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The most successful of that group was Southwest, which had begun as an intra-state, low-cost, low-fare carrier and continued to profit and grow. Newer and smaller commuter airlines also sought to find their niche in smaller, lowdensity markets. Their need for access to the larger hub airports, though, led to partnerships with the major carriers. 21 Basically, some airlines found successful survival strategies and others failed. In 1978, the airline industry counted 24 major air carriers. By 1989, a series of mergers, acquisitions, and bankruptcies whittled that number down to eight major national carriers—American, Pan American, United, Texas Air Corporation (Continental), Delta, Northwest, TWA, and USAir.

Working with USAir, which also operated a domestic hub at Philadelphia, the city opened a new international terminal in 1991 and added a second international terminal in 2003. R. BEDNAREK to the fortunes of USAir, which twice went into bankruptcy after 2000. 42 Hodos emphasized that Philadelphia’s airport strategy was just one among many the city pursued to retain its global connections. Others have argued that an airport expansion strategy alone can bring dividends.  Kasarda emphasized the importance of achieving international gateway status.

Both cities had served as hubs for major airlines—Delta in Cincinnati and TWA in St. Louis. Those airlines dominated service to those cities. The airport authorities operating those airports pushed aggressive expansion plans in the 1990s and early 2000s with an eye at maintaining and expanding their hub status. After TWA merged with American and Delta with Northwest, however, both airports lost their hub status. Instead of managing growth, the airport officials at Cincinnati and St. Louis officials were faced with the challenge of declining traffic.