Before Donald Trump became President, he was a prominent business mogul who invested in hundreds of different ventures. However, for every ‘Apprentice,’ hotel, and golf course, there were unsuccessful endeavors like the United States Football League (USFL), cologne, and even an airline.
‘Trump Shuttle’ lasted only four years before Trump sold the airline and exited the air travel game. Here’s the story of Trump Shuttle.
Failing Airline Seeks Help from Donald Trump
The Trump Shuttle originated from the Eastern Air Lines Shuttle (EALS), which launched on 30 April 1961. The airline marketed itself as a no-frills travel option for businessmen and government workers, offering quick, hourly flights to New York City, Washington D.C., Boston, and Newark.
EALS’ parent company, Texas Air Corporation (TAC), faced financial hardships in the late 80s and was losing business to Pan Am. Despite EALS being profitable, TAC’s chairman, Frank Lorenzo, wanted to sell the airline to recoup losses. Lorenzo tried to find a new owner multiple times before meeting Trump at a party. He was successful at convincing Trump to buy the airline.
Trump purchased EALS in October 1988, and the deal made national headlines. However, the deal wasn’t finalized, and many events took place during the transition process.
In March 1989, Eastern Air Lines filed for Chapter 11 bankruptcy, prompting Donald Trump to offer the airline a lower price. Eastern included its entire Boeing 727 fleet in the deal, and the two parties finalized the agreement.
The bankruptcy court approved the sale of Eastern Air Lines Shuttle and its fleet to Trump for $365 million. Trump gained full control of the airline on 7 June 1989.
The Airline Fit for a Trump
Following the closure of the sale, Trump announced that EALS would be renamed Trump Shuttle. The airline would also no longer be a no-frills airline but a luxury airline with hourly service.
Trump had each Boeing’s cabin overhauled with maple wood decor and gold restroom fixtures. Despite the short distances, the airline also offered complimentary meals and alcohol.
The airline, however, was among those leading the pack when it came to technology. Trump Shuttle was one of the first airlines to offer self-service check-in stations. Customers could also rent laptops on board flights, which was ideal for those who wanted to continue working during travel.
Trump Shuttle also axed Newark as a destination, opting instead to operate routes between New York and Boston and New York and Washington.
In its first few months, Trump Shuttle attracted a lot of travelers and found decent success. However, outside factors caused the airline’s momentum to turn quickly.
Trump Shuttle Takes a Dive
Passenger traffic dropped later in 1989 due to the financial crisis that year. To add insult to injury, the Iraqi invasion of Kuwait the following year caused fuel prices to soar, which, in turn, caused fares to skyrocket. During these challenging times, passengers opted to fly with Pan Am’s shuttle thanks to its lower fares.
In September 1990, Trump Shuttle lost over $128 million and defaulted on loans due to rising maintenance costs and a lack of interest. As a response, Trump lightened the airline’s schedule and looked for other ways to profit from it, such as offering charter flights and military flights arranged with the George H.W. Bush Administration.
Trump, however, was looking to sell the airline, and in December 1991, he found his buyer in USAir. Trump, along with Citigroup, put together a deal in which USAir would operate Trump Shuttle for ten years with the option to buy Trump Shuttle outright after five.
On 7 April 1992, USAir officially took over Trump Shuttle. Five days later, USAir rebranded Trump’s airline to USAir Shuttle. USAir would operate this shuttle service and restore its no-frills nature for affordability.
On 17 October 2015, USAir, now rebranded as US Airways, sold this airline to American Airlines (AA), which later became ‘American Airlines Shuttle.’ AA closed the airline down a year into the COVID-19 pandemic.
Today, Delta Air Lines is the only US airline that runs a shuttle service called ‘Delta Shuttle.’ The shuttle flies to and from New York, Boston, Washington, and Chicago.
