PIA - A History: Events of 1992

In many ways, the year 1992 seemed like a good one for the Greater Peoria Regional Airport, but dark clouds lingered. Frustration returned in subsequent years.

It began with uncertainties. The national recession had ended in March 1991, but unemployment in the United States would not peak until June 1992*. The United Auto Workers Local 974 struck Caterpillar's Illinois plants in November 1991 after contract talks failed. Management and salaried workers continued some production until the strike ended in April 1992. Local unemployment then declined as both Caterpillar and suppliers began returning operations to pre-strike levels. As the economy improved, so did prospects for machinery sales. No doubt business travel began returning to pre-recession levels as well. Progress proved slow, however.

*Local unemployment rose to 9.5% in June 1992 on a surge in job-seekers. 

THE GREAT AIR FARE WAR OF 1992
Recession and oil shock following Iraq's invasion of Kuwait brought the airline industry to its knees. U. S. carriers lost $2.4 billion in 1990 and and $4 billion in 1991.

American Airlines posted a nearly $40 million deficit in 1990 and a staggering $240 million in 1991. So on April 13, 1992, the Fort Worth, Texas-based carrier scrapped its old fare system, replacing it with "value pricing," i. e. a four-tier, mileage-based plan with reductions in both first-class and coach fares. The airline believed the simplified fare structure would fill its planes and thus stem massive losses. Some industry experts, however, viewed it as way to undercut weak competitors such as bankrupt America West, Continental and TWA. But TWA and others quickly matched (or undercut) American's lower fares.

Late in May, Northwest Airlines upped the ante when it introduced a "Grownups Fly Free" sale and American responded with a corresponding 50 percent cut on its lowest excursion fares. Northwest and other carriers were forced to match this reduction. American's sale was good through September 13 as long as tickets were purchased by June 5.

An unprecedented fare war had started, jamming airline reservation centers' phone lines. Travelers crowded airline ticket counters and employees worked overtime to handle the surge in business.

The Peoria Journal Star carried a story May 31 warning travelers that high fares were likely to return soon. After all, American Airlines' discounting came at a time when oil prices were again on the rise, thanks to production cuts by Saudi Arabia. On June 2, Delta and Northwest raised prices when they realized the magnitude of their losses. Others soon followed suit.

Sadly, the fare war instigated by American Airlines failed to fill otherwise empty seats that summer, and U. S. airline financial losses totaled $4.8 billion in 1992. American Airlines alone lost nearly $1 billion (reduced to $278 million excluding one-time charges) In October, Chairman Robert Crandall admitted failure to airline financial analysts.

With that background, here is a rundown of the year's events. A primary source is the Greater Peoria Regional Airport Flight Guide May - June - July 1992. The guide lacks equipment detail which is where my American Airlines May 1992 timetable comes in handy. 

AMERICAN AIRLINES/AMERICAN EAGLE (Flagship Airlines/Simmons Airlines)
Having resumed long-dormant Chicago jet service in December 1991, local travelers looked forward to using the flights in the new year, hoping for additional frequencies.

The break-even load factor on the 97-seat Fokker 100s was estimated to be just 35 passengers per flight. Apparently, this number was reached by February 25 when American announced the addition of an early afternoon turnaround from Chicago-O'Hare beginning May 1. The summer fare war caused a surge in load factors, but at the expense of profitability.

Around this time, American Airlines asked the FAA to convert 70 more commuter slots at Chicago-O'Hare International Airport for jets up to 110 seats. It wasn't clear how many roundtrips the airline intended to operate eventually, but the news certainly appeared good for Peoria.

Simmons Airlines dba American Eagle reduced its schedule to accommodate the second American Airlines roundtrip. By this time, all five remaining roundtrips between Peoria and Chicago-O'Hare were being operated by 46-seat ATR-42s. A Burlington (Iowa) tag-on continued to operate daily. Flagship Airlines dba American Eagle also maintained three daily roundtrips to Nashville on 34-seat Saab 340s. 

MIDWEST EXPRESS CONNECTION (Skyway Airlines)
The PIA Flight Guide only shows three weekday (and one Sunday) one-stops between Peoria and Detroit Metropolitan Airport. But there was no change in itineraries during 1992. Two roundtrips stopped at Bloomington-Normal, the other at Rockford. 

NORTHWEST AIRLINK (Express Airlines I)
Sometime after October 1991, Northwest Airlink added a fourth weekday roundtrip between Peoria and Minneapolis/ St. Paul. Larger planes were requested as early as 1989, but none were available until 1992. The Peoria Journal Star ran a story May 8 announcing an upgrade to larger planes (Saab 340s) beginning June 14. Increased bookings resulting from a fare war likely factored in this decision.

Although the airline's spokeswoman told the paper that it would maintain three daily nonstops to Minneapolis/St. Paul, the PIA Flight Guide still showed four. If upgauging to larger aircraft cost one weekday roundtrip, then the decision was made after the guide was printed. Three roundtrips were shown through November and December.  

TRANS WORLD EXPRESS (Trans States Airlines)
Trans World Airlines no longer served Peoria but its financial health impacted air service here. The carrier filed for Chapter 11 bankruptcy protection on January 31, 1992.

There is good reason to believe that PIA officials hoped TWA would bring back its jets here to remain competitive with American Airlines' new Chicago-O'Hare service. TWA's reorganization period was expected to be short, but cost-cutting (layoffs, reduction of flights, asset sales and labor concessions, etc.) was necessary before the carrier could be found viable by a bankruptcy judge. This precluded restoration of unprofitable, short-haul jet service. TWA was dropping more former Ozark cities (Sioux City and Sioux Falls on October 25), so prospects for returning to Peoria were not good.

Sometime after July 1991, Trans States Airlines dba Trans World Express reduced Peoria-St. Louis service from twelve to nine weekday roundtrips. Nevertheless, all were operated by 48-seat ATR-42 or 68-seat ATR-72 equipment. I show two of the latter on the schedule below, so each weekday, the commuter carrier provided a substantial 472 seats to or from TWA's St. Louis hub.

UNITED AIR LINES/UNITED EXPRESS (Air Wisconsin)
On June 4, United Air Lines deployed 147-seat Boeing 727-200s in place of 128-seat Boeing 737-300s on both the Denver-Moline-Peoria and Denver-Peoria-Moline-Denver routings. A general increase in traffic as well as a surge in bookings thanks to the summer air fare war made the larger plane necessary.

United Air Lines' parent company, UAL Corporation, purchased Air Wisconsin for $75 million in January 1992. Operating as United Express, the Appleton, Wisconsin-based Regional maintained five weekday roundtrips between Peoria and Chicago-O'Hare. The PIA schedule for May-June-July omits an afternoon departure, which I show at 4:32pm (I don't remember how I figured it out, possibly a guess based on another timetable). This was the last turnaround of the day, and operated by a 50-seat F-27. The other four were flown on the newer, 64-seat British Aerospace ATP. 

USAIR EXPRESS (Jetstream Int'l Airlines)
Commuter service to USAir's Indianapolis hub probably increased from three to four weekday roundtrips on January 7 in anticipation of increased hub departures. On that date, USAir closed its unprofitable Dayton hub ($45 million loss from January 1990 through July 1991) and intended to shift some service to Indianapolis, increasing weekday departures from 51 to 80. The Indianapolis buildup never happened but increased commuter flights to Peoria on 19-seat Jetstream 31s lasted for awhile longer.

AIRPORT EXPANSION
At its February board meeting, the Greater Peoria Airport Authority (GPAA) revealed a request for a federal grant needed to finish the runway 13-31 extension northwest to 10,000', including a 500' overrun. My recollection is that this runway extension was completed by late in the year. The board also approved funds for engineering work on the Runway 4-22 extension 2,000' to the southwest.

In March, higher car parking fees, increased landing fees, landing weight and terminal rent was proposed. These were approved in April, and made effective May 1.

Groundbreaking for the new 30,000 sq. ft. cargo terminal on the southeast quadrant took place May 16. Ramp construction had already been completed in 1991. New and larger facilities were needed as air cargo volume resumed its growth spurt in 1992, when 31,672,781 pounds were handled through here by Airborne Express, Emery Worldwide and Federal Express.

At the May boarding meeting, it was learned $16.5 million in state funds could be made available for airport expansion.

BLOOMINGTON-NORMAL, COMPETITOR?
Although Bloomington-Normal Airport had failed to elevate itself with the recent regional airport study, its visionary director, Mike LaPier, was undeterred. By the late 1980s, thanks to a growing business travel market, BMI was attracting services that were duplicative to nearby PIA. Allegheny Commuter flights to Indianapolis proved short-lived, but Midway Connection's service to the Windy City's other major commercial facility attracted a decent clientele.

July 15, 1991 schedules show American Eagle operating six daily departures to Chicago-O'Hare on a mix of ATR-42 and Shorts 360 equipment. Midway Connection offered six daily departures to Midway Airport on Dornier 228 equipment. Midwest Express Connection operated two weekday roundtrips between Peoria and Detroit, stopping at BMI in each direction. Trans World Express flew five weekday nonstops to St. Louis on Jetstream 31s.

When Midway Connection ceased operations in November 1991, it created an opportunity for other airlines to fill the gap. Flagship Airlines dba American Eagle was first to do so when it began three daily roundtrips to Nashville on January 31, 1992. Peoria's prospects for regional dominance took a kick in the head with this July 17, 1992 Peoria Journal Star headline -

Addition of 16 flights could draw travelers from Peoria

On July 20, Direct Air began offering four weekday roundtrips to Chicago Midway (where Southwest Airlines was building a major operation) and on September 15, Mesaba Airlines dba Northwest Airlink began offering four weekday roundtrips to Detroit. These additions caused BMI's weekday departures to surge from 21 to 29. Nonstop destinations increased to five - Chicago-O'Hare, Chicago-Midway, Detroit, Nashville and St. Louis.

Bloomington-Normal Airport handled 121,000 and 123,000 passengers in 1990 and 1991. Director LaPier projected 200,000 in five years and 500,000 within twenty. Land acquisition for a new north-south runway was completed in 1992. BMI was becoming a regional facility on its own. Would Peoria take notice?

NEWSPAPER SILLY SEASON '92
In a February 26 story, Peoria's newspaper of record ran a story on American Airlines' service increase and asserted, "For several years, United Airlines provided the only jet service with a daily flight from Peoria to Denver."

"For several years" - when TWA ended Peoria-St. Louis jet service only eleven months earlier? I'd say they shouldn't have fired their editors, but the Peoria Journal Star actually had editors in 1992. There is no excuse for such sloppiness.

The June 4 story announcing United Air Lines' equipment upgauge to Boeing 727-200s starting the same day, asserted that, "The jets replace the older, smaller Boeing 737-300 jets..." Nevermind the fact that the airline's last Boeing 727 was built and delivered in 1980 (production of the type ended in 1984) and United's first Boeing 737-300 arrived in 1986!

MISCELLANEOUS NOTES
Two F-16 Fighting Falcons arrived at the 182nd base on March 16. The first aircraft equipped for combat were scheduled to arrive in the summer. Conversion from A-37s was expected to be completed in 1993 when the last of nineteen F-16s arrive.

By 1992, the Chicago-Kansas City toll road project was dead, but the GPAA supported a Peoria-Chicago interstate. A map of possible routes was revealed in late March.

Former President Ronald Reagan and his wife Nancy arrived PIA May 8 on a Falcon 900 so he could attend his 60th class reunion at Eureka College. The Reagans' jet parked at the Byerly Aviation ramp during its stay here.

German-born Lady Barbel Abela of Oxfordshire, England, holds seven speed over distance records. On July 5, she stopped her A-26C Invader (N7079G) at PIA enroute to Frederick, Maryland and on to Canada, Greenland, Iceland, the UK and France. Named Bar-Belle Bomber, the World War Two-vintage aircraft made a forced landing at Holman Field in St. Paul, Minnesota August 9 and was apparently left in open storage there for several years. Present status is unknown. 

SCHEDULES, ROUTE MAP
First, lets review gate positions by airline.

Gate 3 - TW Express
Gate 4 - American Eagle
Gate 5* - American Airlines
Gate 6* - United Air Lines
Gate 7* - United Express
Gate 8 - Midwest Express Connection, Northwest Airlink, USAir Express

*Jetway equipped.

May-June-July schedules show 38 weekday departures to seven hubs/major destinations: Chicago-O'Hare, Denver, Detroit (Metro), Indianapolis, Minneapolis/St. Paul, Nashville and St. Louis. Four of these were operated with mainline jet aircraft, two each on 97-seat Fokker 100s and 147-seat Boeing 727-200s.

Like the previous two years, I haven't found exact passenger numbers for 1992. Using enplanements given in the Illinois Airport Inventory Report (2012), I've come with an estimate of 424,500. This figure is three percent higher than in 1991, no doubt the result of the summer fare war.

Schedules below reflect the period from June 4 until June 13. Basically, I've included American Airlines' second frequency, United Air Lines' upgauge to 727-200s and left off Northwest Airlink's upgauge, as I don't have the arrival times for the newer schedule.







- David P. Jordan

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