46:(CAB) during the period of airline regulation 1938–1978 or can trace its origin to one that did. The CAB was a now defunct federal agency that tightly controlled almost all US commercial air transport during that period. As related below, many features associated with the legacy airline business model were actually developed not during the regulated era, but instead in the first decade or so of the deregulated era, as legacy carriers adapted to an unfamiliar competitive environment.
153:
during the regulated era. CAB carriers thus entered deregulation with a legacy of high costs. The history of the legacy carriers following deregulation is in significant part the story of their struggle with this legacy, their efforts to cut costs and to compensate for such costs with through various business model adaptations. One indication of this long-term struggle is that of the surviving US legacy carriers, all have gone through bankruptcy since 1978 with the exception of
305:, most obviously by operating only within a single state, but also by measures such as not selling joint tickets with other carriers for itineraries that crossed state lines, not selling tickets in other states and so forth. By doing so, they sidestepped regulation by the CAB and were able to be economically regulated instead by an agency of their state, most of which were more flexible than the CAB. However, despite not flying outside of Hawaii,
506:
routes itself. In the mid-1980s, the government permitted legacy carriers to code-share with commuters. This resulted in the quick alignment of commuters with legacy carriers as it became difficult for independent commuter carriers to survive, with commuters taking on the identity of the legacies with whom they were aligned. Some carriers, like
American and Continental, bought some of the commuters with which they aligned.
456:
Expansion: All other things being equal, airline expansion drives down average costs by reducing average employee seniority (as new employees are hired), so average employee pay drops. An example of successful post-deregulation expansion was
Piedmont, which expanded up and down the East Coast and was
345:
While the CAB was legally unable to regulate intrastate carriers, from 1952, it chose not to regulate airlines flying "small" aircraft, leading to the growth of a deregulated air taxi or commuter airline segment decades before wider deregulation. Any US airline that was a commuter carrier before 1979
313:
were CAB-regulated carriers during this era, and participated in the interstate airline system by, for instance, selling connecting tickets to elsewhere in the US. For many reasons, neither airline was an intrastate carrier. For instance, it was determined in the courts that an intrastate carrier was
119:
While the term "legacy carrier" is most often used in a US context, it is possible to speak of legacy carriers elsewhere, since tight airline regulation was once the global norm and following US airline deregulation, many other countries went through some kind of airline deregulation. Non-US carriers
501:
were largely that – mostly domestically focused. Legacy carriers made a concerted effort to expand internationally, since such flights were important to business travelers and less subject to low-cost competition. United bought Pan Am's
Pacific routes, American bought Eastern's Latin American routes
493:
Hub-and-spoke systems: Delta had a well-developed
Atlanta hub prior to 1979, and the advantages of hubs were understood by many, but most airlines did not have the opportunity to develop hub-and-spoke systems prior to deregulation in 1979 because they could only fly where the CAB let them. Thus hubs
505:
Alignment of commuter airlines (later called regional airlines) with legacy carriers. Allegheny pioneered this in the 1960s in the CAB era, developing the
Allegheny Commuter system of commuter carriers under common branding and liveries. For Allegheny it was in part a way to cease operating smaller
114:
and thus was subject to less regulation. For that reason, Southwest has never been counted as a legacy carrier. As related below, the term "intrastate airline" meant more than simply operating within a single state. Prior to 1981, Hawaiian
Airlines operated only within the state of Hawaii, yet was
152:
Prior to 1979, the CAB regulated its carriers as a cartel, strictly limiting competition between them and setting uniform fare levels nationally. Such fare levels were above those that would prevail in a free market, as proven by comparison with fares charged by less-regulated intrastate carriers
376:
1979–1991 was a highly turbulent time for legacy airlines – during this time 13 of the original 23 passenger jet legacy carriers vanished through merger and collapse as they struggled to adapt to the new environment. During this period, many legacy airline features developed as an adaptation to
489:
Development of complex fare structures overseen by revenue management programs, including reliance on price discrimination (selling the same seat for much more to a price-insensitive business traveler, and much less to price-sensitive personal travelers through mechanisms such as an advanced
525:
in 1984, by 1991, four former CAB jet passenger airlines ceased operating. Added to the nine legacy jet carriers that merged and 13 of the 23 CAB legacy jet passenger airlines exited by 1991, leaving only 10 left, of which three were small (Alaska, Aloha and
Hawaiian):
323:
Southwest started operations in 1971 and from 1971 thru 1978 was a Texas intrastate carrier, escaping CAB regulation. It was, in a sense, a carrier that was deregulated even before deregulation. Other important intrastate carriers included
173:
from the same year (known as "supplemental air carriers"). Whether the supplemental airlines count as legacy carriers is largely moot since they had little impact on the industry after deregulation.
453:. Some of these mergers were motivated by desires to reduce competition and were judged anticompetitive by the US government before nonetheless being approved by the US Department of Transportation.
106:
Any US airline with a pre-1979 origin which was not regulated by the CAB. There are two significant US airlines today that operated pre-1979 but were not regulated by the CAB. The most prominent is
364:
One CAB-era commuter airline made a post-deregulation impact at a mainline level and merged into a legacy carrier: Empire
Airlines started in the mid-1970s as a commuter airline in
461:, on the other hand, lead to its collapse in 1982, the first legacy jet carrier to cease operation (the first former CAB carrier overall to cease operation was turboprop airline
314:
essentially legally impossible in Hawaii. Federally-controlled waters start three miles offshore, which made most flights between islands subject to federal regulation.
355:
A prominent example of a CAB-era commuter carrier survives today: the large regional airline SkyWest, which first started operating in 1972 as a commuter carrier.
1517:
668:
1543:
608:, which adopted the name of the larger carrier. The resulting carrier was considered a legacy airline, given its heritage was a majority legacy carrier.
1187:
1341:
796:
658:
782:
490:
nonrefundable purchase, a required round-trip purchase with a
Saturday night stay to obtain the lowest prices) - again, led by American in 1985.
1308:
1512:
1099:
673:
1127:
928:
1469:
1444:
1434:
693:
446:
430:
406:
386:
255:
239:
205:
49:
As of 2024, there are five surviving legacy carriers, but note that Alaska and
Hawaiian are currently seeking approval for a merger:
1160:
1072:
838:
970:
1259:
462:
359:
1113:
755:
169:
article. Those are the legacy carriers as of the start of the deregulated era. For completeness, there is also a list of the
942:
1419:
518:
458:
318:
956:
1479:
1334:
853:
410:
263:
165:
A complete list of CAB-regulated scheduled airlines in 1978, the last year of the regulated era, is available in the
325:
1201:
1215:
136:(with origins well before the liberalized era) can be viewed as legacy carriers in contrast to airlines such as
1538:
1364:
902:
486:
frequent-flyer club by American Airlines in 1981. This allowed legacy carriers to leverage their greater size.
1360:
1327:
340:
170:
166:
43:
1548:
1449:
422:
247:
868:
482:
Loyalty programs: Frequent-flyer programs as we know them did not exist prior to the introduction of the
368:, was certificated in 1979 and transitioned to jets shortly thereafter. It merged into Piedmont in 1986.
605:
402:
231:
84:
502:(previously those of Braniff before it collapsed), Delta bought Pan Am's European routes and so forth.
1484:
1424:
630:
590:
566:
546:
469:
442:
414:
213:
193:
176:
Of the 1978 scheduled passenger CAB carriers, as shown in the table referenced above, 23 flew jets:
120:
with origins that precede liberalization can be viewed as legacy carriers. For instance, in Europe,
475:
Lower pay scales for new hires (retaining higher pay scales for legacy employees), as pioneered by
302:
301:
During the 1938–1978 regulated era, intrastate airlines were those that minimized participation in
1454:
694:"Alaska Air to buy Hawaiian Airlines in a $ 1.9 billion deal that may attract regulator scrutiny"
619:
561:
434:
296:
235:
209:
111:
107:
468:
Use of bankruptcy law to abrogate labor agreements and impose lower market wages as pursued by
83:
Any airline founded after the regulated era. A few prominent examples of such carriers include
1429:
1393:
1383:
1156:
1068:
911:
834:
751:
645:
594:
556:
541:
510:
476:
306:
270:
201:
185:
68:
58:
110:, which started operations in 1971 but was never subject to CAB regulation because it was an
1494:
1474:
1263:
1146:
663:
457:
profitable every year after deregulation until it merged into USAir. The rapid expansion of
426:
394:
365:
350:
259:
221:
1319:
1499:
1459:
1398:
1388:
1378:
1142:
634:
623:
571:
551:
531:
522:
438:
398:
284:
280:
251:
217:
197:
189:
154:
125:
100:
73:
63:
53:
827:
Hard Landing: The Epic Contest For Power and Profits That Plunged the Airlines into Chaos
1439:
1414:
1150:
1062:
612:
536:
418:
329:
310:
274:
243:
92:
1532:
1267:
745:
498:
382:
181:
31:
517:
proved unable to adapt, each collapsing in 1991. Including the earlier shutdowns of
830:
121:
17:
719:
333:
1489:
1243:
1229:
641:
601:
483:
133:
1294:
1280:
1022:
984:
915:
885:
810:
129:
141:
137:
96:
88:
39:
1464:
514:
390:
225:
869:"Northwest Orient will buy Republic to become third largest airline"
1189:
Eastern Airlines Is Shutting Down And Plans to Liquidate Its Assets
576:
450:
1155:. Washington, DC: Smithsonian Institution Press. pp. 55–57.
798:
Delta And Western Airline Merger Agreed To In $ 860 Million Deal
1323:
784:
Pan Am Acquires Stock Majority In Contest for National Airlines
648:, but adopted the name and headquarters of the larger carrier.
1310:
American and US Airways Announce Deal for $ 11 Billion Merger
1067:. Athens, Georgia: University of Georgia Press. p. 398.
750:. Cambridge, Massachusetts: Belknap Press. pp. 262–265.
988:, Rochester (NY) Democrat and Chronicle, October 23, 1981
494:
were, for the most part, a post-deregulation development.
497:
International expansion: Pre-deregulation the domestic
381:
Mergers: By the end of the 1980s, two of the 10 former
1101:
Pan Am Plans Sale Of Pacific Routes To United Airlines
1129:
Pan Am Creditors Back $ 1.7 Billion Offer From Delta
1407:
1371:
27:
US carrier that was federally regulated before 1979
901:
377:deregulation. Legacy carrier strategies included:
1061:Lewis, W. David; Newton, Wesley Phillips (1979).
1245:Airline employees switch gear to US Airways name
1231:American takes over with fanfare, a few jitters
1175:
1024:American Airlines flies with financial strength
814:, Green Bay (WI) Press-Gazette, 31 October 1982
972:Braniff's Putnam Faces The Death Of An Airline
1518:List of defunct airlines of the United States
1335:
669:List of defunct airlines of the United States
8:
42:that was once economically regulated by the
372:Legacy carrier post-deregulation adaptation
1342:
1328:
1320:
1260:"Aloha Airlines halting passenger service"
986:Airline serving City going out of business
944:U.S. Approves Merger Of USAir and Piedmont
720:"Hawaiian Air Route System - 16 June 1981"
1115:American's Big Plans For New Latin Routes
1087:
1048:
1036:
1010:
998:
1351:Legacy air carriers of the United States
958:Now Even Piedmont Flies In The Fast Lane
659:List of airline mergers and acquisitions
341:Civil Aeronautics Board § Air taxis
1233:, St Louis Post-Dispatch, 10 April 2001
930:U.S. Agency Clears Sale of Republic Air
685:
346:therefore also escaped CAB regulation.
1152:Commuter Airlines of the United States
889:, San Francisco Examiner, 2 March 1986
770:
1513:List of airlines of the United States
1247:, Arizona Republic, 28 September 2005
7:
875:. UPI. January 24, 1986. p. 4A.
855:Corporate Sales and Earnings Reports
336:, none of which survived the 1980s.
1544:Civil aviation in the United States
800:, New York Times, 10 September 1986
674:Major airlines of the United States
401:) as had seven of the eight former
1312:, New York Times, 13 February 2013
974:, New York Times, 25 December 1982
25:
1359:US air carriers regulated by the
1258:McAvoy, Audrey (March 30, 2008).
1219:, New York Times, 3 November 1984
1205:, New York Times, 5 December 1991
1191:, New York Times, 19 January 1991
946:, New York Times, 31 October 1987
291:Airlines not regulated by the CAB
1284:, Chicago Tribune, 15 April 2008
1131:, New York Times, 12 August 1991
1064:Delta: The History of an Airline
1026:, Tampa Tribune, 8 December 1983
857:, New York Times, 30 August 1979
79:Legacy carriers do not include:
1203:Its Cash Depleted, Pan Am Shuts
1103:, New York Times, 23 April 1985
932:, New York Times, 1 August 1986
1117:, New York Times, 29 June 1990
786:, New York Times, 27 July 1979
584:From ten in 1991 to five today
1:
1420:Braniff International Airways
1298:, Chicago Tribune, 3 May 2010
900:Salpukas, Agis (1987-03-10).
812:Airlines' merger takes effect
385:had merged out of existence (
319:History of Southwest Airlines
279:Two of the Alaskan carriers:
1480:Texas International Airlines
903:"PIEDMONT ACCEPTS USAIR BID"
1296:United, Continental connect
360:Empire Airlines (1974–1986)
269:The two Hawaiian carriers:
1565:
825:Petzinger, Thomas (1996).
744:McCraw, Thomas K. (1984).
357:
348:
338:
326:Pacific Southwest Airlines
316:
294:
1508:
1357:
1217:Wien Air Halts Operations
1365:Airline Deregulation Act
1363:at the time of the 1978
1282:Delta, Northwest connect
521:in 1982 (see above) and
1408:Defunct legacy carriers
1372:Current legacy carriers
1361:Civil Aeronautics Board
887:Ozark Air and TWA merge
644:agreed to buy bankrupt
472:in its 1983 bankruptcy.
167:Civil Aeronautics Board
44:Civil Aeronautics Board
1450:North Central Airlines
747:Prophets of Regulation
403:local service carriers
232:local service carriers
633:agreed to merge with
622:agreed to merge with
606:America West Airlines
85:America West Airlines
1485:Trans World Airlines
1425:Continental Airlines
1176:Davies-Quastler 1996
833:. pp. 321–322.
631:Continental Airlines
547:Continental Airlines
470:Continental Airlines
411:Texas International
332:(later AirCal) and
303:interstate commerce
264:Texas International
18:Traditional airline
1455:Northwest Airlines
1178:, p. 134–150.
1090:, p. 419–420.
1051:, p. 270–273.
1039:, p. 139–141.
1001:, p. 208–216.
908:The New York Times
700:. Associated Press
620:Northwest Airlines
600:In 2005, bankrupt
589:In 2001, bankrupt
562:Northwest Airlines
484:American Advantage
433:which merged into
297:Intrastate airline
112:intrastate airline
108:Southwest Airlines
1526:
1525:
1470:Piedmont Airlines
1445:National Airlines
1435:Frontier Airlines
1430:Eastern Air Lines
1394:Hawaiian Airlines
1384:American Airlines
646:American Airlines
595:American Airlines
557:Hawaiian Airlines
542:American Airlines
477:American Airlines
307:Hawaiian Airlines
69:Hawaiian Airlines
59:American Airlines
16:(Redirected from
1556:
1495:Western Airlines
1475:Southern Airways
1344:
1337:
1330:
1321:
1314:
1306:
1300:
1292:
1286:
1278:
1272:
1271:
1264:Associated Press
1255:
1249:
1241:
1235:
1227:
1221:
1213:
1207:
1199:
1193:
1185:
1179:
1173:
1167:
1166:
1139:
1133:
1125:
1119:
1111:
1105:
1097:
1091:
1085:
1079:
1078:
1058:
1052:
1046:
1040:
1034:
1028:
1020:
1014:
1008:
1002:
996:
990:
982:
976:
968:
962:
960:, 31 August 1986
954:
948:
940:
934:
926:
920:
919:
905:
897:
891:
883:
877:
876:
865:
859:
851:
845:
844:
822:
816:
808:
802:
794:
788:
780:
774:
768:
762:
761:
741:
735:
734:
732:
730:
724:Departed Flights
716:
710:
709:
707:
705:
690:
664:Low-cost carrier
366:Upstate New York
351:SkyWest Airlines
171:charter carriers
21:
1564:
1563:
1559:
1558:
1557:
1555:
1554:
1553:
1539:Business models
1529:
1528:
1527:
1522:
1504:
1500:Wien Air Alaska
1460:Ozark Air Lines
1403:
1399:United Airlines
1389:Delta Air Lines
1379:Alaska Airlines
1367:
1353:
1348:
1318:
1317:
1307:
1303:
1293:
1289:
1279:
1275:
1257:
1256:
1252:
1242:
1238:
1228:
1224:
1214:
1210:
1200:
1196:
1186:
1182:
1174:
1170:
1163:
1141:
1140:
1136:
1126:
1122:
1112:
1108:
1098:
1094:
1086:
1082:
1075:
1060:
1059:
1055:
1047:
1043:
1035:
1031:
1021:
1017:
1009:
1005:
997:
993:
983:
979:
969:
965:
955:
951:
941:
937:
927:
923:
899:
898:
894:
884:
880:
867:
866:
862:
852:
848:
841:
824:
823:
819:
809:
805:
795:
791:
781:
777:
769:
765:
758:
743:
742:
738:
728:
726:
718:
717:
713:
703:
701:
692:
691:
687:
682:
655:
635:United Airlines
624:Delta Air Lines
586:
581:
572:United Airlines
552:Delta Air Lines
532:Alaska Airlines
523:Wien Air Alaska
463:Air New England
374:
362:
353:
343:
321:
299:
293:
285:Wien Air Alaska
281:Alaska Airlines
163:
155:Alaska Airlines
150:
144:and so forth.
126:British Airways
101:Spirit Airlines
74:United Airlines
64:Delta Air Lines
54:Alaska Airlines
28:
23:
22:
15:
12:
11:
5:
1562:
1560:
1552:
1551:
1546:
1541:
1531:
1530:
1524:
1523:
1521:
1520:
1515:
1509:
1506:
1505:
1503:
1502:
1497:
1492:
1487:
1482:
1477:
1472:
1467:
1462:
1457:
1452:
1447:
1442:
1440:Hughes Airwest
1437:
1432:
1427:
1422:
1417:
1415:Aloha Airlines
1411:
1409:
1405:
1404:
1402:
1401:
1396:
1391:
1386:
1381:
1375:
1373:
1369:
1368:
1358:
1355:
1354:
1349:
1347:
1346:
1339:
1332:
1324:
1316:
1315:
1301:
1287:
1273:
1250:
1236:
1222:
1208:
1194:
1180:
1168:
1161:
1147:Quastler, I.E.
1143:Davies, R.E.G.
1134:
1120:
1106:
1092:
1088:Petzinger 1996
1080:
1073:
1053:
1049:Petzinger 1996
1041:
1037:Petzinger 1996
1029:
1015:
1013:, p. 131.
1011:Petzinger 1996
1003:
999:Petzinger 1996
991:
977:
963:
949:
935:
921:
892:
878:
860:
846:
839:
817:
803:
789:
775:
773:, p. 267.
763:
756:
736:
711:
684:
683:
681:
678:
677:
676:
671:
666:
661:
654:
651:
650:
649:
638:
627:
616:
613:Aloha Airlines
609:
604:was bought by
598:
585:
582:
580:
579:
574:
569:
564:
559:
554:
549:
544:
539:
537:Aloha Airlines
534:
528:
508:
507:
503:
499:trunk airlines
495:
491:
487:
480:
473:
466:
454:
383:trunk carriers
373:
370:
358:Main article:
349:Main article:
339:Main article:
330:Air California
317:Main article:
311:Aloha Airlines
295:Main article:
292:
289:
288:
287:
277:
267:
244:Hughes Airwest
228:
182:trunk carriers
162:
159:
149:
146:
117:
116:
115:CAB-regulated.
104:
93:Virgin America
77:
76:
71:
66:
61:
56:
36:legacy carrier
26:
24:
14:
13:
10:
9:
6:
4:
3:
2:
1561:
1550:
1549:Airline types
1547:
1545:
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1537:
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1534:
1519:
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1514:
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1311:
1305:
1302:
1299:
1297:
1291:
1288:
1285:
1283:
1277:
1274:
1269:
1268:Seattle Times
1265:
1261:
1254:
1251:
1248:
1246:
1240:
1237:
1234:
1232:
1226:
1223:
1220:
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1204:
1198:
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1190:
1184:
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1177:
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1169:
1164:
1162:9781560984047
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1074:9780820304656
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978:
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840:9780307774491
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32:United States
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1266:– via
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873:Deseret News
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831:Random House
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766:
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729:12 September
727:. Retrieved
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697:
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593:merged into
509:
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375:
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164:
151:
148:Significance
118:
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29:
771:McCraw 1984
415:Continental
334:Air Florida
194:Continental
1533:Categories
1490:US Airways
757:0674716078
698:apnews.com
680:References
642:US Airways
615:collapsed.
602:US Airways
134:Air France
916:0362-4331
465:in 1981).
435:Northwest
236:Allegheny
210:Northwest
130:Lufthansa
1149:(1995).
653:See also
640:In 2013
629:In 2010
618:In 2008
611:In 2008
479:in 1983.
447:Piedmont
431:Republic
427:Southern
407:Frontier
387:National
271:Hawaiian
260:Southern
256:Piedmont
240:Frontier
206:National
186:American
142:Wizz Air
124:such as
704:25 July
519:Braniff
511:Eastern
459:Braniff
395:Western
224:) plus
222:Western
202:Eastern
190:Braniff
161:Context
138:Ryanair
97:JetBlue
89:ValuJet
40:airline
30:In the
1465:Pan Am
1159:
1071:
914:
837:
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515:Pan Am
445:; and
419:Hughes
391:Pan Am
230:Eight
226:Pan Am
218:United
38:is an
577:USAir
451:USAir
449:into
439:Ozark
429:into
413:into
399:Delta
397:into
389:into
275:Aloha
252:Ozark
198:Delta
1157:ISBN
1069:ISBN
912:ISSN
835:ISBN
752:ISBN
731:2024
706:2024
513:and
425:and
409:and
393:and
309:and
283:and
273:and
132:and
99:and
34:, a
591:TWA
567:TWA
443:TWA
214:TWA
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234:(
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20:)
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