Empire Airlines (1976–1985)

Empire Airlines was a small U.S. airline centered on New York State that grew from a local turboprop operator into a significant regional jet carrier during the early years of airline deregulation. It was founded by Paul Quackenbush and initially operated from Oneida County Airport, which served the Utica–Rome area. The company was incorporated as Oneida County Aviation, Inc., later doing business as Empire Airlines, and obtained its Civil Aeronautics Board certificate in October 1979. Empire emerged at a favorable but highly competitive moment. The deregulation of U.S. airline markets encouraged established carriers to withdraw from marginal or short-haul routes, particularly in Upstate New York. Empire moved into some of the markets left behind by Allegheny Airlines and later benefited from American Airlines' retreat from several short-haul New York routes after the 1981 air traffic controller strike. Unlike many small entrants, Empire quickly committed to jet equipment. It ordered Fokker F28-4000 aircraft while still operating a modest fleet of Swearingen Metros and Piper Navajos, placing its first F28 into service in September 1980. The airline used repeated equity offerings and other capital-market financing to support fleet growth and network expansion. Its route structure eventually linked much of New York State with nearby U.S. cities, including Boston, Hartford, Newark, Baltimore, Cleveland and Washington, D.C. Empire also served Ottawa and Montreal in Canada. Syracuse became its principal hub, and the company moved its headquarters there in 1985 as the airport's importance increased. By the end of that year, Empire operated 15 Fokker F28 jets and had retired its five Metro turboprops. Empire differentiated itself through cooperation with larger airlines as well as through direct competition. Its relationship with Pan Am, marketed as Empire Pan Am Express, began with through-ticketing and frequent-flyer cooperation in December 1982 and developed into code sharing in 1983. The arrangement gave Empire access to connecting international traffic at New York Kennedy Airport and was later cited by Robert Crandall, the former chief executive of American Airlines, as an early example of international airline code sharing. Empire also participated in connecting-ticket arrangements with Northwest Airlines. The company remained profitable or approximately break-even through an unsettled period marked by fare competition, rapid capacity growth and the failure of several other new-entrant airlines. Its annual revenue reached approximately $90 million before the sale process. Empire received industry recognition when Air Transport World named it Regional Airline of the Year for 1984. Nevertheless, it faced large and well-funded competitors, including USAir, People Express and New York Air, as well as turboprop operators such as Brockway Air. In October 1985, Piedmont Airlines agreed to acquire Empire. Piedmont was attracted by Empire's New York network, its presence at airports such as LaGuardia and Boston Logan, and its compatible F28 fleet. The purchase closed on February 1, 1986. Empire operated as a Piedmont subsidiary for several months and merged into Piedmont on May 1, 1986. Piedmont later became part of USAir, which eventually became part of American Airlines. Empire is remembered as an unusually independent regional carrier that used jets, its own brand and interline partnerships to build a substantial network before consolidation transformed the U.S. airline industry.

Empire's corporate origins went back to Oneida County Aviation, Inc., a fixed-base operator established in the Utica–Rome area in the mid-1970s. Paul Quackenbush provided the initial backing, and additional private offerings in 1976 and 1977 expanded the company's capital. The business first operated under the less demanding Part 298 framework before pursuing full scheduled-airline authority. The Civil Aeronautics Board issued its certificate on October 13, 1979, by which point the company was operating under the Empire Airlines name. The new carrier took advantage of the market disruption created by deregulation. Legacy airlines reduced service on some Upstate New York routes, leaving cities such as Utica, Syracuse, Buffalo and Rochester available to smaller competitors. Empire initially used Swearingen Metro turboprops and Piper Navajos, but it pursued a more ambitious strategy than many local operators. It ordered two Fokker F28-4000 jets and introduced the first in September 1980. A public offering that year provided additional financial support for the transition. During the early 1980s, Empire expanded its route system while larger airlines were also reshaping their networks. American Airlines' withdrawal from several short-haul Upstate New York markets after the 1981 air traffic controller strike created further openings. Empire added F28s steadily and supplemented its original fleet with aircraft acquired from the failed Altair Airlines. By the end of 1985, the fleet had reached 15 F28 jets, while the five Metro turboprops had been retired. Syracuse became the center of the airline's operation. The final network covered 20 cities, including 11 in New York State, a group of adjacent U.S. markets and Ottawa and Montreal. Some routes connected through Syracuse, while others linked cities such as Buffalo or Rochester directly with New York or Boston. The airline's product was unusual for its time: it was classified as regional, but its 80-seat F28s offered a cabin and operating profile closer to a small mainline jet than to the commuter aircraft increasingly used by major airlines. Empire also pursued partnerships to overcome its limited scale. Cooperation with Pan Am began in December 1982 and included through-ticketing and frequent-flyer participation. Code sharing followed in 1983, allowing Empire to feed and receive traffic at Kennedy Airport. The partnership, known as Empire Pan Am Express, was an important commercial distinction and an early example of the international code-sharing model. Empire also worked with Northwest on connecting itineraries. The airline's growth was financed through repeated equity offerings, and it avoided the collapse that affected many other start-up carriers of the deregulation era. It competed against USAir and aggressive entrants such as People Express and New York Air, while also facing smaller turboprop rivals. Air Transport World named Empire its 1984 Regional Airline of the Year, a notable recognition for a carrier of its size. Empire's independent existence ended as industry consolidation accelerated. In the summer of 1985 it moved its headquarters to Syracuse and announced plans to become an all-jet airline. Piedmont Airlines agreed to acquire the company in October. The transaction closed on February 1, 1986, after which Empire continued briefly as a separate subsidiary. On May 1, 1986, it was merged into Piedmont. Piedmont itself was later acquired by USAir, and the successor company ultimately became part of American Airlines. The former Empire network and identity were gradually absorbed, but the airline remains an example of a small carrier that achieved meaningful scale and industry recognition without immediately affiliating with a major airline.

• 1986

  Empire is absorbed into Piedmont

  [1]Empire Airlines (1974–1986)en.wikipedia.org

  Piedmont completed the acquisition in February, and Empire merged into Piedmont on May 1.

• 1985

  Final expansion and sale agreement

  [1]Empire Airlines (1974–1986)en.wikipedia.org

  Empire moved its headquarters to Syracuse, completed its transition toward an all-jet fleet and agreed to be acquired by Piedmont Airlines.

• 1984

  Industry recognition

  [1]Empire Airlines (1974–1986)en.wikipedia.org

  Empire was recognized by Air Transport World as Regional Airline of the Year for 1984.

• 1983

  Pan Am code sharing begins

  [1]Empire Airlines (1974–1986)en.wikipedia.org

  The Pan Am relationship expanded into code sharing, strengthening Empire's access to international connecting traffic.

• 1982

  Pan Am cooperation begins

  [1]Empire Airlines (1974–1986)en.wikipedia.org

  Empire launched through-ticketing and related cooperation with Pan Am under the Empire Pan Am Express identity.

• 1980

  First Fokker F28 enters service

  [1]Empire Airlines (1974–1986)en.wikipedia.org

  Empire introduced F28 jet service between Utica and New York, beginning a major fleet and business-model transition.

• 1979

  Civil Aeronautics Board certification

  [1]Empire Airlines (1974–1986)en.wikipedia.org

  Empire received scheduled-airline certification for a network centered on Utica and extending to New York, New England, the Mid-Atlantic and Buffalo.

• 1976

  Empire begins early commercial development

  [1]Empire Airlines (1974–1986)en.wikipedia.org

  The company raised additional private capital and developed its airline operation under the Empire name.

• 1974

  Corporate predecessor is established

  [1]Empire Airlines (1974–1986)en.wikipedia.org

  Oneida County Aviation, Inc. was incorporated as a fixed-base operator serving the Utica–Rome area.

An independent, New York-focused regional airline combining mainline-style jet service with a geographically dense Upstate New York network and partnerships with larger international carriers.

• Regional jet transportation · 1980

  Fokker F28-4000 passenger service

  Empire's principal passenger product was scheduled service on 80-seat Fokker F28-4000 jets. The aircraft enabled the airline to compete more directly with larger carriers on short- and medium-haul routes while offering a cabin experience closer to a small mainline jet than to a conventional commuter aircraft. The fleet grew from two aircraft in 1980 to 15 by the end of 1985.

• Turboprop passenger transportation · 1976

  Swearingen Metro service

  Swearingen Metro turboprops supported Empire's early operations and helped connect smaller communities before the airline's jet transition. Empire operated five Metros during the early 1980s and retired them as it moved to an all-jet fleet at the end of 1985.

• Interline and code-share service · 1982

  Empire Pan Am Express

  Empire Pan Am Express was the commercial identity used for Empire's cooperation with Pan Am. The arrangement supported through-ticketing, reciprocal boarding-pass processing, frequent-flyer participation and later code sharing. It allowed a small regional carrier to connect its New York and Northeast network with Pan Am's international operations.

• 1985

  Headquarters relocation and all-jet transitionStrategy

  Background

  Syracuse had become Empire's principal operating center, with a substantial number of daily departures.

  Action taken

  Empire moved its headquarters from Utica to Syracuse, ordered additional F28s and retired its Metro turboprops.

  Aftermath

  The changes strengthened the Syracuse hub but preceded the company's sale to Piedmont later that year.

  Source

• 1985

  Sale to Piedmont AirlinesM&A

  Background

  Piedmont sought faster expansion in New York State and valued Empire's network, airport positions and compatible F28 fleet.

  Action taken

  Piedmont agreed to acquire Empire, with the transaction closing on February 1, 1986.

  Aftermath

  Empire operated briefly as a subsidiary before merging into Piedmont on May 1, 1986.

  Reported transaction cost. Approximately $42 million (1985–1986 acquisition)

  Source

• 1982

  Pan Am partnershipStrategy

  Background

  Empire needed to increase traffic and broaden its appeal beyond the limits of its own regional network.

  Action taken

  It established through-ticketing and other commercial cooperation with Pan Am, followed by code sharing in 1983.

  Aftermath

  The partnership generated connecting traffic through Kennedy Airport and helped establish Empire as an innovative independent carrier.

  Source

• 1980

  Commitment to Fokker F28 jetsProduct launch

  Background

  Empire was competing with numerous turboprop operators serving routes abandoned or reduced by larger airlines after deregulation.

  Action taken

  The airline ordered Fokker F28-4000 aircraft and introduced its first jet on the Utica–New York route.

  Aftermath

  The decision differentiated Empire from many small competitors and became the foundation of its later all-jet network.

  Source

1. 1Empire Airlines (1974–1986)en.wikipedia.org