On November 30, 1984 Southwest took delivery of their first Boeing 737–300. Southwest was the launch customer and as of May 2012 is the largest operator of the aircraft type.[20] The first 737-300 was dubbed "Kitty Hawk."[21]
Southwest paid US$60.5 million in stock and cash for Muse Air when Muse was on the verge of collapse in 1985. After completing the acquisition, Southwest renamed MuseAir TranStar Airlines. TranStar became a wholly owned subsidiary of Southwest and operated as an independent airline. Unwilling to compete in a fare war againstFrank Lorenzo's Texas Air, Southwest eventually sold TranStar's assets to Lorenzo in August 1987.[22][23]
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