History by Year


Pacific Southwest Airlines began initial operations on May 6, 1949, flying a leased DC-3 aircraft with a
seating capacity of 31 once a week between San Diego and Oakland via Hollywood/Burbank.

Original fares for the three-city route structure were: SAN-OAK $15.60, SAN-BUR $5.65, and BUR-OAK $9.95.

By the end of 1949, PSA was operating two DC-3s and had carried 15,011 revenue passengers over 321,112
plane miles. The airline posted operating revenues of $172,796 against operating
expenses of $160,902 for a net profit of


PSA operated over the same
three destination route structure in
1950. Revenue passenger totals tripled as
the airline carried 45,390 travelers.

While operating revenues
advanced to $503,737, operating expenses
increased to $517,334 and a net loss of
$8,597 was posted for the year.


PSA added a fourth
destination in July 1951 with the
initiation of service to San Francisco
from San Diego, and Burbank at fares of
$17.25 and $11.70 respectively.

PSA flew 1,162,678 plane
miles, carried 75,995 revenue passengers
and posted a net profit of $6,093. At
year's end the number of people employed
had increased from the original 50 to 119
with annual payroll of $366,605.


PSA's fleet of DC-3's
increased to four in 1952 as the airline
continuted to serve San Diego,
Hollywood/Burbank, Oakland and San

PSA carried 92,484 revenue
passengers and logged operating revenues
of $1,125,364 against operating expenses
of $1,151,972 for a $26,608 net loss.


During 1953, service was
inaugurated from San Diego and
Hollywood/Burbank to Long Beach with
fares of $4.80 and $2.25 respectively.

For the year, PSA posted a
net loss of $37,577 based on operating
revenues of $1,454,413 and operating
expenses of $1,491,990.

PSA carried 115,028 revenue
passengers and flew 1,877,903 plane
miles. The number of employees increased
to 190 with an annual payroll of


PSA purchased two
McDonnell-Douglas DC-4 aircraft in 1955
to replace its DC-3 equipment. The
larger, faster DC-4's were configured to
carry 70 passengers, more than twice that
of the older DC-3s.

As profit rose, fares went
down. The $19.05 SAN-OAK fare dropped to
$15.44, the BUR-SFO fare was lowered from
$13.50 to $9.99 while the SAN-BUR fare
remained unchanged at $5.45. These fares
remained constant through 1958.


The airline added a third
DC-4 to its fleet in 1956 and carried
191,221 revenue passengers over a three
city route structure. Operating revenues
and operating expenses increased to
$2,122,376 and $2,063,788 respectively.
Continuing a three year trend of year end
profits, PSA earned $58,588 for the year.


In 1957, a fourth DC-4 was
added to PSA's fleet of aircraft and the
airline's employees increased to 246 with
an annual payroll of $762,294.

Revenue passenger totals
increased to 256,454 as PSA posted a
profit of $196,606.


August marked the
inauguration of service to Los Angeles
International Airport and, once again,
the number of destinations in PSA's
system increased to four. The SAN-LAX
fare was the same as SAN-BUR $5.45. Fares
for LAX-SFO and BUR-SFO were set at
$11.81 and the SAN-SFO fare rose to

In 1958, PSA carried 295,818
revenue passengers and flew 1,935,465
plane miles as it posted a year end
profit of $322,031.


The introduction of three
Lockheed L-188 Electra propjets into
PSA's fleet highlighted 1959. The 98 seat
aircraft were ideally suited to the
airlines four destination route structure
and revenue passengers increased to
355,099 while plane miles exceeded the 2
million mark for the first time.

PSA posted operating
revenues of $4,362,921 against operating
expenses of $3,907,015 for a net profit
of $455,906.

In 1959, PSA employed 300
and the annual payroll exceeded $1


Disposing of its DC-4
equipment, PSA entered the 1960s with a
fleet that consisted of three Electras
and one 92 seat DC-6.

Available seat miles, plane
miles and revenue passengers increased to
289,100,00, 2,950,000, and 621,280

PSA reinstated service to
Oakland in October, but discontinuted
again in March 1961. Fares remained at
1958 levels as the airline posted a year
end profit of $499.


With the disposition of the
DC-6 and the addition of another Electra,
PSA's 1961 fleet stood at four Electra

The airline flew 713,064
revenue passengers over 3.3 million
aircraft miles. Operating revenues
increased to $9.7 million and a year end
profit of $310,483 was posted.


A fifth Electra was added to
the fleet as PSA's revenue passenger
totals exceeded the 1 million mark for
the first time. PSA carried 1,032,514
revenue passengers over its four city
route structure and enjoyed its best year
to date, showing a profit of $1,368,770.


PSA operated a fleet of six
Electra aircraft in 1963, a figure that
would remain constant through the
following year.

The airline flew 5.5 million
plane miles and carried 1,305,058 revenue
passengers, up 272,544 over the previous
year. PSA posted operating revenues of
$17,432,534 against operating expenses of
$15,180,815 for a net profit of

On February 13, 1963,
Pacific Southwest Airlines became a
public corporation.


PSA earned a net profit of
$2,945,881 based on operating revenues of
$20,455,295 and operating expenses of
$17,509,414 for the year. The airline
carried 1,532,243 revenue passengers and
flew 6.5 million plane miles over a four
city route system.


In 1965, PSA entered the jet
age as it added five Boeing 727-100s to
its fleet of six Electras. The Boeing
aircraft were configured to seat 128

With the introduction of jet
equipment into its fleet, PSA's available
seat miles increased to nearly 1 billion
as the airline carried 1,863,088 revenue
passengers and earned a profit of

In January, PSA again
initiated service to Oakland. On June 21,
the airline was listed on the New York
Stock Exchange.


PSA added two more Boeing
727-100 aircraft to the fleet during
1966, bringing the fleet total to six
Electras and seven Boeing 727's. With
this equipment, PSA nearly doubled its
revenue passenger totals as it carried
2,712,811 travelers and posted a net
profit of $4,307,289 based on operating
revenues of $32.9 million and operating
expenses of $28.6 million.

In May, PSA inaugurated
routes between San Diego/Los
Angeles/Burbank and San Jose and offered
fares of $19.85, $13.50, and $13.50


During 1967, the airline
added three more jet aircraft to the
fleet, a Boeing 727-100 and two McDonnell
Douglas DC-9s. The Douglas aircraft were
configured to carry 110 passengers.

By the end of the year, the
six Electras were phased out of the fleet
and PSA became an all jet airline.

Revenue passengers increased
to 3,346,484 as PSA earned a year end
profit of $4,159,823. In February, PSA
inaugurated service to Sacramento wit a
SAN-SMF fare of $21.59 and a LAX-SMF fare
of $15.24.


During 1968, PSA augmented
its fleet of seven 727-100s and two DC-9s
with seven 727-200 aircraft and four
737-200 aircraft. By years end the fleet
total of jet aircraft stood at 20.

The new stretched 727's were
configured for 159 passengers and the
twin-engine 737's held 114 passengers.

PSA carried 3,997,524
revenue passengers over a system that
included seven California destinations
with Ontario becoming the eighth when
service was inaugurated in June.

In 1968, PSA employed 1,889
with an annual payroll of $13.6 million.
The airline earned $4 million on
operating revenues of $56.2 million and
operating expenses of $52.2 million.


PSA's 1969 fleet consisted
of one DC-9, one Boeing 727-100, 14
Boeing 727-200s, and nine Boeing
737-200s. The airline's fare structure
included the following: SAN-LAX, SAN-BUR,
SAN-SJC $20.95; SAN-SMF $22.86; LAX-SFO,
BUR-SJC $14.52; ONT-SFO $16.19, LAX-SMF

PSA carried 4.4 million
revenue passengers and posted a year end
profit of $3,747,016.


PSA entered the seventies
with an all Boeing-equipped fleet that
included one 727-100, 16 727-200s, and
nine 737-200s.

The airline topped the 5
million mark in revenue passengers as it
carried 5,162,278 and posted a net profit
of $3.6 million.

PSA started up service again
to Long Beach in December 1970. For the
year, the airline flew 20.6 million plane
miles and 2.9 billion available seat


PSA operated a fleet of 27
jet aircraft during 1971, which included
16 727-200s, one 727-100, and 10

Operating revenues were
$86,182,885 while operating expenses were
$81,943,550. A year end profit of
$4,239,335 was posted as PSA carried 5.6
million revenue passengers, an increase
of nearly half a million over the
previous year.


Service to Fresno and
Stockton began in July 1972. Inaugural
fares between LAX-FAT and LAX-SCK were
$14.82 and $18.52 respectively. Fares
between FAT-SCK, FAT-SFO, and SCK-SFO
were $7.41, $10.19, and $7.41

In 1972, PSA employed 2,594
with an annual payroll of $27 million.

For the year 1972, PSA
topped the 6 million mark in revenue
passengers. The airline carried 6,356,875
and recorded a profit of $5,957,485.


PSA flew 23,063,794 plane
miles and carried 6,356,875 revenue
passengers with a fleet of 19 727-200 and
eight 737-200 aircraft during 1973.

Employment reached 2,670
employees with a payroll of more than 30

On November 15, the airline
was struck for the first time in its
history by the Teamster's Union.
Approximately 600 maintenence personnel
and 700 operations personnel observed
picket lines as management and non
striking personnel continued to operate
approximately 60 percent of the airline's
normal schedule.

The labor dispute was
settled on December 23. However it wasn't
until several months later that PSA
resumed normal operations. During 1973,
PSA's operations revenues topped the $100
million mark for the first time as a net
profit of $627,123 was posted.


In 1974, PSA took delivery
of two Lockheed L-1011 TriStars. The wide
bodied aircraft were configured for 296
passengers and were initially introduced
on the heavily traveled Los Angeles-San
Francisco route. However, a recessionary
economy and government inforced fuel
quotas resulted in the new generation
aircraft being grounded in early 1975.

For the year, PSA carried
6,381,197 revenue passengers and recorded
a profit of $1,589,627 based on operating
revenues of 123.4 million and operating
expenses of $120.1 million.


PSA added a 12th destination
to its route structure in April when
service was inaugurated to South Lake
Tahoe. The LAX-TVL fare was set at $30.
To serve Tahoe, PSA added two Lockheed
Electras to its fleet of 23 727-200s, two
737-200s, one 727-100, and two grounded
L-1011 aircraft.

During 1975, PSA had
revenues of $152,521,000 and carried
6,436,436 revenue passengers. However,
PSA, Inc. incurred a loss of $16.7
million resulting from the establishment
of a provision for loss on the L-1011
aircraft program and a provision for
anticipated losses on disposition on the
company's subsidiary hotel and
broadcasting operations.


William R. Shimp became
Chief Executive Officer upon the
retirement of J. Floyd Andrews during

PSA sold the remaining two
Boeing 737 aircraft and added two leased
Boeing 727-100s, bringing the fleet to 23
727-200s, three 727-100s, two Lockheed
Electra and two L-1011 aircraft. The two
L-1011s remained grounded as the company
sought a proscective buyer for the

During the year, PSA
continued the plan to dispose of
subsidary hotel and broadcasting
operations, selling the remaining radio
stations and two of the four hotels.

PSA had earnings of
$3,501,000 on revenues of $166,874,00 and
carried 6,591,000 revenue passengers.
Fares remained steady during 1976 with
the Los Angeles-San Francisco fare


PSA applied to the Civil
Aeronautics Board (CAB) for service from
California cities to Las Vegas and Reno,
at fares from 18 to 43 percent less than
fares currently being charged.

If approved, the Nevada
service would become the first interstate
routes for the airline.

In December, PSA received
permanent authority from the California
Public Utilites Commission to serve South
Lake Tahoe from Southern California and
San Francisco.

The airline took delivery of
five used Boeing 727-100 aircraft, two of
which replaced leased 727-100s. The fleet
now included 23 Boeing 727-200, six
727-100, four Lockheed Electra 188 and
two Lockheed L-1011 aircraft, which
remained grounded as the company sought
prospective purchasers for the planes.


After years of effort, PSA
was finally granted approval by the CAB
to serve interstate markets with
authority between Oakland-Reno and San
Diego-Las Vegas. One way fares on the Las
Vegas-San Diego market were lowered by
PSA to $30, a reduction of 35 percent
from existing fares on the market.

While the new interstate
service was the highlight of the year,
PSA also faced tragedy, suffering its
first fatal crash in the airline's
history. On September 25, a PSA Boeing
727 and a privately owned Cessna 172
collided over San Diego, killing 144
people, including 37 PSA employees.

PSA's fleet of aircraft
increased to 25 Beoing 727-200s, six
Boeing 727-100s, four Lockheed Electra
188s, and two Lockheed L-1011s. An
agreement to sublease the two L-1011s was
reached late in the year with Lockheed
Aircraft Company, which, in turn, leased
the planes to Aero Peru.

PSA became the first
domestic airline to order the new Douglas
DC-9 Super 80 aircraft, the most quiet
and fuel efficient commerical aircraft
produced. A total of 12 aircraft were
ordered for delivery in 1980 and '81.

Throughout the year, PSA
continued its aggressive expansion plans
with application to the CAB for service
between California cities and Phoenix,
Seattle, Salt Lake City, Portland,
Houston, and seven cities in Mexico

During the year, PSA carried
7.8 million passengers and earned $11.5
million on revenues of $229.8 million.


PSA's first full year as an
interstate carrier was tremendously
successful, with the airline carrying a
record 8.6 million passengers and
enjoying its best year ever financially.

PSA added Phoenix and Salt
Lake City to the route system during the
year, while dropping service to South
Lake Tahoe and Monterey. At the end of
1979, PSA's route system included 15
cities in four states.

Although all of PSA's
interstate routes were profitable within
90 days of the airline's inauguration of
service, PSA's aggresive expansion plans
were tempered somewhat by skyrocketing
costs and limited quantities of aviation

Fuel also affected PSA fares
throughout the system. By years end, PSA
still was offering rates 35 percent below
the national rate making formula, but the
one-way PSA fares rose dramatically
during the last half of the year,
reflecting a doubling of fuel costs
during that time period. Sample year-end
fares: Los Angeles-San Francisco $46, Los
Angeles-San Diego $26, Los Angeles-Las
Vegas $38.

PSA's fleet of aircraft
changed during the year, with the
Lockheed Electra 188s once again phased
out after the elimination of Lake Tahoe
service. The airline received delivery of
four new Boeing 727-200 aircraft and
leased three Boeing 727-100s and one
Boeing 727-200 to other airline
companies. At years end, PSA's fleet
included 27 Boeing 727-200s and 3 Boeing

The airline completed one
major building and broke ground on
another during 1979. A $2.5 million
reservation center was opened in the
Scripps Ranch Business Park in San Diego,
while construction began on a
multi-million dollar flight training
facility adjacent to the reservations

Financially, PSA enjoyed its
best operating year in the history of the
airline with operating revenues of
$335,838,000 and earnings of $23,097,000.


The year was one of
"firsts" for PSA as the airline
became an international carrier with
service to Mexico, was shut down for the
first time in its 32 year history by a
strike, and became the first U.S. airline
to operate the McDonnell Douglas Super 80

In April, PSA began service
to Puerto Vallarta and Mazatlan, Mexico
from Los Angeles, which meant that the
airline had made full transformation from
intrastate to interstate to international
carrier in less than a year and a half.

PSA's pilots, represented by
the Southwest Flight Crew Association,
stuck the airline for 52 days, starting
September 25, forcing PSA to halt
scheduled service for the first time in
its history.

The pilot's strike affected
passenger volume and earnings for the
year. Some 6 million passengers flew PSA
during 1980 with PSA, Inc. reporting year
end earnings of $12.6 million on revenues
of $370,204,000.

PSA's fleet took on a
"Super" look in December, with
introduction of the nation's first Super
80 aircraft, a 153 seat plane that it
touted as the "World's Quietest
Commercial Jetliner."

While the new Super 80 is
quiet, the 30 percent improved fuel
efficiency over PSA's Boeing 727s will
help PSA to keep fare levels low in the
face of rising fuel costs.

At the end of 1980, PSA was
operating a fleet of 22 Boeing 727's and
one Super 80.


PSA's aggressive fleet
transition program highlighted 1981 as
the airline received 12 DC-9 Super 80
aircraft from McDonnell Douglas.

The new plane's
efficiencies, particularly in the area of
fuel consumption, save PSA approximately
$1.7 million per year over the aircraft
it replaces.

By year-end, PSA was
operating a fleet of 13 Super 80s, 15
Boeing 727-200s and three Boeing 727-100

With a major training
program accompanying the delivery of the
new aircraft, PSA opened a multi-million
dollar training complex at the Scripps
Ranch Business Park in San Diego. The
center houses the nation's first DC-9
Super 80 simulator.

A deepening recession and
flight limitations imposed by the Federal
Aviation Administration after the
national strike by the Professional Air
Traffic Controllers Organization had an
adverse affect on PSA during the year.
PSA boarded 6,077,000 passengers up 1.2
percent from 1980's figure.

Although the airline
operation lost $17 million during the
year, profitable subsidiaries plus sale
of aircraft and proceeds from safe harbor
leasing, gave PSA, Inc. a record $28.5
million net income for the year.

PSA entered three new cities
during 1981, adding Orange County in
October and Seattle and Tucson in
December. In keeping with PSA's low-fare
tradition, fares on the new markets were
lowered below competitor's rates.


PSA continued its fleet
transition, adding eight more Super 80s
during the year. By October, 21 Super 80s
were online with nine Boeing 727s, thus
making PSA the first major airline to
operate a majority of its fleet with
new-generation aircraft.

Passenger boardings were up
16.6 percent for the year. In 1982, PSA
flew 7.1 million passeners. Available
seat miles were the highest ever achieved
and revenue passenger miles were the
second highest in PSA history.

The economic recession did
not abate and, as a result, earnings were
adversely affected. Despite an airline
operating loss, PSA, Inc. had year-end
earnings of $19.5 million.

PSA improved its competitive
position during the year by increasing
service between California and Phoenix
and at Burbank. In June, PSA reinstated
the Midnight Flyer, late night, low fare
service, which had been suspended in
1978. In September, service to Puerto
Vallarta and Salt Lake City was

The year ended with PSA
entered into an agreement with Braniff
Airways that would allow PSA to lease and
purchase assets from the bankrupt carrier
to form a new PSA division that would
operate from its hub at Dallas-Fort Worth
Regional Airport. Thirty repainted and
reoutfitted Braniff Boeing 727s would be
leased by PSA to serve 16 new cities,
beginning in late Spring 1983.


PSA abandoned its
negotiations with Braniff early in the
year when deadlines for the airline's
agreement to be reached could not be met.
PSA instead refocused its attention on
markets in the West, and in Spring 1983
inaugurated service to Portland, Oregon;
Spokane, Washington; and Albuquerque, New
Mexico-the largest expansion in PSA's
recent history.

PSA became the official
airline of Disneyland under a 12 year
agreement that includes several exclusive
marketing ties and a PSA sponsored
attraction at the famed theme park. Other
major marketing developments were the
introduction of the Executive Flyer
program for frequent travelers. For the
first time in the airline's history, seat
assignments on all flights were

Competitive pressures
abounded during 1983 from both
established carriers and new entrants in
PSA markets. Although PSA set records in
1983 for revenue passenger miles and
available seat miles, PSA, Inc. reported
a net loss of $9.3 million for the year.

Late in the year, PSA
contracted with British Aerospace to
acquire 20 new BAe 146-200 jets, 100 seat
aircraft that will give PSA more
flexibility to increase frequencies in
existing markets and to consider
expansion into new markets.

The 146, demonstrated to be
the quietest commerical airliner on
takeoff ever developed, also is extremely
fuel efficient, buring about one half the
amount of fuel as a Boeing 727-200.

Eight of the new generation
planes were to be delivered to PSA by the
end of 1984, at which time the 727s in
the fleet would be phased out. The
remaining 12 146s were set for delivery
in 1985, and the contract with British
Aerospace includes an option for an
additional 25 aircraft.

At the end of the year,
PSA's fleet included 25 Super 80s, eight
Boeing 727s and four DC-9-30's.


The year was dominated by
measures to cut costs of the airline
operation through continued fleet
transition to more efficient aircraft and
through negotiation of new, lower cost
labor contracts with all employee groups.

Both were successful: By the
end of the year, PSA was operating the
most modern, fuel efficient and quiet
fleet of any carrier in the country, and
necessary concissions from employee
groups had been approved.

The new labor contracts, in
effect through 1987, offer all employees
a 15 percent stock ownership in the
airline and a profit sharing program
equal to 15 percent of the airline's
annual pre-tax profits. In exchange, the
employee groups agreed to a 15 percent
reduction in compensation and an equal
increase in productivity. It was
estimated that the new contracts would
save PSA approximately $20 million a year
in labor costs.

PSA took delivery in 1984 of
its first six BAe 146-200 jets, named
"Smiliners," with the first
revenue flight June 20 between Burbank
and Oakland. A 26th Super 80 also was
delivered, and PSA was able to
substantially increase frequencies
throughout its route system.

Eight Boeing 727s were sold
or leased in 1984, with the last aircraft
making its final flight in PSA's fleet on
November 26. The workhorse of PSA for
nearly 20 years, the 727s had logged in
excess of 300 million miles and carried
more than 92 million passengers in their
career with PSA.

Several new customer
conveniences were introduced in 1984. In
January, PSA moved its operations at Los
Angeles International Airport to the new
PSA Terminal One, the first reached upon
entering the busiest airport in PSA's
system. Automatic check-in machines were
installed at PSA's airports, reducing
passenger congestion at the ticket
counter, and the airline's Executive
Flyer program was expanded to include
affiliation with a worldwide carrier,
TWA. In September, PSA reinstated nonstop
service between Stockton and Los Angeles,
offering the only all jet service between
those cities.

Paul Barkley, president, was
named chief executive officer in March,
replacing William R. Shimp, who retained
his position as chairman of the board.
Shimp died of a heart attack on May 11 at
age 59.

Financially, PSA, Inc.
reported net income of $2.2 million on
revenues of $689.7 million during the


PSA ended 1985 with the
largest single day expansion in the
airline's history, inaugurating service
December 19 at Eureka, California;
Medford and Eugene, Oregon; Tri-Cities
and Yakima, Washington; Boise, Idaho; and
Cabo San Lucas, Baja California, Mexico.
In October, PSA also became the first
commerical jet carrier to begin service
at Bellingham, Washington.

The expansion was possible
with the addition in 1985 of 14 BAe 146s,
completing the original order of 20.
Fleet additions, including two Super 80s,
also allowed PSA to substantially boost
frequencies in existing markets. Most
notably, the airline introduced the PSA
Expressway, offering departures every
half-hour between Los Angeles and San
Francisco International airports, and
more than tripled the number of daily PSA
departures at Orange County Airport,
where the exceptionally quite BAe 146 had
qualified for additional flights. To
accommodate the growth, service to
Albuquerque was temporarily discontinued.

A number of consumer
conveniences debuted in the year. All of
PSA BAe 146s were reconfigured from 100
seats per aircraft to 85, making PSA the
only airline in the West with a three/two
seating arrangement for its entire fleet.
The long awaited, premier position
Terminal A at San Francisco International
Airport also was opened, as was a new
curbside terminal at Oakland. A second
reservations center, located in Reno, was
opened to help reduce costs and

A record number of
passengers were boarded by PSA in
1985-more than 9 million-but fare wars
provoked by new entrant, low cost
competitors in several markets led to a
$648,000 loss posted by the airline for
the year. PSA, Inc., meanwhile, benefited
from non airline activities and recorded
a $28.8 million profit.

Russell L. Ray, Jr was named
president and chief operating officer of
the airline in August. Paul Barkley was
named chairman of the board of the
airline and remained as president and
chief executive officer of PSA, Inc. J.P.
Guerin was named chairman of the board of
the holding company.





In 1954, PSA discontinued
operations at Oakland and Long Beach and
reverted to a three city route structure,
serving the cities of San Diego, San
Francisco, and Hollywood/Burbank. Fares
were as follows: SAN-SFO $19.05, BUR-SFO
$13.50, and SAN-BUR $5.45.

The number of revenue
passengers decreased by approximately
13,000 from the previous year as PSA
carried a total of 102,124 passengers.
However, the airline posted a net profit
of $26,711.