Texas International Airlines - History

History

Revenue passenger traffic, in millions of passenger-miles (scheduled flights only, domestic plus international)

During the 1960s the airline operated a Beechcraft Model 99 and six Convair 600s, along with the inevitable Douglas DC-3s. By the early 1960s Texas International (then still titled Trans-Texas) operated services from one side of Texas to the other, as far west as El Paso and as far east as Texarkana, Arkansas (the airport for the city also serves neighboring Texarkana, Texas). Soon flights to New Mexico were added.

Starting in 1967 it had a fleet of McDonnell Douglas DC-9 jets, nineteen Series 10 and seven Series 30 aircraft, operating them to airports as small as Baton Rouge, Louisiana, Beaumont, Texas, and Little Rock, Arkansas. The airline was derisively called "Tree Top Airlines" and "Tinker Toy Airlines" by its competitors. When Trans-Texas Airways changed its name to Texas International Airlines, the company ran newspaper ads showing a Tinker Toy airplane flying along treetops. The copy read "No More Tinker Toys. No More Treetops. We are now Texas International Airlines."

After suffering annual losses of up to $3 million it was acquired in 1972 by Jet Capital Corporation, headed by 32-year-old Frank Lorenzo. The airline quickly saw a $6 million profit, largely due to aggressive wage cuts spearheaded by Lorenzo as well as sharp marketing efforts.

Historically the airline had scheduled service to such cities as: El Paso, McAllen, Amarillo, Lubbock, Wichita Falls, San Angelo, Abilene, Midland-Odessa, Austin and Beaumont-Port Arthur. Outside of Texas, service included Arkansas (Hot Springs), New Mexico (Roswell, Albuquerque, Hobbs and Santa Fe), Colorado (Denver), California (Los Angeles), Nevada (Las Vegas), and Mexico (Veracruz and Tampico).

During the mid-1970s, in response to intense competition from Southwest Airlines, Texas International successfully petitioned the Civil Aeronautics Board to begin offering discounted fares on its awarded routes. These fares become a staple of the airline known as "Peanuts Fares". Following the 1978 Airline Deregulation Act the airline expanded its routes through much of the central and southern United States.

The first modern frequent flyer program was created at Texas International Airlines in 1979. Lacking the computer resources of its larger competitors, Texas International was overtaken by American's introduction of AAdvantage in May, 1981.

On June 11, 1980 Lorenzo established a holding company, Texas Air Corporation, for Texas International. Texas Air bought Continental Airlines in 1982, then merged Continental into Texas International, assuming the former's name. The last Texas International aircraft were seen in 1983.

Its ultimate successor is United Airlines (which merged with Continental in 2010) which still maintain its largest hub in George Bush Intercontinental Airport, which was a former base for Texas International.