Another local carrier, North Central Airlines, wanted to absorb Lake Central through merger and signed an agreement to do so. But North Central itself was in such bad financial shape that it could not meet the down payment.
The TWA cities – plus a few more – were added to the company’s route map by the CAB. Ten new airports were now served by LCA, and the network stretched from Chicago eastward to Pittsburgh and Cleveland. More personnel were hired, and service was inaugurated over the new routes in just 45 days. Lake Central claimed to have set a record for an airline doubling its size in such a short period of time. The carrier also adopted a new slogan: “Serving the Industrial Heart of the Nation”.
The airline’s employees, frustrated by the fact that the company’s ownership was locked in a trust, wanted to guarantee themselves a more secure future. A payroll deduction plan was implemented whereby the company’s own workers would purchase the 80,000+ shares of Lake Central at $1.00 per share. North Central Airlines fought the plan, claiming that Lake Central was promised to them but, after years of legal battles, the courts ruled in favor of the employees in 1959. The airline now belonged to them.
Meanwhile, a new slogan had been adopted: “America’s Only Employee-Owned Airline”.
A BIG BOOST FOR AN UNDERDOG AIRLINE
Lake Central struggled during the 1950s, operating without much outside investment. Permanent certification had come in 1955, which was a blessing, and the company’s personnel worked very hard to keep costs down. With a small fleet of DC-3s, and a good route structure that served the industrial heartland, the company saw load factors rise year-over-year.
In 1960, the CAB gave the airline the big boost that it needed. Lake Central was awarded new routes that once again doubled its mileage, this time from 2,175 to 4,309. Fourteen new airports were added to the system and 450 new employees were hired.
More second-hand DC-3s were purchased, and a larger aircraft type was added to the company’s inventory. Lake Central acquired five 44-passenger Convair 340s that were being retired from the United Air Lines fleet. The Convairs would serve LCA’s busier routes.
The early 1960s were good years for Lake Central. The airline advertised the fact that it served ‘Main Street USA’, connecting small cities with larger urban areas on a network that now stretched from Chicago to Washington, DC, and Baltimore. Lake Central served every city in Ohio that was certificated for air service, and most in Indiana.
The backbone of local airline fleets was the Douglas DC-3. These aging airliners had been passed down to the locals after having served with major airlines. They had exhibited the best economics in the industry, but now they were becoming expensive to maintain and it was time for them to be retire
For years, industry pundits had debated the qualities of a perfect DC-3 replacement. Aircraft manufacturers could not design an affordable airplane with just the right specifications… until the French introduced a new type.
