 million. As a result, the operating loss, down slightly to $3.45 million, is further overshadowed by the new loss, now $7.42 million.
In 1971 , an uplift of the corporate image is undertaken, including new advertisements from a new West Coast agency, new uniforms, gate area designs, ticket counters, and so forth. A number of groups make offers for TXI, including William Wyant Jr. and Associates in May, Hughes Airwest in November, and Jet Capital Corporation the same month.
Led by Frank A. Lorenzo and Robert J. Carney, the latter joins TXI in announcing on December 9 that Jet Capital will invest $1.5 million and take control. Harlingen to Vera Cruz via Tampico flights are suspended.
Enplanements for the year are 2,371,908 and the carrier’s aggregate losses since its takeover by Minnesota Enterprises in 1968 now stand at $20.1 million, including a $6.1-million downturn this year.
The workforce in 1972 is 2,004. President Lane resigns on May 24. Also in May, President Nixon approves and the CAB authorizes service from Houston to Mexico City. Beech 99 feeder flights cease on July 1. Despite objections from Hughes, the CAB approves the Jet Capital acquisition on August 10. Frank A. Lorenzo is appointed president and a $35-million refinancing program is completed.
Twice-daily DC-9-30 Houston to Mexico City frequencies commence in December.
Passenger traffic declines by 2.68% during the year as 2,310,000 passengers are carried. Cargo, on the other hand, improves by 13.9%. Revenues are $72.92 million and expenses are $71.09 million. A $1.83-million operating profit is chalked up and the net loss declines to $1.29 million.
A total of 176 new employees are hired in 1973 and two additional DC-9-30s join the fleet in March. Plans are made to introduce upwards of five new DC-9s per year and to begin retiring the Convair fleet. An extensive refurbishment program is undertaken for the carrier’s jetliners. Interiors are revamped and new red, white, and blue liveries are painted on exteriors, complete with the white Texas lone star on airliner tails. A new logo is introduced and all appropriate personnel are outfitted with new uniforms.
During the year, the carrier enters into a tough, three-year battle against intrastate rival Southwest Airlines (2) in the Rio Grande Valley.
After taking off in heavy thunderstorms and lightning on the El Dorado-Texarkana leg of a September 27 service from Memphis to Dallas, Flight 655, a CV-600 with three crew and eight passengers wanders off course and crashes into a mountain near Mena, only 75 mi. from
Texarkana, and bums. The wreckage is found on September 30 and there are no survivors.
Enplanements decline another 5.9% during the 12 months to 2,175,000 and cargo is down a significant 44.1%. Still, costs are kept in hand, with expenses reaching $74.4 million on total revenues of $77.7 million. The operating profit is $3.32 million and the net profit—the first since 1966— is $1.18 million.
The carrier begins flying from Dallas (DFW) in January 1974. Late in April, the company adopts the marketing subtitle of “The Texas Airline.” Service is withdrawn to Jonesboro, Lufkin, Pine Bluff, Temple, Brownwood, Big Spring, and Santa Fe; however, a nonstop route is opened from Houston to Denver. What will prove a difficult strike by clerical and office workers and fleet and passenger service personnel begins on December 5 and closes the carrier down.
Prior to the shutdown, the year’s passenger boardings have risen 4.3% to 2,269,000; FTKs drop 3.6% to 6.42 million.
The workforce in 1975 is 2,234 and the fleet is increased by the addition of a former Hughes Airwest Douglas DC-9-14 that is christened City of Laredo. After 123 days of strike-caused idleness, Texas International resumes operations on April 4.
Customer bookings for the year begin a strike-induced downward spiral to 1,515,196, a decline of 27.5%. At 4.63 million FTKs, freight traffic is off an equal 27.9%. The loss of business results in costs of $82.98 million, which exceed total income by $2.98 million. The operating loss is $2.97 million and a net loss of $4.37 million must be endured.
The number of employees is increased by 5.4% in 1976 to 2,355. The battle to oust Southwest Airlines (2) from the Rio Grande Valley is lost and, as a result, service to a number of smaller communities in the area is progressively abandoned. Permission is sought to open a new route from Albuquerque to Las Vegas from Dallas (DFW) to Kansas City and Las Vegas and from Houston to Yucatan. Orders are placed for six additional DC-9-30s, four of which are delivered by year’s end.
Flight 987, a DC-9-14 with 5 crew and 81 passengers must reject its takeoff from Denver on November 16. The aircraft overruns the runway, traverses drainage ditches, and strikes light stanchions before stopping. Although the aircraft is badly damaged, no fatalities occur.
Passenger enplanements are boosted 58.2% to 2,397,256 while 7.8 million FTKs are operated. Operating income grows to $121.54 million while expenses are held in check at $116.37 million. This happy imbalance results in an operating profit of $5.16 million and record net gain of $3.21 million.
Early in 1977, Lorenzo’s carrier battles back by starting the first of the (now common) deep-discount fares, the famous “Peanut Fares,” and goes on to launch service to Kansas City and Las Vegas. Two additional DC-9-30s are used on the new frequencies. Meanwhile, CV-600 service is phased out.
Enplanements for the year total 3,167,000. Net gain of $9.31 million is earned on total income of $147.6 million.
Airline employment is increased by 12.9% in 1978 to 2,950. CEO Lorenzo competes against Pan American World Airways (1), Eastern Air Lines, and Air Florida in an attempt to take over National Airlines. Copilot Jill E. Brown, on April 20, becomes the first African-American woman to qualify as pilot for a large U. S. airline. Following passage of the Airline Deregulation Act in the fall, plans are made to enter a host of new markets and those actually inaugurated during the fourth quarter include Kansas City, Las Vegas, Guadalajara, Cancun, and Merida.
Braniff International Airways declines to contest charges of violating federal antitrust laws and is fined $100,000 on December 28 for using unfair tactics in squeezing TIA out of the commuter business.
Passenger boardings for the year rise 23% to 4,113,000 while freight also ascends, by 12.6% to 9.49 million FTKs. Revenues jump 23.08% to $181.66 million and expenses are $165.87 million. As a result, profits are realized: $15.78 million (operating) and $12.85 million (net), the latter a 37.95% boost.
The employee population grows by 14.4% in 1979 to 3,376.
Eight additional DC-9-30s join the fleet and orders are placed for 20 used DC-9-30s. Flights to Baltimore, Cozumel, Washington, D. C., Mobile, Oklahoma City, St. Louis, and Tulsa are inaugurated and city-pair frequencies on other routes are upgraded. Low-cost fares are expanded. Simultaneously, service is withdrawn, or sometimes just suspended, at Brownsville, Wichita Falls, and several other southwestern cities. Beginning on April 1, the company offers 99 cents and 69 cents flights to Los Angeles and Dallas to commemorate the inauguration of those new routes.
The bidding for National Airlines is won by Pan American World Airlines (1), but through a sale of its acquired stock to the winner, Texas International realizes a $34.6-million gain.
Customer bookings climb 10.4% to 4,542,000; however, freight is down 0.2% to 9.48 million FTKs. Fuel costs are up dramatically, causing a 33% increase in expenses on revenues of $235 million. Nevertheless, TXI earns a record net profit of $40.5 million, including $34.6 million from the sale of its National stock.
As the result of the CAB’s restructured airline classification scheme, Texas International is rated as a “national” in size during 1980. In January, the carrier receives the 1979 “Market Development Award” from Air Transport World magazine.
The DC-9-14 City of Laredo with 4 crew and 50 passengers is destroyed as the result of a bad landing at Baton Rouge on March 17; there are no fatalities.
The company’s stockholders in June approve formation of the holding company Texas Air Corporation (TAC), which then acquires the airline as its subsidiary. When Frank Lorenzo moves up to chair the parent, Robert J. Carney becomes TXI chairman and Henry T. Chandis arrives from USAir to become president. On August 8, 20 DC-9-30s are purchased from Swissair, A. G. and Austrian Airlines, A. G. for $135 million and begin to arrive following refurbishment and repainting.
A new TAC subsidiary, New York Air, is formed. Frequencies are extended to new markets at El Paso, Omaha and Hartford/Springfield. A campaign is undertaken to acquire Continental Airlines, then in deep financial difficulty, as the year ends.
Passenger bookings dip 2.5% to 3,970,000. Revenues rise to $291 million and a net profit of $3.62 million is realized atop an operating gain of $7.8 million.
Airline employment in 1981 stands at 3,350 and the fleet includes 47 aircraft. On January 31, Houston and Dallas to Yucatan flights commence, as does service from the Texas cities to Minneapolis/ St. Paul. The takeover bid aimed at Continental Airlines continues. Service to Milwaukee is launched on April 1. On May 21, the company begins flying from Houston to Puerto Vallarta, Manzanillo, and Ixtapa/Zihuatanejo.
Still, TXI suffers. Passenger enplanements drop 13.2% to 3,861,000 and cargo falls 23.6% to 6.78 million FTKs. Even though revenues are up 6% to $310.9 million, expenses accelerate 12.1% to $319.9 million. As a result, the airline records an operating loss of $8.9 million and a net decline of $34.9 million.
On July 13, 1982, Continental Airlines and TAC stockholders approve a merger of the two companies and on June 1, they begin a joint schedule. TAC completes its acquisition on October 31 and thereafter combines the operations of the two previous independents under the Continental Airlines banner.
TEXAS NATIONAL AIRLINES: United States (1983-1994). Established by CEO Charles Burnight at San Antonio as Border Airlines in 1983, this small intrastate carrier undertakes scheduled Piper PA-31-310 Navajo air taxi flights linking its base with Corpus Christi, Del Rio, and Laredo. Late in 1984, the company is purchased by Fairchild Industries, reformed and renamed.
In 1985, the small regional is outfitted with a pair of Metro IIIs, but serves largely as a corporate carrier. Additional destinations visited now include McAllen, Dallas, Brownwood, and Temple. By mid-August, 12 flights per day are offered from San Antonio, generating some $105,000 in income per month.
Fairchild support operations continue apace in 1986 until October. The carrier now becomes the first U. S. commuter airline to inaugurate scheduled passenger services south of the border by offering public flights to Chihuahua. A total of 426 fare-paying passengers are hauled during the fourth quarter.
Outfitted with 3 Metro IIIs, the 26-employee small regional enjoys a good 1987, its first full year, carrying a total of 9,483 passengers and 6,000 pounds of freight.
Operations continue apace until July 30, 1988 when Fairchild decides to halt scheduled operations and recast its carrier as an air taxi and charter concern. During the year’s first half, customer bookings triple to 16,187.
Nonscheduled flights continue for the remainder of the decade and into the 1990s. In 1993, John H. Karamanian is CEO and his company shuts its doors the following year.
World History
