AIR SHANGHAI. See CHINA EASTERN AIRLINES COMPANY, LTD

AIR SHANNON: United States (1966-1967). Established at Fredericksburg, Virginia, in early 1966, Air Shannon inaugurates daily, round-trip, scheduled Piper PA-31-310 Navajo third-level commuter flights to Washington, D. C. (DCA) on February 25.

Unable to cover the cost of start-up, the carrier is forced to stop flying on April 24, 1967.

AIR SIAM AIR COMPANY, LTD.: Thailand (1965-1977). Former British RAF pilot HRH Prince/Capt. “Nicky” Varanand, dissatisfied with the SAS (Scandinavian Airlines System) stake in Thai Airways Company, Ltd. (TAC) that had resulted in the creation of its SAS-managed subsidiary Thai Airways International, Ltd. (THAI), establishes Varanair Siam at Bangkok on September 15, 1965 as a private enterprise, wholly Thai intercontinental carrier.

The prince’s new enterprise will remain a paper airline for the remainder of the decade. Still, there is activity. Varanand recruits a corps of British aeronautical advisors and is able to secure traffic rights and/or authority from four nations in 1967: the United States (April 27); Thailand (permission on August 19 to begin transpacific flights); Japan (October 26); and Hong Kong (from Great Britain, on October 31). At the beginning of 1968, the company name is changed to Air Siam, Ltd.

The remainder of the 1960s is occupied by a search for capital and overseas partnerships. The best hope appears to be an alliance with The Flying Tiger Line, but negotiations fail. The company’s first aircraft, a used Douglas DC-4, is acquired from Trans-Australian Airlines (Pty.), Ltd. in February 1970. It is employed to launch Air Siam’s inaugural service on March 1, a thrice-weekly all-cargo route to Hong Kong.

Airline employment stands at 112 at the beginning of 1971. Employing a DC-8-63 wet-leased from Overseas National Airways (ONA), Varanand’s company initiates freight and also a twice-weekly passenger service from the nation’s capital to Los Angeles on March 31. These flights continue during the remainder of the year; however, the company has insufficient capacity to make a profit and, in fact, loses money.

In fiscal and labor difficulty, Air Siam is shut down on January 11, 1972. The DC-8 is returned to ONA, which is left holding an Air Siam IOU for $2 million in lease fees. The carrier remains shut down for the better part of six months while Prince Varanand seeks additional capital and, with the assistance of former Thai Airways International, Ltd. (THAI) executives Virachai Vannukul and Andreas Hansen, additional aircraft and markets. The ONA debt is settled when Varanand transfers several choice parcels of Bangkok property to the American supplemental carrier.

Revenue flights resume on May 25 employing a British Aircraft Corporation BAC 1-11-416 leased from a Singapore millionaire. As the plane does not have the range for transpacific service, the company’s route ends at Tokyo. Disillusioned by his experience, Prince Varanand resigns in October, turning leadership over to President Vannukul. A total of 17,589 passengers are carried during the rest of the year. Despite its many problems, the company registers a $110,000 profit.

The company employs 300 workers during 1973. A German Boeing 707 Stratoliner is leased on January 5 and is employed to replace the BAC 1-11-416 in February. It offers large discount fares on the route to Japan.

A Boeing 747-148 leased from Aer Lingus Irish Airlines, Ltd. joins the fleet on September 29; christened Doi Suthep, it inaugurates thrice-weekly transpacific service Bangkok to Honolulu via Hong Kong and Tokyo. Passenger boardings skyrocket an unbelievable 561% to 114,000 and freight traffic is even better, advancing 1,781%. A handsome profit is recorded during the year, one-sixth of which is derived from air cargo flights on the Pacific route.

Additional service is initiated in 1974 to Europe in an effort to cater to a large number of German tourists who visit Thailand on vacation. In the spring, offices are opened in Los Angeles, New York, Chicago (ORD), San Francisco, and Honolulu. An Airbus Industrie A300B2 is leased from its manufacturer and employed on the Bangkok(Hong Kong route, beginning on October 21. This service is deeply discounted.

In addition, a DC-10-30 arrives under lease from KLM (Royal Dutch Airlines, N. V.) and is placed in service to Los Angeles via Tokyo and Hawaii. The chartered Dutch airliner’s premier Thai flight encounters bureaucratic problems as the airline has not completed all of the paperwork required to operate its certificate. After arrival, the jetliner is forced to remain grounded at LAX until company officials resolve questions relating to their landing rights.

Still, these two new wide-bodies help passenger boardings advance by 144% to 283,036. Freight skyrockets 258% to 23.32 million FTKs. A net profit of $1.5 million is earned on total income of $56.3 million. Late in the year, the Thai government orders the carrier merged with Thai International in two years.

The workforce in 1975 is 723. A second leased A300B2 enters service from the Thai capital to Singapore. Chairman Vannukul enters into discussions with Air Ceylon, Ltd. on November 10 concerning possible joint operations in Europe. Customer bookings accelerate 61.3% to 456,568 while freight zooms upward by 47.5%.

In January 1976, reacting to complaints from Cathay Pacific Airways (Pty.), Ltd. concerning the Thai company’s discount policies, the government of Hong Kong suspends traffic rights for both Air Siam, Ltd. and Thai Airways International, Ltd. (THAI). Frequencies to the U. S. West Coast are now increased. In accordance with the government’s decree, the carrier begins to cooperate somewhat more closely with Thai Airways International, Ltd. in terms of scheduling, equipment, and various other services.

When the original B-747-148 lease expires on April 15, the aircraft is returned to Ireland and is replaced by a B-747-206B, also named Doi Suthep, chartered from KLM (Royal Dutch Airlines, N. V.). On October 30, the company, now in severe financial trouble, contracts with Air Ceylon, Ltd. to operate the Dutch DC-10-30 over Air Ceylon’s European routes. Meanwhile in Bangkok, Air Siam, Ltd. is in such financial distress that it all-but-collapses during September as leases on the two Airbuses end, forcing Chairman Vannukul to flee the country.

Air Siam, Ltd. ceases all of its own operations on January 12, 1977. When KLM (Royal Dutch Airlines, N. V.) repossesses its only remaining wide-body on January 17, the Air Ceylon, Ltd. arrangement is also finished. Air Siam is now grounded. On February 3, the government of Thailand confirms Thai Airways International, Ltd. (THAI) as its only flag carrier and the next day Air Siam’s operating license is revoked. The last of the independent’s assets are liquidated by order of a Thai bankruptcy court in September 1978.

AIR SICILIA, S. p.A.: Via Sciuti 180, Palermo, I-90100, Italy; Phone 39 (91) 625-0566; Fax 39 (91) 625-2510; Http://www. airsicilia. it; Code BM; Year Founded 1994. Air Sicilia, S. p.A. is established at Palermo during the first quarter of 1991 to offer passenger charter and inclusive-tour services. Revenue flights to Lampedusa commence in June employing a single leased British Aerospace BAe 146-200.

Charters between Palermo and Lampedusa continue without change in 1992-1993. A scheduled airline division is launched at the beginning of 1994, with flights operated from Rome to Palermo via Bergamo and Lampedusa. By year’s end, 60,000 passengers have been transported.

In January 1995, an Avions de Transport Aerien ATR42-320 is ordered. The leased turboprop is received in April and placed into scheduled service connecting Palermo with Lampedusa, Pantelleria, Bari, and Cagliari. Still, the number of passengers flown this year falls to 55,141.

The BAe is replaced on March 25, 1996 with a leased Fokker F.28-3000 Fellowship, which launches regional scheduled service to Rome, Parma, and Milan. The ATR continues to fly to Cagliari, Bari, Lampedusa, and Pantelleria, with another ordered before the end of the year.

In February 1997, a wet-lease replacement agreement is entered into with Rome-based Air One, S. p.A. Under its terms, the regional operator will operate its ATRs on behalf of Air One a year hence. Meanwhile, receipt of the second ATR42-320 allows inauguration of an air bridge shuttle service between Palermo and Pantelleria.

A leased Boeing 737-228A is acquired on April 8, 1998; replacing the Fellowship, it inaugurates competition, on behalf of Air One, S. p.A., with Alitalia, S. p.A. over the return route from Palermo to Rome. It also introduces scheduled services, again on behalf of Air One, S. p.A., between Rome and Bari and over a new route from Bari to Bologna.

A new route is opened on March 1, 1999 between Catania and Rome. Later in the year, new service is also launched from Palermo to Bologna and Verona. Enplanements for the year total 250,851.

In April 2000, new return flights are inaugurated from Palermo to Pa-rigi via Catania. Biweekly roundtrips commence on May 19 from Palermo to Paris (CDG).

On November 10, a Fokker 100 is wet-leased for a year from Alpi Eagles, S. p.A.

The company makes plans to celebrate its tenth anniversary in early 2001.

AIR SIERRA: United States (1980-1982). Larry Crane forms TransSierra Airline at Fresno, California, in spring 1980 to offer scheduled passenger and cargo services from the company’s base to Bishop. Employing a Piper PA-31-350 Navajo Chieftain, he undertakes flights in May.

In July, the small regional’s name is changed to Air Sierra and over the next year frequencies are also extended to Mammoth Lake and Lake Tahoe.

As a result of cash flow problems caused both by recession and by air traffic restrictions in the wake of the 1981 PATCO air traffic controllers’ strike, Crane’s operation must cease in early 1982.

AIR SINAI, LTD.: 12 Kasr el Nil Street, Cairo, Egypt; Phone 20 (2) 760 498; Fax 20 (2) 574 711; Code 4D; Year Founded 1982. Formed at Cairo as an Egyptair, S. A.E. subsidiary in early 1982 to succeed Ne-fertiti Airlines, Ltd., the new entrant begins scheduled service in April (the same month that Israel completes the return of the Sinai to Egypt) over Nefertiti’s previous route from the Egyptian capital to Tel Aviv, Israel.

Equipped with 1 B-737-266 leased from Egyptair, S. A.E. and 3 owned Fokker F.27-500s, services are maintained throughout the remainder of the decade to the domestic points of Al Arish, Hurghada, Mersa Matruh, Ras an Nagb, Santa Katarina, and Sharm el Sheikh. Four-times-per-week B-737 service is offered to Elat and Tel Aviv and charter flights, including many for Hadj pilgrims traveling to Mecca, are also undertaken.

Operations continue apace during the remainder of the decade and into the early 1990s with only one tragic incident. On June 10, 1986, an F.27-500, with 5 crew and 21 passengers, is diverted to Alexandria because of a sandstorm; it crashes short of the runway during its return to Cairo later in the day, runs into a building, and catches fire (23 dead).

Employing an Airbus Industrie A300B4 leased from Egyptair, S. A.E., the company inaugurates a new weekly Cairo to Tel Aviv via Sharm el Sheikh return service in March 1993; the route is pooled with Arkia Israel Airlines, Ltd.

In 1994-2000, General Manager Sobhi Sami and his successor, Ahmed Talaat, oversee a workforce that averages 150 and a leased fleet that includes 1 B-707-366C, 1 B-737-2N7A, and 2 F.27-500s. During the latter year, a B-737-566 is chartered from Egyptair, S. A.E.

Destinations visited include Al Arish, Hurghada, Mersa Matruh, Ras an Nagb, Santa Katarina, Sharm el Sheik, and Tel Aviv.

AIR SLOVAKIA BWJ, LTD.: P. O. Box 2, Airport M. R. Stefanik, Bratislava, SK-82001, Slovak Republic; Phone (7) 434 22 742; Fax (7) 434 22 744; Http://www. airslovakia. sk; Code GM; Year Founded 1994. Kosice-based Air Slovakia is started in 1994 to serve regional destinations. Revenue flights commence with a single leased Boeing 727230 once flown by Deutsche Lufthansa, A. G. Traffic figures for the start-up year are not released. In late December 1995, company officials report to ICAO that a total of 72,131 passengers have been flown on the year.

Airline employment stands at 30 in 1996 as the lone Boeing flies 77,762 passengers. Tiny profits are generated: $2,000 (operating) and $2,000 (net).

Augustin Bernat is general director in 1997 and he oversees a workforce of 44. A second B-737-230 is acquired. Passenger boardings plunge 11.3% to 68,981.

Operating revenues, however, increase by 5.6% to $9.71 million as costs climb 5.2% to $9.68 million. The operating profit grows to $34,000 and there is a $32,000 net gain.

Flights continue apace in 1998. Customer bookings fall to 64,000. The company also operates 103,000 FTKs, a 23.8% decline over the previous year. Revenues drop 26.1% to $7.18 million, while expenses are off 39.4% to $5.86 million. There is a $1.31 million operating profit and a net gain of $236,000.

Passenger boardings recover in 1999 ascending 41% to 92,000; cargo is also up, by 5.9%, to 110,000 FTKs. Operating revenues increase 53.4% to $11.01 million, while expenses skyrocket 68.8%, but still reach only $9.9 million. Although the operating profit dips $100,000 to $1.11 million, net gain reaches $372,000.

Despite improvements the previous year, dramatically higher fuel costs severely impact the company during the first half of 2000, forcing it to withdraw one of its B-737-230s. On August 31, the airline stops flying after its remaining B-737-230, just received on May 1, is seized, for failure to make lease payments, during a maintenance check in England and sent to Southend for storage.

The Ministry of Transport loans the carrier its VIP Tupolev Tu-154M, but warns that the company’s license will be revoked if it doesn’t soon gain return of its Boeing.

Unable to gain return of its British-leased aircraft, the company, on September 12, takes delivery at Bratislava of a former Southwest Airlines B-737-2H4. After the plane is repainted, it replaces the Tupolev on flights to Tel Aviv, Larnaca, and Kuwait.

AIR SOFIA: 64 Patriarch Evtimi Blvd. Sofia, BG-1000, Bulgaria, Phone 359 (2) 980 29 01; Fax 359 (2) 980 29 07; Http://www. airsofia. com; Code CT; Year Founded 1992. Successor to the defunct Sigi Air Cargo, Air Sofia is founded at the Bulgarian capital in February 1992 to provide regional passenger and cargo services, both scheduled and nonscheduled. Revenue operations commence with 2 Antonov An-22s and 5 An-12Bs, 1 of which is leased from Aeroflot Russian International Airlines (ARIA).

Following a year of ad hoc business, an agreement is signed with THY Turkish Airlines (Turk Hava Yollari, A. O.) in late 1993 to provide contract all-cargo services on its behalf from Istanbul to Basel, Maastricht, and London (STN). Two more An-12Bs are acquired during the year, including one leased from the Antonov Design Bureau.

Flights continue in 1994-1995, during which years two more An-12Bs are received, one of which is configured for passenger services. Georgy Ivanov is now managing director and towards the end of this period, scheduled services are abandoned. In its place, the carrier’s remaining An-22 and the An-12Bs are dedicated to international and domestic cargo flights.

A marketing division is established at London (LGW) and an An-12B is leased to the new Avioimpex Macedonian Airways.

Austrian Airlines, A. G. leases an An-12B and, at the end of October 1996, launches joint all-cargo services into Eastern Europe in cooperation with Air Sofia. During the year, an An-24B is sent to a new base at Cotonou, Benin.

A number of wet-lease contracts are operated in 1997-1998 on behalf of the United Nations, the International Red Cross, and Lufthansa Cargo, A. G. The company becomes the first An-12 airline ever approved to operate into Hong Kong, while an An-12 and an An-26 are based in Singapore. It also establishes offices and maintenance facilities at Sharjah, a United Arab Emirate destination now quite popular.

During January of the latter year, an An-12B is leased to Air Luxor, S. A. for use as a mail plane. Loaded with three tons of mail, the Russian-made turboprop fails its takeoff from Lajes AFB in the Azores for Lisbon on February 4 and crashes 80 m. from the runway. All seven crewmen are killed.

The workforce stands at 400 in 1999 and the fleet includes 1 An-22, 5 An-12Bs and 1 An-24B. Two Ilyushin Il-76Ds and 1 Antonov An-124100 Ruslan are chartered during the year.

AIR SOMALI, S. A.: French Somaliland (1962-1971). Air France and Les Messageries Maritimes form this carrier in 1962 to provide local service flights within the French colony. The owners provide aircraft and crews. In July 1971, the company purchases another operator, Air Djibouti, S. A., and, following reorganization, re-emerges with the latter name.

AIR SOUTH (1): United States (1967-1975). Established by founder/owner William “Bill” Evans as Nationwide Airlines Southeast on St. Simons Island, Georgia, in the fall of 1967. In January 1968, the company begins daily, roundtrip, scheduled third-level Beech B-80 Queen Air commuter service linking its base with Atlanta and several other Georgia and Florida cities. In December, F. E. “Pete” Howe is appointed president/CEO and the company name is changed.

During 1969, Air South undertakes replacement service for Eastern Air Lines to Waycross and Bowling Green. The fleet is increased by the introduction of several Beech 99s. En route from Atlanta to Greer, South Carolina, on July 6, one of these new aircraft, with 2 crew and 12 passengers, crashes over Winder, near Monroe, Georgia; there are no survivors.

Operations continue apace in 1970-1971. In July of the latter year, President Howe, unhappy with board plans to purchase several Martin 4-0-4s from Southern Airways, resigns to take a similar position with Killeen, Texas-based Hood Airlines. Enplanements for the year reach 49,000.

A number of additional communities join the route network in

1972-1974, including Birmingham, Nashville, and Greenville.

A Beech 99A with two crew aboard is destroyed in an aborted takeoff from Malcolm McKinnon on March 31 of the latter year; there are no injuries reported.

An Allegeheny Airlines Fairchild F-27J is leased, and later purchased. The company is purchased by and merged into Florida Airlines (2) in 1975 under the name Florida Airlines-Air South.

AIR SOUTH (2): United States (1981-1982) . The next Air South is set up at Mobile, Alabama, in 1981 to provide scheduled passenger and cargo services to regional destinations. Employing Swearingen Metro-liners, the company duly inaugurates daily roundtrips to Pensacola, Gulfport, and New Orleans.

Recession and the effects of the summer’s PATCO air traffic controllers’ strike combine to force the company out of business in 1982.

AIR SOUTH (3): United States (1984-1985). With the Air South name vacant on government registration books, Homestead, Florida-based Aero International Airlines assumes the title late in 1984. Equipped with 1 Britten-Norman BN-2A Trislander, 1 BN-2 Islander, 1 Beech 18, 1 Piper PA-34 Seneca, and 2 Cessna 402s, the company continues to provide on demand air taxi services, linking its base with Ft. Lauderdale, Miami, Marathon, Marco Island, Freeport, and Bimini. Additional destinations served include Orlando, Tampa, Ft. Pierce, and Titusville.

Scheduled services commence in May 1985. A victim of recession and overexpansion, the carrier ceases operations during the fall.

AIR SOUTH (4): United States (1993-1997). With funds provided under a $12-million federal loan, guaranteed by the state of South Carolina and the city of Columbia, plus $5 million in grants and training from state and local governments, the fourth Air South is established at Columbia Metropolitan Airport in January 1993. The remainder of the year is spent in infrastructure and organizational development of CEO Clifford Haley’s carrier, which is modeled after Southwest Airlines.

A total of 300 employees are hired and trained during the first two quarters of 1994 while a pair of Boeing 737-247s are leased. A $12-million loan is negotiated with the State of South Carolina. On August 29, four-times-per-day, scheduled, all-coach-class passenger services are inaugurated, linking the company’s base with Raleigh/Durham and Baltimore (BWI). Tickets are sold through travel agents, with neither assigned seats nor meals available.

The fleet is enhanced during the fall by the arrival of 1 chartered B-737-242A and 3 B-737-2P6As. These are employed, beginning on November 15, to initiate four-times-per-day flights linking the North Carolina and Maryland airports with Atlanta and five-times-per-day to St. Petersburg and Clearwater. Five-times-per-day service is also introduced between Columbia and Tallahassee; all Florida frequencies continue on to Miami (MIA).

Enplanements for the first four start-up months total 115,855.

Revenues total $6.75 million, but expenses are $15.86 million. Consequently, there is a $9.11-million operating loss and a net loss of $6.65 million.

In 1995, the company’s leased fleet includes 2 B-737-247s, 4 B-737-2P6As, and 1 B-737-242A. Two former American Trans Air executives, John P. Tague and John Affeltranger, who have formed their own consulting concern, The Pointe Group, are brought in as advisors.

The brakes of a B-727-247, with 28 passengers, fails after the plane lands at Atlanta on January 19; the trijet departs the end of its runway and comes to a stop about 200 ft. further in the grass with its left outboard main tire blown. No injuries are reported.

In an effort to gain funds, the company sells its entire stock of spare parts to Florida-based Aviation Sales and then leases the parts back for company use.

The seven aircraft transport a total of 995,000 passengers during the 12 months. Costs again exceed operating income and again there are losses: $7.1 million (operating) and $7.23 million (net).

The employee population stands at 558 in 1996.

Service in Tallahassee, Tampa, and Raleigh/Durham is terminated on April 1. On April 10, the company starts daily, nonstop flights to New York (JFK) from Myrtle Beach and a daily one-stop between the two points that connects via Hilton Head Island and Savannah, Georgia.

Twice-daily nonstop roundtrips commence from Myrtle Beach to Chicago (MDW) on May 1, followed by daily nonstop round-trips from Newark (EWR) to Myrtle Beach, Hilton Head Island, and Charleston, S. C.

In July, Pointe Group CEO John Tague becomes chairman/president/ CEO, with John Affeltranger as vice president operations. On November 1, supported by major investor Hambrecht & Quist, Tague also becomes chairman/president/CEO of Vanguard Airlines, dividing his time equally between Air South’s base and VA’s headquarters at Kansas City. To assist, Vice President Operations Affeltranger becomes Air South’s new chief operating officer.

Customer bookings plunge 27.1% to 725,139 and revenues are off by 8.4% to $53.01 million. Expenses rise 22.1% to $79.32 million and the reverses recorded on the bottom line deepen as a $26.31-million operating loss and a $26.85-million net loss are reported.

The dismal situation continues into 1997 as the workforce is cut 49% to 300. During the first quarter, $7.8 million is lost on revenues of $14 million.

Throughout the first half of the year, every effort is made to renegotiate both the 1994 South Carolina loan and the company’s aircraft leases.

Chairman/President Tague departs for American Trans Air on June 23, and Affeltranger takes over Tague’s responsibilities.

On July 31, company officials call in the media and report that things are looking up financially.

The carrier is, however, unable to renegotiate its obligations and, consequently, the fourth Air South suspends operations on August 28 and files for Chapter XI bankruptcy protection. Most of the company’s 700 employees are laid off (without three weeks pay) and no one is left to do the paperwork surrounding the filing.

A lack of interline agreements leaves Labor Day holiday passengers booked on Air South to make alternative arrangements to complete their travel. Kiwi International Airlines and Midway Airlines (2) offer them tickets for the same fare they had paid for their Air South tickets and United Airlines offers travelers bereavement fares.

For eight months, passenger boardings have risen significantly, up to 453,350 — so too have revenues, climbing 12.6% to $31.5 million. Expenses, on the other hand, leap ahead by 21.3% to $46.07 million and cause an operating loss of $24.52 million. The net loss deepens to $15.36 million, with four months left in the year. The airline has only $11.5 million in assets as against $67.4 million in liabilities. Of the original government loans, only $172,000 has been repaid.

Air South’s Chapter XI is officially converted to Chapter VII liquidation on October 16.

AIR SOUTH WEST, LTD.: Plymouth City Airport, Plymouth, Devon, England, PL6 8OW, United Kingdom; Phone (0) 1752 770056; Fax (0) 1752 770097; Code 8H; Year Founded 1995. G. Hitchen and N. Gough’s Newquay Air, Ltd. is reformed during the summer of 1995 and transferred to Plymouth City Airport where it receives its new name. Tony Mooney is managing director and he brings in a pair of Embraer EMB-110 Bandeirantes that join the Piper PA-31-350 Navajo Chieftain already available. Scheduled and charter flights commence in October linking Blackpool and Dublin.

Service is inaugurated from Exeter to Dublin and Cork in 1996 and plans are made to acquire a Shorts 330. The Shorts arrives in 1997 as the company continues both scheduled services and charter flights into the new millennium.