After airline deregulation California's major intrastate
airlines (PSA, Air California (later rebranded AirCal),
Western Airlines and United Airlines) became embroiled
in intense airfare wars. PSA attempted to extend its
route network beyond California with flights to Reno,
Las Vegas, Salt Lake City, Phoenix, Tucson, and
Albuquerque. The airline also introduced automated
ticketing and check-in machines at several major
airports, and briefly operated flights to Cabo San
Lucas, Mexico.
When PSA's plan to buy out the assets of Dallas/Fort
Worth-based Braniff International Airways fell flat, the
airline expanded its route network north to Washington,
Oregon and Idaho. PSA used a new fleet of BAe 146
regional jets to serve smaller airports on the West
Coast, such as Eureka, California and Concord,
California. PSA held a contest, publicized in full-page
newspaper ads, to name the fleet. The winning entry was
Smiliner.
In
1986 Western and AirCal were purchased by out-of-state
airlines (Delta Air Lines and American Airlines
respectively). Some who believe USAir was actually
pursuing AirCal because of fleet commonality (Boeing
737-300s) but that American Airlines spoiled the deal
and PSA was its second choice. Upon hearing that USAir
was interested in AirCal, American Airlines aggressively
courted the AirCal Board of Directors. It made more
sense for American Airlines to purchase PSA due to fleet
commonality, but American Airlines was determined not to
concede market share. Therefore, many who believe the
American–AirCal deal was essentially an attempt to
impede USAir's expansion. However, this plan did not
work.
An
hour after the AirCal deal was announced, PSA agreed to
merge with USAir, which was completed in 1987. PSA's
last flight took place on April 8, 1988. The PSA route
network slowly disintegrated within USAir and was
completely gone by 1994: most of the former airline's
assets were scrapped or moved to USAir's hubs on the
East Coast. PSA's operations base at San Diego
International Airport was gutted and now serves as that
airport's commuter terminal.
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