PENAIR.

PENINSULA AIR (PTY.), LTD.: Australia (1993-1995). This regional carrier is established at Melbourne in January 1993 and Managing Director Joanne Jenner begins scheduled passenger and cargo flights almost immediately. The inaugural fleet includes 1 each Cessna 421 Conquest, Cessna 402, Cessna 310, Beech 58 Baron, Piper PA-31-310 Navajo, and Piper PA-34 Seneca.

Flights continue apace in 1994 as Canberra joins the route network and orders are placed for two Piper PA-31-350 Navajo Chieftains, one of which enters service by year’s end. Unable to continue, the company shuts down in February 1995.

PENINSULA AIRWAYS (1): 6100 Boeing Avenue, Anchorage, Alaska 99502, United States; Phone (907) 243-2485; Fax (907) 2436848; Http://www. penair. com; Code KS; Year Founded 1955. Orin D. Seybert, 17, arrives at Pilot Point, Alaska, with his schoolteacher parents and a two-seat Taylorcraft, in 1954. The following year, the youth also acquires a four-seat Piper Tri-Pacer.

In the spring of 1956, Seybert organizes Peninsula Airways at King Salmon, Alaska, to provide charter passenger and cargo flights to local and bush destinations, with the special attention to the needs of the seafood industry. Flights commence with a four-seat Piper Tri-Pacer.

Peninsula is incorporated on March 1, 1965. Alaska Aeromarine, the fixed base operator at King Salmon, is purchased. The arrangement gives Seybert the local Standard Oil dealership, two more airplanes, and an airport with connecting airline services to Anchorage provided by Northern Consolidated Airlines and Pacific Northern Airlines.

In 1966, Peninsula determines to offer its own service to Seattle. The long-haul flight is to be executed with a Douglas DC-4 that unhappily fails its November 17 takeoff from Seattle with 28 aboard and crashes; there are no survivors.

A contract is signed with Reeve Aleutian Airways in 1967 to provide contract flights linking King Salmon with Egegik, Ugashik, Pilot Point, South Naknek, and Levelock. Piper and Cessna lightplanes are employed. Over the next decade, Convair CV-580s and de Havilland Canada DHC-6 Twin Otters are occasionally leased from the partner.

Founder Seybert, who by this time is married, on May 1, 1969, purchases Tibbetts-Herre Airmotive, the 19-year incumbent FBO at Naknek. With Orin as president and his wife Jennie as secretary, George R. Tibbetts now becomes the new vice president.

In the period from 1970-1976 , Peninsula launches regular service between King Salmon and the Pribilof Island communities of St. Paul and St. George. The routes are subsidized by the National Marine Fisheries Service and the U. S. Postal Service. These flights and other charters are undertaken with a Grumman G-73 Super Widgeon wet-leased from Reeve Aleutian Airways to Dutch Harbor, Atka, and Adak.

Two Grumman G-21 Goose amphibians are purchased from Reeve Aleutian Airways on February 1, 1977. These are employed to expand the subcontract to all bush points certificated to Reeve throughout the Alaskan Peninsula and Aleutian Islands. To assist in the performance of this task, Peninsula sets up an operating base at Cold Bay complete with offices, hangars, and employee housing.

Contract and charter services are maintained throughout 1978-1979.

Following receipt of its own Part 401 certificate from the CAB, together with FAAPart 135 operating authority in 1980, Peninsula begins scheduled commuter flights to points in the southwestern part of the state, while charter and contract service flights are continued. Destinations visited in the Pribilof Islands, Alaskan Peninsula, and Bristol Bay areas include Cold Bay, Egegik, Igiugig, King Salmon, Levelock, Naknek, Nelson Lagoon, Pilot Point, Port Island, South Naknek, and Ugashik.

In 1983, the company acquires its first turbine aircraft, a Cessna 441 Conquest, which is employed on operations out of Cold Bay. The fleet of 1 Piper Conquest, 2 Grumman G-21 Geese, 1 Grumman G-73 Super Widgeon, 1 Piper PA-23 Aztec, and several smaller floatplanes maintain services during the remainder of the year and throughout 1984. Peninsula is the first Alaskan air carrier to qualify for the CAB’s Essential Air Service (EAS) subsidy and provides such service to various points in the Aleutians and Kodiak Island.

All of the assets of Kodiak-based Air Transport Services are purchased in 1985. The acquisition brings a hangar, offices, two Piper PA-31-310 Navajos, a Cessna 207, and a Britten-Norman BN-2 Islander. The new aircraft allow year-round scheduled service to be provided to all points on the island.

Late in the year, the Seybert family and the company move to Anchorage, where a new hub is started at Lake Hood. Two Conquests are stationed at the new base, first to provide charters and then scheduled service to the Pribilof Islands.

Two 50-passenger Convair CV-580s are acquired in early 1986 and scheduled service is launched from Anchorage to King Salmon and Dillingham. The first of six Fairchild Metro IIIs is placed into service in June 1987.

Early in 1988, amphibious operations cease as the company is transferred to Anchorage. All of the previous fleet is sold except for 1 Navajo, the Islander, and the Conquest. To handle cargo operations, a Cessna 208 Caravan I is now purchased.

When the bush operators at Dillingham lose their certificates after failing FAA inspections, Peninsula establishes a base in that community, with a hangar and the Piper Aztec and Cessna 207, before their disposal. New scheduled routes are initiated to the surrounding region.

On October 27, President Seybert visits MarkAir’s offices to confer with Vice President Larry Anderson. Discussion ensues on possible collaboration on route distribution. It will later be alleged that MarkAir’s suggestions constitute an attempted limitation of competition on routes between Anchorage and southwest Alaska regional hubs.

The fleet is supplemented in 1989 by three Fairchild Metro IIIs.

In April, Peninsula is one of five Alaskan air carriers subpoenaed by the Department of Justice to provide information in an investigation of possible antitrust violations in the airline industry. Together with Reeve Aleutian Airways, Frontier Flying Service, Ryan Air Service, and Alaska Airlines, Peninsula is required to supply documents dating back to January 1, 1984, to a May 9 grand jury session, or forward them directly to Washington. Although the airline subpoenas do not name a target, the May 6 issue of the Anchorage Daily News reports the subject is MarkAir. President Seybert confirms to the newspaper that he has been contacted by DOJ lawyers within the past year concerning possible antitrust violations by Neil Bergt’s carrier.

Peninsula is now contracted by Exxon Corporation to provide support flights to the area of the Exxon Valdez oil spill cleanup. At the same time, a contract is received from Alaska Regional Hospital to provide 24-hour fixed-wing medevac services.

The fleet is increased in 1990 by three more PA-31-310s and six PA-32 Cherokee Sixes. Authority and a contract is obtained to provide

Essential Air Service (EAS) flights to three more Alaskan communities and, as a result, traffic figures are now reported. These show that the 132-employee carrier flies a total of 72,150 customers on the year.

Another Metro and three additional Cherokee Sixes are purchased in

1991. The company is reformed and adopts the marketing title Peninsula Airways, doing business as PenAir. Jennie Seybert becomes the majority shareholder (51%) and is elected board chairman. Orin holds a 15% stake and remains as president. During the spring and summer, the carrier is successfully inspected by Exxon, the U. S. Office of Aircraft Services, the DOD, and survives two FAA “white glove” safety reviews.

A PA-32 must be written off following an August 22 crash at Togiak, Alaska. By September, the company holds 28% of the market on the route between King Salmon and Anchorage.

Another Conquest and three Grumman Geese are acquired as the carrier in November becomes a part of the Alaska Airlines commuter network. The major’s “4200-4299” codes are assigned to the PenAir Metroliner flights out of Anchorage and all passengers on those routes are eligible to receive Alaskan frequent flyer club miles.

Enplanements for the year surge 27% to 103,428.

Peninsula Airways is able to avoid direct involvement in the debilitating fare war between MarkAir and Alaska Airlines in early 1992. The carrier, together with Alaska and Reeve Aleutian Airways, now begins to coordinate schedules and exchange passengers with Alaska’s jetliners serving Anchorage. During the summer, thousands of fishermen and processing workers are flown out to harvest Bristol Bay salmon.

Traffic declines at the Seyberts’ small regional in 1993, as passenger boardings are off 5.6% to 97,641. The growth pattern is reentered in 1994, however, as customer bookings accelerate 17.7% to 114,800. These permit small profits: $1.25 million (operating) and $179,000 (net).

Airline employment stands at 250 in 1995 and several new routes are inaugurated, including Aniak, St. Mary’s, and McGrath. Orders are placed for a pair of SAAB 340Bs. A new headquarters is opened in Anchorage.

While taking off from a gravel airstrip at Toksook on May 8, the right main tire of a PA-31-350, with one pilot and five passengers, strikes a snow berm, causing the tire and gear strut to separate from the landing gear. The aircraft continues to Dillingham, where a gear-up landing is made. Although no injuries are reported, the aircraft is badly damaged.

A Grumman G-44 with two passengers ground loops while taking off from Kodiak on July 31; although no injuries are reported, the left wheel rim is broken near its hub.

En route from Dutch Harbor on August 11, a G-21A, with two passengers, disappears; search and rescue efforts are suspended four days later.

By November, the company has become the largest commuter or regional airline in Alaska, a title later turned over to ERA Aviation.

Enplanements accelerate another 30.8% to 150,311 and 5.06 million FTKs are also operated. Operating income grows by 15.5% to $25.5 million and costs rise only 11.3% to $23.2. Profits grow substantially, with operating gain up to $2.3 million and a net $800,000 profit reported.

Following a service from Saint Paul Island, a Swearingen Metro III with 2 crew and 11 passengers makes a hard landing at Saint George Island on May 3, 1996, during which the right main landing gear and the nose landing gear both collapse. There are no fatalities.

A month before Reeve Aleutian Airways halts its contract service, Peninsula, on June 4, begins thrice-weekly Metroliner service from Anchorage to Adak. The premier SAAB 340B joins the fleet late in the year, becoming the first of the Swedish type to see service in Alaska.

Overall passenger boardings for the year jump 7.7% to 161,826.

The fleet in 1997 includes 2 newly acquired SAAB 340Bs, plus 11 Piper Saratogas, 6 Metros, 6 Navajos, 4 Cessna 208 Caravans, 2 Cessna Conquests, 2 Gooses, 2 Turbo-Gooses, 2 Widgeons, 2 Cherokee Sixes, and 1 each Cessna 206, C-185, C-180, and Piper T-1040.

Flight 354, a Cessna 208 with one pilot and two passengers, impacts trees just after takeoff from Naknek on July 21; although no injuries are reported, the aircraft sustains substantial damage.

Customer bookings climb 8.9% to 176,170.

Just after takeoff from Port Heiden on a January 30, 1998, all-cargo service to Chignik, an iced-up Cessna 208A impacts open, frozen tundra

I  mi. SW of its point of origin; the pilot is not injured.

A PA-32 with one pilot and three passengers lands short of the runway at Kongiganak on February 24 and is substantially damaged; no injuries are, however, reported.

Flight 323, a Grumman G-21A with a pilot and eight passengers, on a return flight from Akutan to Dutch Harbor on April 15, is held up from landing for 15 minutes due to weather. The pilot elects to set the amphibian down on the water 6 mi. W of Unalaska Airport to await improvement. The Goose porpoises on a swell and its left horizontal stabilizer strikes the water and is damaged. Consequently, a rescue boat is sent out to take off the passengers and the plane is water-taxied to the harbor.

Flights continue apace during the remainder of the year. Passenger boardings inch up 1.9% to 201,000, while cargo traffic rises 11.3% to 7.46 million FTKs. Revenues also grow a slow 1.9% to $35.22 million.

By the beginning of 1999, the workforce has been increased by 8.6% to 380.

While landing at Chefornak after a March 27 service from Bethel, Flight 421, a PA-32 with one pilot and one passenger, loses its nose landing gear after hitting hard. Although the aircraft is badly damaged, neither person aboard is hurt.

Customer bookings rise 6.6% during the year to 192,000.

A total of 350 workers are employed at the beginning of 2000.

When Reeve Aleutian Airways suspends its scheduled services on December 6, Peninsula agrees to accept Reeve tickets until December 8.