Trans International Airlines (1985–1989)

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Trans International Airlines
Central American International
IATA ICAO Call sign
—TIA [1] Trans International [1]
Founded17 July 1973 incorporated in Kentucky
as Central American International
Ceased operations1989 (1989)
Operating bases Orlando, Florida
Louisville, Kentucky
Fleet sizeSee Fleet below
Parent company Transamerica Corporation (1984–1987)
Headquarters Orlando, Florida
Louisville, Kentucky
Key peopleWilliam Hardenstine
Robert P. Fleming
FounderWilbur L. Paris
Second TIA DC-8-61CF Paris 1985 McDonnell Douglas DC-8-61CF, Trans International Airlines - TIA AN0605521.jpg
Second TIA DC-8-61CF Paris 1985
Central American Airways Super Constellation Los Angeles 1972 Lockheed L-1049H Super Constellation, Central American Airways JP6984493.jpg
Central American Airways Super Constellation Los Angeles 1972

Trans International Airlines (TIA) was the second airline of that name owned by Transamerica Corporation, which established the second TIA in 1984, building this non-union carrier while de-emphasizing a unionized subsidiary, Transamerica Airlines, which, until 1979, had itself been called Trans International Airlines. But in early 1986, as part of a restructuring, Transamerica Corporation put both airlines up for sale. An investor group bought TIA in 1987, while Transamerica Airlines was liquidated in 1986.

Contents

While this second TIA ceased operations in 1989, it had a lasting impact on the US airline industry because a federal appeals court confirmed the government was not required to impose labor protective provisions (LPPs) in approving its acquisition by Transamerica Corporation. LPPs were a routine part of airline acquisitions in the regulated era that ended 1978, but the court said that since Congress, in passing the 1978 Airline Deregulation Act, sought to expose the industry to market forces, the CAB could interpret this as not requiring LPPs. Thus Transamerica Corporation was free to establish a non-union airline subsidiary alongside a union airline subsidiary.

History

Central American International and Central American Airways

The second TIA had its origins in Central American International (CAI), an uncertificated carrier founded by Wilbur L. Paris in 1973 in Louisville, Kentucky. [2] CAI was, in turn, a continuation of earlier airline activity by Paris under the name Central American Airways (CAA). CAA was originally a irregular air carrier, dating to 1946, but gave up airline operations in 1948. In the 1950s it started an air taxi and in 1963 became an uncertificated carrier (i.e. operating not as a common carrier). [3] See External links for a photo of a CAA Martin 2-0-2.

CAI was one of a number of aviation enterprises of Wilbur Paris, including a fixed base operator (FBO). [4] CAI focused on cargo, including operating for Federal Express 1975–1978. In 1978 it started scheduled freight service with a DC-6. [3] In 1981, the Civil Aeronautics Board (CAB) certificated CAI as a passenger charter airline; at the time of its application to the CAB, CAI operated a Convair 880 freighter. [5] See External links for a photo. However, CAI ceased operations in 1982. [6]

Transamerica Corporation

In 1968 Transamerica Corporation bought supplemental air carrier Trans International Airlines from future billionaire Kirk Kerkorian. The carrier operated under that name until 1979, when it changed to Transamerica Airlines.

In 1984, Transamerica Corporation bought then-dormant CAI to revive the name Trans International Airlines to fly, initially, cargo, but eventually passenger charters as well. Transamerica Airlines made record profits in 1983, but its passenger operations, scheduled and charter, accounting for 36% of revenues, made a loss and the airline had undertaken a "partial liquidation", selling three DC-10 aircraft. [7] Transamerica Corporation denied it would transfer business from Transamerica Airlines to the new TIA but that was not how the Air Line Pilots Association (ALPA) saw it. [8] Transamerica said it was losing substantial business to lower cost operators and approached its unions for concessions. The unions offered concessions in exchange for killing the CAI deal; Transamerica Corporation declined. [9] The unions asked the CAB to impose labor protective provisions (LPPs) as part of the acquisition of CAI. These were routine in the regulated era that ended in 1978, but the CAB declined to impose them, saying that, consistent with the desire of Congress in the 1978 Airline Deregulation Act, it intended to allow market forces to work. The unions sued to overturn this decision, but a federal appeals court ruled against them, thus confirming the ability of a company to have both union and non-union airline subsidiaries. [10]

DC-8-61 at Milan 1988 Douglas DC-8-61, Trans International Airlines - TIA AN0506292.jpg
DC-8-61 at Milan 1988

The name change from CAI to TIA was effective 26 October 1984 [11] and first flight was early in 1985. [6] The CAI version of TIA moved to Orlando International Airport where it operated DC-8s (see photo above) and Lockheed L-188 Electras (see External links for an Electra photo). In early 1986, Transamerica Corporation announced its intention to divest remaining non-financial subsidiaries, including Transamerica Airlines, Trans International Airlines, Budget Rent-A-Car and industrial manufacturing firm Transamerica Delaval. [12] Transamerica Airlines shut down on September 30, [13] but Trans International Airlines was sold as a going concern in July 1987 to TIA Invest Co, Inc., at which time its president was William Hardenstine. [14] In June 1988, Robert P. Fleming, previously associated with Fleming International Airways, became president, CEO and chair. [15]

The airline went out of business in 1989. A January 1989 photo shows the carrier in operation, [16] but Kentucky corporate records show an involuntary dissolution later that year. [17] The FAA Statistical Handbook for 1989 has no fleet listed for TIA at year-end 1989, [18] whereas one is listed in the Handbook of 1988. [19]

Fleet

Central American Airways, year-end 1965: [20]

Central American Airways, year-end 1972: [21]

Central American International, year-end 1977: [22]

Trans International Airlines year-end 1987: [23]

Legacy

As of 2025, Central American Airways continues to operate as a fixed base operator at Bowman Field in Louisville. That company's website notes the 70 year heritage of the company. [24]

See also

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References

  1. 1 2 Change 4 to Order 7310.1N, Contractions (Report). Federal Aviation Administration. 20 July 1995. p. 3-1-50. hdl: 2027/ufl.31262091395771 .
  2. ↑ "Kentucky: Secretary of State - Online Services: Trans International Airlines, Inc". web.sos.ky.gov/bussearchnprofile/search.aspx. Kentucky Secretary of State. Retrieved 13 January 2025.
  3. 1 2 Authority 1981, p. 103.
  4. ↑ Authority 1981, p. 104.
  5. ↑ "Central American Int'l, Charter Authority". Civil Aeronautics Board Reports. 91. Washington, DC: U.S. Government Printing Office: 90–139. August–September 1981. hdl: 2027/osu.32437000534194 .
  6. 1 2 Smith, Myron J., Jr (1986). The Airline Bibliography: the Salem College Guide to Sources on Commercial Aviation. Vol. I. West Cornwall, Connecticut: Locust Hill Press. p. 195. ISBN   0933951000.{{cite book}}: CS1 maint: multiple names: authors list (link)
  7. ↑ Transamerica Setting Up Non-Union Airline Unit, Los Angeles Times, 24 April 1984
  8. ↑ "Transamerica Plans to Form Charter Using Cargo Aircraft". Aviation Week & Space Technology. 120 (14): 26. 2 April 1984. ISSN   0005-2175.
  9. ↑ "Transamerica, ALPA Discuss Low-Cost Charter". Aviation Week & Space Technology. 120 (26): 30. 25 June 1984. ISSN   0005-2175.
  10. ↑ Air Line Pilots Ass'n v. Department of Trans, 791F.2d172 (D.C. Cir.1986).
  11. ↑ "'Show Activities' within Trans International Airlines, Inc". web.sos.ky.gov/bussearchnprofile/search.aspx. Kentucky Secretary of State. Retrieved 13 January 2025.
  12. ↑ Transamerica Plans to Divest Units, Los Angeles Times, 31 January 1986
  13. ↑ "Transamerica Airlines Plans To Discontinue Service At End of September". Aviation Week & Space Technology. 125 (9): 55. 1 September 1986. ISSN   0005-2175.{{cite journal}}: CS1 maint: date and year (link)
  14. ↑ Name's the same, Orlando Sentinel, 20 July 1987
  15. ↑ On the Move, Miami Herald, 6 June 1988
  16. ↑ "N47UA McDonnell Douglas DC-8-61(F) Trans International Airlines - TIA" (photo). airhistory.net. AirHistory.net—The Aviation History Photo Archive. January 1989. Retrieved 13 January 2025.
  17. ↑ "Administrative Dissolution of Trans International Airlines, Inc" (PDF). web.sos.ky.gov/bussearchnprofile/search.aspx. Kentucky Secretary of State. 10 November 1989. Retrieved 13 January 2025.
  18. ↑ Federal Aviation Administration (1989). FAA Statistical Handbook of Aviation, Calendar Year 1989 (Report). Washington, DC: U.S. Government Printing Office. p. 5-12. hdl: 2027/osu.32435030758288 .
  19. ↑ Federal Aviation Administration (1988). FAA Statistical Handbook of Aviation, Calendar Year 1988 (Report). Washington, DC: U.S. Government Printing Office. p. 96. hdl: 2027/osu.32435030758296 .
  20. ↑ Federal Aviation Agency (August 1966). FAA Statistical Handbook of Aviation (Report). Washington, DC: U.S. Government Printing Office. p. 148. hdl: 2027/osu.32435030758437 .
  21. ↑ Federal Aviation Administration (1972). FAA Statistical Handbook of Aviation, 1972 Edition (Report). Washington, DC: U.S. Government Printing Office. p. 130. hdl: 2027/mdp.39015004520279 .
  22. ↑ Federal Aviation Administration (1977). FAA Statistical Handbook of Aviation, Calendar Year 1977 (Report). Washington, DC: U.S. Government Printing Office. p. 67. hdl: 2027/mdp.39015006111978 .
  23. ↑ Federal Aviation Administration (1987). FAA Statistical Handbook of Aviation, Calendar Year 1987 (Report). Springfield, VA: National Technical Information Service. p. 113. hdl: 2027/mdp.39015018250038 .
  24. ↑ "About - Central American Airways". jetcaa.com. Central American Airways. Retrieved 13 January 2025.
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