Texas Air Corporation

American company

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July 23, 2026

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Texas Air Corporation was an American airline holding company that, during the 1980s, acquired several other airlines, including Continental Airlines and Eastern Air Lines. The company's leadership, particularly Frank Lorenzo, was marked by conflicts with airline unions and significant financial difficulties. Despite attempts at reorganization and mergers, including absorbing People Express Airlines and Presidential Airlines into Continental, Texas Air Corporation-controlled airlines continued to struggle with debt and operational issues. Eastern Air Lines was eventually liquidated in 1991, and Continental Airlines ceased operations under its own name in 2012 after merging with United Airlines.12

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Continental Airlines, Inc.
…it was taken over by Texas Air Corporation. The merger incurred heavy debt, and, after bankruptcy proceedings (1983) and reorganization, Continental reduced services by two-thirds. In 1987 other Texas Air subsidiaries—New York Airlines, Inc. (founded 1980), People Express Airlines (1981), and Presidential Airlines (1985)—were merged into Continental Airlines, significantly increasing…
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…it was taken over by Texas Air Corporation. The merger incurred heavy debt, and, after bankruptcy proceedings (1983) and reorganization, Continental reduced services by two-thirds. In 1987 other Texas Air subsidiaries—New York Airlines, Inc. (founded 1980), People Express Airlines (1981), and Presidential Airlines (1985)—were merged into Continental Airlines, significantly increasing…
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Eastern Air Lines, Inc.
…airline was taken over by Texas Air Corporation. Mismanagement continued, and in 1989 Eastern’s profitable northeastern shuttle service was sold, a series of large-scale union strikes began, and the company went into bankruptcy. In 1990 a U.S. federal bankruptcy court removed control from Texas Air and appointed a trustee to…
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…airline was taken over by Texas Air Corporation. Mismanagement continued, and in 1989 Eastern’s profitable northeastern shuttle service was sold, a series of large-scale union strikes began, and the company went into bankruptcy. In 1990 a U.S. federal bankruptcy court removed control from Texas Air and appointed a trustee to…
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