Braniff Harding Lawrence A View from the Tower A Management View of Ling Temco Vought LTV 1968

On November 17, 1967, the Civil Aeronautics Board approved the acquisition of Braniff Airways, Inc., d/b/a Braniff International by Dallas, Texas-based conglomerate Ling Temco Vought. LTV would purchase Braniff's current parent company, Greatamerica Corporation, who purchased the airline on July 8, 1964. The purchase of Braniff International also included the carrier's sister company, National Car Rental in addition to controlling interest in Greatamerica.
The original LTV purchase plan was announced a few months earlier on August 4, 1967. LTV would make an offer to purchase all of the the shares of Greatamerica Corporation, which received unanimous approval from the board's of both companies. The offer was submitted to the Civil Aeronautics Board shortly thereafter, because the purchase involved controlling interest in Braniff Airways, Inc. The purchase of an air carrier required that a hearing be conducted by the Civil Aeronautics Board so that the required approvals could be obtained, which would allow the sale to commence.
The CAB rendered its decision on October 20, 1967, which mandated certain stipulations that were mainly designed to prevent LTV from using Braniff as a vehicle to promulgate its aerospace business. LTV could not transact more than $100,000 USD in air travel business with Braniff unless specifically approved by the CAB prior to the transaction. LTV could not market a new aircraft, if it were to build or sell one, to Braniff, again without prior CAB approval. And finally, the CAB retained its ability to reexamine the purchase and make appropriate changes to the agreement as might become necessary as the companies business environment might change.
LTV was originally founded as an electric company and grew to a major conglomerate that emphasized aerospace, defense, and steel production and was the nation's third largest steel producer. Mr. Ling initially founded Ling Electric Company in Dallas, Texas, in 1947. He took his company public in 1955, and found creative ways to market his stock that included door to door selling and even setting up a booth at the State Fair of Texas. This creativity enabled Ling to acquire other entities while quickly and efficiently growing the LTV dynasty. In 1969, LTV employed 29,000 people and offered 15000 different products and services.
The relationship between Braniff and LTV was relatively harmonious. Mr. Lawrence stated at one point that he rarely had any contact with LTV or Mr. Ling during the time that LTV was in control of Braniff. Jim Ling's personal diaries state that the only contact that the two CEO's ever had was when Mr. Lawrence's salary and contract required negotiation. However, Braniff executives have stated publicly that LTV was using cash-rich Braniff to fund its purchase and acquisitions. As a result of an unrelated antitrust settlement, LTV would divest itself of Braniff in 1971.
Braniff Airways, Incorporated, Copyright, Text only
Ling Temco Vought Corporation, Copyright, Video only

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