Ex-PSA President Lands Douglas Aircraft Co. Post

When Russell Ray left Eastern Airlines to become president of Pacific Southwest Airlines in 1985, the 52-year-old executive believed that he “had it made” until retirement.

“I really thought PSA could survive as a niche player,” Ray said shortly after USAir announced that it would acquire San Diego-based PSA for $400 million. “That might sound naive, but that’s how fast things (have changed) in the airline industry.”

On Friday, Ray will vacate his PSA office at San Diego’s Lindbergh Field, and on Monday he will report as a vice president of marketing at the Douglas Aircraft Co. division of McDonnell Douglas in Long Beach. Ray, who was born and raised in the Los Angeles area, will serve as vice president-customer support, a new position, Douglas Aircraft said Monday.

Ray now agrees with former Eastern Airlines Chairman Frank Borman, who predicted in late 1984 that only a handful of the nation’s air carriers would survive a coming wave of mergers and consolidations. That handful of mega-carriers will dominate the nation’s skies at least until the end of the century, Ray predicted.

During recent weeks, Ray spent much of his time dealing with the aftermath of the Dec. 7 crash of a PSA airliner that killed 43 passengers and crew members. Ray said it was “unfortunate” that PSA, long known as an innovative and colorful airline, probably will be remembered for the crash that was believed to have been caused by a disgruntled, gun-wielding former USAir employee.

Ray also has spent recent days overseeing the dismantling of PSA as it is merged with USAir. That merger is 90% complete, according to Ray, who said PSA will disappear from the skies in early April.