Territorial Airline Development in the US Market
The standard Trunk (and later Local Service) airlines were only active within the lower-48 States, indeed in the late 1930s there were only 48 States. Air operations in the territorial possessions of the United States, principally the Hawaiian islands and Alaska, were also regulated however.
Hawaii was largely cut off from outside influence for most of the regulated era, save for Pan Am services, until the late 1960s several of the major trunk airlines acquired routes to the islands. Within the islands themselves Hawaiian Airlines and Aloha Airlines competed vigorously within the inter-island market. As with elsewhere the deregulated market introduced much volatility and both of the incumbents had to fight off competition from a third airline (Mid-Pacific in the 1980s) as well as survive their forays into international service (Aloha Pacific very briefly in 1984/85 and Hawaiian's South Pacific hub in the mid-late 80s). As smaller long-haul capable types became available both airlines were able to start expanding their Hawaii-US services again. The creation of the Mesa Air subsidiary 'Go' however proved too much for Aloha which folded in 2008. Subsidised by its parent, Go could fight a rather cynical battle in which it could afford to lose money. Hawaiian has however grown into a major air carrier for the islands having survived bankruptcy in the 1990s.
Alaska had for many years extensive bush-flying operations flown by a myriad of small air carriers. The primary airlines of the territory were Pacific Northern (PNA) and Alaska Airlines itself. The latter was very much the former's poor cousin for most of the 1950s and 60s until PNA was sold to Western Airlines (see the Delta Air Lines genealogy). Despite several acqusitions Alaska Airlines itself was still in a rather perilous state in the early 1970s but unlike so many other airlines (including its former ally and later rival Markair) deregulation led to a wonderful flowering of the airline and expansion into the lower-48. With a major hub at Seattle and extensive operations in California Alaska Airlines is nowadays firmly enplanted as a major airline on the previously closed to it Western seaboard of the USA. Rather oddly it also has major operations to Mexican destinations, which is an odd place to be finding smiling eskimos! Regardless Alaska Airlines is perhaps the biggest success story of deregulation after Southwest Airlines.
Hawaii was largely cut off from outside influence for most of the regulated era, save for Pan Am services, until the late 1960s several of the major trunk airlines acquired routes to the islands. Within the islands themselves Hawaiian Airlines and Aloha Airlines competed vigorously within the inter-island market. As with elsewhere the deregulated market introduced much volatility and both of the incumbents had to fight off competition from a third airline (Mid-Pacific in the 1980s) as well as survive their forays into international service (Aloha Pacific very briefly in 1984/85 and Hawaiian's South Pacific hub in the mid-late 80s). As smaller long-haul capable types became available both airlines were able to start expanding their Hawaii-US services again. The creation of the Mesa Air subsidiary 'Go' however proved too much for Aloha which folded in 2008. Subsidised by its parent, Go could fight a rather cynical battle in which it could afford to lose money. Hawaiian has however grown into a major air carrier for the islands having survived bankruptcy in the 1990s.
Alaska had for many years extensive bush-flying operations flown by a myriad of small air carriers. The primary airlines of the territory were Pacific Northern (PNA) and Alaska Airlines itself. The latter was very much the former's poor cousin for most of the 1950s and 60s until PNA was sold to Western Airlines (see the Delta Air Lines genealogy). Despite several acqusitions Alaska Airlines itself was still in a rather perilous state in the early 1970s but unlike so many other airlines (including its former ally and later rival Markair) deregulation led to a wonderful flowering of the airline and expansion into the lower-48. With a major hub at Seattle and extensive operations in California Alaska Airlines is nowadays firmly enplanted as a major airline on the previously closed to it Western seaboard of the USA. Rather oddly it also has major operations to Mexican destinations, which is an odd place to be finding smiling eskimos! Regardless Alaska Airlines is perhaps the biggest success story of deregulation after Southwest Airlines.
