Braniff International Airlines, Inc. was a low-fare airline formed in 1991 from the assets of two earlier airlines that used the Braniff name. It was headquartered in the

Dallas Dallas () is the List of municipalities in Texas, third largest city in Texas and the largest city in the Dallas–Fort Worth metroplex, the List of metropolitan statistical areas, fourth-largest metropolitan area in the United States at 7.5 ...

Texas Texas (, ; Spanish language, Spanish: ''Texas'', ''Tejas'') is a state in the South Central United States, South Central region of the United States. At 268,596 square miles (695,662 km2), and with more than 29.1 million residents in 2 ...

, area and owned by BNAir, Inc., a subsidiary of BIA-COR Holdings Inc., a Philadelphia investment group, formed by Paine Weber Group, and subsequent airline holding company. The airline is popularly identified as Braniff III to differentiate it from its predecessors. The airline started flights on 1 July 1991 and filed for bankruptcy less than two months later, but was able to secure sufficient funding to continue operating until 2 July 1992, when it shut down permanently amidst an investigation into misconduct by its corporate officers.

History

Formation from Braniff Inc. assets

In 1990,

Jeffrey Chodorow Jeffrey R. Chodorow (born March 2, 1950) is an American actor restaurateur, lawyer and financier. Early life and education Jeffrey Chodorow was born in the Bronx, but his father died the year he was born, so he and his mother moved to Miami, ...

, Arthur Cohen, and Scot Spencer formed BNAir Inc., a vehicle specifically used to purchase the assets of Braniff Inc. from three bankruptcy auctions. With these assets, the group formed Braniff International Airlines, Inc. which itself was formed from the assets of

Braniff International Airways Braniff Airways, Inc., operated as Braniff International Airways from 1948 until 1965, and then Braniff International from 1965 until air operations ceased, was an airline in the United States that once flew air carrier operations from 1928 un ...

.Norwood, Tom W. ''Braniff Airways''. Deregulation Knockouts: Round One, p.89. Retrieved on January 23, 2011. The new airline did not possess a

United States Department of Transportation The United States Department of Transportation (USDOT or DOT) is one of the executive departments of the U.S. federal government. It is headed by the secretary of transportation, who reports directly to the President of the United States and ...

(USDOT)

air operator's certificate An air operator's certificate (AOC) is the approval granted by a civil aviation authority (CAA) to an aircraft operator to allow it to use aircraft for commercial purposes. This requires the operator to have personnel, assets, and system in pla ...

and was scrutinized intensely by the USDOT, which made it clear in January 1990 that they did not believe that Braniff's management team, headed by Scot Spencer, was capable of conducting airline operations, based on Spencer's conduct while employed with Braniff Inc. and his criminal history. Spencer had helped orchestrate the 1988 sale of Braniff Inc. to BIA-COR but was subsequently ousted from a consultancy at Braniff Inc. due to persistent conflicts: he was accused of meddling in Braniff management decisions despite lacking formal authority to do so, of antagonizing Braniff's tour wholesaler, and of arranging aircraft leases that were unfavorable to the airline. Braniff Inc. employees reportedly held him in "total contempt." Spencer also resigned from a consultancy for BIA-COR Holdings Inc., reportedly due to concerns about his repeated arrests for writing bad checks and an

arrest warrant An arrest warrant is a warrant issued by a judge or magistrate on behalf of the state, which authorizes the arrest and detention of an individual, or the search and seizure of an individual's property. Canada Arrest warrants are issued by a j ...

for having failed to return a rental car in 1988. In May 1990, Spencer was arrested under the rental car warrant while attending a Braniff Inc. equipment liquidation sale, but he was released after posting a $1,000 bond; Spencer denied that the arrest had taken place and attributed the charges to a "misunderstanding." In September 1990, Braniff International Airlines, Inc. initiated the acquisition of the assets of bankrupt

Austin Austin is the capital city of the U.S. state of Texas, as well as the seat and largest city of Travis County, with portions extending into Hays and Williamson counties. Incorporated on December 27, 1839, it is the 11th-most-populous city ...

, Texas

air charter Air charter is the business of renting an entire aircraft (i.e., chartering) as opposed to individual aircraft seats (i.e., purchasing a airline ticket, ticket through a traditional airline). Regulation Charter – also called air taxi or ad h ...

company Emerald Air, including its air operator's certificate, four McDonnell Douglas DC-9-10, a maintenance hangar at

Houston Intercontinental Airport George Bush Intercontinental Airport is an international airport in Houston, Texas, United States, serving the Greater Houston metropolitan area. Located about north of Downtown Houston between Interstate 45 and Interstate 69/U.S. Highway 59 ...

, and its inventory of spare aircraft parts. Braniff merged with Emerald and sought to fly under that carrier's operating certificate, but the USDOT still refused to permit Braniff to begin flights unless the principals of the new airline signed sworn affidavits stating that Spencer would not be involved in any capacity at the carrier. Spencer, Chodorow, and Cohen submitted affidavits in May 1991 stating that Spencer would have no connection nor hold any position with Braniff nor Emerald in any capacity, directly or indirectly. Spencer personally promised not to make any decisions for the airline or direct any of its employees, including consulting or advising. This satisfied the USDOT and the airline was granted permission to start flights.

Operations begin

On 1 July 1991, Braniff International commenced scheduled airline operations. At this time, the Braniff fleet consisted of eight leased aircraft, including five

Boeing 727 The Boeing 727 is an American narrow-body airliner that was developed and produced by Boeing Commercial Airplanes. After the heavy 707 quad-jet was introduced in 1958, Boeing addressed the demand for shorter flight lengths from smaller airpo ...

s and three

DC-9 The McDonnell Douglas DC-9 is an American five-abreast single-aisle aircraft designed by the Douglas Aircraft Company. It was initially produced by the developer company as the Douglas DC-9 until August 1967 and then by McDonnell Douglas. After ...

s. However, on 16 July 1991, Braniff abruptly ended service to

Los Angeles International Airport Los Angeles International Airport , commonly referred to as LAX (with each letter pronounced individually), is the primary international airport serving Los Angeles, California and its surrounding metropolitan area. LAX is located in the W ...

(LAX), citing an unexplained failure to secure "proper, permanent passenger handling facilities" at LAX: the airline did not have access to a

gate A gate or gateway is a point of entry to or from a space enclosed by walls. The word derived from old Norse "gat" meaning road or path; But other terms include ''yett and port''. The concept originally referred to the gap or hole in the wall ...

or a ticket counter, causing arriving passengers to have trouble finding and boarding their flights. Braniff CEO Gregory Dix attributed the problems to "a lack of cooperation" by LAX officials—an allegation dismissed by the Los Angeles director of airport operations as "simply untrue." On 7 August 1991, Braniff International filed for

Chapter 11 bankruptcy Chapter 11 of the United States Bankruptcy Code (Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, whe ...

, a mere 37 days after starting service. This was attributed to the loss of a charter contract with an unnamed Canadian tour company and the cancellation of the LAX service. On 12 September 1991, Braniff withdrew from

Dallas/Fort Worth International Airport Dallas/Fort Worth International Airport , also known as DFW Airport, is the primary international airport serving the Dallas–Fort Worth metroplex and the North Texas Region in the U.S. state of Texas. It is the largest hub for American Air ...

(DFW), citing the LAX dispute and problems with an aircraft lessor. Dix resigned the next day and was replaced by Jeffrey Chodorow. Although still operating under bankruptcy protection, Chodorow announced on 4 December 1991 that the airline had secured sufficient funding to return to DFW, with an ambitious flight schedule to start on 15 January 1992.

Operations end

On Thursday, 2 July 1992, Braniff abruptly ceased operations two days before the busy

Fourth of July Independence Day (colloquially the Fourth of July) is a federal holiday in the United States commemorating the Declaration of Independence, which was ratified by the Second Continental Congress on July 4, 1776, establishing the United States ...

holiday weekend, citing declining revenues caused by an ongoing

fare war A fare is the fee paid by a passenger for use of a public transport system: rail, bus, taxi, etc. In the case of air transport, the term airfare is often used. Fare structure is the system set up to determine how much is to be paid by various pas ...

with other airlines. The airline immediately went into

Chapter 7 liquidation Chapter 7 of Title 11 of the United States Code (Bankruptcy Code) governs the process of liquidation under the bankruptcy laws of the United States, in contrast to Chapters 11 and 13, which govern the process of ''reorganization'' of a debto ...

. Braniff became the fourth airline in 18 months to cease operations and joined

Eastern Airlines Eastern Air Lines, also colloquially known as Eastern, was a major United States airline from 1926 to 1991. Before its dissolution, it was headquartered at Miami International Airport in an unincorporated area of Miami-Dade County, Florida. Ea ...

Pan American World Airways Pan American World Airways, originally founded as Pan American Airways and commonly known as Pan Am, was an American airline that was the principal and largest international air carrier and unofficial overseas flag carrier of the United States ...

, and Midway Airlines in bankruptcy. Thousands of Braniff customers were left stranded and limited help was offered by other airlines. Braniff encouraged passengers with confirmed tickets to contact their credit card companies for refunds. An announcement was made the following Tuesday, 7 July 1992, that the beleaguered carrier might refund tickets that were paid for with cash or checks.

Continental Airlines Continental Airlines, simply known as Continental, was a major United States airline founded in 1934 and eventually headquartered in Houston, Texas. It had ownership interests and brand partnerships with several carriers. Continental started o ...

and

United Airlines United Airlines, Inc. (commonly referred to as United), is a major American airline headquartered at the Willis Tower in Chicago, Illinois.

waived their standard 14-day advance purchase requirement for Braniff ticket holders.

America West America West Airlines was a major American airline, founded in 1981, with service commencing in 1983, and having reached US$1 billion in annual revenue in 1989, headquartered in Tempe, Arizona. At the time of its acquisition of US Airways, Americ ...

offered to fly Braniff's customers on a standby basis for US$75.

American Airlines American Airlines is a major airlines of the United States, major US-based airline headquartered in Fort Worth, Texas, within the Dallas–Fort Worth metroplex. It is the Largest airlines in the world, largest airline in the world when measured ...

and

Delta Air Lines Delta Air Lines, Inc., typically referred to as Delta, is one of the major airlines of the United States and a legacy carrier. One of the List of airlines by foundation date, world's oldest airlines in operation, Delta is headquartered in Atla ...

did not offer assistance and announced that they would not take Braniff tickets. Braniff management cited intense competition and fare wars initiated by

Northwest Airlines Northwest Airlines Corp. (NWA) was a major American airline founded in 1926 and absorbed into Delta Air Lines, Inc. by a merger. The merger, approved on October 29, 2008, made Delta the largest airline in the world until the American Airlines ...

and American as key reasons for the unannounced shutdown. Buying tickets on Braniff required calling the airline or visiting a ticket counter as the carrier was not part of a large airline reservation system. Because of this tickets could not be purchased at travel agencies. Three other airlines were reorganizing under bankruptcy protection when Braniff ceased operations and included America West, Continental and Trans World Airlines. A nationwide recession exacerbated Braniff's as well as other carrier's financial problems.

Principals indicted for fraud

In early 1992, the

Federal Aviation Administration The Federal Aviation Administration (FAA) is the largest transportation agency of the U.S. government and regulates all aspects of civil aviation in the country as well as over surrounding international waters. Its powers include air traffic m ...

(FAA) and USDOT were informed that Spencer was secretly being paid by Braniff, and that the airline's corporate officers were engaging in a

money laundering Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdictions ...

scheme designed to conceal this from the airline's creditors, the bankruptcy court, and the USDOT, which had secured the earlier affidavits promising Spencer's non-involvement in the company's corporate affairs. Chodorow submitted another affidavit claiming that the pledges made in the May 1991 affidavits had not been violated. Investigators eventually determined that Spencer had been "heavily involved" in the operations of the airline, and had been paid $351,411 in secret

kickbacks A kickback is a form of negotiated bribery in which a commission is paid to the bribe-taker in exchange for services rendered. Generally speaking, the remuneration (money, goods, or services handed over) is negotiated ahead of time. The kickback ...

from commissions paid to an

advertising agency An advertising agency, often referred to as a creative agency or an ad agency, is a business dedicated to creating, planning, and handling advertising and sometimes other forms of promotion and marketing for its clients. An ad agency is generally ...

, whose owner was granted

immunity Immunity may refer to: Medicine * Immunity (medical), resistance of an organism to infection or disease * ''Immunity'' (journal), a scientific journal published by Cell Press Biology * Immune system Engineering * Radiofrequence immunity desc ...

in return for his testimony against Spencer. On 19 July 1994, Jeffrey Chodorow and Scot Spencer were indicted for

bankruptcy fraud Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...

, fraudulently concealing the bankrupt airline's property from creditors, defrauding the USDOT during the airline's certification, and obstructing a pending proceeding of the agency. In a

plea bargain A plea bargain (also plea agreement or plea deal) is an agreement in criminal law proceedings, whereby the prosecutor provides a concession to the defendant in exchange for a plea of guilt or '' nolo contendere.'' This may mean that the defendan ...

, the U.S. government dropped the bankruptcy fraud charges against Chodorow, in return for his guilty

plea In legal terms, a plea is simply an answer to a claim made by someone in a criminal case under common law using the adversarial system. Colloquially, a plea has come to mean the assertion by a defendant at arraignment, or otherwise in response ...

to the USDOT charges. Chodorow was sentenced to four months in prison and four years' supervised release and was ordered to pay a $40,000 fine; additionally, he agreed to pay the airline's bankruptcy trustees $1.25 million in

restitution The law of restitution is the law of gains-based recovery, in which a court orders the defendant to ''give up'' their gains to the claimant. It should be contrasted with the law of compensation, the law of loss-based recovery, in which a court o ...

over five years. Spencer eventually conceded that he had “acted openly and flagrantly on behalf of Braniff” in violation of the terms of the 1991 affidavits. He was convicted of bankruptcy fraud and

conspiracy A conspiracy, also known as a plot, is a secret plan or agreement between persons (called conspirers or conspirators) for an unlawful or harmful purpose, such as murder or treason, especially with political motivation, while keeping their agree ...

to commit bankruptcy fraud and was sentenced on 23 May 1996 to a 51-month prison term followed by three years of supervised release. Spencer also agreed to pay $115,000 in restitution to the bankruptcy trustees.

Destinations

The following destination information is from the Braniff International Airlines, Inc., 1 June 1992 through 24 June 1992 system timetable: *

Atlanta Atlanta ( ) is the capital and most populous city of the U.S. state of Georgia. It is the seat of Fulton County, the most populous county in Georgia, but its territory falls in both Fulton and DeKalb counties. With a population of 498,715 ...

(ATL) *

Boston Boston (), officially the City of Boston, is the state capital and most populous city of the Commonwealth of Massachusetts, as well as the cultural and financial center of the New England region of the United States. It is the 24th- mo ...

(BOS) *

Columbus, OH Columbus () is the state capital and the most populous city in the U.S. state of Ohio. With a 2020 census population of 905,748, it is the 14th-most populous city in the U.S., the second-most populous city in the Midwest, after Chicago, and ...

(CMH) *

Chicago (''City in a Garden''); I Will , image_map = , map_caption = Interactive Map of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = Country , subdivision_name ...

Midway Airport Chicago Midway International Airport , typically referred to as Midway Airport, Chicago Midway, or simply Midway, is a major commercial airport on the Southwest side of Chicago, Illinois, located approximately 12 miles (19 km) from the Lo ...

(MDW) *

/ Ft. Worth (DFW) *

Fort Lauderdale A fortification is a military construction or building designed for the defense of territories in warfare, and is also used to establish rule in a region during peacetime. The term is derived from Latin ''fortis'' ("strong") and ''facere'' ...

(FLL) *

Islip Islip may refer to: Places England * Islip, Northamptonshire *Islip, Oxfordshire United States *Islip, New York, a town in Suffolk County ** Islip (hamlet), New York, located in the above town **Central Islip, New York, a hamlet and census-d ...

Long Island MacArthur Airport Long Island MacArthur Airport (formerly known as Islip Airport) is a public airport in Ronkonkoma, New York, on Long Island. The Town of Islip owns and operates the airport, which serves about two million airline passengers a year, as well as g ...

(ISP) *

Miami Miami ( ), officially the City of Miami, known as "the 305", "The Magic City", and "Gateway to the Americas", is a East Coast of the United States, coastal metropolis and the County seat, county seat of Miami-Dade County, Florida, Miami-Dade C ...

(MIA) *

Minneapolis Minneapolis () is the largest city in Minnesota, United States, and the county seat of Hennepin County. The city is abundant in water, with thirteen lakes, wetlands, the Mississippi River, creeks and waterfalls. Minneapolis has its origins ...

St. Paul Paul; grc, Παῦλος, translit=Paulos; cop, ⲡⲁⲩⲗⲟⲥ; hbo, פאולוס השליח (previously called Saul of Tarsus;; ar, بولس الطرسوسي; grc, Σαῦλος Ταρσεύς, Saũlos Tarseús; tr, Tarsuslu Pavlus; ...

(MSP) *

Newark International Airport Newark Liberty International Airport , originally Newark Metropolitan Airport and later Newark International Airport, is an international airport straddling the boundary between the cities of Newark, New Jersey, Newark in Essex County, New Jerse ...

(EWR) * New York JFK International Airport (JFK) *

Orlando Orlando () is a city in the U.S. state of Florida and is the county seat of Orange County. In Central Florida, it is the center of the Orlando metropolitan area, which had a population of 2,509,831, according to U.S. Census Bureau figures rele ...

(MCO) * St. Thomas, Virgin Islands (STT) *

San Juan, Puerto Rico San Juan (, , ; Spanish for "Saint John") is the capital city and most populous municipality in the Commonwealth of Puerto Rico, an unincorporated territory of the United States. As of the 2020 census, it is the 57th-largest city under the jur ...

(SJU) *

Tampa Tampa () is a city on the Gulf Coast of the U.S. state of Florida. The city's borders include the north shore of Tampa Bay and the east shore of Old Tampa Bay. Tampa is the largest city in the Tampa Bay area and the seat of Hillsborough County ...

(TPA) *

West Palm Beach West or Occident is one of the four cardinal directions or points of the compass. It is the opposite direction from east and is the direction in which the Sunset, Sun sets on the Earth. Etymology The word "west" is a Germanic languages, German ...

(PBI)

Fleet

When flight operations began on 1 July 1991, the Braniff International fleet consisted of the following aircraft: * 10

Boeing 727-200 The Boeing 727 is an American narrow-body airliner that was developed and produced by Boeing Commercial Airplanes. After the heavy 707 quad-jet was introduced in 1958, Boeing addressed the demand for shorter flight lengths from smaller airpor ...

* 3 McDonnell Douglas DC-9-10

References

External links

Braniff Airways Foundation

Braniff Flying Colors Historical Page
{{DEFAULTSORT:Braniff (1991-92) Airlines established in 1991 Braniff Defunct airlines of the United States Airlines disestablished in 1992 1991 establishments in Texas Airlines based in Texas 1992 disestablishments in Texas