M. Lamar Muse Collection

Marion Lamar Muse was born June 4, 1920 in Houston, Texas. After completing college at Southwestern University of Georgetown (Texas) and Texas Christian University, located in Fort Worth, in 1939, he performed a number of odd jobs around the Palestine and Houston area, finally joining the accounting firm Price Waterhouse and Company in 1942. In 1943, he enlisted in the U.S. Army Corps of Engineers and served in the European Theater during World War II. In 1948, he left Price Waterhouse for greater business opportunities and joined the rapidly expanding aviation industry.

Muse first obtained a job as Secretary-Treasurer and Chief Financial Officer of Trans Texas Airways (TTA), where he changed the way the airline collected airmail fees increasing profitability. His work with TTA attracted the attention of American Airlines who he went to work for in 1960. Although somewhat successful, Muse was unsatisfied with his lack of freedom at American, so he left to work with a number of airlines such as Southern Airways, where he increased profits, and Central Airlines, whose merger with Frontier Airlines he oversaw. In 1967, Muse went to Detroit to become the President and CEO of Universal Airlines. Muse leveraged Universal's airfreight contracts with the automotive industry by increasing profitability and rescuing the airline from financial failure. Despite this success, Muse disagreed with the Board of Directors over plans to purchase a Boeing 747 by the airline, with the result that he was fired in 1969.

Muse returned to Dallas just as Herb Kelleher and Rollin King launched the fledgling Southwest Airlines. Muse joined the airline in 1971 and immediately set about turning Southwest into a powerhouse with innovative promotions and sound fiscal strategy, shepherding Southwest through fare wars with both Braniff Airlines and Texas International. In 1978, Muse began making plans establishing Midway Air, which would operate from Chicago's Midway Airport using the same operating principles as Southwest. A holding company, with Muse as chairman, would eventually own and operate both Southwest and Midway. His expansion plans led to conflict with the founders of Southwest, and Muse launched an effort to oust Rollin King from the company. However, King convinced the board to support him against Muse, leading the board to ask for his resignation.

Resigned from Southwest, Muse spent the next year or two considering his options, but in 1981 returned to the aviation industry and putting his own airline into operation. Called Muse Air, the airline focused on mixing low cost fares with a higher standard of service and quality, as well as being the first entirely non-smoking airline. Muse, competing alongside his old airline Southwest, was moderately successful. However, by 1984, Muse Air was unable to meet its operating costs and in 1985, Southwest purchased Muse Air, renaming it Transtar in 1986. The airline managed one more year of operation, but by the middle of 1987, its unprofitability led to its liquidation.

Muse remained in Texas and continued to be involved in aviation, serving as consultant, advisor, and commentator on various aviation issues both local and international. Muse wrote a Harvard Business School Case Study on Southwest's 1972 fare war with Braniff (which lead to Southwest becoming Texas' largest distributor of Chivas, Crown Royal, and Smirnoff liquor). In 2003, he wrote Southwest Passage, an autobiographical work on his life and his time in charge of Southwest. Muse passed away February 5, 2007 at the age of eighty-six. He is survived by his second wife Barbra Deese Muse, son Michael Muse, daughters, Diane Muse Kinnan and Deborah Ann Muse, both of Dallas, and of Lisa Muse of Liberty Hill, TX; a sister, Marian Thompson of Palestine, TX; three grandchildren; one great-grandchild; two stepdaughters; and two step grandchildren.

Source

"M. Lamar Muse Collection," Lamar Muse Biographical Information, Series I, Box 1, Folder 1, History of Aviation Collection, Special Collections and Archives Division, Eugene McDermott Library, The University of Texas at Dallas.

Source

"Larry Sall Collection on M. Lamar Muse," M. Lamar Muse Biographical Sketch, Box 1, Folder 1, History of Aviation Collection, Special Collections and Archives Division, Eugene McDermott Library, The University of Texas at Dallas.