TranStar turned significantly unprofitable after it came under competitive attack from Frank Lorenzo's Continental Airlines, also based in Houston.Company formation was announced October 27, 1980 in conjunction with an application to the Civil Aeronautics Board (CAB) as a Houston, Texas-based airline named Muse Air.[7] Muse Air launched July 15, 1981 between Dallas Love Field (DAL) and Houston Hobby Airport (HOU) in 1981 with two McDonnell Douglas MD-80 aircraft, in head-to-head competition with Southwest's single busiest route.Muse offered a more upscale service (including assigned seating and other creature comforts) than Southwest, and was a nonsmoking airline.[9] Michael Muse did not have his father's experience, the deregulated era of the 1980s was much tougher than the regulated era in which Lamar had such great success at Southwest, but the most mystifying issue was why Michael insisted on competing with Southwest,[10] prompting observers to dub Muse Air "Revenge Air".[28] The January 1, 1984 AirCal timetable listed connections via Los Angeles and Ontario to and from Muse Air flights serving Austin, Houston, Midland/Odessa and New Orleans.