American Airlines before World War II
Smith worked with Donald Douglas to develop the DC-3, which American Airlines started flying in 1936. With the DC-3, American began calling its aircraft "Flagships" and establishing the Admirals Club for valued passengers. The DC-3s had a four-star "admiral's pennant" outside the cockpit window while the aircraft was parked, one of the most well-known images of the airline at the time.
American Airlines was first to cooperate with Fiorello LaGuardia to build an airport in New York City, and partly as a result became owner of the world's first airline lounge at the new LaGuardia Airport (LGA), which became known as the Admirals Club. Membership was initially by invitation only, but a discrimination suit decades later changed the club into a paid club, creating the model for other airline lounges.