Friday, Jun. 09, 1961
New Giant
With the filing of papers in Delaware last week, the first major jet-age airline merger became official. Out of the marriage of United and Capital Airlines emerged a beefed-up United, newly established as the world's largest airline.*
United medallions appeared on Capital stewardess uniforms, and Capital planes were repainted United's white with red and blue trim. Capital (and the Civil Aeronautics Board) accepted Capital's disappearance because there was no reasonable alternative; its incautious purchase of 60 turboprop Viscounts seven years ago had helped push Capital to the verge of bankruptcy. But for Hawaiian-born William ("Pat") Patterson, 61, United's president, the deal had more positive appeal. Capital's routes, running chiefly in the Southeast with extensions to the Midwest, neatly complement United's transcontinental and West Coast runs. Because of the nature of its runs, United has traditionally suffered a dip in revenue and equipment use during the winter months; hereafter it will be able to take up that slack by toting some of the Florida-bound Midwesterners whom Capital ferried by droves in the winter.
United has CAB permission to drop eight cities on Capital's unprofitable short-haul runs. The new giant will serve 117 cities, spread across the U.S. in a rough H. To handle this 18,000-mile network in streamlined fashion. United al ready has on order 20 twin-jet French Caravelles, 40 Boeing 727s, six more DC-8s and eleven more Boeing 720s. These, plus Capital's Viscounts, will give United the biggest jet fleet in the nation.
* In 1960, United and Capital between them ran up 7.3 billion passenger revenue miles v. American Airlines' 6.4 billion. Largest foreign carrier: Air France, with 2.7 billion.
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