Air Florida is Deregulation success story. Until it isn’t.





Origins and early operations
Florida’s first intrastate jet airline, Air Florida, began operating between Miami, Orlando and St. Petersburg in September 1972. Founded by native Miamian Eli Timoner and Ted Griffin, and based at Miami International Airport, the low-cost carrier initially only charged $12 for a one-way ticket within the state. Its original fleet consisted of leased Boeing 707 aircraft, quickly augmented by Lockheed Electra turboprops. Douglas DC-9s, Boeing 737s and 727s were also operated during the late 1970s and early 1980s.
Expansion after Deregulation
Air Florida struggled to survive for most of its intrastate existence, but after the passage of the Airline Deregulation Act of October 1978 and following a merger with rival Florida regional airline Air Sunshine in December 1978, the airline aggressively expanded into the Caribbean, the U.S. northeast, and even operated wide-body DC-10s to Europe. Its rapid growth, budget friendly fares and excellent service resulted in a solid financial turnaround, which made it a poster child as a deregulation success story.
Crisis and decline
Air Florida’s fortunes began to falter when, in the early 1980s, the airline became a target for Cuban hijackers. Its reputation was forever tarnished by the crash of Air Florida Flight 90, a Boeing 737, into the icy Potomac River in Washington in January 1982. It was the beginning of the end for an airline whose rapid growth had made it a deregulation success story. Tragically, 74 people were killed in the crash, which was subsequently determined to have been caused by pilot error/failure to activate the 737-222’s engine anti-ice systems. Following the crash–one of the most publicized airline disasters of the era–the airline struggled with a decline in passenger confidence and mounting losses. Videos of rescue efforts were widely broadcast and subsequent reservations dried up. In July 1984, Air Florida filed for Chapter 11 bankruptcy protection. As part of the bankruptcy process, its fleet was grounded for three months. Although it resumed operations after being rebranded Midway Express under a contract with Midway Airlines, it was sold in 1985.
Legacy of a Deregulation cautionary tale
If Air Florida’s rise had made it the poster child for deregulation, its fall made it the poster child for how quickly collapse could occur when safety and finances faltered.




Below: Air Florida’s grounded fleet at MIA, July, 1984. Photo courtesy The Airchive – The Airchive 2.0
