Ed Acker
Encyclopedia
C. Edward Acker is an American businessman who served as CEO of Braniff Airways, Air Florida
, and Pan American World Airways
. He is currently a principal at Intrepid Equity Group.
Acker was born in Dallas, Texas
. He skipped second and eighth grades, and graduated from Southern Methodist University
, after which he went to work as a financial analyst in Dallas. He became Chief Financial Officer of the Greatamerica Corporation and led Greatamerica's takeover of Braniff Airways in 1964.
As head of Braniff, Acker negotiated with Pan Am CEO Juan Trippe
to purchase routes to the west coast of South America
, and introduced a hub and spoke routing system in order to feed Braniff's Boeing 747
flight between Dallas and Honolulu. He left Braniff in 1975 in the midst of government investigations relating to alleged illegal competition with Southwest Airlines
and involvement in the Watergate scandal
.
Shortly thereafter, Acker led a group of investors who purchased a controlling interest in Air Florida
, a low-cost carrier which reminded Acker of his competition with Southwest in Texas. After airline deregulation
in 1978, Acker led the rapid expansion of Air Florida to become a nationwide and international LCC, which quickened in the early 1980s amid problems at its main East Coast competitors, Pan Am and Eastern Air Lines
. However, Air Florida quickly became bankrupt after the crash of Air Florida Flight 90
in 1982.
Later in 1982, Acker was appointed chairman and CEO of Pan Am, where he quickly moved to expand the airline's route network after several years of contraction, and to lower the airline's ticket prices in order to compete with low-cost competitors such as Laker Airways
. The airline temporarily made up for its lower revenue and higher operating costs by obtaining wage concessions from labor groups, but this eventually led to labor tensions culminating in a 1985 strike which crippled the airline. Acker kept the airline alive only by selling its transpacific routes to United Airlines
for $750 million. He left Pan Am in 1988.
Acker later advised on the founding of Atlantic Coast Airlines
.
Air Florida
Air Florida was an American low-cost carrier that operated from 1971 to 1984. In 1975 it was headquartered in the Dadeland Towers in what is now the Kendall CDP in unincorporated Miami-Dade County, Florida.-History:...
, and Pan American World Airways
Pan American World Airways
Pan American World Airways, commonly known as Pan Am, was the principal and largest international air carrier in the United States from 1927 until its collapse on December 4, 1991...
. He is currently a principal at Intrepid Equity Group.
Acker was born in Dallas, Texas
Dallas, Texas
Dallas is the third-largest city in Texas and the ninth-largest in the United States. The Dallas-Fort Worth Metroplex is the largest metropolitan area in the South and fourth-largest metropolitan area in the United States...
. He skipped second and eighth grades, and graduated from Southern Methodist University
Southern Methodist University
Southern Methodist University is a private university in Dallas, Texas, United States. Founded in 1911 by the Methodist Episcopal Church, South, SMU operates campuses in Dallas, Plano, and Taos, New Mexico. SMU is owned by the South Central Jurisdiction of the United Methodist Church...
, after which he went to work as a financial analyst in Dallas. He became Chief Financial Officer of the Greatamerica Corporation and led Greatamerica's takeover of Braniff Airways in 1964.
As head of Braniff, Acker negotiated with Pan Am CEO Juan Trippe
Juan Trippe
Juan Terry Trippe was an American airline entrepreneur and pioneer, and the founder of Pan American World Airways, one of the world's most prominent airlines of the twentieth century.-Early years:...
to purchase routes to the west coast of South America
South America
South America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...
, and introduced a hub and spoke routing system in order to feed Braniff's Boeing 747
Boeing 747
The Boeing 747 is a wide-body commercial airliner and cargo transport, often referred to by its original nickname, Jumbo Jet, or Queen of the Skies. It is among the world's most recognizable aircraft, and was the first wide-body ever produced...
flight between Dallas and Honolulu. He left Braniff in 1975 in the midst of government investigations relating to alleged illegal competition with Southwest Airlines
Southwest Airlines
Southwest Airlines Co. is an American low-cost airline based in Dallas, Texas. Southwest is the largest airline in the United States, based upon domestic passengers carried,...
and involvement in the Watergate scandal
Watergate scandal
The Watergate scandal was a political scandal during the 1970s in the United States resulting from the break-in of the Democratic National Committee headquarters at the Watergate office complex in Washington, D.C., and the Nixon administration's attempted cover-up of its involvement...
.
Shortly thereafter, Acker led a group of investors who purchased a controlling interest in Air Florida
Air Florida
Air Florida was an American low-cost carrier that operated from 1971 to 1984. In 1975 it was headquartered in the Dadeland Towers in what is now the Kendall CDP in unincorporated Miami-Dade County, Florida.-History:...
, a low-cost carrier which reminded Acker of his competition with Southwest in Texas. After airline deregulation
Airline deregulation
Airline deregulation is the process of removing entry and price restrictions on airlines affecting, in particular, the carriers permitted to serve specific routes. In the United States, the term usually applies to the Airline Deregulation Act of 1978...
in 1978, Acker led the rapid expansion of Air Florida to become a nationwide and international LCC, which quickened in the early 1980s amid problems at its main East Coast competitors, Pan Am and Eastern Air Lines
Eastern Air Lines
Eastern Air Lines was a major United States airline that existed from 1926 to 1991. Before its dissolution it was headquartered at Miami International Airport in unincorporated Miami-Dade County, Florida.-History:...
. However, Air Florida quickly became bankrupt after the crash of Air Florida Flight 90
Air Florida Flight 90
Air Florida Flight 90 was a scheduled U.S. domestic passenger flight from Washington National Airport in Arlington County, Virginia, to Fort Lauderdale – Hollywood International Airport in Fort Lauderdale, Florida, with a stopover at Tampa International Airport in Tampa, Florida...
in 1982.
Later in 1982, Acker was appointed chairman and CEO of Pan Am, where he quickly moved to expand the airline's route network after several years of contraction, and to lower the airline's ticket prices in order to compete with low-cost competitors such as Laker Airways
Laker Airways
Laker Airways was a wholly private, British independentindependent from government-owned corporations airline founded by Sir Freddie Laker in 1966. It originally was a charter airline flying passengers and cargo worldwide...
. The airline temporarily made up for its lower revenue and higher operating costs by obtaining wage concessions from labor groups, but this eventually led to labor tensions culminating in a 1985 strike which crippled the airline. Acker kept the airline alive only by selling its transpacific routes to United Airlines
United Airlines
United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees (which includes the entire holding company United Continental...
for $750 million. He left Pan Am in 1988.
Acker later advised on the founding of Atlantic Coast Airlines
Atlantic Coast Airlines
Atlantic Coast Airlines was an airline based in the United States owned by Atlantic Coast Holdings, Inc.. It operated as United Express for United Airlines and Delta Connection for Delta Air Lines. It was headquartered in the Dulles area of unincorporated Loudoun County, Virginia, United States....
.