Sheridan, Wyoming, in late 1978 to provide Essential Air Service (EAS) flights to Gillette and Denver. Although revenue flights with Cessna lightplanes commence, they cannot be maintained through 1979.
U. S. DELIVERY SYSTEMS: 3402 East Wier Avenue, Phoenix, Arizona 85040, United States; Phone (602) 243-9810; Fax (602) 2439584; Year Founded 1994. Woodrow Matthews sets up U. S. Delivery Systems at Phoenix in 1994 to operate lightplane express, cargo, and courier services. Revenue flights begin with a fleet that includes 6 Piper Cherokee Sixes, 3 Cessna 207As, 1 Cessna C-206, 2 Piper Lances, and 1 Piper Navajo.
U. S. JET AVIATION: United States (1988-1990). U. S. Jet is established at Washington, D. C. in 1988 to offer passenger charter flights with a fleet of 3 Learjets, 2 Beech King Airs, and 10 Eurocopter BK-117 helicopters.
Enplanements total 4,819.
Airline employment is increased by 28.8% in 1989 to 152. When the FAA attempts to revoke the company’s operating certificate for alleged FAR violations, the small regional fights back in court and wins its case.
Passenger boardings, meanwhile, skyrocket 43.6% to 8,544 and revenues accelerate 23.4% to $15.3 million.
Increased fuel costs brought about by Iraq’s August 1990 invasion of Kuwait conspire with the deepening recession to force this charter operator out of business in December.
USA JET AIRLINES: Wilson Run Airport, Hangar 2064D, Belleville, Michigan 48111, United States; Phone (313) 483-7833; Fax (313) 483-1023; Http://www. active aero. com; Code U7; Year Founded 1979. David B. and Brian M. Hermelin join Martin R. Goldman in establishing this company at Willow Run Airport, Belleville, Michigan, near Detroit, in 1979 to operate on-demand quick-delivery air charters for the automobile industry. This non-scheduled operation continues for the next 15 years, by which time the executives operate as Air Charter Manager for Ford Motor Company of North America.
In late 1994, the Hermelins and Goldman are ready to inaugurate scheduled cargo services, primarily linking Detroit (YIP) with El Paso, Little Rock, and Memphis. Airline employment at this point stands at 80 and the fleet includes 15 Dassault Falcon 20s and 4 Douglas DC-9-15Fs. Orders are placed for three more of these chartered freighters.
Scheduled flights commence in January 1995 and a total of 7.83 million FTKs are operated by December 31. Operating income exceeds costs and there are profits: $3.49 million (operating) and $3.53 million (net).
The employee population stands pat in 1996 and traffic figures are reported through June. These show cargo rising 70.9% to 13.90 million FTKs. Revenues of $18.46 million are generated and expenses are $13.09 million. The operating profit is $5.37 million and a net $3.53-million profit is reported.
The fleet is increased in 1997 through the addition of another Falcon 20 and a Beech King Air 90; the workforce grows 28% to 320.
Although cargo traffic is down 7.9% to 12.33 million FTKs, the company reports operating revenues have shot up to $80.2 million. With expenses in hand, profits are reported: $3.5 million (operating) and $3.4 million (net).
Flights continue apace in 1998 without incident. A total of 13.06 million FTKs are operated, a 5.9% boost over the previous year. Revenues rise 14.2% to $91.55 million, while expenses are up 3.6% to $79.43 million. The operating profit grows to $12.11 million, while net gain surges to $10.3 million.
Airline employment has been cut 21.9%, to 250, by the beginning of 1999.
While on final approach to Kansas City on a March 4, service from Los Angeles, a DC-9-15F with two crew encounters a large flock of birds. During the incident, several birds are ingested into both engines, causing substantial damage and resulting in severe power loss. Still, the aviators are able to successfully complete their landing.
Cargo traffic jumps 29.1% on the year to 16.86 million FTKs. Revenues advance 22.1% to $111.81 million, while expenses are up 15.7% to $91.89 million. The operating profit climbs to $19.91 million and the net gain reaches $19.28 million.
Airline employment at the beginning of 2000 stands at 424, a 20.5% increase over the previous 12 months. Operations continue to be undertaken with 8 DC-9-15Fs, all Stage 3 noise compliant.
Due to increased demand by the automobile industry for the domestic transport of parts, the company in August acquires three DC-9-32Fs, one DC-9-33F, and a DC-9-51. All are placed into service from the Willow Run base before Christmas.
Freight traffic during these 12 months plunges 22.64% to 13.04 million FTKs.
USAFRICA AIRWAYS: United States (1993-1995). USAfrica is established by its chairman Arthur S. Lewis at Washington, D. C. (DCI) in early 1993 to offer scheduled services to South Africa. Edward R. Bolton is named vice chairman and chief operating officer and plans are made to initiate services early the next year. Interim financing of $30 million, including two bridge loans worth $12 million each, are obtained and a workforce of 380 is employed.
The top corporate leadership changes in early 1994. Wesley Kaldahl, former vice president-route planning at American Airlines, becomes chairman while the founding chairman’s son, Gregory S. Lewis, is named president/CEO. Two McDonnell Douglas MD-11s are leased from American Airlines in late spring and the first delivered, christened Edward R. Bolton, is employed to inaugurate twice-weekly scheduled services to Johannesburg via Cape Verde on June 3. The frequency becomes thrice weekly on July 2 as a weekly service to Cape Town is also introduced.
Plans are made to secure a domestic marketing partner in United Airlines; however, the employee-buyout of that major during the summer delays the accord until much later in the fall. Meanwhile, as long-term financing is sought, most of the short-term money available comes from mutual funds, one of the year’s bad investments.
Frequencies by year’s end are 6 roundtrips per week and a total of 33,000 passengers are flown on the year. Revenues are just $10.29 million and expenses are $27.79 million. The operating loss is $17.49 million and the net loss totals $18.14 million.
Short-term financing cannot, however, sustain the company’s operations far into 1995. On February 3, USAfrica Airways misses an important lease and maintenance payment to American Airlines, which is forced to repossess the two MD-11s. A week later, the new entrant suspends operations and files for Chapter XI bankruptcy.
During the last week of July, company officials forge a marketing alliance with Continental Airlines. The executives have (wrongly as it turns out) expectations of emerging from bankruptcy in November and resuming flights. Continental Airlines, for its part, would code-share on USAfrica Airways frequencies and provide ground-handling at Newark (EWR), to which the new entrant would shift from Washington, D. C. (lAD).
USAIR: United States (1979-1997). USAir is born on the morning of October 28, 1979 when the nation’s sixth-largest air carrier, Allegheny Airlines (1), changes its corporate identity to reflect its ever-expanding network. A few months later, in accordance with the CAB’s revised airline classification scheme, the newly renamed company, the largest local service airline, is ranked as one of the country’s 13 “major” carriers. Although its operations and maintenance hub at Pittsburgh is strengthened, corporate headquarters remain in the same Washington, D. C. (DCA) hanger they have occupied since 1949. The workforce is 9,317 and the fleet includes 2 B-727-2B7s, 11 B-727-1B7s, 49 DC-9-31s, and 28 BAC 1-11-200s.
In the year’s closing months, the carrier’s niche in the Northeast is maintained, the “Allegheny Commuter” network is nurtured and expanded, and unlike the approach of other airlines flying deregulated skies, no rush is made to lower fares. At the same time, orders are placed for 10 additional Douglas DC-9-30s and 3 Boeing 727-2B7s. Largely unnoticed during the year is the appointment of Joyce Stripp to the right seat of a BAC 1-11-200; she is the company’s first female pilot.
Passenger boardings for the year under two names total 14,152,000, a 9.2% jump; cargo climbs a meager 0.1% to 30.39 million FTKs. Operating income accelerates 28.58% to $728.71 million and expenses are held to $676.77 million, a 27% gain. Consequently, profits for the year are $51.93 million (operating) and $33.4 million (net).
The employee population rises by 11.2% in 1980 to 10,470. Over $16 million is expended to upgrade terminals systemwide while also expanding maintenance facilities at Pittsburgh. Airliner interiors are all refurbished. During the first complete year of the major’s new title, USAir adds San Antonio, New Orleans, Houston, and Phoenix to its domestic route network.
It records a 1% rise in passenger boardings, up to 14.3 million; cargo declines by 27.8% to 27.2 million FTKs. A net profit of $60.3 million is earned on total revenues of $971.8 million, up 33.4%, and $880 million in expenses, continuing a trend that will eventually show, at least for awhile, the company as the most profitable since deregulation.
Airline employment is increased 3.7% in 1981 to 10,764. Service is extended to Dallas (DFW), Kansas City, Austin, Knoxville, Grand Rapids, and Fort Lauderdale. The fleet is strengthened by the arrival of 11 new aircraft: 3 new Boeing 727-2B7s and 8 Douglas DC-9-30s. Orders are placed for 15 B-737-2B7s and 10 B-737-3B7s, with USAir the launch customer for the latter aircraft.
A $ 16-million concourse is opened at Pittsburgh and boasts the world’s largest ground power system. Maintenance facilities at the Pittsburgh airport are also improved, to the tune of $19 million. The carrier’s management information services division is transferred from Washington, D. C. (DCA) to a new $12-million computer center in Virginia.
En route from Albany to Buffalo on October 5, Flight 455, a BAC 111-200 with 66 passengers, is taken over by a man claiming to have a bomb, but who quickly surrenders. Upon examination, he will be found mentally unstable and will be ordered to a psychiatric facility.
The PATCO air traffic controllers’ strike of the summer is almost solely responsible for a 5.6% decline in passenger traffic to 13.4 passengers. It also forces a 20.7% downturn in freight traffic, to 17.41 million FTKs. Revenues accelerate 14.27% to $1.11 billion, but even with a 19.49% boost, expenses are kept to a manageable $1.05 billion. The operating profit swells to $58.46 million and net income of $51.08 million is banked.
From a psychological and marketing standpoint, the year’s greatest achievement comes in the wake of the earnings statement because its operating income now qualifies USAir to be labeled a “major” carrier under the CAB’s airline classification scheme. It is the first company added to that select list since its initial publication.
USAir has a remarkable 1982. The payroll is boosted 2.6% to 11,046, as Denver joins the route system. New aircraft overhaul and flight training facilities are occupied in Pittsburgh and a $16-million remodeling of the South Dock there adds 10 new boarding gates. On that basis, the carrier is now ranked 10th in size in the free world. New deliveries aid the company’s fleet modernization program as 6 B-737-2B7s, 2 B-727-2B7As, and 8 DC-9-31s are placed on line.
A DC-9-31 strikes a deer on takeoff from Pittsburgh on August 28 and although the plane must make an emergency landing and be taken out of service, no injuries are reported by anyone aboard.
Boardings rebound strongly, jumping 9.1% to 14,727,000; cargo, unhappily, drops 14.2% to 14.93 million FTKs. On the financial side, CEO Edwin I. Colodny’s cautious post-deregulation approach pays big dividends. The debt and equity position is improved to one of the best in the industry, with a ratio of 42 to 58. Additionally, in a year when most of the country’s airlines are having financial trouble as the result of recession and cutthroat competition, USAir produces a $59.1-million net profit on revenues of $1.27 billion.
The ledgers not only show that the company possesses the best operating margin among domestic air carriers, they also proclaim the sensational news that it has achieved the largest net profit of any airline in the world and is one of only two American majors to have net gain.
Fifty-four new employees are hired in 1983 and on February 1, shareholders approve the creation of a holding company, USAir Group, which will now operate the airline, several regional carriers, and aviation support firms as subsidiaries. Since 1979, the carrier has acquired 58 aircraft, bringing its total to 18 B-737-2B7s, 14 B-727-2B7/-2B7As, 71 DC-9-31s, and 24 BAC 1-11-200s, the latter mostly holdovers from the Allegheny Airlines (1) era. All remaining B-727-1B7s and most BAC 1-11-200s are disposed of as 9 B-737-2B7s and 3 B-727-2B7As are delivered.
USAir becomes a transcontinental airline in March when nonstop service is launched from Pittsburgh to Los Angeles and San Francisco in competition with United Airlines, which will drop those routes in January 1984, and to San Diego. From the Pittsburgh hub, routes are extended to seven new markets in the North and South Carolina and Virginia.
When flights from its connecting “Allegheny Commuter” system are included in the total, USAir has 300 departures a day from its Pittsburgh base, the most by any carrier from any airport save Atlanta, where Eastern Air Lines has 327 and Delta Air Lines has 301.
Enplanements increase by 11% to 16,352,000 and as the routes lengthen, the average passenger trip grows from 327 miles in 1978 to 452; freight booms upward by 9.3% to 16.31 million FTKs. Revenues accelerate 12.51% to $1.43 billion and costs climb 9.19% to $1.30 billion. The operating profit is $128.87 million and net gain totals a record $78.38 million.
Employment grows 5.3% in 1984 to 12,524 and the fleet now includes 21 BAC 1-11-200s, 49 owned and 22 leased DC-9-31s, 14 B-727-2B7As, and 17 owned plus 6 leased B-737-2B7s.
In January, the carrier receives the 1983 “Financial Management Award” from Air Transport World magazine. Flight 183, a DC-9-31, is involved in a landing accident at Detroit (DTT) on June 13, while the first 4 of 30 B-737-3B7s on order arrive in December.
Although service is begun to Fort Myers, Florida, no major moves are made by USAir this year, save the establishment of a frequent-flyer program, Frequent Traveler. Frequencies from the Pittsburgh hub are increased; 249 departures leave the Pennsylvania city daily for 69 destinations. Meanwhile, as is the case with several competitors, the company negotiates a two-tier wage scale with its employees.
Passenger traffic increases by 5.7% as 17,277,000 customers are flown; cargo rises 22.8% to 20.2 million FTKs. Operating revenues jump 13.8% to $1.62 billion and costs are checked at $1.43 billion, a 10.3% boost. Operating profit balloons to $550 million and yet another record net profit, $121.4 million, is turned in.
The payroll grows by 10.1% in 1985 to 13,789 as nonstop service from Pittsburgh to San Diego, Milwaukee, and Green Bay. The carrier now flies over 70% of all customers flying through or from Greater Pittsburgh, now the nation’s 5th largest hub. In April, the company orders 20 sets of avionics for its B-737-2B7s and markets 2 jetliners, a B-727-247 for Western Airlines to Louisiana-based Gulf Air and a B-727-1B7 for Calgary-based VCHC Enterprises, Ltd. to Avensa (Aerovias Venezolanas, S. A.).
Flights begin on May 1 from Pittsburgh to Newport News and Myrtle Beach. In mid-May, it is announced that “Allegheny Commuter” partner Pennsylvania Commuter Airlines, based at Harrisburg, has been purchased. In late July, the company signs a $380-million order to purchase 20 Fokker 100s, becoming the jet’s U. S. launch customer. Commuter partners Ransome Airlines and Fischer Brothers Aviation defect to other majors during the fall and plans are now made to take over Suburban Airlines as “Allegheny Commuter” bookings reach a cumulative total of 25.7 million.
Customer bookings advance by 13.1% to 19,278,000 and freight balloons 26.2% to 91.15 million FTKs. Revenues accelerate by 7.3% to $1.74 billion, costs climb 10.1% to $1.58 billion, and the operating profit declines to $166.92 million. Net gain dips to $109.85 million.
Airline employment rises 8% in 1986 to 14,800. A new hub is opened at Philadelphia to complement the cross-state operation at Pittsburgh.
While landing at Erie, Pennsylvania, following a service from Toronto on February 21, Flight 499, a DC-9-31 with 5 crew and 18 passengers, encounters tailwind conditions and a slippery runway, which is overrun. The aircraft crashes through a fence, across a road, and into a ditch 180 ft. from the end of the concrete. There are no fatalities.
By March, the “Allegheny Commuter” network is operating 594 flights per day, feeding USAir at Baltimore, Boston, New York, Newark, Pittsburgh, Philadelphia, and Washington, D. C Suburban Airlines is acquired on April 30 as, beginning this spring, flights are inaugurated to Atlanta, Jacksonville, Portland, and Manchester.
In June, the company begins hush-kitting the Rolls Royce Speys on its 20 BAC 1-11-200s at the rate of one per month. Also during the summer, the company begins dual-designator flights with Northwest Airlines on USAir routes between San Francisco and Los Angeles and starts to participate in Northwest’s frequent flyer program in the Pacific.
On August 28, four B-727-2B7s are sold to Sterling Airways, A. S. of Copenhagen and in September, four-times-per-day nonstop service is initiated from Washington, D. C. (DCA) to Boston. As the airline industry goes through a consolidation phase, competition for the lucrative California market intensifies as local carriers are bought and merged into larger partners. Pacific Southwest Airlines (PSA) of San Diego is purchased by USAir on December 6.
Passenger boardings jump 12.7% to 21,725,000, while cargo falls 3.2% to 21.49 million FTKs. Revenues swell by 2.2% to $1.78 billion, costs climb 2.6% to $1.62 billion, and the operating profit is down $2 million to $164.13 million. The net gain also slips, by $20 million to $89.16 million. Income by USAir Group totals $169.4 million (operating) and $98.4 million (net).
The workforce is increased another 12.3% in 1987 to 16,620. In January, Norfolk Southern Railroad, which owns almost 20% of North Carolina-based Piedmont Airlines (1), the dominant carrier throughout the mid-Atlantic region, announces its plan to take over complete control with an offer of $65 per share for the outstanding common shares. In early February, after 11 straight profitable years and still in an expansion mode, USAir Group Chairman Colodny counters the Norfolk Southern Railroad offer with a $72 per share bid ($1.65 billion total) that forces the railroad to withdraw its bid.
On March 4, just as USAir Group is about to savor the purchase of 2,292,599 shares in the larger Piedmont, Trans World Airlines (TWA) Chairman Carl Icahn offers $1.4 billion for the pride of Pittsburgh itself, suggesting he will merge the two airlines with his own to form a supercarrier. Although he has managed to acquire 15% shareholding in US-Air through an investment group known as Swan Management, the rival’s hostile takeover is successfully fought off during the next few days. It is helped along, no doubt, by a Securities and Exchange Commission March 4 announcement that it is investigating Icahn’s practices as part of a general SEC review of insider trading.
On March 5, US Air’s principal financial backer, Manufacturers Hanover, in response to a request from the Piedmont board for a cash deal, agrees to advance the necessary $800 million, allowing the USAir and Piedmont boards to complete approval of the merger on March 6. An additional 9,309,394 Piedmont shares are thus acquired by Chairman Colodny on April 1 and by mid-month, a plan for merger of the field sales staffs of the three airlines is cancelled; the TWA chairman’s interest in USAir is finally abandoned in May.
In July, USAir Group prepays $505 million in indebtedness under a $2-billion credit agreement. Daily nonstop B-737-3B7 flights commence in September from New York (JFK) to Ottawa. The following month, as the DOT approves the Piedmont acquisition, six-times-per-day nonstop return trips commence from Cleveland to Newark.
In October, the FAA launches an intensive program of airport screening. Over the next 18 months, FAA agents will be able to slip 734 test weapons or explosives through airline-run screening points and will, in turn, impose $5.21 million in fines against some 50 airlines that fail the unannounced tests.
The Piedmont Airlines (1) purchase arrangement is completed on November 5, with all remaining outstanding stock now passing to US-Air. Total cost of acquiring the new North Carolina-based subsidiary is $1.6 billion and it is slated for integration completion in early 1989. It will be operated as a subsidiary for eight months while, in addition, the “Piedmont Commuter” affiliates Henson Aviation and Jetstream International Airlines now become “USAir Express” operators. Thrice-daily service is inaugurated in November from Pittsburgh to Wichita via Kansas City.
An engine falls off a B-737-2B7 minutes after takeoff from Philadelphia on December 5 and makes a hole in a plowed field in Deptford Township, New Jersey; passengers aboard the little Boeing panic, but flight attendants bring them under control, allowing the plane to land safely.
Also in December, USAir Group continues to retire debts incurred to acquire PSA and Piedmont by prepaying another $400,000,000 in indebtedness under the $2-billion credit agreement; still, $1 billion is outstanding under the agreement. On the last day of the year, the fleet numbers 401 aircraft, not including either orders or the planes of commuter partners.
The year’s customer bookings accelerate 14% to 23,772,843, while freight recovers to increase by 4.4% to 22.44 million FTKs. Revenues advance 15.86% to $2.07 billion, expenses grow 11.34% to $1.8 billion, and the operating profit is $283.61 million. Net profit balloons to $140.07 million. USAir Group’s consolidated operating profit is $319.2 million and net gain is $194.6 million.
The employee population falls 9.9% in 1988 to 14,976. Pacific Southwest Airlines (PSA), despite objections from certain of its pilots, completes an integration process on April 9 and becomes a wholly owned subsidiary of USAir Group. As the result of negotiations with Allegheny County, a new long-term lease is signed with officials for occupancy at Pittsburgh.
The carrier now switches from its old “AL” two-letter code to a new “US” designation. At the same time, an 11.5% interest is taken in the Covia computerized reservations system still 50% owned by United Airlines. Meanwhile, experimental color schemes are applied to two DC-9-31s; both continue to place emphasis upon the bare metal livery.
On May 2, service is started from Pittsburgh to Atlantic City. Later in the month, year-round, nonstop flights are initiated between Palm Springs and San Diego, with continuing service to Pittsburgh. Simultaneously, the Visit USA airfare plan is revised.
As its difficult integration continues, Piedmont Airlines (1) continues to operate in a subsidiary role. On June 1, the new parent launches four daily roundtrips between Pittsburgh and Chicago (MDW) and thrice-daily frequencies between Philadelphia and Atlanta. Beginning in October, the company launches sustained competition against Braniff, Inc. at Kansas City by introducing daily nonstop return flights from that Missouri city to Los Angeles. Subsidiary Piedmont Airlines (1) also participates in the assault.
In November, twice-daily roundtrips begin from Pittsburgh to Worcester, Massachusetts.
Passenger boardings decline 3.3% to 35,054,000 and cargo is down by 2.9% to 35.3 million FTKs, the smallest amount hauled by any U. S. major. Revenues grow by 6.06% to $2.98 billion, costs are up 12.44% to $2.84 billion, and the operating profit is cut almost in half to $140.16 million. The same integration costs that impact the receipt of operating income slice the previous year’s net gain to only $57.71 million.
The fleet of the 18,000-employee major in 1989 includes 6 leased B-767-201ERs, 12 owned and 13 leased B-737-4B7s, 15 owned and 16 chartered MD-81s, 9 owned and 35 B-727-2B7/-2B7As, 60 owned and 14 chartered DC-9-31s, 8 Fokker 100s, 62 owned and 23 leased B-737-2B7s, 41 owned and 61 chartered B-737-3B7s, 4 owned and 17 leased BAe 146-200s, 4 owned and 21 leased F.28-4000s, and 20 F.28-1000s. Orders are outstanding for 55 B-737-300/400s, 5 B-767-2B7ERs, 20 MD-82s, and 22 Fokker 100s.
Swissair, A. G. becomes a partner in the airline’s frequent flyer program on May 1. Also, beginning in May, the carrier offers five Visit US airfare packages for non-U. S. visitors to America; each is priced according to the number of sectors traveled.
On June 1, the FAA assesses fines against those carriers failing its latest round of airport screening tests. USAir, with seven security breaches, is faced with $65,000 in punishment. The first Fokker 100 is received from Holland in June and the last BAC 1-11 is retired.
In July, USAir Group becomes the 186th member of lATA. Integration of the salaries and benefits of its PSA and Piedmont acquisitions are completed by August 5, at which point Piedmont is finally integrated. The achievement marks the largest merger in world airline history. The Piedmont policy of giving passengers a whole can of soda instead of just a cupful is adopted company-wide on August 19. A new color scheme and logo is unveiled and work is begun on redesign of aircraft interiors.
Also in August, USAir Group sells $358 million in 9.25% Series A preferred stock to Berkshire Hathaway, which is controlled by billionaire investor Warren E. Buffet; Buffet’s acquisition represents a 12% interest. Flight 105, a B-737-2B7A, is involved in a landing accident at Kansas City on September 8. Additionally, daily nonstop service is inaugurated on September 15 from Philadelphia to Los Angeles and Bermuda.
After inadvertent rudder trim threatens to force it to veer off the runway to the left on September 20, Flight 5050, an 8-month-old B-737-401 with 6 crew and 57 passengers en route to Charlotte, North Carolina, rejects takeoff when about half-way down the New York (LGA) runway. The Boeing then slides off the end of the rain-slicked concrete, dropping onto a light pier that collapses. The plane to breaks into three parts and falls into the East River to a depth of 7-12 ft. (two dead). Pilot Michael Martin and copilot Constantine Kleissaf, neither with much B-737 flight experience, initially disappear from the wreck site.
During pushback in preparation for departure from Orlando during a thunderstorm on October 7, a DC-9-31 with 107 passengers is struck in the tail by lightning. A ground worker wearing a headset connected to the aircraft is fatally injured by the bolt as it travels into him via the Douglas.
Hurricane Hugo in September and the San Francisco earthquake of October cause damages and impact schedules. Still, USAir begins daily nonstops from Dayton to Phoenix and adds a third daily nonstop from Dayton to Tampa. Air France becomes a member of the company’s Frequent Traveler program.
Eighteen new departures are initiated from the Philadelphia hub on December 1, including daily nonstop service to Sarasota, Florida, Nassau, and San Juan. The same day, nonstop flights commence to Baltimore (BWI) from Denver and between Long Beach and Phoenix. Later in the month, twice-daily nonstops commence between Kansas City and Indianapolis, while a second daily nonstop is introduced from the Missouri city to Los Angeles and San Francisco.
Customer bookings for the year dip again, by 1.3%, to 61,152,000; cargo, however, is up by 10.3% to 143.99 million FTKs. Revenues rise 9.53% to $6.25 billion, expenses jump 18.15% to $6.23 billion, and operating income plunges to $21 million. The previous year’s net profit becomes a $63-million net loss.
With 52,000 workers, USAir in 1990 is the 5th largest airline employer in the world; the 452-jetliner fleet is fourth largest.
Just after New Year’s, stockholders, including company board member George Goodman, alias Adam Smith the economics author, find that a common share purchased for $1,000 in 1980 is now worth $5,090.
While en route from Buffalo to Cleveland on January 18, an MD-81 is forced to turn back to its point of origin when its cockpit is filled with smoke from an improperly repaired electrical installation in the left generator. A safe emergency landing is made and no injuries are reported.
A $1-million renovation and remodeling project is begun in February to increase the USAir Club on Concourse C at Charlotte Douglas International Airport by 50%.
At the same time, Hyatt Hotels and Resorts becomes a partner in the Frequent Traveler frequent flyer program. Still struggling with problems caused by the takeovers of Pacific Southwest Airlines (PSA) and Piedmont Airlines (1), the Pittsburgh heavyweight acquires Gate 43 at Greater Pittsburgh International Airport from Eastern Air Lines in preparation for an expansion of its international services. The company now flies to 135 cities in 36 states, plus Canada, the Bahamas, and the new European markets. Indeed, the company has more flights per day than any other airline.
One nonstop daily roundtrip is introduced in March between New York (LGA) and Charleston and Greenville/Spartanburg; two roundtrips are offered from New York (LGA) to Colombia and Jacksonville. At the same time, seven daily nonstop roundtrips are inaugurated from New York (LGA) to Boston. On May 1, daily nonstop roundtrips inaugurated between New York (LGA) and Bermuda. The next day, May 2, daily roundtrip nonstops are started from Orlando to Los Angeles and Kansas City. From the latter point, daily flights begin to Seattle and twice-daily frequencies are launched to Wichita.
A daily nonstop roundtrip is inaugurated from Baltimore (BWI) to San Juan. Daily nonstop roundtrips to San Diego from Cleveland now begin, as do thrice-daily nonstops from Milwaukee to Charlotte. A marketing alliance is entered into with the Italian flag carrier Alitalia, S. p.A. Under its terms, the two carriers will code-share from Washington and Philadelphia to Rome via Boston. Simultaneously, an initial agreement for block-space purchase and connecting service on three weekly flights between Washington (IAD) and Orlando is inked with All Nippon Airways Company, Ltd. (ANA) . The Japanese carrier joins in the USAir Frequent Traveler frequent flyer program.
For the summer season that begins in June, the airline offers allinclusive Universal Studios Star Vacation packages as well as special discounts on flights to the Universal Studios facilities in Florida and Hollywood, California; movie characters are featured on all of the airline’s ticket jackets to promote the Universal programs. Pittsburgh-Frankfurt B-767-2B7ER service is inaugurated on June 15, the same day daily roundtrips are begun between San Diego and Charlotte. These German service complements existing Charlotte to London service begun by Piedmont Airlines three years earlier. As both are taxiing at New York (JFK), a B-737-4B7 collides with an Alitalia, S. p.A. aircraft also on June 15, causing minor wing and tail damage, but no injuries.
World History
