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Airlines' History
Leaders in the 20th Century – for later information see the chapter Mega groups Leadership is mentioned in connection with the revenue passenger kilometers (RPK) flown annually, in many cases different from the revenues. A few years after the start of the jet age, among the eight leaders in passenger-miles in the statistics of 1961, Aeroflot, Air France and BOAC were fully state-owned flag carriers. In that year the top 40 airlines held a 91% share in total air traffic (according to R.E.G. Davies). After the final victory of the jetliner, the top dozen airlines in global statistics accounted around 1985 for 50% of the output measured by RPK: Aeroflot, United, Pan American, Eastern, American Airlines, TWA, Delta, British Airways, Japan Airlines, Air France, Lufthansa and Air Canada. For the development in the 21st century see the chapter Mega Groups, but don’t forget low-cost pioneers. Aeroflot “On 17 January 1921, the Sovnarkom of the Russian Federation published a statement entitled ‘About Air Transportation’. In this document, signed by Lenin, basic rules were set out to regulate air transport over the territory of the Russian Federation…” (quoted from Hugh MacDonald: ‘Aeroflot/ Soviet Air Transport since 1923’). On March17, 1923 started Dobrolet (pronounced Dobrolyot) with German help, “in which Russian state organizations and a number of commercial enterprises were the principal shareholders.” Under Stalin, civil aviation activities came under control of a Chief Directorate and on 25 February 1932 the official title Aeroflot was adopted. After the 50s Aeroflot was organized into Civil Aviation Directorates (CAD), consisting of OADs, constituting “an immediately available military reserve” (as Dmitriy Komissarov and Yefim Gordon described it in ‘Russian Airlines’). In the early jet age, Aeroflot ranked number 1 (by RPK) global, though most Russians could afford only rail travel. At that time, Aeroflot was still an organization of the Soviet dictatorship with military character. It built up in 1950 SOKAO (then Chosonminhang, then Air Koryo) in North Korea and MIAT in Soviet-dominated Mongolia. And it helped airlines of other countries with Soviet-built aircraft. Aeroflot opened its first jet service in 1956 with the Tupolev Tu-104 on the route Moscow – Omsk – Irkutsk, followed by other services, including Paris and Beijing as destinations. After the collapse of the Soviet Union in 1991, Aeroflot was split up and out of several CADs emerged separate airlines. In the independent CIS states the CADs were reorganized into Regional Air Transport Directorates and became new airlines. The remaining Aeroflot tumbled to rank ‘nowhere’, nevertheless it remained the largest in Russia. For opening the Russian market by startups, such as Transaero, S7, UTair and for mergers, see the chapter Open Skies. And for Aeroflot’s ambitious targets see the chapter Mega Groups.
Pan American The most famous airline, ranking number 6 (by RPK) global e.g. in 1970, was Pan American World Airways. Its history is going back to 1927 when the first USA – Cuba mail contract was “awarded to Montgomery’s group, which by now had already formed the company ‘Pan American Airways Inc’ “ (so reported by P.St. John Turner in ‘Pictorial History of Pan American World Airways’). The enthusiast Juan Terry Trippe struggled for cooperation and became the head of the operating unit, which started the first scheduled flight Key West – Havana on Oct28, 1927. With political help of the Republican US government and backed by tycoons such as Vanderbilt or Harriman, Pan American Airways started multi-national activities in a unique way. Together with W.R. Grace shipping, Pan American created PANAGRA in 1929, based in Peru, to serve Chile and Buenos Aires. In 1930 Trippe started Panair do Brasil by swallowing newcomer NYRBA. Pan American acquired holdings in Mexicana (100%) and SCADTA (Colombia) in 1929 (to become Avianca in 1940), Aerovias Centrales (then absorbed by Mexicana), Cubana (100%), Pacific Alaska (100%) and UMCA (Colombia) in 1932, China National Aviation (CNAC) in 1933, Aeronaves de Mexico and Aerovias de Guatemala in 1940, AVENSA (Venezuela) and Bahamas Airways in 1943, Dominicana, COPA (Panama), LANICA (Nicaragua) and SAHSA (Honduras) in 1944, LACSA (Costa Rica) in 1945, MEA (Lebanon) in 1949, Ariana (Afghanistan) and Philippine Air Lines in 1957 (information in accordance with Turner, 1973). Pan American has ‘conquered’ the Pacific and in 1932 it founded Pacific Alaska Airways, then its division. Pan American got undisputed dominance on the North Atlantic when it took over in 1950 American Overseas Airlines, formed in 1945 out of American Export Airlines, thus becoming in 1950 Pan American World Airways (see R.E.G. Davies: Airlines of the United States). In 1955 it placed the first orders for the Boeing 707 plus the DC-8, and in 1970 it became the launch costumer of the B.747. Excluded from domestic routes, it acquired fully in 1979 National Airlines, which has been the third American carrier offering also North Atlantic flights (not to be confused with a newcomer of 1998), for entering domestic traffic, but it was considered no relief. In 1985 the Pacific segment was sold to United Airlines. After insolvency, merger talks led to nothing. In December 1991 world’s most famous airline Pan American ended, and the intercontinental routes were inherited by Delta Air Lines, United and American Airlines. TWA In the early 70s the competitor TWA even ranked ahead of Pan American. Its roots are going back to Western Air Express, started in 1926. Pennsylvania Railroad initiated an air-rail service, started in 1929 for passengers traveling from New York to Columbus in Ohio by the “Airway Limited” train, from there by the new Transcontinental Air Transport (TAT) to Waynoka, by train to Clovis and finally by plane to Los Angeles. In 1930 Western and TAT merged into Transcontinental and Western Air Inc. or TWA, opening the first pure air service New York – Los Angeles (see the book ‘Legacy of Leadership’ by TWA, 1971). TWA was taken over in 1939 by billionaire and record-breaking pilot Howard Hughes, Lockheed’s major shareholder, who sponsored the Constellation development and who refused a merger with Pan American. TWA was built up to become a rival of Pan American. In 1945 it got the traffic rights for flights beyond Europe to India, and the TWA label meant now Trans World Airline. Global activities were shown by the help in founding Iranian Airways in 1944, Saudi Arabian Airlines in 1947 and by assisting Ethiopian Airlines in 1966. Howard Hughes however was forced to step out in 1961, and in 1984 Carl Icahn acquired 52%. TWA bought Ozark in 1986 and AirCal in 1987, but it suffered a sad end like its rival Pan American. In 2001 American Airlines “purchased the assets in TWA”, reported the World Airlines Directory.
American giants and Canada American Airlines was formed in 1934 as successor of American Airways, its predecessors’ roots going back to 1926. American entered in 1945 American Export Airlines, thus forming American Overseas Airlines, pioneering transatlantic landplane services, given away to Pan American in 1949. American Airlines swallowed Air California in 1987, then Reno Air and TWA remainders. But it was surpassed by United, starting in 1931 as United Air Lines, among its initiators being Boeing Air Transport, Pratt & Whitney (according to The Pocket Guide to Airline Markings) and others. In 1934 it was reorganized, in 1961 it took over Capital Airlines and in 1986 Pacific routes from Pan American. Eastern Air Lines, founded in 1930 as Eastern Air Transport, achieved dominance. Under Eddie Rickenbacker it became one of the largest airlines. In 1956 it bought Colonial Airlines, in 1982 it took over routes from Braniff, it was the first airline in the USA to introduce Airbus, Frank Lorenzo’s Texas Air Holding could not save it and in 1991 it was killed by strikes. A branch of it had become Trump Shuttle in 1988. Delta Air Service entered passenger traffic in 1929. Successor Delta Air Lines absorbed in 1953 Chicago & Southern, in 1972 North East Airlines, in 1987 Western Air Lines and in 1991 it took ownership in Comair. Northwest Airways opened passenger traffic in 1927 and became Northwest Airlines in 1934. Due to its Pacific services it sported the name Northwest Orient Airlines between 1947 and 1988. It acquired Republic in 1986, in 2008 it merged with Delta and in Dec 2009 the famous Northwest label disappeared. Out of a division of Varney was formed in 1937 Continental Air Lines, in 1982 merged with Texas Air of Frank Lorenzo to become Continental Airlines. People Express (see the chapter Low-Cost Pioneers) acquired in 1985 Frontier Airlines, and in 1987 People Express and New York Air were merged into Continental. In 1998 Continental entered Copa Airlines of Panama with a 49% stake. Braniff Airways started in 1930, its predecessor having been founded by the Braniff brothers in 1928.It became Braniff International Airways in 1948, President Truman selected it for South American routes, in 1967 it acquired PANAGRA and under Harding Lawrence it showed great ambitions. However, in 1982 it was stopped. A new Braniff Airways by the Hyatt Corporation ended in 1989 and the last one in 1992. All-American Aviation of 1937 started passenger services in 1949 as All American Airways, in 1953 renamed Allegheny Airlines, its successor becoming USAir in 1979. After merging with Piedmont Airlines and swallowing Pacific Southwest Airlines in 1988, it was renamed US Airways in 1997. An offer by British Airways to take a 44% share in 1992 led only to a temporary alliance. America West Airlines, started in 1983, was merged in 2005 into troubled US Airways. Another large carrier on the U.S. domestic market has become Alaska Airlines, formed in 1944 out of Alaska Star Airlines, its roots going back to McGee Airways of 1932. Wien Consolidated Airlines of 1968, successor of Wien Air Alaska of 1936, ended. Hawaiian Airlines of 1941, its roots going back to 1929, ahead of Aloha, is the leader on the islands. In 2023 it was reported that Alaska Airlines should take over Hawaiian Airlines. Alaska Airlines suffered a setback when on 5Jan 2024 a door plug detached from a Boeing 737-9Max over Oregon in an altitude of 5000 meter. For fundamental changes in the 21st century see the chapter Mega Groups.
In the early 1960s Trans Canada ranked number 9 by RPK global, still ahead of Delta. Trans-Canada Air Lines had been formed in 1937, with Canadian National Railways holding the stock, renamed Air Canada in 1964. Competitor Canadian Pacific Airlines was started in 1942 by privately-owned Canadian Pacific Railways, then known as CP Air. In 1987 it became Canadian Airlines International, formed by Pacific Western of 1945, which has bought CP Air. Wardair, a charter pioneer having started in 1952, was purchased in 1989. This Canadian Airlines conglomerate was acquired by Air Canada in 2000. It was listed (by the Airline Business Guide 2001) occupying rank 11 by RPK global in 2000. It was followed on rank 13 global by an airline which revolutionized traffic in the USA. It is the low-cost leader Southwest Airlines of 1971, which got still larger by taking over AirTran as a subsidiary in 2012. In Canada the low-fare leader has become WestJet. For all these revolutionary changes see the chapter Low-Cost Pioneers. European Tradition Among the European leaders during the first jet age was British Overseas Airways Corp. or BOAC, since 1939 the successor of Imperial Airways. The first airline in England had been AT&T of George Holt Thomas, like others menaced by strike, whereupon Winston Churchill stated: “Civil aviation must fly by itself” (quoted from Kenneth Munson: ‘Pictorial History of BOAC’). It opened the first service London – Paris in 1919 (according to Flight Intl). Finally in 1924 Imperial Airways came into existence in valuing the assets of four disappearing companies. In 1935 several other airlines were merged as an additional British Airways. In 1939 the Government bought it at 262,500 pound and Imperial Airways at 2.6 million. “BOAC became a legal entity on Nov1, 1939, and formally started operations in its own name on the appointed day of April1, 1940” (so reported by Munson). A separated British South American Airways was merged back in 1949. In 1952 BOAC has become the first operator of the first jetliner, the Comet 1. After 1971 British Airways Board took over BOAC and BEA, from 1974 officially British Airways, in 1988 taking over the “second force” British Caledonian, successor of British United Airways of 1960, fused in 1970 with Caledonian Airways. In 1987 British Airways was privatized, following the liberal politics of Margaret Thatcher. In 1992 and 1993 British Airways entered US Air, Qantas, the French TAT and it bought Dan Air at a price of 1 pound (so reported by B.I. Hengi). It occupied rank 5 in the year 2000. For the ‘Deutsche BA’ interlude see the chapter Charter Pioneers.
Temporarily ahead was Air France. It has been founded in 1933 when the assets of Aeropostale were purchased. Also Air Union, CIDNA, Farman and Air Orient were among its predecessors. Air Union had been formed in 1923 out of Cie. des Messageries Aeriennes and Cie. des Grands Express Aeriens. After restart in 1946, the French government ordered Air France to admit Pacific traffic rights to UTA, formed in 1963 by a merger between UAT and TAI. Air France, UAT and UTA have helped to build up airlines in Africa. UAT had absorbed Aigle Azur in 1955 (not to be confused with a new Aigle Azur). And Air France’s associate Air Liban was a foothold changing to MEA. In 1976 Air France and British Airways started Concorde supersonic services. Air France absorbed UTA in 1992, its subsidiary Aeromaritime and in 1998 Air Inter. For the Air France-KLM Group see the chapter Mega Groups. At the turn of the century, Lufthansa occupied rank 9, a success story since its restart in 1955 during the time of German chancellor Konrad Adenauer (compare the book ‘Kranich in der Sonne’ by Rudolf Braunburg). For Deutsche Lufthansa of the Soviets’ GDR see the chapter Open Skies. Deutscher Aero Lloyd of 1925 had been Lufthansa’s main predecessor, but already in 1919 Deutsche Luft Reederei operated a service Berlin – Weimar. Deutsche Luft Hansa of 1926, since 1933 Deutsche Lufthansa, was killed with World War II. Flying for Germans was forbidden, but from 1951 Lufthansa employees prepared a comeback, supported by minister of transport Seebohm. In 1953 LUFTAG was founded under Hans M. Bongers, in August 1954 named Deutsche Lufthansa AG. Helped by BEA, it started its first flight on April01, 1955 from Hamburg with a Convair 340, followed in June by North Atlantic flights with the Super Constellation. In 1960 started the first jet flight Frankfurt – New York with the Boeing 707, while the Comets with their initial problems had been avoided. Much later, Germany’s number 2 became Air Berlin, formed in 1992 out of Air Berlin USA, developing into a large airline mainly with acquisition of LTU in 2007. For the failed rescue via Etihad of Abu Dhabi see the chapter Mega Groups. Thomas Cook with Condor and the TUI Group have become international conglomerates – see the chapter Charter Pioneers. KLM, its operations having started already in 1920, was remarkable for its connections with the former Dutch colonies, e.g. by forming KNILM in Indonesia and ALM in the Caribbean. KLM took up cooperation with Surinam Airways, founded in 1955 as SLM. In Spain, the first Iberia Compania Aerea de Transportes S.A. (so reported by Braunburg) had started in 1927. Deutsche Luft Hansa participated with a 24% share. In 1929 it was replaced by CLASSA, 51% owned by the government and 49% by Deutsche Luft Hansa. In 1932 it was succeeded by LAPE, and after the civil war a new Iberia started in 1940. By merger out of Balair of 1925 and Ad Astra, Schweizerische Luftverkehr had been created in 1931 (so reported by R.E.G. Davies), then the label Swiss Air Lines appeared on the DC-3 and later the label Swissair became standard. In 1998 its SAir Group took over AOM of France, created in 1992 out of Air Outre Mer. However, the SAir Group did not survive. For Swiss compare the chapters Alliances and Mega Groups. Sabena was formed in 1923 to succeed SNETA. It became remarkable for its services to Belgian Congo in connection with LARA (“du Roi Albert”), then with a 30% participation in Air Congo. It joined the disappeared in 2001, then replaced by Brussels Airlines – see the chapter Mega Groups. SAS survived, started in 1946 as the common flag carrier of Denmark, Norway and Sweden, created out of DDL, DNL and ABA. Finnair of 1953, started as Aero O/Y in 1924 and absorbing Karair in 1994, remained the flag carrier of Finland. TAP had its start in 1946, with the target of showing the Portuguese flag in the African colonies. Alitalia was founded as Aerolinee Italiane Internazionali, starting services in 1947 with help of BEA. In 1957 it took over Linee Aeree Italiane (LAI), formerly TWA-affiliated, and integrated it under the name Alitalia (according to the World Airlines Directory). In 1994 Alitalia integrated daughter ATI. For the later rescue attempt by Etihad see the chapter Mega Groups. Austria was liberated in 1955, negotiations with KLM and SAS started and in 1957 a compromise resulted in Austrian Airlines, 28% kept by public enterprises (so reported by R.E.G. Davies). In Greece, Olympic Airways was started in 1957 by famous shipowner Onassis when he had taken over Hellenic National Airlines. He built up Olympic Airways into. He built up Olympic Airways into an airline connecting continents with the B.747 Jumbo, intended as a heritage for his son. After his son has died in 1973, the father gave it away to the Greek state. Other traditional flag carriers lacked behind, e.g. Aer Lingus of Ireland, started in 1936 as Aerlinte Eireann. For the astonishing ambitions of Iceland with Loftleidir see the chapter Open Skies. In a disappointing position were the flag carriers of the Soviet-controlled East and confusing was the appearance and disappearance of newcomers in the liberated Baltic states, on that reason not mentioned here – compare the chapter Open Skies. Around the turn of the century, LOT of Poland was the leader in the East on rank 78. For an emerging new market, opened in England by Sir Freddie Laker and built up mainly by Ryanair and easyJet, compare the chapter Low-Cost Pioneers. A quite different matter is Virgin Atlantic, started by Richard Branson in 1984 - see the chapter Mega Groups.
Latin America South America’s leader VARIG of Brazil occupied rank 20 by RPK in global statistics at the beginning of the jet age, ahead of any carrier of the Asia-Pacific region. VARIG had been founded in 1927 by the German Otto E. Meyer, competing with Deutsche Luft Hansa’s Condor Syndikat of 1927 and French-owned Lignes Latecoere. In 1929 the pilot Ralph O’Neill started NYRBA, absorbed by Pan American, which replaced it by starting Panair do Brasil in 1930. From 1943 the Sindicato Condor continued as Cruzeiro do Sul. REAL of 1945 amalgamated in 1954 with Aerovias Brasil, connected with the international TACA group. In 1961 VARIG became REAL’s successor, it expanded by taking routes of the stopped Panair do Brasil in 1965, by acquiring Cruzeiro do Sul in 1975 and by taking over Rio-Sul in 1993. Cruzeiro was fully integrated in 1993. Economy prospered under president da Silva, but VASP collapsed in 2005 and VARIG was in 2009 fully integrated into GOL. The largest airline became TAM Linhas Aereas, emerged in 1992 out of regional predecessors, roots going back to 1976. Aerolineas Argentinas, created under president Peron in 1949 out of ZANDA, ALFA, the successor of traditional Aeropostal, and FAMA, ranked behind. After privatization in 1989, Iberia took opportunity to strengthen its network by acquiring a stake, but in 2001 Aerolineas Argentinas filed for protection from creditors. Grupo Marsans acquired a 92% stake, but it was to be renationalized together with daughter Austral in 2008 (information by World Airlines Directory). At the turn of the century, Lan Chile ranked still a step behind. Commandante Arturo Merino Benitez had started Linea Aeropostal in 1929. Separated, it has become Lineas Aerea Nacional (Lan). After Allende’s socialist politics, with ambitions for Soviet-built planes, and the Pinochet dictatorship had disappeared, Ladeco was fully integrated in 2002, and then Chile’s flag carrier became the largest airline of South America. “Merger negotiations were proposed, with Iberia’s support” (according to Davies). SAS and investors entered and a transaction with TACA and TAM was reported by Davies. “As of March 2004 LanChile and its subsidiaries LanPeru, LanEcuador and LanDominicana became unified under the single LAN brand (…), LanChile rebranded as LAN Airlines” (so described by the World Airlines Directory 2010). For the development towards LATAM see the chapter Mega Groups. The Colombian flag carrier Avianca is a successor of SCADTA, founded in 1919 with help of Germans and Peter Paul von Bauer. In 1930 Pan American took control and in 1940 it was reorganized as Avianca. For its international expansion see the chapter Mega Groups. In neighboring Venezuela, the French C.G. Postale started in 1929, becoming state-owned in 1934 as Linea Aeropostal Venezolana or LAV in 1935 (so reported by the World Airlines Directory). In 1994 it was stopped. Aeropostal restarted in 1997, privately-owned. In 2008 its owners of Grupo Makled were arrested and in 2009 it started once again, now state-controlled. In 1944 AVENSA has started and then the government took over Pan American’s share. In 1961 LAV had to give away international routes to VIASA, started with help of KLM. VIASA collapsed and was stopped in Jan 1997. In 2004 Hugo Chavez created his flag carrier Conviasa. SCADTA of Colombia had undertaken an expansion to Ecuador, which came to an end when PANAGRA entered. Ecuatoriana, from 1974 the official name of the flag carrier, was taken over by VASP of Brazil in 1998, but both disappeared. Transportes Aereos Militares became TAME in1970. In Peru, the American pilot Elmer Faucett has created his airline in 1928. With WWII, PANAGRA was victorious, in 1967 acquired by Braniff, which finally collapsed. Braniff has held also a 19% stake in Faucett, since 1992 in the hands of the Zanetti family. APSA was founded in 1957 by Connie Shelton, then flying the Convair 990A, but it was stopped in 1971. The state showed no interest and started in 1973 Aeroperu, using the DC-8 on international routes (information by R.E.G. Davies). Under President Fujimori it was sold in Dec 1992 to the Naviera Santa, owning also Faucett, and some TriStar appeared even with Faucett and AeroPeru label. Faucett ended in 1997 and AeroPeru in 1999. Peruvian Airlines started in 2009. In 2018 rumors arose about a new Aeroperu subsidiary, to fly with Sukhoi Superjets. In Bolivia, Lloyd Aereo Boliviano (LAB) was created in 1925, then cooperating with Junkers. PANAGRA entered in 1941 and after the war LAB became the state carrier, to be followed in 2009 by Boliviana. A private AeroSur of 1992 leapt ahead, stopped in 2012 by the President. LAPSA of Paraguay became LAP, in 1994 stopped and then replaced by TAM. Also Pluna of Uruguay, formed in 1935, joined the disappeared. At that time Aeromexico and Mexicana ranked behind VARIG. Aeromexico was since 1972 the successor of Aeronaves, its roots going back to 1934. It was privatized in 1988, then acquired by Cintra Holding and in 2007 by Banamex for only $429 million. Mexicana’s predecessor CMTA had its start already in 1921. In 1982 the government entered Mexicana with a 58% share, between 1996 and 2005 Cintra was the owner, then followed by Posada, sold in 2006. Mexicana was to get insolvent in 2010 and it struggled for revival. For gambling in Central America, see Pan American Airways. In 1944 it entered among others COPA of Panama. In 1998 Continental acquired a 49% stake, but then it retired from the renamed Copa Airlines. Mainly TACA is remarkable by history, created in 1931 in Honduras by Lowell Yerex, a New Zealand pilot. TACA International Airlines, registered in El Salvador, was listed around 2000 with shareholding in NICA, Aviateca, TACA Peru, Islena and LACSA. Yerex has moved to Trinidad, in 1939 forming British West Indian Airways, in 1947 sold to British South American (then BOAC). In 1961 BWIA was nationalized, in 2007 replaced by Caribbean Airlines. In 2010 it participated in Air Jamaica, which had started in 1969 with help of Air Canada. For Guatemala, Nicaragua and mainly Cuba, its flag carrier Cubana having been reorganized in 1961, the chapter The Flight/ Conflicts was relevant. For all the mergers to follow in Latin America see the chapter Mega Groups. Asia – Pacific That region, defined by old publications stretching from Afghanistan to Tahiti, showed at the beginning of the jet age not a single airline placed among the top 20 by RPK in global ICAO statistics. A few years later, in 1970 already, Japan Airlines occupied rank 10 and Qantas rank 18 (according to R.E.G. Davies, excluding Aeroflot). At the turn of the century, Japan Airlines was placed on rank 7. Started in 1951 after the Peace Treaty with 50% capital from the government, it is only an indirect successor of its pre-war predecessors. With internal mergers and with its immense Boeing fleet, it ranked ahead of its younger competitor ANA, the All Nippon Airways, formed in 1957 by a merger with Far Eastern Airlines. In 2002 Japan Airlines merged with JAS. But then came the crisis in economy and in 2010 it had to file for bankruptcy protection, nevertheless Japan Airlines maintained its importance.
At the turn of the century it was followed on rank 12 by Singapore Airlines, a part of state-controlled Temasek Holdings. It has been formed in 1972 out of Malaysian Singapore Airlines of 1967. Der Spiegel reported Temasek being managed by the prime minister’s wife. Singapore Airlines extended its route network with the B.747 and the DC-10, reaching Paris, Auckland and the USA in the 70s. Even supersonic flights to London were offered in 1979-80 with the Concorde, leased from British Airways. From the 80s the B.747-3 flew to London nonstop. Singapore Airlines has become number two (by RPK) in the Asia-Pacific region. It opened the longest nonstop route New York - Singapore with the A340-500, but ended it in late 2013. Singapore Airlines ordered the A380 in 2007 and it became the launch costumer. Daughter SilkAir emerged in 1981 out of Tradewinds, later announced to be fully absorbed. Singapore Airlines assisted Air Lanka and then also Myanmar Airways International of 1993, its roots going back to Burma Airways of 1972. With opening the economy, Asian Wings emerged there, entered by ANA with a 49% share. Malaysia Airlines separated from Singapore in 1972, first as MAS, and it prospered. It occupied rank 23 around the turn of the century. Rank 20 was occupied by Qantas Airways, the flag carrier of Australia. Its predecessor Queensland and Northern Territory Aerial Services had been founded already in 1919 by the officers W. Fysh and P. McGiness together with F. McMaster, opening regular services in 1922. The most significant step by Imperial Airways (the later BOAC) has been the participation in creating Qantas Empire Airways in 1934. The simple name Qantas was adopted in 1967. Australian Airlines of 1946, successor of TAA, was acquired in 1992, to be swallowed completely in 2006. Tasman Empire Airways has started in 1940, becoming Air New Zealand in 1965.
In the statistics of 2000, Cathay Pacific ranked behind Qantas. It was started in 1946 at Hong Kong by the American pilot L. Farell and Australian S. de Kantzow, entered in 1948 by the Swire Group of Hong Kong and by Australian National Airways. BOAC has helped starting Hong Kong Airways in 1947, integrated into Cathay Pacific in 1959. Dragonair started in 1985 with assistance by Cathay Pacific. Successful was also Thai Airways International, started in 1960, assisted by SAS with a 30% share. Already under King Rama, an army support division had been established in 1914. An air mail service started in 1922 and in 1932 the Aerial Transport Company of Siam took over. After WWII and retreat of the occupiers, Siamese Airways was formed in 1947 by the government. In 1951 Thai Airways became the successor of Siamese Airways and of Pacific Overseas Airlines (Siam), founded with American investment in 1947. The route network of Thai Airways International reached Sydney, then Europe via Moscow in 1972 and Los Angeles in 1980. Nationalized, it integrated Thai Airways in 1988. Competing Air Siam, created by pilot Prince Varanand, collapsed in 1976. Also Orient Thai Airlines, temporarily operating as Cambodian International Airlines (according to the World Airlines Directory), founded in 1992 by Udom Tantiprasongchai as Orient Express Air, was based on “Udom’s close relationship with the King of Thailand”, as Wikipedia pointed it out. In South Korea, the Ministry of Transport organized Korean National Airlines (KNA) in 1949. “Equipped modestly (…), this little airline, which first had been launched as a semi-scheduled operation in 1945 by Captain Yong Wook Shinn, provided service to four coastal points (…). Later in 1952, under an agreement with Civil Air Transport (CAT) in Taiwan, KNA started an international route, with aircraft chartered from Taipei, from Seoul to Iwakuni and Tokyo” (Davies: Airlines of Asia). Domestic competition had arisen by Air Korea of the Hanjin Transportation Co. and in 1962 the state started Korean Air Lines as successor of KNA. It had to be consolidated by the Hanjin shipping group, which took control in 1969. The label Korean Air became standard in 1984. The Los Angeles route was opened with the B.707, New York was connected in 1979 and Sao Paolo in 1990. Australia was reached and Europe via the eastern and the western route. ‘Number two’ became Asiana Airlines, started in 1988 as Seoul Air International. China Airlines of Taiwan, successor of military CAT under Chiang Kai-shek, prospered. EVA Air started in 1991 as ‘number two’, built up by the Evergreen shipping enterprise. The former boss founded StarLux Airlines, to take up regional services in 2020, to be followed by long-distance A350 flights. Air Vietnam was founded in 1951, 25% owned by Air France. From 1965 until reunification in 1975 Vietnam suffered under the superpowers’ war. For Vietnam and neighbors see the chapter The Flight/ Conflicts. After recovery, the state-owned flag carrier Hang Khong Vietnam with its inherited Soviet-built fleet was renamed Vietnam Airlines in 1990, then changing to Airbuses and Boeings.
Still towards the turn of the century, mighty China had lacked behind other regions. Before WWII, China’s airline was CNAC of 1930 under Chiang Kai-shek, entered by Pan American in 1933. German-subsidized Eurasia of 1930 was replaced by CATC in 1943. Japan has started full invasion in 1937, CNAC interrupted service and American staff was withdrawn. “William Bond, however (…) as the soul of CNAC, resigned from Pan American and took over the management of the airline as an employee of the Chinese Government, which owned 55% of the shareholding, and thus control” (Davies: Airlines of Asia). After the war, with Mao’s victory in 1949, Chiang Kai-shek and the remainders of CNAC fled to Taiwan, starting there CAT. In China, a group from CATC was welcomed by Premier Chou En-lai in the Grand Hotel du Pekin des Wagons-Lits and CCAC was conceived in 1949. With Aeroflot assistance, SKOAGA started in 1950, and in 1954 both were united under the aviation bureau, in 1962 becoming officially CAAC. In 1970 flights to Karachi started with the HS.121 Trident. In 1973 the route Beijing – Tehran – Bucharest – Tirana was opened with the IL-62M, but soon this connection with Enver Hoxha’s Albania was dropped. In 1974 services Beijing – Karachi – Paris and Beijing – Tokyo started with the Boeing 707 and Beijing – Moscow with the IL-62M (info by R.E.G. Davies). After Mao’s decease in 1976, politics changed and in 1988 CAAC merged its 10 divisions into three large groups around Air China, China Eastern and China Southern. Also for Cathay Pacific and the independent Hainan Group see the chapter Mega Groups. Tasman Empire Airways, started in 1940, became Air New Zealand in 1965. At the turn of the century, Air New Zealand was surpassed already by China’s largest. Ansett Australia of 1936, which in 1957 acquired Australian National Airways, became owned by Air New Zealand in 2000 and vanished in 2002. Engagement in Palau Micronesia Air in 2002 was a short adventure, ending in 2004. EVA Air of Taiwan and Asiana of S.Korea occupied further ranks. Garuda Indonesia followed, officially registered in 1950, built up with help of KLM. It is the successor of Indonesian Airways, which had been started by Wiweko Sukono under the rule of Sukarno. Merpati Nusantara of 1962 was taken over by the Garuda group, but separated in 1997. Then Indonesia suffered under jihadists’ terror and in 2004 Garuda interrupted flights to Europe. Lion Air, started in 2000, owned by the Rusdi Kirana family, undertook to become a large group, then moderated. Behind Garuda at the turn of the century, Philippine Airlines followed tightly, restarted in 1946 by Andres Soriano, a colonel of McArthur’s staff. Pan American acquired a 20% share in 1957. Later it sported the label Philippines. An Air Manila was founded in 1960, led by the former US ambassador. Among the various newcomers, Cebu Pacific of 1986 has entered the low-cost market. The islands of the South Pacific ranked in the airlines’ global statistics not among the top 100. Nevertheless Air Micronesia was founded in 1967 at the U.S. outpost Guam by Continental with a 30% share, participated by Aloha Airlines with 10%. Later Continental took 100% and in 1992 it was labeled Continental Micronesia. After merger, United Airlines was to occupy the hub Guam. A South Pacific Island Airways, started in American Samoa in 1973, ended in 1988. Qantas held a substantial stake in Air Pacific, the former Fiji Airways, started in 1951 on that Commonwealth island by the Australian aviator Harold Gatty (in 2012 to become once again Fiji Airways). In 1973 Qantas, TAA and Ansett have participated in starting Air Niugini, the flag carrier of Papua New Guinea. Qantas’ “Caledonian Express” flights were preceding (French) New Caledonia’s Air Calin. For Polynesian Airlines, then Virgin Samoa, see the chapter Mega Groups. Astonishing was the start of Air Tahiti Nui in 1998, flying even to its mother country France.
It is remarkable that at the turn of the century all the airlines of the Indian subcontinent ranked still behind the leading carriers of the Asia-Pacific region. Air India’s predecessor Tata Airlines has started in 1932, created mainly by J.R. Tata. It became Air-India in 1946, nationalized under prime minister Nehru in 1953. It was to be merged with domestic subsidiary Indian Airlines into Air India in 2011, state-owned even after liberation of commerce, and from 2013 a first yield was reported. For private initiatives see the chapter Open Skies. Jet Airways, starting scheduled services in 1993, has become a large carrier. It was founded by entrepreneur Naresh Goyal, after Manmohan Singh had changed politics. For its fate with Etihad see the chapter Mega Groups. State carrier Pakistan International Airlines (PIA) started in 1954, then absorbing Orient Airways, which had started already in 1947. Plans for a partial privatization were published in 2017. Air Ceylon operated from 1950 with help of Australian National, in 1979 being followed by Air Lanka, then Sri Lankan. Biman Bangladesh started in 1972 - compare the chapter The Flight/ Conflicts. Mideast, Turkey, Egypt At the turn of the century Emirates Airline, founded in 1985 by the Emir’s decree, advanced to rank 32 and then to rank 3 by RPK in global statistics. Emirates has surpassed already Saudi Arabian Airlines of late 1946, which in 1963 “by Royal Decree of King Feisal became a strictly commercial operation” (quoted from R.E.G. Davies). With initial help by TWA, Saudi Arabian Airlines started in 1947. Then renamed Saudia, it had maintained its leading position in the Middle East during decades. Another important airline has become MEA of Lebanon, started in 1946 by Sheikh Najib Alamuddin. In the 60s BOAC acquired a 39% interest from Pan American and in 1963 Air France got a 30% share, merging its Air Liban into MEA in 1965. The Sheikh temporarily took over ownership in Air Jordan. In 1966 he tried to form an Arab Air Carrier Association, in vain. MEA survived at least the civil war. Air Jordan was replaced in 1963 by Alia, since 1986 labeled Royal Jordanian Airlines. At the turn of the century El Al, started in 1949 as the flag carrier of Israel, ranked number 3 in Mideast, behind Emirates and Saudi Arabian. They were followed by Turkish Airlines, Gulf Air, Iran Air, the successor of Iranian Airways, Kuwait Airways and Royal Jordanian. In Egypt, Misr Airwork had been founded in 1932 with British help. After El-Nasser’s “United Arab Republic” with its United Arab Airlines has failed, Egypt re-introduced for domestic flights the Misrair label in 1964 and united both as Egypt Air in 1971. Syrian Arab Airlines was founded in 1961 as an indirect successor of Syrian Airways of 1946, becoming Syrianair in late 1975. In Bahrain, Gulf Aviation had been founded in 1950 with British partnership. In 1973 Bahrain, Qatar, Abu Dhabi and Oman purchased the British 22% share, to take it as the common flag carrier Gulf Air. But in 2002 Qatar left, followed in 2006 by Abu Dhabi and in 2007 by Oman. Turkish Airlines (THY) was founded in 1956 out of pre-war predecessor DHY. After a partial privatization in 2006, it prospered in an unprecedented way until it became hit by the scenario in 2016. For the sensational story of Emirates, Etihad, and for ambitions of Qatar Airways compare the chapter Mega Groups. And for troubles see the chapter The Flight/ Conflicts.
Africa In Africa, the colonial heritage was symbolized by East African Airways, West African Airways and Central African Airways of the British and Air Afrique of the French. East African Airways (EAAC) has started in 1946 with help of BOAC as the flag carrier of Kenya, Tanganyika (now Tanzania) and Uganda, in 1977 replaced by Kenya Airways, Air Tanzania and Uganda Airlines, which failed, but planned a restart in 2020. West African Airways (WAAC) started in 1947, intended as the airline of British territories Nigeria, Ghana (Gold Coast), Sierra Leone and Gambia, being the successor of Elders Colonial Airways. Central African Airways (CAA) of 1946 has become the flag carrier of the Central African Federation, comprising North Rhodesia (now Zambia), South Rhodesia (now Zimbabwe) and Nyasaland (now Malawi). CAA was dissolved in 1967. The post-war Air Afrique was created by Air France and UAT (predecessor of UTA), started in 1961 to become the common flag carrier of formerly French colonies, marked by the CFA franc currency. Proposed in 1958 by president Houphooet-Boigny of Cote d’Ivoire, Air Afrique started as the flag carrier of countries which had formed French West Africa – Mauretania, Senegal, Cote d’Ivoire (Ivory Coast), Haute Volta (now Burkina Faso), Benin and later Togo – and of countries which once had formed French Equatorial Africa – Niger, Tchad (Chad), Central Africa, Cameroon, Gabon and formerly French Congo (Brazzaville). A 34% share in Air Afrique was held by Sodetraf, 75% by UAT and 25% by Air France (according to Davies). Then Air Afrique ceased operations in 2002 after a rescue plan by Air France had failed. Cameroon and Gabon have exited earlier and Air Gabon appeared even with the B.747. Air Madagascar had started independently in 1962 with help of Air France, its origin going back to 1947. Reunion started an independent airline in 1977, from 1986 Air Reunion, in 1990 entered by Air France, renamed Air Austral. Air Mauritius has its roots going back to 1967 (according to its own information), starting in 1972. Other sources stated a start in 1974 with help of British Airways, Air France and Air India. For the further development see the chapter Open Skies/ Tourism. In formerly Congo Belge, Sabena had created Air Congo in 1961, becoming Air Zaire in 1971, bankrupt in 1994. For the troubles in the Congo region, Angola, Namibia and Mozambique see the chapter The Flight/ Conflicts. By traffic, the continent ranked far behind other regions, and the traditional leader South African Airways occupied at the turn of the century just rank 35 in the global statistics. It was founded in 1934 as a subsidiary of South African Railways by acquisition of Union Airways, which had started in 1929. Namibia got full independence from South Africa in 1991, symbolized by renaming Namib Air into Air Namibia in 1993. Egyptair followed behind South African, in the global statistics however only on rank 61. Royal Air Maroc on rank 70 but rank 3 in Africa , had a steady history. It started in 1957 as the successor of CCTA, which had been the result of a merger between Air Atlas and Air Maroc, founded in 1946 and 1947. Tunis Air of 1948 followed on the next rank. Later Ethiopian Airlines leapt ahead. It was started in 1946 by Emperor Haile Selassie as Ethiopian Air Lines, with help of the US Government and then by TWA. In 2018 Ethiopian founded a subsidiary Tchadian Airlines and it intended to support a restart of Zambia Airways. For wars and troubles see the chapter The Flight/ Conflicts. Kenya maintained stability and Kenya Airways survived. Nigeria is expected to get Earth’s third-largest population, but around the turn of the century no Nigerian carrier ranked among the top 100 in global statistics. In 1958 Nigeria Airways (officially until 1971 still WAAC Nigeria) has become the successor of West African Airways, 33% held by Elder Dempster, 16% by BOAC (according to Davies), then wholly government-owned. Money-loosing, it ended in 2003. A Nigerian Global was presented somewhere with the A310 and it disappeared. Arik Air was to become Nigeria’s most important carrier, launched in 2005 by Sir Joseph Arumenilkhide (so described by Davies) or Arumeni-Johnson’s Ojemai Investments (according to the World Airlines Directory), starting in 2006, in 2016 nationalized. For the failed Virgin Nigeria experiment see the chapter Mega Groups. In 2018 a new state-owned Nigeria Air was announced, but (according to LJ) abandoned. South African Airways was excluded from crossing other African countries during the years of the apartheid horror, which ended in 1992. The stake sold in 1999 to the SAir Group (of Swissair) was bought back by the state after the group collapsed in 2001. For South African Airways, losses were reported (e.g. by SZ, Jan02, 2010), it has given away its last B.747-400, and repeatedly it had to be rescued by the state. For an outlook towards an open market compare the chapter Open Skies.
Aspects The average load factor, according to ICAO, was 71% in the year 2000, compared to 66% in 1991, obviously a result of flexible marketing. United employed at the turn of the century 98,000 persons, Delta 73,000, Air France 56,000, Lufthansa 38,000 and Southwest 29,000 persons. Compare this with the RPK and the net result! The Airline Industry Guide of Airline Business (edited by Kevin O’ Toole) recorded for the year 2000 revenues global of $328 billion, an operating result of $10 billion and a net result of barely $3 billion. The group revenues were listed for AMR/American Airlines with $19.7 billion, UAL/United Airlines $19.3 billion, Delta Air Lines $16.7 billion, Federal Express $15.5 billion, Japan Airlines $15.3 billion and the Lufthansa Group with $14.0 billion. A net profit (after special items) was recorded with $914 million for Singapore Airlines, explained by its status as a long-haul carrier, $828m for Delta, 813m for American Airlines, 642m for Cathay, 635m for Lufthansa and 625m for Southwest. Air France showed barely 382, the Emirates Group 145 and United only 50 million. Within all these statistics, the success of Southwest Airlines as number one among the low-cost carriers was convincing, followed by Ryanair. Then the rise of China to the economic powerhouse changed statistics. In 2012 the semi-annual report of Emirates listed a fascinating net profit of $464 million, targeting a billion per annum. But it must not be forgotten that $1.00 in 2000 is equivalent to $1.27 in 2010 (according to the Consumer Price Index). And it also must be recognized that even renowned flag carriers in the meantime have amassed losses, necessitating a drastic cost-benefit analysis. In the early 1960s, the existence of less than 300 airlines global was estimated, without considering the difference between the early jet pioneers and small other companies with prop aircraft. For the year 2000 roughly 1,400 airlines operating regular services or significant charter services, pax or cargo, were listed by the World Airlines Directory of Flight International. Russia under Putin had announced to reduce its number of 299 airlines then in existence. China had set a limit by regrouping its airlines. Flight International’s ‘World Airlines 2010’ directory (edited by Gunter Endres with the Flightglobal Data Research Team) contained information on 1,500 airlines. “The selection criterion has been to list operators with one or more aircraft with more than 19 seats…” Among all these airlines, 500 ones could be considered full-size passenger airlines with jet aircraft of the B.737 size or above. Traffic in the Early 21st Century For the year 2000, ICAO has listed 1.656 million or more than 1.6 billion passengers global. More relevant is the share by RPK, registered by UN/ICAO for the year 1960 being for North America 54%, for Europe with Russia 32%, for Asia/ Pacific 6% and also for Latin America 6%. For the year 2010 ACI statistics showed for North America 1,458 billion RPK or a share reduced to 31%, for Europe and Russia 1,409 RPK or 30% and for the Asia/ Pacific region 1,171 RPK or 25%. The rise of the Asia/ Pacific region is convincing. Internet-published statistics for 2009 showed airlines of the Middle East with a 6.7% share (3% by other statistics) and Latin America with 4.5%, pointing to the statistics’ dependence on the guidelines set. Emirates’ one-stop flights indicate a success based on traffic from other to other regions, and Emirates achieved rank 4 by RPK global. For 2013 the Asia-Pacific region was registered with a traffic share of 30.9%, Europe 28.3%, North America 24.3%, Mideast 8.9%, Latin America 5.4% and Africa with a stagnating share of 2.2%. According to Aerospace America (May 2011), Airbus estimated that the share in RPK of North America and Europe together would change from 59% by 2008 to 46% by 2028, and Asia would account for 1/3 of global traffic. But altogether a rise in RPK was expected. For freight traffic, IATA assumed (e.g. for 2014) China being the leader (but freight is not an item of this analysis). For passenger traffic, ICAO has published a scheduled RPK forecast for the years 2005-2025, being “most likely 4.6%” per annum. Boeing estimated an annual 5% growth over the next two decades. But for 2017, IATA had reported a rise in air traffic global of 8%. Nevertheless in 2018 Financial Times (July13) informed: “Delta Air Lines has become the latest US airline to issue a profit warning as rising fuel costs push its operating costs sharply higher” – quoting CEO Ed Bastian’s announcement of “cutting down on less profitable flights”. The share (by RPK) of the top-10 airlines, which in 1960 was around 70%, had fallen until 2010 to c.40%, thus confirming the predicted traffic fragmentation. With cooperative alliances and with mergers into mega groups, statistics must steadily be upgraded – see the chapters Alliances and Mega Groups.
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