Volume 24: Number 1 (2006)
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TWA, Departs the World’S Gers, Not Mail, Unlike Most Other Airlines Skies in Almost the Same Industry Envi- PART I in Those Days
rans World Airlines, with one of the month; copilots, $250. most recognized U.S. airline sym- TAT was developed to carry passen- bols, TWA, departs the world’s gers, not mail, unlike most other airlines skies in almost the same industry envi- PART I in those days. TAT’s transcontinental ronment in which it came into being— As TWA ended its 71 years of air/rail service would take passengers the end of an unfettered period of ex- cross-country in 2 days instead of 3, as pansion marked by consolidation of air- continuous operations, it was rail-only travel required. On the west- lines. Born of a 1930 merger, TWA had the United States’ longest to-east schedule, passengers would most of its assets purchased by Ameri- board a Ford Trimotor at Los Angeles can Airlines on April 9, 2001, to end flying air carrier. at 8:45 a.m. (PST), deplane at Clovis, TWA’s run as the longest-flying air car- N.M., at 6:54 p.m. (MST) for a night rail By Esperison Martinez, Jr. rier in U.S. commercial aviation. Still, trip to Waynoka, Okla., via the Topeka Contributing Editor its 71 years of flying millions of passen- & Santa Fe Railroad, followed by an 8- gers throughout the world, of record- hour 8-minute Trimotor flight to Colum- ing achievements that won’t be quickly bus, Ohio, then onto the Pennsylvania duplicated, of establishing sterling stan- manager of NAT, became TAT vice- Railroad to arrive in New York City the dards of operations, safety, and profes- president. -
Continental Air Lines 컨티넨탈항공
Continental Air Lines 컨티넨탈항공 국 적 : United States / 미국 코 드 : CO / COA 콜사인 : CONTINENTAL 기준일: 2008.12.31 ◎ 개요 ▶ 주소 : 1600 Smith Street, Houston, Texas 77002, United States ▶ 전화 : (+1 713) 324 50 00 ▶ 팩스 : (+1 713) 324 20 87 ▶ 홈페이지 : http://www.continental.com ◎ 역사 ▶ 1934년 7월에 운항을 시작하여 미국의 규제완화법이 발효된 이후에 바로 텍사스에어(Texas Air)와 의 합병으로 Texas Air Corporation이 인수이전까지 미국내에서 주요한 항공사였다. 이후, 이 항공사는 1993년의 자본구조조정 이전에 파산보호법 제11조에 따른 보호기간을 보냈으며 이 후 1995년까지 에어캐나다(Air Canada)와 파트너쉽의 관계인 Air Partners는 1995년까지 조정을 맡았 다. 자본의 재구성에 이어서, 노선망은 국제적으로는 Continental Micronesia항공을 통해서 그리고 휴스턴, 뉴어크(뉴욕) 및 클리블랜드의 주요 허브주변으로 합리화되었다. 콘티넨탈은 수많은 항공사들과 마케팅 협약을 체결하였다. 콘티넨탈과 노스웨스트 항공간의 동맹으로, 노스웨스트는 14%의 컨티넨탈 보통주와 51%의 투표권을 인수하였다. 콘티넨탈과 노스웨스트는 2000년 11월에 노스웨스트가 보유하고 있는 주식을 콘티넨탈에 매각하는것과 동맹계약을 2025년까지 연장하는것에 관한 최종계약을 실행하였다. 항공안정화(Air Transport Safety and System Stabilisation Act)법령에 의거, 이 항공사는 4억1천7백 만달러와 특별부가금 1억4천6백만달러를 지원 받았다. 2001년의 9·11사건 이후, 이 항공사는 수용력과 종업원수를 감축하였다. 2003년 교통산업의 하락이 있자, 이 항공사는 노선망을 계속 정비하고 2003년 7월에 ExpressJet Holdings (dba Continental Express)에 있는 지분을 다시 익스프레스젯(ExpressJet)에 매각하는 것에 동의하였다. 이 항공사는 현재 익스프레스젯에 있는 모든 지분을 매각하였다. 특별 아이템에 힘입어 2003년에 소폭의 순이익을 기록하였지만 재정상태를 개선하기위한 비용절감 노 력은 계속되고 있다. 2004년 9월, 이 항공사는 스카이팀 동맹의 회원이 되었다. 2004년 11월, 이 항공사는 자체 수입과 비용절감 목표치를 11억달러에서 16억달러로 확대하였다. 모든 자격있는 종업원들에게 주당 11.89달러의 옵션행사 가격과 함께 약 8백7십만주의 스톡옵션이 발행되었 다. 이 항공사는 보잉 항공기에 대한 새로운 주문을 하였으며 국제노선망을 확대하고 있다. -
Competitive Impact Statement: U.S. V. American Airlines, Inc. and Robert L
.. IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION ) UNITED STATES OF AMERICA, ) ) Plaintiff, ) ) v. ) CA3-83-0325-D ) AMERICAN AIRLINES, INC . , and ) ROBERT L. CRANDALL , ) ) Defendants . ) COMPETITIVE IMPACT STATEMENT Pursuant to Section 2(b) of the Antitrust Procedures and Penalties Act, 15 u.s .c. §16(b)-(h), the United States files this Competitive Impact Statement relating to the proposed Final Judgment submi tted for entry in this civil antitrust proceeding. I . Nature and Purpose of the Proceeding On February 23, 1983, the United States filed a civil antitrust Complaint in the United States District Court for the Northern District of Texas under Section 4 of the Sherman Act (15 u.s .c . §4) to enjoin defendants, .American Airlines, Inc . and Robert L. Crandall from continuing or renewing violations of §2 of the Sherman Act as amended (15 u.s.c. §2). The defendant American Airlines, Inc . (hereinafter "American") is a wholly-owned subsidiary of AMR Corporation and is in the principal business of providing scheduled airline passenger and freight services. American ' s principal business office is located in Fort Worth, Texas. The defendant Robert L. Crandall at the time of the Complaint was president of American . Defendant Crandall is currently Chairman of American's Board of Directors and is American ' s chief executive . His office is located at American's headquarters in Fort Worth. The Complaint alleges that on or about February l, 1982, the defendants, American and Robert L. Crandall, unlawfully attempted joint and collusive monopolization between American and Braniff Airways, Inc. -
“TWA– the Building of an Airline, As Revealed in the Private Collection of Co-Founder Paul Ernest Richter, Jr.” 1924 - 1949
“TWA– The Building of an Airline, as revealed in the private collection of co-founder Paul Ernest Richter, Jr.” 1924 - 1949 “The Three Musketeers of Aviation” Walt Hamilton, Jack Frye, Paul Richter ̶ 1 ̶ Overview TWA, The Airline Run by Flyers The Real story 1924 - 1949 Three young aviators with a common vision become the founders of “Trans World Airlines” A Documentary It was the 1920s, the “Golden Age of Aviation”, a time when pilots flew through barns and walked on wings. In this age of barnstorming and daring feats, three young pilots- Paul Richter, Jack Frye and Walter Hamilton took a chance with their life savings and purchased an airplane for the purpose of starting their own flight school. Within a short time, that one airplane grew to an airline fleet that pioneered the first passenger route system throughout the Southwest and forged the framework for modern air travel. Known then as the “Three Musketeers of Aviation”, these three young aviators with a common vision became better known as the founding fathers of Trans World Airlines. Trans World Airline set the standards throughout “the Golden Age of Aviation”. TWA was unique because TWA was founded by flyers. Jack Frye, Paul Richter and Walt Hamilton were visionaries of aviation; three men passionate about flying; always striving to reach for the impossible. From 1924 through 1947 their partnership and dedication to creating the best, established TWA as the leader in commercial aviation. This is the true story of the early years of TWA as told by Ruth Richter Holden, daughter of TWA founder Paul E. -
CED-82-33 Impact on Federal Government If the Combined
UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 COMMUNITY AND ECONOMIC 117500 DEVELOPMENT DIVISION B-206097 The Honorable Mark 0. Hatfield RELEASED United States Senate Subject: Impact on the Federal Government if the Combined Continental Airlines and Texas International Airlines Fail to Meet Their Financial Obligations ' (CED-82-33) This report responds to your letter of October 7, 1981, requesting certain information on the potential financial loss to the Federal Government if the combined Continental Airlines and Texas International Airlines fail to meet their financial obligations. The report addresses the subjects raised in your letter--essential air service to the Pacific; aircraft loan guarantees; potential revenue loss to the Treasury; and the Airline Employee Protection Program. We reviewed Civil Aeronautics Board (CAB) documents con- cerning essential air service to the Pacific and the airline employee protection program; Federal Aviation Administration (FAA) documents concerning the aircraft loan guarantee pro- gram; and Department of Labor documents concerning the airline employee protection program. We interviewed CAB, FAA, and Labor officials in Washington, D.C., concerning these programs and had telephone conversations with Continental Airlines and its Washington counsel, Hydeman, Mason, Burzio, and Lloyd, con- cerning taxes paid or collected by Continental and concerning Pacific air service. We were not requested to make any judg- ments on the financial viability of the merged airline. Our review was made in accordance with GAO's current "Standards for Audit of Governmental Organizations, Programs, Activities, and Functions." ESSENTIAL AIR SERVICE TO THE PACIFIC The Airline Deregulation Act of 1978 (Public Law 95-504) guarantees essential air transportation for any point in the United States to which any carrier (1) is providing service pursuant to a certificate issued under section 401 of the (341037) (5-a (--y33 63 . -
Airline Mergers, Acquisitions and Bankruptcies: Will the Collective Bargaining Agreement Survive Jonni Walls
Journal of Air Law and Commerce Volume 56 | Issue 3 Article 7 1991 Airline Mergers, Acquisitions and Bankruptcies: Will the Collective Bargaining Agreement Survive Jonni Walls Follow this and additional works at: https://scholar.smu.edu/jalc Recommended Citation Jonni Walls, Airline Mergers, Acquisitions and Bankruptcies: Will the Collective Bargaining Agreement Survive, 56 J. Air L. & Com. 847 (1991) https://scholar.smu.edu/jalc/vol56/iss3/7 This Comment is brought to you for free and open access by the Law Journals at SMU Scholar. It has been accepted for inclusion in Journal of Air Law and Commerce by an authorized administrator of SMU Scholar. For more information, please visit http://digitalrepository.smu.edu. AIRLINE MERGERS, ACQUISITIONS AND BANKRUPTCIES: WILL THE COLLECTIVE BARGAINING AGREEMENT SURVIVE? JONNI WALLS I. INTRODUCTION AIRLINE DEREGULATION has produced a record number of mergers and bankruptcies in the airline in- dustry, turning the industry into a "national oligopoly."' Since deregulation, over 200 scheduled carriers have gone out of business, mainly because of mergers, acquisi- tions and bankruptcies. 2 As a result, the top eight carri- ers control over 90 percent of the market. Since 1978 more than 120 airlines have filed various types of bank- ruptcy proceedings.' The flurry of merger activity that began almost immediately upon enactment of deregula- tion 5 continues to be extremely vigorous. Between 1985 and 1987 over twenty-five mergers took place, and 1986 1 P. DEMPSEY, THE SOCIAL AND ECONOMIC CONSEQUENCES OF DEREGULATION 81 (1989); Dempsey, Airline Deregulation and Laissez Faire Mythology: Economic Theory in Turbulence, 56J. AIR L. & CoM. -
Robert Novell Year in Review 2011
Robert Novell Year in Review 2011 1 Table of Contents 1. A Brief History of United Airlines 3 2. A Brief History of TWA Airlines 40 3. A Brief History of Eastern Airlines 74 4. Closing Thoughts 116 2 Part One United Airlines before the Deregulation Act of 1938 United Airlines officially began airline operations in 1926 as a mail carrier. It was also the first fare- paying airline to fly customers from coast to coast in the United States, and by 1930, had introduced the concept of an airline stewardess. The airline soon became one of the “Big Four” contenders in the U.S. and continues to be one of America’s major airlines. It was founded in Boise, Idaho. United Airlines was originally formed as a partnership between Boeing Airplane Company and Pratt & Whitney. It was overseen by the United Aircraft and Transport Corporation and United Air Lines was actually an operating division that was established on July 1, 1931. United’s slogan was the “World’s Largest Air Transport System”. The four transport divisions of the United Aircraft and Transportation Corporation had now become United Airlines. When the Air Mail Act of 1934 broke up all of the aviation holding companies in the United States, the United Aircraft and Transport Corporation was broken up into Boeing, United Aircraft and United Air Lines. It was at this time that United Airlines began offering coast-to-coast service from New York to San Francisco and Los Angeles. Within four months of the beginning coast-to-coast operations, United Air Lines was making as many as 11 round trips every day between Chicago and New York. -
Death of Eastern: How One Man Destroyed an Airline
Journal of Aviation/Aerospace Education & Research Volume 9 Number 3 JAAER Spring 2000 Article 3 Spring 2000 Death of Eastern: How One Man Destroyed an Airline Joseph G. Ferrante Follow this and additional works at: https://commons.erau.edu/jaaer Scholarly Commons Citation Ferrante, J. G. (2000). Death of Eastern: How One Man Destroyed an Airline. Journal of Aviation/ Aerospace Education & Research, 9(3). Retrieved from https://commons.erau.edu/jaaer/vol9/iss3/3 This Forum is brought to you for free and open access by the Journals at Scholarly Commons. It has been accepted for inclusion in Journal of Aviation/Aerospace Education & Research by an authorized administrator of Scholarly Commons. For more information, please contact [email protected]. Ferrante: Death of Eastern: How One Man Destroyed an Airline FORUM Joseph G. Ferrante In 1986, when Frank Lorenzo took over Eastern Airlines, the country's third largest carrier was in decline: its route structure was inherently weak, its costs were sky high, and its stiff-necked labor unions fought with each other almost as much as they fought management. To rnzmy in corporate America, Lorenzo seemed just the man to whip Eastern back into shape. Lorenzo, with the help of Michael Milken and Drexel Burnham Lambert 's junk bond machine, built his tiny Texas Air Corporation into an empire. Indeed, with the addition of Eastern to Continental, Frontier, and People Express airlmes, Lorenzo controlled the largest airline in the country, nylng more than a fifth of the nation's air passengers on his planes. Larenzo has been characterized as a ruthless empire builder, who uses a seemingly simple formula of slashing costs and offering lower fares. -
The Role of Pricing Strategy in Market Defense A
THE ROLE OF PRICING STRATEGY IN MARKET DEFENSE A Dissertation Presented to The Academic Faculty by Can Uslay In Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in Management Georgia Institute of Technology April, 2005 THE ROLE OF PRICING STRATEGY IN MARKET DEFENSE Approved by: Dr. Naresh K. Malhotra, Advisor Dr. Fred C. Allvine College of Management College of Management Georgia Institute of Technology Georgia Institute of Technology Dr. Pat H. Dickson Dr. Jagdish N. Sheth College of Management Goizueta School of Business Georgia Institute of Technology Emory University Dr. Richard D. Teach College of Management Date Approved: April 6, 2005 Georgia Institute of Technology ACKNOWLEDGEMENT This work is dedicated to my parents, Dr. Yuksel and Nezihe Uslay. I would like to express my heart-felt thanks to all of my dissertation committee members. This dissertation would not have been possible without the ample guidance and support from Professors Fred C. Allvine, Naresh K. Malhotra, Richard D. Teach, Pat H. Dickson, and Jagdish N. Sheth. I cannot thank them enough, but let me attempt to capture my gratitude with a few words here. Every student is lucky to have a mentor but I was lucky to have not one but five of them! Dr. Dickson provided the kind of constructive and useful feedback every doctoral candidate needs. Dr. Teach always had time for me when I needed guidance and advice. Dr. Allvine’s enthusiasm on the use of price in competitive interaction was critical for my choice of the dissertation topic, and his industry contacts proved crucial in securing the data. -
RCED-91-101 Airline Competition
GAO April I!f!I 1 AIRLINE COMPETITION Effects of Airline Market Concentration and Barriers to Entry on Airfares - 143865 ___I--__... ..-.__ __.- ._.._.. ._._ ...-.__ .-.. I- --.-..__..-.___ -_.._-.- .^...._ _.__- .._.. _- ___. -I-~ -~~- United States General Accounting Office GAO Washington, D.C. 20648 Resources, Community, and Economic Development Division B-242870 April 26, 1991 The Honorable Jack Brooks Chairman, Committee on the Judiciary House of Representatives The Honorable JamesL. Oberstar Chairman, Subcommitteeon Aviation Committee on Public Works and Transportation House of Representatives The Honorable John C. Danforth Ranking Minority Member Committee on Commerce,Science, and Transportation United States Senate Rising fares on certain routes and a wave of mergers and bankruptcies have raised concernsthat the airline industry has becomeless competi- tive than envisioned when the Airline Deregulation Act of 1978 was passed.This report is one in a series of GAO reviews on competition in the nation’s airline industry. (SeeRelated GAO Products.) In an earlier report, we identified the presenceof factors that inhibit airlines from , entering a market, often called “barriers to entry,” and discussedtheir potential effects on competition.1This report presents estimates of how several other factors, such as an airline’s market share and airport con- gestion, as well as barriers to entry, affect air fares. It also discussesthe policy implications of our analysis. To conduct this analysis, we developed an econometricmodel that exam- ines how several competitive conditions influence an airline’s fare and market share on a route. The model also includes other factors, such as distance and traffic volume, that were consideredlikely to influence fares and market shares. -
Re-Regulation and Airline Passengers' Rights Timothy M
Journal of Air Law and Commerce Volume 67 | Issue 3 Article 7 2002 Re-Regulation and Airline Passengers' Rights Timothy M. Ravich Follow this and additional works at: https://scholar.smu.edu/jalc Recommended Citation Timothy M. Ravich, Re-Regulation and Airline Passengers' Rights, 67 J. Air L. & Com. 935 (2002) https://scholar.smu.edu/jalc/vol67/iss3/7 This Article is brought to you for free and open access by the Law Journals at SMU Scholar. It has been accepted for inclusion in Journal of Air Law and Commerce by an authorized administrator of SMU Scholar. For more information, please visit http://digitalrepository.smu.edu. RE-REGULATION AND AIRLINE PASSENGERS' RIGHTS TIMOTHY M. RAViCH* TABLE OF CONTENTS I. INTRODUCTION .................................. 935 II. PASSENGERS' BILL OF RIGHTS .................. 939 A. THE IMPETUS AND HISTORICAL AT'TEMPTS ....... 939 1. The Origin of Passengers' Rights Proposals .... 940 2. Service, Competition, and Preemption.......... 945 B. THE INITIAL EFFORT (1999-2000) ............... 947 C. THE AIRLINES' RESPONSE AND COMMITMENT .... 952 D. THE FINAL DOT REPORT AND 2001 ............. 956 III. DISCU SSIO N ...................................... 958 A. WHITHER DEREGULATION? ...................... 958 B. CULTURAL DEVOLUTION ......................... 964 C. CONTRACT As PANACEA ......................... 970 D. DEMAND MANAGEMENT ......................... 976 1. (Over)Scheduling and Infrastructure .......... 977 2. Industry Consolidation and Market Entry ..... 986 E. SEPTEMBER 11, 2001: A NEW ROLE FOR AIRLINE PASSENGERS ..................................... 992 IV. CONCLUSION ..................................... 996 I. INTRODUCTION Airline passengers increasingly expect basic airline service as a matter of law and entitlement rather than as a function of busi- * Attorney, Hunton & Williams. J.D., cum laude, University of Miami School of Law. The author presented aspects of this Article at the "Fourth International Travel and Tourism: Policy, Law and Management Conference," Newcastle upon Tyne, United Kingdom, May, 2002. -
The Lockheed Constellation, New Monarch of the Air, Makes Its First
Air mm TRANSCONTINENTAL Vol. 7, No. 1 r4C*£i+iC January, 1943 The huge size of the Constella This front-view closeup of the plane gives a clear picture of the tion is well illustrated in this new type engine nacelles incorporated into the Constellation design. photo. Four 2000 h.p. engines give the revolutionary plane a speed rivaling that of a Jap Zero fighter. TWA Assists The Lockheed Constellation, USC Establish New Monarch of the Air, Air Courses Veteran Employees Makes Its First Flight Will Give Lectures Plane Was Designed for TWA But An extensive course in Air Will Serve Army for Duration Transportation, preparing men and women for immediate job opportu Its four powerful 2,000 h. p. engines roaring, the Lockheed Con nities in the "Air Age," was es stellation swept into the air in Los Angeles January 9, marking the tablished January 4 at the Uni culmination of over three years of near-secret development. Conceived by Howard Hughes,r versity of Southern California, it The Constellation soars smoothly along on its maiden flight. Originally designed as a luxuri has been jointly announced by principal TWA stockholder, and ous TWA passenger liner, the air- President Rufus Von Kleinsmid of Jack Frye, president, the revolu conditioned cabin is pressurized to USC and TWA President Jack Establish Mail Record Collings and tionary plane originally was de maintain an air density of 8,000 Frye. signed and built by the Lockheed feet while the plane speeds along A new record in the carriage Aircraft Corporation for TWA. With veteran TWA employees at 20,000 to 35,000 feet "above the of air mail in a single month Conroy Named Instead of carrying passengers weather." TWA, it will be re assisting as instructors and guest was established by TWA in De and cargo over our transcontinental lecturers, six study subjects, cov called, pioneered scheduled passen cember from the standpoint of As Di rectors system, it and its sister-ships now ger flying in pressurized cabins ering approximately 20 different system as well as individual are destined for a greater role.