PIA - A History: Crisis and Frustration (1973)
Airport safety and security was the issue as 1973 dawned.
A SECOND AIRLINE
Ironically, the Ozark Air Lines strike enhanced Peoria's efforts to lure a second carrier. On July 12, 1973, one week after Ozark began restoring its schedules, Peoria residents received most welcome news: Continental Airlines requested CAB authority for basic rights to serve Peoria from Chicago, Denver, Kansas City and Los Angeles. If granted, "basic rights" would give the airline freedom to choose its own schedule and routing.
Continental planned to use Boeing 727-200s in the Peoria market, which affirmed the GPAA's earlier project to upgrade Runway 12-30 to handle that type. A ramp overlay, extension and taxiway project begun in the fall of 1973 was designed to accommodated any aircraft then flying.
The Greater Peoria Airport began screening passengers on January 5. Use of a metal detector began in February. Understandably, Ozark Air Lines objected to a new security tax proposed by the Nixon Administration, which the airline claimed would penalize short-haul air travel.
In Spring 1973, Airport Surveillance Radar (ASR) was placed into service just west of the airfield, enhancing safety. Its continuous scan radius encompassed 40 miles and up to 10,000 feet.
In Spring 1973, Airport Surveillance Radar (ASR) was placed into service just west of the airfield, enhancing safety. Its continuous scan radius encompassed 40 miles and up to 10,000 feet.
The Greater Peoria Airport had every reason for optimism. The facility handled 300,000 passengers for the first time in 1972 and traffic was expected to rise rapidly through the decade. Then the disadvantages of being serviced by only one airline reared its ugly head.
THE OZARK STRIKE
Members of the Aircraft Mechanics Fraternal Assocation (AMFA) struck Ozark Air Lines on April 19, forcing the carrier to suspend all scheduled operations. Among the issues were AMFA's demand for a 5.5 percent pay raise and that television surveillance equipment be removed from work areas. An attempt to resume limited flights on June 21 was cancelled. The strike ended June 29 and Ozark resumed 85 percent of its flights on July 5. The rest would be phased in over the next 30 days, including the resumption of Kansas City jet service, which had been planned for April 29. That service, and flights to New York and Washington resumed August 1.
During Ozark's 77-day flight suspension, the Greater Peoria Airport offered no scheduled airline service. The airport authority attempted to gain other carriers' interest in providing temporary service if authorized by the Civil Aeronautics Board (CAB). Shortly after the strike began, officials contacted Air Wisconsin, Allegheny Airlines, North Central Airlines and Southern Airways, but no temporary service was granted. The airport authority lost considerable revenue as a consequence of the long strike, estimated at $536 per day from April 19 to 30 and $750 per day from May 1 through July 4.
THE OZARK STRIKE
Members of the Aircraft Mechanics Fraternal Assocation (AMFA) struck Ozark Air Lines on April 19, forcing the carrier to suspend all scheduled operations. Among the issues were AMFA's demand for a 5.5 percent pay raise and that television surveillance equipment be removed from work areas. An attempt to resume limited flights on June 21 was cancelled. The strike ended June 29 and Ozark resumed 85 percent of its flights on July 5. The rest would be phased in over the next 30 days, including the resumption of Kansas City jet service, which had been planned for April 29. That service, and flights to New York and Washington resumed August 1.
During Ozark's 77-day flight suspension, the Greater Peoria Airport offered no scheduled airline service. The airport authority attempted to gain other carriers' interest in providing temporary service if authorized by the Civil Aeronautics Board (CAB). Shortly after the strike began, officials contacted Air Wisconsin, Allegheny Airlines, North Central Airlines and Southern Airways, but no temporary service was granted. The airport authority lost considerable revenue as a consequence of the long strike, estimated at $536 per day from April 19 to 30 and $750 per day from May 1 through July 4.
A SECOND AIRLINE
Ironically, the Ozark Air Lines strike enhanced Peoria's efforts to lure a second carrier. On July 12, 1973, one week after Ozark began restoring its schedules, Peoria residents received most welcome news: Continental Airlines requested CAB authority for basic rights to serve Peoria from Chicago, Denver, Kansas City and Los Angeles. If granted, "basic rights" would give the airline freedom to choose its own schedule and routing.
Continental planned to use Boeing 727-200s in the Peoria market, which affirmed the GPAA's earlier project to upgrade Runway 12-30 to handle that type. A ramp overlay, extension and taxiway project begun in the fall of 1973 was designed to accommodated any aircraft then flying.
The Civil Aeronautics Board itself remained a primary barrier to Peoria obtaining a second airline. For three years, it had maintained a policy of refusing all route applications. The federal agency's motivation was to keep the airline industry at a 12.5 percent profit margin and a minimum 55 percent load factor. Increased capacity would dilute industry profits. But Ozark flights to Chicago enjoyed between 75 and 90 percent load factors. United States Senator Adlai Stevenson III (D-Illinois) supported Continental's application and promised to challenge CAB's policy.
Continental hoped to begin Peoria service by early 1975, contingent on CAB conducting expedited hearings in early 1974 after completing a comprehensive airline route study. A CAB examiner would make a recommendation six months later. Six months after that, CAB would announce a final ruling on the airline's application.
FUEL CRISIS
FUEL CRISIS
On October 6, 1973, a coalition of Arab nations opened a two-front war against Israel, intent on regaining lost territory. Six days later, President Richard Nixon authorized a massive military re-supply effort to shore up Israel's defenses. The Arabs countered by placing an oil embargo on all nations which did not immediate break diplomatic relations with the Jewish State. Israel defeated its Arab enemies and the war ended on October 24, but the embargo against western nations continued.
Although it was still possible for affected nations to obtain Middle Eastern oil through transshipment, they were faced with a quadrupled market price from $3 to $12 per barrel by the time the embargo ended in March 1974. Worsening the economic pain, the U. S. stock market lost 45 percent of its value in 1973-1974, much of it due to the embargo.
Resulting fuel shortages created gas lines and forced airlines to cut flights. Initially, Ozark Air Lines was cushioned from the crisis because the recent strike-induced flight suspension had created a fuel surplus. Cuts did occur, but these were as much fuel crisis-related as they were seasonal cutbacks. Weekday departures dropped from 28 to 25 on December 1. Ozark did announce additional flight cuts (mainly to Chicago and St. Louis) effective January 1 and 7, 1974, which would have reduced weekday departures to 21. Among the casualties was a Peoria-Moline-Rockford-Madison-Milwaukee roundtrip. The January 1 cuts did take effect, but the January 7 cut did not, thanks to an increase in government fuel allocation.
Despite increased fuel supplies, airlines eliminated numerous flights the rest of 1973 and into the New Year. Between November 1 and January 7, a total of 1,700 domestic flights were eliminated. Rising fares reduced traffic. The CAB granted airlines a five percent domestic fare increase effective December 1. Another six percent fare increase came April 16, 1974.
MISCELLANEOUS ITEMS
President Nixon visited Pekin June 15, 1973 to dedicate the Everett M. Dirksen Memorial Library and Congressional Research Center. His plane, VC-137C SAM 27000 (built in 1972, based on a Boeing 707-353B airframe), landed at the Greater Peoria Airport at 10:55 that morning. Nixon, by then embattled in the growing Watergate scandal, received a warm welcome.
Although it was still possible for affected nations to obtain Middle Eastern oil through transshipment, they were faced with a quadrupled market price from $3 to $12 per barrel by the time the embargo ended in March 1974. Worsening the economic pain, the U. S. stock market lost 45 percent of its value in 1973-1974, much of it due to the embargo.
Resulting fuel shortages created gas lines and forced airlines to cut flights. Initially, Ozark Air Lines was cushioned from the crisis because the recent strike-induced flight suspension had created a fuel surplus. Cuts did occur, but these were as much fuel crisis-related as they were seasonal cutbacks. Weekday departures dropped from 28 to 25 on December 1. Ozark did announce additional flight cuts (mainly to Chicago and St. Louis) effective January 1 and 7, 1974, which would have reduced weekday departures to 21. Among the casualties was a Peoria-Moline-Rockford-Madison-Milwaukee roundtrip. The January 1 cuts did take effect, but the January 7 cut did not, thanks to an increase in government fuel allocation.
Despite increased fuel supplies, airlines eliminated numerous flights the rest of 1973 and into the New Year. Between November 1 and January 7, a total of 1,700 domestic flights were eliminated. Rising fares reduced traffic. The CAB granted airlines a five percent domestic fare increase effective December 1. Another six percent fare increase came April 16, 1974.
MISCELLANEOUS ITEMS
President Nixon visited Pekin June 15, 1973 to dedicate the Everett M. Dirksen Memorial Library and Congressional Research Center. His plane, VC-137C SAM 27000 (built in 1972, based on a Boeing 707-353B airframe), landed at the Greater Peoria Airport at 10:55 that morning. Nixon, by then embattled in the growing Watergate scandal, received a warm welcome.
Air Illinois contacted the GPAA in August regarding plans to offer St. Louis-Jacksonville (IL)-Peoria-Chicago Meigs flights to start on November 15. The airline sought a letter of endorsement. By early November, the airline withdrew its service petition before the Illinois Commerce Commission because its president lacked time to meet with GPAA officials!
On September 12, the GPAA authorized $77,000 to Hoerner & Shifrin Engineering of St. Louis for a 20-year master plan study. The study, to be completed by January 1975, promised guidelines for future expansion, would define the relationship between the Greater Peoria Airport and Mount Hawley Airport and aid in determination of life expectancy of present airfield facilities.
On December 22, the 182nd Air National Guard suspended flights by its 26 O-2A Skymasters on account of the fuel crisis. Flights resumed January 7, 1974.
PASSENGER STATS, ROUTE MAP AND SCHEDULES
The Greater Peoria Airport's passenger traffic suffered a devasting drop in traffic as a consequence of the Ozark Air Lines strike and shutdown. I have no official figures for 1973, but by doubling enplanements (120,723) shown in the Illinois Airport Inventory Report 2012, I've come up with an estimate of about 242,000 (give or take a few thousand). So the strike most likely reduced traffic here by 20 percent!
The September 1973 Official Airline Guide is the source for the flight schedules and route map below. At the time, Ozark Air Lines scheduled 27 weekday departures, 15 on DC-9s. Appropriately, schedules for that month lie between the Ozark Air Lines strike and 1973-1974 fuel crisis.
Note that Kansas City jet service resumed, but with a Moline stop in both directions. Service added August 1, 1973 was routed New York (LaGuardia)-Washington (Dulles)-Peoria-Moline-Kansas City, thus restoring Peoria's third roundtrip link with the East Coast. It should also be noted that on November 11, 1972 flights moved from the compact downtown Kansas City Municipal Airport to the large Kansas City International Airport north of town .
Despite service to major destinations and connecting hubs such as Kansas City, Minneapolis/St. Paul, New York and Washington, Peoria's airline service was still heavily dependent on Chicago-O'Hare and St. Louis connections, mostly the former. Sioux City, Sioux Falls and Waterloo had lost their link to the East Coast via Peoria, but the Greater Peoria Airport remained a mini-hub ("Focus City" in modern parlance) for Ozark, and its third-largest station.
The map shows only weekday services, and thus omits the Saturday-only [Joplin-Springfield (MO)]-Fort Leonard Wood-Columbia-[St. Louis-Springfield (IL)-Peoria] routing.
On December 22, the 182nd Air National Guard suspended flights by its 26 O-2A Skymasters on account of the fuel crisis. Flights resumed January 7, 1974.
PASSENGER STATS, ROUTE MAP AND SCHEDULES
The Greater Peoria Airport's passenger traffic suffered a devasting drop in traffic as a consequence of the Ozark Air Lines strike and shutdown. I have no official figures for 1973, but by doubling enplanements (120,723) shown in the Illinois Airport Inventory Report 2012, I've come up with an estimate of about 242,000 (give or take a few thousand). So the strike most likely reduced traffic here by 20 percent!
The September 1973 Official Airline Guide is the source for the flight schedules and route map below. At the time, Ozark Air Lines scheduled 27 weekday departures, 15 on DC-9s. Appropriately, schedules for that month lie between the Ozark Air Lines strike and 1973-1974 fuel crisis.
Despite service to major destinations and connecting hubs such as Kansas City, Minneapolis/St. Paul, New York and Washington, Peoria's airline service was still heavily dependent on Chicago-O'Hare and St. Louis connections, mostly the former. Sioux City, Sioux Falls and Waterloo had lost their link to the East Coast via Peoria, but the Greater Peoria Airport remained a mini-hub ("Focus City" in modern parlance) for Ozark, and its third-largest station.
The map shows only weekday services, and thus omits the Saturday-only [Joplin-Springfield (MO)]-Fort Leonard Wood-Columbia-[St. Louis-Springfield (IL)-Peoria] routing.
- David P. Jordan
Thanks so much. 1973 was a slap in the face to PIA and they realized it was bad to rely so much on OZ. While OZ was a monopoly, they didnt act like one. Fares were regulated and they kept adding new cities to PIA probably to keep out competition from filing with the CAB for new routes.
ReplyDeleteSimilar sized cities at this time like Montgomery AL and Columbus GA had two trunk and one local service carrier (DL, EA and SO). Evansville IN had AL, DL and EA.
Peoria had good service but they were at the mercy of a union troubled carrier and 1973 was just the beginning as youll surely show as at some future date.
Nice work
I believe the Mutual Aid pact would have been a huge disincentive for another airline to serve PIA during the OZ strike. All revenue would have had to be turned over to OZ. Also the other airline's unions would have objected to "flying struck work"
ReplyDeleteI mean all profits, not revenues
Delete