AIRCAL: United States (1981-1987). Abidding war with Air Florida

Is resolved in March 1981 when William Lyon and George L. Argyros (owners of the Seattle Mariners baseball team), representing AirCal Investments, purchase Air California from Westgate-California Corporation for $61.5 million. In addition to a 2,200-member workforce, the company now includes 5 newly received McDonnell Douglas DC-9-80s (MD-80s) plus 13 Boeing 737-293s, and 2 B-737-193s; orders are outstanding for 2 more MD-80s, with options held for 4 others. The new owners change the name of their company to AirCal on April 6 and adopt a new corporate identification program. Lyon becomes chairman, president, and CEO.

Phoenix and Seattle are placed into the route system on June 1. While landing at John Wayne Airport at Santa Ana after a flight from San Jose a few days later, a B-737-293 with 109 aboard must swerve to avert a collision with a second small company Boeing on the ground; 34 people are injured.

Passenger boardings rise 16.9% to 3,490,422. Freight traffic accelerates a significant 75.5% to 1.67 million FTKs. Unfortunately, expenses of $211.26 million, when combined with the effects of the PATCO air traffic controllers’ strike and subsequent ATC restrictions, bring an operating loss of $1.3 million on revenues of $211.61 million. However, a net profit of $5.6 million is posted.

The employee population is decreased by 20.9% in 1982 to 1,703. On January 1, in competition with Pacific Southwest Airlines (PSA), five-times-per day shuttle service is inaugurated over the California corridor between Los Angeles and San Francisco. A B-737-293 skids off the runway in an emergency landing at Los Angeles (LAX) on February 16.

Burbank joins the route network in March. The Orange County Board of Supervisors during the same month pushes the company to expand when it adopts an access plan designed to reduce jetliner noise impact in the local area. The new plan limits authorized average daily departures at John Wayne Airport to a maximum of 41, divided between the five companies providing flights.

Financial difficulty forces AirCal to drop its Phoenix, Fresno, Monterey, and Las Vegas markets at year’s end as traffic dips 1.2% to 3,408,533 passengers carried. Still, freight traffic rises 3.8% to 1.74 million FTKs. Although 4 Boeing 737-293s are eliminated (and replaced by the last 2 outstanding firmly ordered MD-80s), the carrier reports to the CAB that expenses exceed income. Revenues of $214.7 million are earned; however, with expenses of $235.4 million, a net loss of $24 million is suffered, atop an operating decline of $20.7 million.

The payroll is increased 10.9% in 1983 to 1,889 and the fleet now includes 7 MD-80s, 14 B-737-293s, and 2 B-737-193s.

In the spring, a number of aggressive actions are effected in an effort to enhance business. Passengers receive more legroom and a complementary snack service, in addition to seating assignments. After readjusting its routes, streamlining its cost management, and accelerating its marketing, AirCal experiences a remarkable turnaround.

As a result of redeployment of most of its fleet into California’s north-south corridor, increasing scheduling there by 35%, and initiating service to and from the new Terminal One at LAX, AirCal generates a significant traffic improvement. Competing Pacific Southwest Airlines (PSA) is forced onto the defensive and into a $9.8-million net loss.

In September, the carrier “goes public,” selling 2.5 million shares of common stock. During the month, four additional daily nonstop roundtrips are introduced between Los Angeles and San Francisco for a total of 12. In response, both United Airlines and Pacific Southwest Airlines (PSA) increase their number of flights.

In addition, twice-daily roundtrips are inaugurated between Burbank and Reno, along with daily roundtrips from Burbank to Portland, and San Jose/Ontario to Seattle/Tacoma nonstops and direct service.

Enplanements advance 4.6% to a record 3,566,153 for the year. Revenues jump 11.3% to $239 million while expenses decline 5.8% to $221.79 million. The operating profit is $17.2 million and the amount of net loss improves as the company is only $2.9 million in the red.

As aggressive marketing continues during 1984 in the 13 cities served, AirCal’s growth continues, including a 5.9% rise in employment to 2,000. Four-times-per-day service is inaugurated on January 23 from Los Angeles to Sacramento. At the same time, the company returns to Palm Springs, from which it offers nonstops to San Francisco, Ontario, and Los Angeles and direct service to San Jose, Reno, and Seattle.

During the first quarter, the company moves into a new passenger terminal at LAX, as work progresses on a new terminal at Oakland. Summer business flourishes as a direct result of the increased local capacity required for the Los Angeles Olympic Games and the Democratic National Convention.

Boarding records are set each month as enplanements race upward 11.9% to 3,989,867 and cargo skyrockets 76.3% to 3.42 million FTKs. Revenues jump 27.2% to $303.94 million and expenses, although rising 26% to $279.49 million, are sufficiently under control to allow an operating profit of $24.45 million and a net profit of $8.52 million.

The payroll grows by 38% in 1985 to 2,760. During the first quarter, the company profits from a 29-day strike by pilots at competing United Airlines. The first Boeing 737-393 is delivered in March and the carrier becomes an international airline on June 1 when it begins scheduled flights to Vancouver, Canada.

Meanwhile, David Banmiller is elected president and COO in May. Also during the spring, the company moves into a new passenger terminal at Oakland.

The entry of Continental West Airlines into the California market in September has an adverse impact.

Customer bookings ascend 11.6% to 4,451,000 and revenues jump 13.3% to $344.5 million. With expenses held at $331.69 million, profits of $12.8 million (operating) and $9.27 million (net) are celebrated.

Airline employment rises 26.7% in 1986 to 3,800 and the fleet includes 8 B-737-393s, 23 B-737-293s and 2 B-737-193s. In March, a new market is initiated at Anchorage. Simultaneously, the company begins to take delivery of 6 British Aerospace BAe 146-200s for use on flights into John Wayne Airport in Orange County. Thrice-daily nonstop B-737-393 service is launched from John Wayne Airport to Chicago (ORD) on August 15; San Diego is initiated later.

To meet competition, the carrier is forced to heavily discount its fares between spring and fall. Enroute from Los Angeles to Portland on June 6, a B-737-293 comes within 100 feet of a private aircraft before the jetliner’s pilot banks to avoid a collision.

On November 17, American Airlines announces plans to beef up its West Coast presence by purchasing AirCal, which has lost $6.2 million during the year’s first half, for $225 million.

Passenger boardings accelerate 12.9% to 5,024,090 and cargo increases 54.1% to 4.37 million FTKs. Revenues advance 9% to $375.41 million, costs are up 14.3% to $379.08 million, and the operating loss is $3.67 million. There is a net loss of $1.62 million.

American’s takeover of 3,800 employee AirCal is approved by the DOT in March 1987. Integration of the national into the Dallas (DFW) major is smoothly completed in July.

During its independent first quarter, the carrier transports a total of 1,335,000, an 18.3% boost over the same period a year earlier. Revenues during the same timeframe ascend 33.5% to $101.9 million; expenses, however, are high and force a $6.3-million operating loss. The bottom line net is in the plus column, allowing the carrier to bow out with a net gain of $6.25 million.

There are two websites relating to Air Cal on the World Wide Web. One, maintained by a “Veteran Air Californian,” is Http://members. aol. com/aircal737/aircal. htm. The other is Http://overworld. compuserve. com:80/homepages/aircal.

AIRCALIN, S. A.: 8 Rue Frederic Surleau, BP 3736, Noumea Cedex 98846, New Caledonia; Phone (26) 55 11; Fax (27) 27 72; Http://www. air-caledonie. nc, Http://www. pacificislands. com/ airlines/caledonie. html; Code SB; Year Founded 1997. On January 1,

1997, Air Caledonie International, S. A., the airline of New Caledonia (a French overseas territory), is given an entire corporate makeover, adopting a new name, new livery, new colors, and new advertising. Still, Charles Lavoix remains chairman, with Alain Balfereau as managing director.

The fleet comprises both an owned de Havilland Canada DHC-6-300 Twin Otter and a leased Boeing 737-33A, which features an eight-seat, full-leather business Hibiscus Class compartment. The jetliner continues to operate its weekly service from New Caledonia’s capital, Noumea, to Brisbane, Sydney, and Melbourne on a joint venture basis with Qantas Airways (Pty.), Ltd. In addition to Australia, Aircalin serves Auckland, Nadi, Papeete, Port Vila, and the Wallis and Futuna Islands. International service features fine French wines and in-flight meals; the domestic network connects 11 airports on Grand Terre and the outer islands, providing quick access to the seven-island group.

The carrier operates invisibly in 1998-1999. The company’s first wide-body aircraft is an ex-Swissair, A. G. Airbus A310-325, leased for three years from its manufacturer, which arrives at Noumea on March 26, 2000. Four days later, it is placed into service on routes to Osaka (KIX), Auckland, Papeete, and Sydney.

AIRCRAFT CHARTER GROUP: Hangar #1, Sikorsky Memorial Airport Stratford, Connecticut 06497, United States; Phone (203) 375-5211; Fax (203) 377-8919; Year Founded 1983. ACG is established at Stratford in 1983 to offer both domestic and international passenger charters. Flights continue over the next 15 years and, by 2000, the company employs 6 full-time and 3 part-time pilots. From Sikorsky Memorial Airport, operations are undertaken with 1 each Learjet 35A and Learjet 24, plus 1 Beech 58 Baron. Another Learjet 35A is stationed at Allentown, Pennsylvania.