This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

United Dominates Newark, Thanks to People Express

NEWARK, N.J. ( TheStreet) -- Twenty-five years ago Wednesday, Continental's move to Terminal C at Newark Airport marked the start of a new life for an old airport, which went from being the New York region's No. 3 airport to being its biggest hub.

Today United (UAL - Get Report), which merged with Continental in 2010, offers more than 400 daily Newark departures to more than 150 destinations. United is celebrating a departure to Denver at 6:15 a.m. on May 22, 1988, the first flight from Terminal C. Aviation consultant Bob Mann said United wants to remind people of its presence before Friday, when Delta (DAL - Get Report) celebrates the opening of its new $1.4 billion terminal at John F. Kennedy International Airport.

At one time, JFK was home to Pan Am and TWA and had the vast majority of New York's international flights. LaGuardia was dominated by Eastern and Newark was home to People Express. The balance between airports began to change with the 1988 move, which was overseen by Bruce Nobles, then senior vice president of customer service for Continental.

"The operation was much smoother in the new terminal," recalled Nobles, now a Dallas aviation consultant. "The move allowed Continental to significantly increase the size of its operation in Newark and to challenge JFK and LaGuardia as significant New York airports.

"Terminal C was a well-designed new terminal with better baggage systems, better automation for the agents' terminals, more gates and more lounge space and (much shorter) walking distances," Nobles said. "The move allowed us to build up the hub activity."

In 1986, Continental, then run by Frank Lorenzo, had acquired People Express. The acquisition meant that "all of a sudden, Continental had 200 daily departures from Newark," recalled Bob McAdoo, who was chief financial officer of People Express. People Express operated a hub, connecting 20% to 30% of its passengers, some of whom flew to Europe on Boeing 747s.

The carrier, which began in 1981 -- McAdoo was the third employee -- had been based in Newark Airport's north terminal. The airport had started work on new terminal A, B and C in the late 1960s, but abandoned work on C, after finishing the shell of the building, because of a lack of potential occupants. Then People Express "started growing like crazy," McAdoo recalled. "We were running out of space. We signed up for them to finish Terminal C, but before it was complete Continental bought People Express and when C opened it was for Continental.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
LCC $0.00 0.00%
DAL $41.24 0.29%
UAL $53.81 1.90%
AAPL $125.50 0.78%
FB $86.22 0.49%

Markets

DOW 17,646.37 +50.02 0.28%
S&P 500 2,064.43 +6.79 0.33%
NASDAQ 4,982.60 +24.1320 0.49%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs