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It began service between Dallas and Houston in
1982 with two Douglas DC-9 aircraft. An air
traffic controller's strike almost immediately
made things difficult for the company, and Muse
stepped down as CEO to let his son Michael take
over the company. By the end of 1984 the company
was still struggling, and actively looking for a
merger to keep it afloat.
At the end of the year, Harold Simmons,
president of the Amalgamated Sugar Company
offered the airline the money to continue, on
the condition that Michael Muse resign, and that
his father return as CEO. Despite the new influx
of cash and Lamar Muse in charge again, the
company was not able to generate a consistent
profit despite its use of non-union labor and
competitive fares. Muse Air prohibited smoking
on their flights long before the United States
implemented Federal restrictions.
On June 25, 1985, Southwest Airlines acquired
Muse Air, and MuseAir continued to operate as a
separate airline. In February 1986 its name
changed to "TranStar." Lamar Muse was removed
from having any active role in management, and
the company was restructured.
With the addition of MD-80 aircraft, its routes
changed to scheduled service flights from
California through Texas to Florida, and they
were restricted from carrying mail, air freight,
and any interline passengers traveling partly on
other airlines. Among other changes were a new
corporate image, replacing Muse Air's beige
aircraft livery and color scheme branding, with
a dark blue tone, accentuated by concentric
multi-hued pinstripes banding the fuselage.
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