Happy Birthday United Airlines
United Airlines traces its roots to Varney Air Lines air mail service of Walter Varney, who also founded Varney Speed Lines, from which Continental Airlines had originated. Based in Boise, Idaho in 1926, the carrier flew the first Contract Air Mail flight in the U.S. on April 6, 1926, marking the first scheduled airline service in the country’s history with flights between Pasco, WA, and Elko, NV via Boise. In 1927, aviation pioneer William Boeing founded his airline, Boeing Air Transport to operate the San Francisco to Chicago air mail route, and began buying other airmail carriers including Varney Airlines. In 1929, Boeing merged his company with Pratt & Whitney to form the United Aircraft and Transport Corporation (UATC).
After World War II, United gained from a boom in customer demand for air travel, with its revenue per passenger-miles jumping five-fold in the 1950s, and continued growth occurring through the next two decades.
In 1954, United Airlines became the first airline to purchase modern flight simulators which had visual, sound and motion cues for training pilots. Purchased for US$3 million (1954) from Curtiss-Wright, these were the first of today’s modern flight simulators for training of commercial passenger aircraft pilots.
United merged with Capital Airlines in 1961 and regained its position as the United States’ largest airline. In 1968, the company reorganized, creating UAL Corporation, with United Airlines as a wholly owned subsidiary. In 1970, the UAL Corporation acquired Western International Hotels and changed its name to Westin Hotel Company. The 1970s also saw economic turmoil, resulting in “stagflation” and labor unrest. The 1978 Airline Deregulation Act, resulting in industry shakeups, further added to the carrier’s difficulties in a loss-making period.
United Airlines Boeing 737-222 Marmet.jpg
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In 1982, United became the first carrier to operate the Boeing 767, taking its first delivery of 767-200s on August 19. In May 1985, the airline underwent a 29-day pilot strike over management’s proposed “B-scale” pilot pay rates. Then-company CEO Richard Ferris changed United’s parent company’s name from UAL Corporation to Allegis in February 1987, but following his termination, the company reverted to the name UAL Corp. in May 1988 and divested non-airline properties.
United Boeing 747SP in the 1974–1993 Rainbow Scheme
In 1985, United expanded dramatically by purchasing Pan Am’s entire Pacific Division, giving it a prime Asian hub at Tokyo’s Narita International Airport. In 1991 acquired routes to Heathrow Airport from ailing Pan Am, making it one of two US carriers permitted exclusive access to Heathrow under Bermuda II until “open skies” took effect in 2008 (American Airlines being the other after it purchased TWA’s Heathrow landing slots). The aftermath of the Gulf War and increased competition from low-cost carriers led to losses in 1991 and 1992. In 1994, United’s pilots, machinists, bag handlers and non-contract employees agreed to an Employee Stock Ownership Plan (ESOP), acquiring 55% of company stock in exchange for 15–25% salary concessions, making the carrier the largest employee-owned corporation in the world. The airline also launched a low-cost subsidiary in 1994, Shuttle by United a high frequency, west coast-based operation, in an attempt to compete with low-cost carriers; the branch remained in service until 2001.
The “Tulip” was the United Airlines logo from 1973 to 2010
In 1995, United became the first airline to introduce the Boeing 777 in commercial service. In 1997, United co-founded the Star Alliance airline partnership. In May 2000, United announced a controversial plan to acquire US Airways for US$11.6 billion but withdrew the offer in July 2001 before the United States Department of Justice barred the merger on antitrust grounds due to widespread objection from employee unions, customers, and political leaders.