Airlines Century-Pacific Lines Limited, in California, and Century Airlines, in Chicago, were founded in by
Errett Lobban Cord.
Aviation industry In 1925 the Kelly Act was passed giving the
postmaster general the authority to allocate
air mail routes to potential bidders and thus, the floodgates were opened for investment in the new industry of commercial aviation. The next few years were characterized by mergers and jockeying for position amongst the various new enterprises and by 1931 a core group of major airlines had emerged including names such as American Airways and
United Airlines. Resentment began to grow however amongst smaller companies looking to take advantage of the emerging market for passenger travel who saw the larger companies as receiving unfair advantages in terms of route allocations and subsidies. The
McNary-Watres Act of 1930, with its provision to allow the postmaster general to extend contracts with existing carriers without considering competing bids, especially fueled such resentment. In response to an amendment to the bill which would limit this particular power, then postmaster general
Walter Folger Brown, "was very much opposed to the measure and explained what in his opinion would happen should it become law. He declared that low bidders getting contracts would find that they could not operate and that successors to them would take over the business. These successors would then come to the department for relief." E.L. Cord was particularly determined to change the system, striving to demonstrate that he could offer the cheapest service, even going so far as to say that he could carry mail for 30 cents a mile, roughly half the standard for existing routes. Cord’s primary idea for how this could be done was through slashing overheads, particularly wages. , the model of plane operated by Century Air Lines. Both the
Stinson Aircraft Company and
Lycoming Engines, the manufacturer of the plane's engines, were owned by E.L. Cord.
Pilots With the technology of aviation still in its infancy, the pilot’s profession remained a fairly treacherous one. Pressure to fly from
Post Office administrators in treacherous weather conditions especially caused many fatal accidents. In 1919, the first demonstration of organized action by pilots took place when a threat of strike action was made after two pilots were fired by assistant postmaster general Otto Praeger for refusing to fly in heavy fog. One of the two pilots was eventually reinstated and post office administrators agreed to more stringent safety standards regarding foul weather flying. In May 1931, the Air Line Pilots Association was founded by David L. Behncke and it quickly became the largest union for pilots in the country including three quarters of the schedule line pilots in the country by the next year. The decision was precipitated by changing pay conditions which were increasingly reducing the earnings of pilots during the early years of the depression. Meanwhile, technology improvements in aviation were changing the perception of flying. New features such as
“robot pilots” which could control the planes through gyroscopes were making the task of piloting seem easier and easier. Cord in particular made it known that he did not regard piloting as an especially skillful endeavor and subsequently saw no justification for paying pilots high wages. == Strike timeline ==