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US Airlines History
based on “Hard Landing” book
Part 1. Air Mail
1903 -
Wright brothers
Charles Lindbergh
Air mail
Privatisation
Boeing - Chicago to SF —> United
Airlines
Rickenbacker - Atlanta to Miami —>
Eastern Air
Trippe & Lindbergh - St. Louis to
Chicago, NY to Boston —> Pan Am
First Rule of
Airline Economics
If a plan is going to take off
anyway — any paying passenger or
payload is almost pure profit
World’s busiest airport
in 1930 - Tulsa, OK
Airmail reform -
Pay per distance & volume,
not weight
Walter
Folger
Brown
Big Four
3 routes from NYC to CA
United —> northern route
TWA —> center route
American —> southern route
Eastern —> north to south on East
Coast
Part 2. Government
regulation
Eastern vs Braniff
$0,00001907378 bid
C. R. Smith
Birth of CAB
Cost-based pricing
Part 3. Jet Age
Boeing 707
Half-empty planes
Service, food &
booze wars
John Robson
comes…
Part 4. Southwest
Herb Kelleher
Pacific Southwest
Airlines
Southwest Airlines
Elements
Veteran pilots
Retired American Airlines flight
attendants (<32 year policy)
Three 737s
DFW
Dallas Love Field
Love Campaign
Love Attendants
1972 crisis at LUV
Sold a plane (4 planes at the moment)
10 min turnaround
Pilots and supervisors helped with baggage
Tickets collected onboard
Food & drinks restocked thought the rear door
while passengers deplaning through the front
Flight attendants removed trash
Off-peak rate - 10$
Second Rule of
Airline Economics
Giving the expense-account
customer something for free
that he could take home
instead of to the office - in short,
kickback, won his undying loyalty
Part 5. Wall Street
meets Airlines
Frank Lorenzo
Don Burr
Key events
Jet Capital & $1.5M raise
Texas International & youngest
president in commercial aviation
Peanuts fares and 600% increase in
7 days
Part 6. Network wars
Bob Crandall, American Airlines
Manual Reservation —> 20 separate
communications for 1 passenger
traveling on 2 connecting airlines
Mechanical System
OAG &
“listing bias”
Birth of SABRE
Richard Ferris, United Airlines
American Society of
Travel Agents meeting
Screen bias
To be continued…

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