Texas Air Corporation

Texas Air was an airline holding company incorporated in 1980 in the United States created to hold and invest in airlines, starting with Texas International Airlines and its cash assets as its core.[1] The company had its headquarters in the America Tower in the American General Center in Neartown Houston, Texas.[2]

Texas Air Corporation had its headquarters in the America Tower in the American General Center

In 1972, Jet Capital Corporation, itself controlled by Frank Lorenzo, acquired control of Texas International.[3] After passage of the Airline Deregulation Act in 1978, Texas International Airlines expanded significantly, reduced its costs by discontinuing unprofitable routes and replaced its outdated Convair turboprops with newer DC-9 aircraft. Following creation of Texas Air, controlled by Jet Capital in mid-1980, Texas Air launched the first new airline under deregulation, New York Air, late that year. New York Air was designed as a competitor against Eastern Airlines[4] in the shuttle markets of New York-Washington-Boston and went on to become a successful carrier in the Northeast with its low-cost, high-quality service. In 1981 Texas Air acquired Continental Airlines,[5] and merged Continental and Texas International in 1982, retaining Continental's better-known and less regional name.[6]

In 1985, Texas Air lost a bid to take over Trans World Airlines (TWA) to corporate raider Carl Icahn.[7] In 1986 the company acquired Eastern Air Lines[8] and People Express, with its Frontier Airlines included.[9] By 1987 Texas Air Corporation had control of 20 percent of the U.S. airline market.[10]

In early 1990, Texas Air and Continental were merged and, subsequently, on August 3, 1990, Jet Capital Corporation announced it was selling its controlling interest in Continental to Scandinavian Airlines System (SAS).

Holdings at its peak

1 Merged with Texas International Airlines, keeping the Continental brand.
2 Merged into Continental Airlines.

3 Merged into Britt Airways, which subsequently assumed the ExpressJet brand.
4 Rebranded as Continental Micronesia.
5 Declared bankruptcy and liquidated.

See also

References
  1. "Texas International Becomes a Subsidiary of New Holding Firm". The Wall Street Journal. June 12, 1980.
  2. Map of Neartown. Neartown Association. Retrieved October 20, 2008.
  3. Hillinger, Charles (November 4, 1974). "Texas International Shucks Its Image as 'Tinker Toy Airline'". Los Angeles Times.
  4. Thurow, Roger (September 15, 1980). "New Approach to Expansion By Texas Air". The Wall Street Journal.
  5. Whitkin, Richard (March 4, 1981). "Texas Air Bids to Get Continental". New York Times.
  6. Nelson, Mary Jo (October 7, 1982). "Continental, Texas International to Finish Merger". The Oklahoman.
  7. Salpukas, Agis (August 24, 1985). "Icahn Gets Control of T.W.A." New York Times.
  8. Salpukas, Agis (February 25, 1986). "Eastern's Board Agrees to Takeover by Texas Air". The New York Times.
  9. Salpukas, Agis (September 18, 1986). "Texas Air Buying People Express for $125 million". The New York Times.
  10. Kleiner, Diana. "Handbook of Texas - Texas Air". Texas State Historical Association.
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