In the eighties, ‘Airlines’ were a prestigious business for wealthy entrepreneurs. ‘Airlines’ were seen as ‘Aladdin’s lamp’ for the wealthy and billionaires to gain prestige and huge money. However, not all entrepreneurs were successful; in some cases, the opposite picture was also seen. And some never managed to fly!
Airlines that were once well-known
American Smokers CubThe airline's full name is The Great American Smokers' Cub; it was a spinoff of Royal West Airlines. It started in the 1980s, initially operating flights on the West Coast from Burbank to Las Vegas and Colorado. When the rest of the airline industry gradually began to ban cigarette smoke on scheduled flights, Royal Airlines adopted a plan called The Great American Smokers' Cub. They operated flights that allowed passengers to smoke everywhere, based only in Dallas, and aimed to fight for "smokers' rights to smoke." They claimed that airlines were treating their members as "second-class." It closed after the in-flight smoking ban went into effect in 1988.
Presidential Airways
Presidential Airways, originally founded by executives of Ex-People Express. Washington, D.C.-based Presidential Airways sought to improve their low-cost airline model, while also offering a full-service airline service at a very low cost. It later moved to a new terminal at Dallas Airport in the United States. The once-successful airline provided a VIP lounge called the Oval Office for the people of the capital and other domestic flights, including to the East Coast. In 1988, U.S. presidential candidate Michael Dukakis chartered one of their planes for his election campaign. However, his political career and the airline became history. The airline went bankrupt the following year.
Challenge International Airlines
The airline was only important in name. In fact, it is a great example of how an airline company named ‘Challenge’ does not inspire any confidence. But the overconfidence of this aviation company is probably why in the mid-1980s several aviation executives looked into creating a passenger sibling. Their all-cargo airline used a fleet of 727s and 737s to fly from the East Coast city of New York to Miami, the Caribbean and various points in Central America. Unfortunately, they never found success and eventually declared bankruptcy in late 1987 after running out of money. By then, its name had become a laughing stock.
People Express
Highland Express
The brainchild of Virgin Atlantic founder lawyer Randolph Fields, the Highland Express was the first (and possibly only) budget transatlantic airline to offer domestic flights within Scotland. Fields founded the airline after parting ways with Richard Branson and made a huge profit on his Virgin shares. He used the profits to buy a 747 aircraft and fly one-way from Prestwick, Scotland, to New York. He was initially enthusiastic and added a flight from London Gatwick in 1987. But financial losses mounted and Highland Express soon ceased operations.
MGM Grand Air
Billionaire Kirk Kerkorian; the Las Vegas casino developer. One day, he thought he had a new opportunity to build a full-fledged first-class airline. He took some planes, stripped out the old coach seats, and installed leather swivel chairs, queen-size beds, tuxedo-clad flight attendants, and a stand-up bar. In mid-1987, he launched a luxury scheduled flight from Los Angeles to New York's MGM Airport, which, while attracting stars (Madonna, Axl Rose) and $2,000 round-trip tickets, never made a profit. It was shut down in the mid-1990s.
The Lord's Airlines
The Lord's Airlines; which needed just a little help to survive. Its original business proposal in 1985 was to create a 'warm and spiritual atmosphere' that would create a special atmosphere for believers as they were reborn or revived. It began its journey with a DC-8 flight from Miami, USA to Tel Aviv, Israel. Its executives promised to donate a large portion of their expected profits to 'The Lord's Ministries'. But when their money ran out, their dream and the 'spirit of faith' plane crashed to the ground forever and was closed.
Pride Air
New Orleans-based Pride Air was one of the most dramatic disasters of its time, when in the 1980s industrialist Frank Lorenzo, who had run a small airline, even acquired Continental Airlines. The company filed for Chapter 11 bankruptcy. Thousands of workers were laid off. Some of the workers decided to retaliate. They founded an airline that would be a model of good service and good management. It would operate flights to various locations in the Sunbelt. But they were not successful. It was difficult for small, poorly funded airlines to compete with the big airlines, and they closed after just three months in late 1985.
More than 30 years ago, airlines were struggling to adjust to the new normal. Then, an American businessman named Michael Hartley came up with a winning idea that was almost certain to succeed. That was to pack 501 passengers into a 747 (about 400 seats compared to a conventional, multi-class layout). He sold tickets from Los Angeles to Honolulu at a low price, which he called “The Big Pineapple.” Airlines on that route quickly learned from his example and lowered their fares to match those of Hawaii Express. When Hawaii Express later raised its prices, it lost customers and went out of business.
ATA Airlines
They began as a charter company in 1973. ATA originally began scheduled operations in 1986 with flights to Midwest Florida. They served leisure routes, which eventually became the airline's specialty, despite brief experimentation with international flights. Indianapolis and Chicago-Midway Airports served as hubs. In September 2001, the economic downturn caused a series of airlines to experience financial losses. It later declared bankruptcy and the airline ceased operations in April 2008.
Founded in 1937 as All American Aviation, it was rebranded as All American Airlines in 1953, TJ Air in 1979, and TJ Air in 1997. At the time, it was one of the largest airlines in the world. The airline operated domestic and international flights from Charlotte, Philadelphia, Phoenix, and Washington, D.C. The company later acquired Pacific Southwest Airlines (CSA), Trump Shuttle, and Piedmont Airlines. In 2009, the plane crashed into the Hudson River after a bird strike caused engine failure and survived. However, the airline closed in 2015.
In March 2019, Iceland-based WOW Air, known for its incredible low-cost flights in Europe and North America, suddenly shut down and filed for bankruptcy. CNN's Richard Quest says WOW was in financial trouble and tried to merge with Icelandair, but failed. "The prospects were clear, but WOW was just taking people's bookings." The much-anticipated deal with Icelandair fell through at the last minute, leaving passengers stranded across Europe. WOW's purple livery and charismatic CEO, Scully Mogensen, had been in the news for eight years.
British tour operator Thomas Cook; a respected institution for 178 years. But in September 2019 the airline suddenly collapsed, putting millions of travellers at risk and triggering a massive repatriation effort. Cook's increasingly outdated model of selling package deals on its own airlines' flights and booking hotel rooms fell behind. The airline was struggling to survive in the face of online rivals and new low-cost carriers. Brexit uncertainty and a weak pound were also cited as reasons for the airline's downfall. The airline operated more than 100 flights to the UK, Denmark and Germany.