PIA - A History: Events of 1991

Rising air fares and reduced jet service plagued PIA in the late 1980s and early 1990s. Despite some moderate success in its efforts to convince carriers to cut fares and increase service, nothing could prevent the blow Peoria received in mid-January 1991. Let's review events by airline. My primary source is the North American Edition of OAG's July 15, 1991 Desktop Flight Guide

AMERICAN AIRLINES/AMERICAN EAGLE (Simmons Airlines/Flagship Airlines)
Although it added (resumed, technically, after 29 years) Peoria to its network late in 1991, news preceding American Airlines' re-introduction of Chicago jet service rated much media coverage throughout the year.

A March 15 Peoria Journal Star story indicated that service could begin in August. Progress came on May 8 when the Federal Aviation Administration proposed modification of the High Density Rule to allow for jet aircraft of up to 110 sets to use slots designated for commuter flights. The rule change would be in effect for two years and only 25 percent of slots would be available for this change (American had requested 35 percent). A June 25 story revealed that American Airlines could begin Chicago-O'Hare jet service September 1 if the U. S. Department of Transportation ruled on the FAA proposal no later than July 1.

Typical of government agencies, bureacratic red tape delayed the decision until August 14. On that date, U. S. Secretary of Transportation Samuel Skinner announced in Chicago that 25 percent of slots allocated to commuter planes could be used for jets accommodating up to 110 passengers. After two years, the FAA would review the effects prior to approving a permanent change.

An October 1 story revealed December 2 as the start date. Service was intended to begin with an evening arrival, but a winter storm delayed service until December 4. My recollection is that I saw from a distance (enroute to school) the departing American Airlines Fokker 100 the morning of December 4, so in fact, service started with the evening arrival on December 3 (Springfield flights began on time December 2). For the first time since June 1982, Peoria had regularly scheduled, daily jet service to and from Chicago-O'Hare.

The effort by business and labor leaders, elected officials and airport authorities to convince the FAA to modify its slot rules was reminiscent of pre-deregulation hearings on new service requests. This was an ominous sign that in some cases, air service expansion for small communities continued to depend upon government action.

July schedules show American Eagle operating eight daily roundtrips between Peoria and Chicago-O'Hare. Two of these were operated with ATR-42s, the others with Shorts 360s. Three planes - one ATR-42 and two Shorts 360s - overnighted at Peoria. A single daily Burlington, Iowa tag-on was flown on a Shorts 360. The Quincy tag-on was eliminated August 20, 1990 when American Eagle dropped that western Illinois city.

When American Airlines introduced jet service in early December, American Eagle eliminated two of three morning departures and evening arrivals. All but one roundtrip was upgauged to larger ATR-42s.

On May 1, Nashville Eagle dba American Eagle began three daily roundtrips between Peoria and Nashville using 34-seat Saab 340 turboprops. Nashville Eagle was created in January 1988 from assets acquired by AMR Eagle from Air Midwest (and those of bankrupt AVAir in May of that year). On June 1, 1991, Command Airways (acquired by AMR Eagle in September 1988) and Nashville Eagle merged to create "Flagship Airlines."

American Airlines established its hub at Nashville Metropolitan Airport in 1986. The massive increase in service required a large new terminal complex which opened in 1987. With its newfound status as a major airline hub, the Music City's airport adopted the "international" designation in 1988. By summer 1991, American scheduled well over 100 jet departures per day with nearly 100 more by American Eagle turboprops.

Although Ozark Air Lines offered same-plane service (in both directions) between Peoria and Nashville in 1980-1982, this was the first nonstop link between the two cities. 

MIDWAY CONNECTION (Fischer Bros. Aviation)
July schedules show that service had been reduced from six to five daily roundtrips between Peoria and Chicago-Midway Airport. The weekend Springfield tag-on operated the first few years had been eliminated. It isn't clear when these reductions were made but were related to parent Midway Airlines' Chapter 11 filing on March 27.

Midway Airlines engaged in significant expansion since starting operations in 1979. Most recently, in 1989, it spent $100 million to purchase gates at Philadelphia International Airport and DC-9s from bankrupt Eastern Air Lines. The Philadelphia hub, begun in November 1989, was ill-timed as the economy slowed, a situation worsened by Iraq's invasion of Kuwait in August 1990, the resulting spike in fuel prices and a downturn in traffic. The Philadelphia hub lasted until October 1990 when Midway sold its gates to USAir, its main competitor there.

The rise in fuel prices and decline in passenger traffic as the nation entered recession forced the airline into bankruptcy protection. Midway continued to operate business as usual. Then in September, with the future looking bleak, the airline agreed to a deal in which Northwest Airlines would buy its 21 gates at Chicago Midway Airport and lease them back. A competing offer by Southwest Airlines to control Midway's gates and lease them back was rejected.

Acquisition of Midway Airlines introduced interesting possibilities for Peoria. Certainly, a Chicago Midway hub offered greater potential than Minneapolis/St. Paul, though both routes were likely to continue. If nothing else, larger turboprops were likely to be introduced out of Peoria in a short time.

The Northwest-Midway deal received bankruptcy court approval on October 8. Further negotiations for outright acquisition continued. As the deal awaited for regulatory approval, Northwest learned that Midway had falsified its 1990 traffic and revenues. On November 12, the Eagan, Minnesota-based carrier ended further merger discussions and Midway ceased operations at midnight the next day.

Midway's action also grounded Midway Connection flights. The Peoria Journal Star reported November 14 that Midway Connection's ticket counter sign had been removed by 6:00 o'clock that morning! Ironically, Southwest Airlines, whose offer had been rejected, would purchase 18 ex-Midway gates from Northwest in 1992.

MIDWEST EXPRESS CONNECTION (Skyway Airlines)
Skyway Airlines' Peoria-Bloomington/Normal-Detroit route apparently succeeded despite the sluggish economy. So much so that the airline added a third weekday frequency (via Rockford) on July 26, 1991.

NORTHWEST AIRLINK (Express Airlines I)
Three weekday roundtrips (two on Sunday, one on Saturday) to Minneapolis/St. Paul continued unchanged except for equipment. July 15 schedules show that the afternoon turnaround was operated with a 34-seat Saab 340 turboprop. 

TWA/TW EXPRESS (Trans States Airlines)
PIA suffered what may have been its biggest blow to date when on January 16, TWA announced that it would end St. Louis jet service by March 18. Service had already been cut to three roundtrips by this time. A DC-9 left Peoria for the last time Sunday morning, March 17. Nearly a quarter century had passed since Ozark Air Lines inaugurated the city's first jet service (to both Chicago and St. Louis) on July 15, 1966.

Short-haul jet service was never profitable, and Trans World Airlines probably realized it no longer needed jet service here to remain competitive. After all, the city's only other jet service (on United Air Lines) went to Denver, somewhat limiting its competitiveness with broader St. Louis hub connections.

But the real reasons for Peoria's loss was that TWA suffered from massive debt load and interest charges. The spike in fuel prices and downturn in passenger traffic only deepened its wounds. Cutbacks were absolutely necessary. The sale of lucrative London-Heathrow rights to American Airlines only delayed the inevitable. Bankruptcy seemed the only path for the airline, but a July 30 deal between chairman Carl Icahn and its creditors averted that process for the rest of 1991. After that, TWA intended to enter "pre-packaged bankruptcy" with creditor deals already in hand.

Trans States Airlines dba Trans World Express (TWE) increased its Peoria-St. Louis service as a result of TWA's decision. The carrier had already replaced one of four TWA roundtrips in 1990 with an ATR-42. When TWA's jet service ended, TWE intended to increase Peoria-St. Louis service to nine weekday roundtrips and introduce larger, 68-seat ATR-72s on three of these.

The ATR-72s were to be introduced on April 1, but this probably didn't happen. In fact, while July 15 schedules show nine weekday roundtrips on ATR-42 equipment, three additional roundtrips, each operated by a different type (Embraer 120, Fairchild Metro III and Jetstream 32), were added. Trans States could do this because eight, 30-seat Embraer 120s and 15 19-seat Jetstream 32s had been acquired from Air Midwest (along with its TWE feeder routes) in January 1991. Apparently, TWE had to significantly ramp up seat capacity through both frequency and larger aircraft to replace TWA DC-9 service.

Eventually, TWE did deploy ATR-72s to its Peoria-St. Louis route, but they hardly made up for the loss of DC-9 service after so many years. 

UNITED AIR LINES/UNITED EXPRESS (Air Wisconsin)
On March 3, a United Air Lines Boeing 737-200 operating the morning departure from Peoria to Moline and Denver, continued on to Colorado Springs where on final aproach it suffered a rollover and crashed, killing all 20 passengers and five crew. An NTSB investigation came up inconclusive as to the cause, but subsequent accidents involving 737s led some investigators to believe the aircraft operating the March 3 flight had a defective rudder power control unit. No Peorians were on the plane when it crashed.

Other than seasonal equipment changes, United Air Lines' service remained unchanged from 1990 with both a Denver-Peoria-Moline-Peoria itinerary and a Denver-Moline-Peoria turnaround operating daily. July schedules show Boeing 737-300s being used on all flights. From March 18 through December 2, 1991 this was Peoria's only jet service.

Air Wisconsin dba United Express finally got around to deploying larger planes to Peoria. On May 21, Air Wisconsin brought a British Aerospace Advanced Turbo Prop (ATP) to Peoria for viewing by airport officials, business leaders and the media. According to the Peoria Journal Star story covering this event, three of four Chicago-O'Hare roundtrips would be operated with the large turboprops beginning June 7. The other would remain on a 50-seat F-27. July 15 schedules actually show five roundtrips, with one being operated with an F-27. I can only speculate that two of six roundtrips had been dropped by fall 1990 due to the spike in fuel prices. A fifth roundtrip must have been added on July 15 (or shortly before that) to support increasing passenger traffic. 

USAIR EXPRESS (Jetstream Int'l Airlines)
Service to Indianapolis had been reduced to three weekday (two Sunday, one Saturday) roundtrips. Jetstream 31 equipment was used on all flights.

ANOTHER MAIL HUB BID, CARGO GROWTH
On July 8, 1991 the Greater Peoria Airport Authority submitted a bid to become the United States Postal Service's permanent "Eagle Air Network" hub. The facility promised 300-400 jobs and 17 planes (DC-8s and 727s). Peoria was one of seven finalists announced in early August.

The Illinois Development Finance Authority offered $55 million in tax-exempt bonds for construction of an air cargo facility if Peoria won. If selected, PIA needed to extend one runway 2,400' (probably 4-22) and construct a 273,000 sq. ft. building, which an August 4 story shows in the southeast quadrant of the airfield.

Drama over favoritism soon erupted when an Indiana congressman accused the USPS of providing "inside information" as a favor to officials of the Dayton (Ohio) International Airport. The Emery Worldwide hub there was bleeding money and an air mail contract would make it profitable again. Dayton officials denied the allegation.

On October 7, the USPS chose Indianapolis as its permanent mail hub. Nevertheless, PIA tried to put a positive spin on it, with one official stating that work done on the air mail hub bid would help land a major cargo hub in three years.

Despite assertions by airport officials that their facility would win on its merits, it is unlikely that Peoria ever had a serious chance of being selected. There was simply no reason to move the hub from Indianapolis.

Air cargo volume in 1991 dipped for the first time in a decade. Figures showing the recent boom were published by the Peoria Journal Star on March 14, 1996.

1986 - 7,390,325
1987 - 10,464,330
1988 - 19,285,977
1989 - 20,346,642
1990 - 30,139,906
1991 - 28,924,598

The sluggish economy no doubt played a role. Desiring to reduce costs, shippers saved money by shifting some freight to truck. But there was little to complain about as 1991 cargo volume was still nearly four times that of 1986! The dip was temporary and the growth trend would continue for years to come.

AIRPORT EXPANSION
Grading for extension of Runway 13-31 1,500' to the northwest began in the summer. The extension was intended to accomodate aforementioned air cargo growth, particularly larger and heavier jets, such as the four-engine DC-8-73F Emery Worldwide Airlines began using here in 1989. Emery routed the big jets between its Dayton hub and western cities such as Sacramento, Salt Lake City or Portland. Peoria stops were made westbound in the morning and eastbound in late-evening.

Construction at the new Air National Guard base continued, as did contract awards for more structures. Among them, a fire station and hangar needed for fuel cell and aircraft maintenance support.

NEWSPAPER SILLY SEASON '91
Peoria's newspaper of record just kept bungling present-day stats as well as recent history.


A March 14 story includes the above map showing air routes from PIA. For an unknown reason, it shows Northwest Airlink offering non-existent nonstops to Detroit, Memphis and Milwaukee! The map was repeated, but uncorrected, in a November 15 story.

In a March 15 story noting that the FAA was expected to grant American Airlines' request for slot changes which would enable jet service to Chicago-O'Hare, the airport's assistant director told the paper that "Peoria lost jet service to Chicago eleven years ago." It was actually nine, when TWA withdrew its final daily roundtrip at the end of June 1982. You'd think the assistant director would remember that, but he may have been relying on recent "reporting" by the newspaper.

An April 7 story only worsened the silliness. A chart claims that, "Ozark discontinued jet service in October 1986 when it was purchased by Trans World Airlines." Ozark actually merged with TWA in October 1986. While Ozark "discontinued jet service" then is technically true, it is more accurate to state that TWA discontinued its own flights and continued Peoria jet service using Ozark's DC-9 fleet.

In the same chart, the assertion that Republic Airlines, "provided service from summer 1986 to spring 1987 when it discontinued jet service and returned to propjet service" is horribly bungled. Republic began serving Peoria (from Detroit) on June 2, 1986 (technically spring, not summer) and merged with Northwest Airlines on October 1. On that date, or shortly thereafter, Northwest supplemented smaller Convair 580 turboprops (not "propjet") for DC-9s. On June 1, 1987, Northwest added twice-daily Peoria to Minneapolis/St. Paul roundtrips via Moline. After seasonal changes eliminated jet service then revived it, Northwest dropped it for good after March 1, 1988. (All service by Northwest at Peoria ended effective May 2 that year.)

Yet another error in the same article asserts that United Air Lines, "continues to fly one jet daily to Moline and Denver." Perhaps the writer assumed both daily roundtrips between Peoria and Denver were flown with one jet? Whatever the case, it reeks of innacuracy. (There are further errors in the text itself, but I'll stop here.)

A May 9 story has an error which contradicts with the one from March 15. "Peoria has not had jet service to Chicago since 1986 when Ozark left." As previously noted, Ozark dropped regular, daily Chicago-O'Hare jet service from here October 25, 1981 while TWA was last to offer such service (see above). And Ozark did not "leave." Rather, it was absorbed by TWA.

A May 22 story announcing Air Wisconsin's deployment of larger turboprops (Britsh Aerospace ATP's) here suffers from a stupid title, "Peorians glimpse latest turboprop jet." A ATP is a turboprop, and not a jet. It cannot be both.

A June 26 editorial repeated the false assertion that, "It's has been five years since jets flew between Peoria and Chicago." 

A July 18 story calls a TW Express ATR-42 a "jet."

An August 20 story by a reporter long notorious for sloppiness referred to Emery Worldwide Airlines as "Emery World Airlines." An easy error to make, yes, but one of too many being made at this time. 

MISCELLANEOUS EVENTS
On March 1, an American Eagle Shorts 360 made an emergency landing at Peoria in late afternoon after experiencing engine trouble. The flight was enroute from Burlington, Iowa to Chicago-O'Hare.

A March 19 story notes that Lusk Shipping Company, Inc. had opened an office at the airport. Lusk is a freight forwarder, and acted in that capacity for Caterpillar's first export (to Central America) in 1927.

On July 17, a TW Express ATR-42 arrived safely with an engine fire. Another ATR-42 landed here a few hours later with a warning light indicating landing gear wasn't in place!

The new airport terminal roadway opened Saturday, September 21 and was renamed "Everett McKinley Dirksen Parkway" who represented the area in the U. S. House from 1933 to 1949 and the U. S. Senate from 1951 until his death in 1969. Sen. Dirksen, a Republican from Pekin, served as Senate minority leader for the last decade of his life. It should be noted that street lights opened October 18. 

SCHEDULE, ROUTE MAP
The Peoria Journal Star failed to publish yearly passenger stats for 1991, so I can only provide an estimate based on enplanement figures published by the Illinois Airport Inventory Report 2012. The number given (205,949), if rounded to the nearest thousand (206,000) and then doubled to reflect deplanements, gives us 412,000 passengers. The actual figure is probably a few thousand lower or higher, but is close to the estimate.

The slowing economy most certainly played a role, but loss of TWA jet service no doubt reduced passenger volume more than anything else. Airport officials had to hope that American Airlines jet service to Chicago-O'Hare would draw more passengers in 1992.

New service increased weekday departures to 45. Schedules effective July 15, 1991 show American Eagle with twelve, Midway Connection five, Midwest Express Connection three, Northwest Airlink three, TW Express twelve, United Air Lines two, United Express five and USAir Express three.





- David P. Jordan

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