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New York Air
New York Air was a low-cost airline in the United States owned by Texas Air Corporation and based at Hangar 5 at LaGuardia Airport in Flushing, Queens, New York. It ceased operations on February 1, 1987, in a merger with Continental Airlines.
New York Air was well known for its onboard bagged snacks, known as "The Flying Nosh".
In September 1980, Frank Lorenzo's Texas Air Corporation announced plans to launch a low-fare airline in the Northeast US, which would then become known as New York Air. The carrier would be the second airline to launch following the deregulation of the US airline industry, which allowed Texas Air to freely expand its operations without government intervention. New York Air would initially compete with Eastern Airlines and its Eastern Air Shuttle service, which offered hourly service between New York's LaGuardia Airport, Boston's Logan Airport, and Washington DC's National Airport, by operating a similar hourly service between the three cities, but offering lower fares than Eastern, and also offering advanced reservations and complimentary drinks and snacks, which Eastern didn't offer. The airline then planned to expand and offer service to other cities along the East Coast. Plans were also announced for a large operation in White Plains, however that never commenced.
Founding New York Air president, Neal F. Meehan, had been a senior manager at both Continental Airlines and at Texas International Airlines (TI). In September, 1980, he assembled a team of airline managers; within 90 days it had hired, trained, uniformed, and drilled New York Air's flight crew, flight attendants, dispatchers, terminal, ramp and reservations personnel. Office and maintenance facilities in the hangar which had originally housed American Airlines headquarters at LaGuardia in the 1930s were thrown up rapidly, and the carrier obtained FAA certification as an adjunct to TI's certificate. In one notable vignette, New York Air managers interviewed over a thousand candidates for flight attendant, reservations, and airport jobs in one day of group interviews held at New York's famed Town Hall Theater, in November 1980.
New York Air commenced operations on December 19, 1980, with a flight from New York LaGuardia to Washington National, however only 5 of the 125 seats on the aircraft were filled. By April 1981, New York Air had an average 62% load factor, close to its break-even load factor of 65%, and had generated a $1.5 million loss. Executives described this as a 'moderate success', however subsequently raised fares on its LaGuardia flights.
Following its launch, New York Air quickly expanded and established a hub operation in LaGuardia, with new service to Cleveland beginning in April 1981, as well as smaller focus cities in Boston and Washington National. However several planned destinations, such as Dayton, Pittsburgh, and service to several destinations in Upstate New York, were scrapped. A LaGuardia-Detroit service was operated for a short period, before being shifted to Newark, where the airline began a secondary smaller hub operation. By July, services from LaGuardia to Cincinnati and Louisville had also begun. By December, the airline had a fleet of 13 DC-9-30 aircraft.
The 1981 Air Traffic Controllers strike badly affected New York Air's operations and its finances. The strike led to long flight delays, encouraging passengers to avoid flying. In order to ease delays, the Federal Aviation Administration reduced the number of available slots in Northeastern airports, forcing airlines to cut flights. Larger airlines were able to counter this by using larger aircraft, such as Eastern's decision to operate 260-seat Airbus A300s on its shuttle flights. This meant that Eastern could still carry the same number of passengers per day despite the slot reductions, reducing the damage to its income. Due to New York Air's small fleet, it was unable to follow a similar tactic, and its shuttle service was heavily damaged by the slot restrictions. This, as well as Eastern's larger aircraft flooding the market, led to New York Air ending its Boston service after less than a year in operation.
To maintain a presence in Boston, the airline established a hub at Logan Airport, offering service to Baltimore and Orlando. However, these services proved to be unprofitable, and the Boston hub was closed by the end of 1982. Services to Cleveland, Cincinnati and Louisville had also been cut due to competition from larger airlines such as Eastern and United. To keep the airline afloat, Texas Air provided a $10 million cash injection, and banks provided $15 million in revolving credit. Another $15 million was obtained through the sale of 1.8 million shares. To keep the company going through winter 1981, the airline sought another $10–15 million from its banks.
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New York Air
New York Air was a low-cost airline in the United States owned by Texas Air Corporation and based at Hangar 5 at LaGuardia Airport in Flushing, Queens, New York. It ceased operations on February 1, 1987, in a merger with Continental Airlines.
New York Air was well known for its onboard bagged snacks, known as "The Flying Nosh".
In September 1980, Frank Lorenzo's Texas Air Corporation announced plans to launch a low-fare airline in the Northeast US, which would then become known as New York Air. The carrier would be the second airline to launch following the deregulation of the US airline industry, which allowed Texas Air to freely expand its operations without government intervention. New York Air would initially compete with Eastern Airlines and its Eastern Air Shuttle service, which offered hourly service between New York's LaGuardia Airport, Boston's Logan Airport, and Washington DC's National Airport, by operating a similar hourly service between the three cities, but offering lower fares than Eastern, and also offering advanced reservations and complimentary drinks and snacks, which Eastern didn't offer. The airline then planned to expand and offer service to other cities along the East Coast. Plans were also announced for a large operation in White Plains, however that never commenced.
Founding New York Air president, Neal F. Meehan, had been a senior manager at both Continental Airlines and at Texas International Airlines (TI). In September, 1980, he assembled a team of airline managers; within 90 days it had hired, trained, uniformed, and drilled New York Air's flight crew, flight attendants, dispatchers, terminal, ramp and reservations personnel. Office and maintenance facilities in the hangar which had originally housed American Airlines headquarters at LaGuardia in the 1930s were thrown up rapidly, and the carrier obtained FAA certification as an adjunct to TI's certificate. In one notable vignette, New York Air managers interviewed over a thousand candidates for flight attendant, reservations, and airport jobs in one day of group interviews held at New York's famed Town Hall Theater, in November 1980.
New York Air commenced operations on December 19, 1980, with a flight from New York LaGuardia to Washington National, however only 5 of the 125 seats on the aircraft were filled. By April 1981, New York Air had an average 62% load factor, close to its break-even load factor of 65%, and had generated a $1.5 million loss. Executives described this as a 'moderate success', however subsequently raised fares on its LaGuardia flights.
Following its launch, New York Air quickly expanded and established a hub operation in LaGuardia, with new service to Cleveland beginning in April 1981, as well as smaller focus cities in Boston and Washington National. However several planned destinations, such as Dayton, Pittsburgh, and service to several destinations in Upstate New York, were scrapped. A LaGuardia-Detroit service was operated for a short period, before being shifted to Newark, where the airline began a secondary smaller hub operation. By July, services from LaGuardia to Cincinnati and Louisville had also begun. By December, the airline had a fleet of 13 DC-9-30 aircraft.
The 1981 Air Traffic Controllers strike badly affected New York Air's operations and its finances. The strike led to long flight delays, encouraging passengers to avoid flying. In order to ease delays, the Federal Aviation Administration reduced the number of available slots in Northeastern airports, forcing airlines to cut flights. Larger airlines were able to counter this by using larger aircraft, such as Eastern's decision to operate 260-seat Airbus A300s on its shuttle flights. This meant that Eastern could still carry the same number of passengers per day despite the slot reductions, reducing the damage to its income. Due to New York Air's small fleet, it was unable to follow a similar tactic, and its shuttle service was heavily damaged by the slot restrictions. This, as well as Eastern's larger aircraft flooding the market, led to New York Air ending its Boston service after less than a year in operation.
To maintain a presence in Boston, the airline established a hub at Logan Airport, offering service to Baltimore and Orlando. However, these services proved to be unprofitable, and the Boston hub was closed by the end of 1982. Services to Cleveland, Cincinnati and Louisville had also been cut due to competition from larger airlines such as Eastern and United. To keep the airline afloat, Texas Air provided a $10 million cash injection, and banks provided $15 million in revolving credit. Another $15 million was obtained through the sale of 1.8 million shares. To keep the company going through winter 1981, the airline sought another $10–15 million from its banks.
