PIA - A History: Atlanta Route and Deregulation (1977-1978)
In 1977, PIA's air service appeared poised to grow rapidly for the forseeable future.
A newly-completed master plan spanning the next 25 years called for the construction of a six-gate concourse with an underground connector to handle a projected 600,000 passengers by 1980. A second six-gate west concourse would be needed by 1990 when traffic was expected to nearly double to 1.1 million. A similar east concourse would be needed by 2000 to handle a projected 2 million annual passengers.
Local officials' optimism was backed by reality thanks to the rapid buildup in service with the introduction of new nonstop or same-plane flights to Indianapolis, Louisville and Minneapolis/St. Paul in 1974, Denver in 1975, Detroit and Omaha in 1976 and new service by Continental Airlines to Chicago, Kansas City and Los Angeles in 1977. More was just around the corner.
ATLANTA & FLORIDA
In 1972, the Greater Peoria Airport Authority began soliciting air carrier interest in southeast service. This goal moved closer to reality in December 1976 when Ozark Air Lines filed for Atlanta route authority.
Ozark's interest in Atlanta was obvious. The Georgia capital and its suburbs had been growing rapidly into a big city, having just passed the 2 million mark in mid-decade. Hometown Delta Air Lines pioneered the so-called "hub-and-spoke" system there in 1955. Eastern Air Lines also built an Atlanta hub. Also served by Northwest Orient, Piedmont, Southern, TWA and United, William B. Hartsfield-Atlanta International Airport was a natural hub for the region, hence the saying, "Whether you go to heaven or hell, you have to change planes in Atlanta."
A much-expanded quonset hut-style terminal that opened in 1948 was replaced in 1961 with a large multi-concourse facility. Traffic was growing so rapidly that by the mid-1970s, an entirely new mid-field terminal was needed. Construction began in January 1977. With new parallel runways planned to the north and south of the new terminal complex, Atlanta was pretty much getting a brand-new airport by the early 1980s.
Three carriers - Eastern Air Lines, Southern Airways and Northwest Orient Airlines - opposed Ozark's application as they recognized the diversion of interline traffic at either Chicago or St. Louis. Oddly enough, one of these carriers put in its own bid for Atlanta service. In April 1977, Northwest Orient filed with the Civil Aeronautics Board for route authority from Des Moines, Moline and Peoria to Atlanta (with through flights to Tampa and Miami using present route authority). Flights would originate/terminate at the airline's Minneapolis/St. Paul home base. CAB hearings started in November.
Northwest Orient proposed two daily roundtrips, Ozark only one. Peoria officials backed the former because of its higher frequency and expanded service (Florida) offering. In early May 1978, Ozark won CAB's endorsement for its Atlanta bid, though Northwest Orient was given backup rights. Service began December 1, 1978 on a single daily roundtrip Des Moines-Peoria-Atlanta routing using a DC-9-10.
ATLANTA & FLORIDA
In 1972, the Greater Peoria Airport Authority began soliciting air carrier interest in southeast service. This goal moved closer to reality in December 1976 when Ozark Air Lines filed for Atlanta route authority.
Ozark's interest in Atlanta was obvious. The Georgia capital and its suburbs had been growing rapidly into a big city, having just passed the 2 million mark in mid-decade. Hometown Delta Air Lines pioneered the so-called "hub-and-spoke" system there in 1955. Eastern Air Lines also built an Atlanta hub. Also served by Northwest Orient, Piedmont, Southern, TWA and United, William B. Hartsfield-Atlanta International Airport was a natural hub for the region, hence the saying, "Whether you go to heaven or hell, you have to change planes in Atlanta."
A much-expanded quonset hut-style terminal that opened in 1948 was replaced in 1961 with a large multi-concourse facility. Traffic was growing so rapidly that by the mid-1970s, an entirely new mid-field terminal was needed. Construction began in January 1977. With new parallel runways planned to the north and south of the new terminal complex, Atlanta was pretty much getting a brand-new airport by the early 1980s.
Three carriers - Eastern Air Lines, Southern Airways and Northwest Orient Airlines - opposed Ozark's application as they recognized the diversion of interline traffic at either Chicago or St. Louis. Oddly enough, one of these carriers put in its own bid for Atlanta service. In April 1977, Northwest Orient filed with the Civil Aeronautics Board for route authority from Des Moines, Moline and Peoria to Atlanta (with through flights to Tampa and Miami using present route authority). Flights would originate/terminate at the airline's Minneapolis/St. Paul home base. CAB hearings started in November.
Northwest Orient proposed two daily roundtrips, Ozark only one. Peoria officials backed the former because of its higher frequency and expanded service (Florida) offering. In early May 1978, Ozark won CAB's endorsement for its Atlanta bid, though Northwest Orient was given backup rights. Service began December 1, 1978 on a single daily roundtrip Des Moines-Peoria-Atlanta routing using a DC-9-10.
CONTINENTAL RETRENCHES, OTHER CARRIERS SEEK PEORIA ACCESS
Continental Airlines' inaugural departure from Peoria on the last day of February 1977 had just twelve passengers. April 1977 figures were 5,769 passengers, an average of 48 per flight. Because few (if any) passengers flew one-stop Continental flights between Chicago-O'Hare and Kansas City, most seats were empty on each 128-seat Boeing 727-200 operating this route.
While average monthly loads eventually increased to 7,500 passengers, Continental dropped a morning arrival from and morning departure to Chicago-O'Hare on January 15, 1978. On February 1 that year, the airline's westbound morning departure began stopping at Denver and operated through to San Diego rather than Los Angeles. It is unclear from newspaper articles and advertisements whether service was offered on the reverse route, but this seems likely as the airline held no San Diego-Los Angeles route authority. The Denver and San Diego service was short-lived as it is absent from the airline's June 1978 system timetable.
Continental dropped the last Chicago-O'Hare roundtrip on October 29. On December 15, the airline reduced service to just one Peoria-Kansas City-Los Angeles roundtrip, admitting that service would have been eliminated altogether if not for "strong lobbying" by Peoria officials. A vague (as well as strange) explanation for the cut was that the Kansas City-Los Angeles leg was in trouble due to "deregulation-related changes."
If its proposed merger with Western Air Lines won approval, Continental flights to Denver and Seattle/Tacoma were possible. If the merger were rejected, remaining Peoria service would have to be re-elevaluated.
PATH TO DEREGULATION
While average monthly loads eventually increased to 7,500 passengers, Continental dropped a morning arrival from and morning departure to Chicago-O'Hare on January 15, 1978. On February 1 that year, the airline's westbound morning departure began stopping at Denver and operated through to San Diego rather than Los Angeles. It is unclear from newspaper articles and advertisements whether service was offered on the reverse route, but this seems likely as the airline held no San Diego-Los Angeles route authority. The Denver and San Diego service was short-lived as it is absent from the airline's June 1978 system timetable.
Continental dropped the last Chicago-O'Hare roundtrip on October 29. On December 15, the airline reduced service to just one Peoria-Kansas City-Los Angeles roundtrip, admitting that service would have been eliminated altogether if not for "strong lobbying" by Peoria officials. A vague (as well as strange) explanation for the cut was that the Kansas City-Los Angeles leg was in trouble due to "deregulation-related changes."
If its proposed merger with Western Air Lines won approval, Continental flights to Denver and Seattle/Tacoma were possible. If the merger were rejected, remaining Peoria service would have to be re-elevaluated.
PATH TO DEREGULATION
The Civil Aeronautics Board's rigid system of control over airline routes, fares and market entry earned many critics, especially when the 1973 Arab Oil Embargo revealed CAB's bureaucratic inefficiencies and the airline industry's unsustainable rising costs. The United States Senate began hearings on deregulation in 1975. Two years later, the new president, Jimmy Carter, appointed Cornell University economics professor Alfred E. Kahn as CAB chairman. Kahn pushed for deregulation and Carter signed the Airline Deregulation Act into law on October 24, 1978.
Among many changes, the legislation phased out CAB's power to regulate airline routes by December 31, 1981 and domestic fares by January 1, 1983. It also relaxed restrictions on new airlines. Most changes were implemented much more rapidly than this, and the agency itself would be phased out on January 1, 1985.
The Airline Deregulation Act also required CAB to expedite airline route requests. The day it became law, unused route authority was up for grabs in what many called the "Great Air Rush of 1978." Braniff International Airways requested 650 new routes. Among these were Peoria to Newark, New York-JFK and New York-LaGuardia. Just days later, the airline withdrew its request for lack of aircraft to operate all those routes!
Among many changes, the legislation phased out CAB's power to regulate airline routes by December 31, 1981 and domestic fares by January 1, 1983. It also relaxed restrictions on new airlines. Most changes were implemented much more rapidly than this, and the agency itself would be phased out on January 1, 1985.
The Airline Deregulation Act also required CAB to expedite airline route requests. The day it became law, unused route authority was up for grabs in what many called the "Great Air Rush of 1978." Braniff International Airways requested 650 new routes. Among these were Peoria to Newark, New York-JFK and New York-LaGuardia. Just days later, the airline withdrew its request for lack of aircraft to operate all those routes!
It should be noted that Ozark Air Lines asked for 15 unused air routes, though none involved Peoria. In October 1978, probably anticipating coming new freedoms, the airline ordered two new Boeing 727-200s and two McDonnell Douglas DC-9-30LR's. It also agreed to acquire six DC-9-30s from Delta Air Lines. The price for these ten jets - $85 million.
MISCELLANEOUS ITEMS
Rapid growth prompted the Greater Peoria Airport Authority to plan for near-term expansion and improvement projects. A contractor erected a canopy adjacent the lower-level roadway in 1977. Other items included re-surfacing and extending the terminal apron, and re-surfacing Runway 4-22. Plans were also underway to extend Runway 12-30 by 1,000 feet and extend a parallel taxiway by mid-summer 1978. The extension would allow full operations by Boeing 727s (used by Continental and charters) on hot summer days. Abandoned Runway 8-26 was removed in this time period.
In April 1977, Federal Express filed for routes out of Peoria to Chicago-O'Hare and Moline. The dedicated small-package carrier, which began service here in October 1974, also announced plans to acquire Boeing 727-100s to operate its primary routes, relegating the Dassault Falcon 20 fleet to feeder routes. After Congress deregulated the air cargo industry in November 1977, Federal Express proceeded with its fleet and route expansion plans. In a related note, newspaper reports indicate that construction on a 75' x 225' cargo building west of the terminal began in June 1978 and was projected to be completed by late fall.
In April 1977, Federal Express filed for routes out of Peoria to Chicago-O'Hare and Moline. The dedicated small-package carrier, which began service here in October 1974, also announced plans to acquire Boeing 727-100s to operate its primary routes, relegating the Dassault Falcon 20 fleet to feeder routes. After Congress deregulated the air cargo industry in November 1977, Federal Express proceeded with its fleet and route expansion plans. In a related note, newspaper reports indicate that construction on a 75' x 225' cargo building west of the terminal began in June 1978 and was projected to be completed by late fall.
On Saturday, June 18, 1977, the 182nd Air National Guard celebrated its 30th anniversary with an open house. A then-new F-15 Eagle visited for public display.
Ozark Air Lines avoided another strike when its mechanics' union ratified a new contract on August 5, 1977. A month later, Continental Airlines averted a flight attendants' strike.
On September 29, 1977 a Capitol International Airways DC-8 operating a charter from Indianapolis to Las Vegas was forced to make an emergency landing at Peoria due to an engine fire. A loose blade was determined to have led to the in-flight fire.
In November 1977, Allegheny Airlines took its Peoria service rejection to a Washington, DC circuit judge, but nothing ever came of it.
In January 1978, Ravon Aviation filed with the Illinois Aeronautical Board (IAB) for Peoria service to Chicago Meigs Field and Rockford. The airline intended to use a six-seat Piper Navajo for weekday flights. The GPAA opposed Ravon's plans based on past failures of commuter and air taxi operators, the fatal Chicago & Southern Airlines crash on October 21, 1971 and that the service was "unnecessary." The airline received approval for its routes in November 1978, and planned to begin Peoria service in Spring 1979. The GPAA decided to fully cooperate with the airline's plans.
Ozark Air Lines dropped the last remnant of same-plane Peoria-Kansas City service by early 1978.
Rockford, Illinois-based Beechcraft dealer Coleman Jet Sales revealed in March 1978 its plans for commuter airline service, which included Peoria.
On September 29, 1977 a Capitol International Airways DC-8 operating a charter from Indianapolis to Las Vegas was forced to make an emergency landing at Peoria due to an engine fire. A loose blade was determined to have led to the in-flight fire.
In November 1977, Allegheny Airlines took its Peoria service rejection to a Washington, DC circuit judge, but nothing ever came of it.
In January 1978, Ravon Aviation filed with the Illinois Aeronautical Board (IAB) for Peoria service to Chicago Meigs Field and Rockford. The airline intended to use a six-seat Piper Navajo for weekday flights. The GPAA opposed Ravon's plans based on past failures of commuter and air taxi operators, the fatal Chicago & Southern Airlines crash on October 21, 1971 and that the service was "unnecessary." The airline received approval for its routes in November 1978, and planned to begin Peoria service in Spring 1979. The GPAA decided to fully cooperate with the airline's plans.
Ozark Air Lines dropped the last remnant of same-plane Peoria-Kansas City service by early 1978.
Rockford, Illinois-based Beechcraft dealer Coleman Jet Sales revealed in March 1978 its plans for commuter airline service, which included Peoria.
The 182nd Air National Guard held another opened house on June 17, 1978. Appropriately, a former Peorian flew an F-15 Eagle to the show.
Employees of Ozark Air Lines' Peoria reservations center suffered illness in August and September 1978. Pesticide was suspected as the cause of their malady.
Employees of Ozark Air Lines' Peoria reservations center suffered illness in August and September 1978. Pesticide was suspected as the cause of their malady.
In December 1978, Northwest Orient Airlines received regulators' okay for the Peoria-Atlanta route, but never started the service.
- David P. Jordan
Hi:
ReplyDeleteI was wondering how you were able to find Continental's traffic numbers for Peoria in 1977?
The Peoria Journal Star actually reported news in 1977.
DeleteThe April 1977 figures can be found in the May 27 edition ("Bartonville Fills Commissioner Vacancy On Greater Peoria Airport Board," Page C-2).
I didn't use this in the post above but the November 23 edition reported that Continental handled 24,058 passengers the first six months of service ("Continental Passengers Total 24,058," Page B-5).
On February 28, 1978, the PJStar reported that Continental handled 7,500 passengers a month ("Continental Ends First Year Of Peoria Service: Sky High For Its Future," Page A-3).
I wonder if that is enplanements or total. 7500 for one month isnt that bad if it is enplanements. It would be equal to 63 passengers per flight for 4 departures or a 49% load factor in an industry that had a 55% average load factor. If it is total traffic, it is pretty bad.
DeleteI'll have to look up the article because my notes don't specify whether enplanements or total all passengers. I'd guess most filled seats were on the Peoria-Kansas City-Los Angeles segment, with few on the short run to Chicago-O'Hare.
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