The Nation - News from Aug. 10, 1987

Sunday marked the final day of flights for the financially strapped TranStar Airlines Corp., leaving 1,300 employees without jobs. Citing stiff competition, the small regional carrier based at Houston’s Hobby Airport announced late last month that it would cease operations. About 900 of the airline’s employees are based in Houston. TranStar had suffered losses of about $18 million to $20 million since September, 1986, said Herbert D. Kelleher, chairman and president of Dallas-based Southwest Airlines. TranStar is a wholly owned but independently operated subsidiary of Southwest Airlines.