- Texas Air Corporation
Texas Air was an
airline holding company in theUnited States created to hold and invest in airlines, starting withTexas International Airlines as its core. Texas International Airlines, was formerly known as "Trans-Texas Airways". After passage of theAirline Deregulation Act in 1978, Texas International Airlines expanded significantly, reduced its costs by discontinuing unprofitable routes and replaced its outdatedConvair turboprops with newer DC-9 aircraft.In 1982 it took over then debt-laden
Continental Airlines , retaining Continental's better-known and less regional name. Continental Airlines, in moribund financial condition, succeeded in negotiating concession packages with all of its unions except for theInternational Association of Machinists (IAM). Because of the refusal of the IAM to renegotiate its contract, the company ultimately filed forChapter 11 bankruptcy, which allowedFrank Lorenzo (President and chief executive officer), to reject the collective bargaining agreements with its various unions. Many believe that Lorenzo wanted the strike to jusitfy the bankruptcy filing, so that he could get rid of the unions.In 1985, the company lost a bid to take over
Trans World Airlines to corporate-raiderCarl Icahn . In 1986 the company acquiredEastern Air Lines andPeople Express , with its Frontier Airlines included. By 1987 Texas Air Corporation had control of 20 percent of the U.S. airline market, even though the holding company only had 20 official employees.By the early 1990s the company had been split up, with parts sold to
Scandinavian Airlines System ,Ross Perot 's EDS (Electronic Data Systems), and anAir Canada -led investment group.References
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