C. P.O. Box 142, Seoul, 100-052, South Korea; Phone 82 (2) 7588351; Fax 82 (2) 758-8080; Http://www. flyasiana. com; Code OZ; Year Founded 1988. In need of more Korean lift in the national market than Korean Airlines/Korean Air (KAL) can provide, the Republic’s outgoing President Chun Doo Hwan awards a license for a second Korean airline to the Kwangju-based Kumho Group in February 1988. Originally formed as Seoul Air International early in the year, this conglomerate subsidiary is capitalized at $36.5 million, with the Korean Development Bank a minority (35%) shareholder.
Former Korean Air Force Maj. Gen. Yong Tae Park is named executive vice president under Chairman Ing Sung Hwang, a former Republic of China transport minister. Asiana is equipped in late fall with the first 2 of 6 GPA Group leased Boeing 737-4Y0s to be delivered. Orders are also placed for 5 additional B-737-400s, 4 B-747-400s, and 2 B-767-300s, with 3 additional options. Pilots are recruited from among the unemployed flyers of Korean Airlines/Korean Air (KAL) and Air France. Domestic revenue services are inaugurated on December 23 from hubs at Seoul and Cheju.
A total of 6,796 passengers are transported by year’s end. Revenues are $62.3 million, but expenses are higher, bringing an operating loss of $39.9 million and net downturn of $46.3 million.
Employing the leased B-737-4Y0s, the carrier, freed of government requirements that it supply only domestic service, stretches a new route in 1989 to Pusan, following it with international services to Fukuoka, Nagoya, and Tokyo, made possible by the delivery of two B-767-38EERs. A strong maintenance department is established that allows the first 737 checks to be performed late in the year. A total of 900,000 passengers are flown on the year.
The 1990 fleet of the 3,000-employee private airline includes two B-767-38EERs, 10 leased B-737-4Y0s, and 2 B-737-53As. Four-times-per-week B-767-38EER service is started from Seoul to Tokyo in February. Orders worth $6 billion are placed on September 1 for 11 B-747-400s, 12 B-767-300s, and 13 B-737-400s. Two more B-767-38EERs arrive in October, along with the first Jumbojets; these allow the initiation of services to Bangkok and Hong Kong.
A total of 2.28 billion revenue-passenger-miles are flown during the year while revenues total $150.2 million. Expenses are $199.7 million and cause an operating loss of $49.5 million. Net loss is $64.2 million.
In need of pilots, the company contracts with Vero Beach, California-based FlightSafety to provide training; the first class group of cadets graduates in October 1991 and is quickly followed into training by a second.
The first of three B-747-48ECs is delivered in October and is employed to inaugurate daily Seoul to Los Angeles service on November 15; by year’s end, Asiana is flying 84 scheduled domestic flights per day as well as 70 international frequencies per week to destinations in China, Japan, Southeast Asia, and over the new route to Los Angeles.
The fleet in 1992 comprises 5 B-767-38EERs, 10 leased B-737-4Y0s, 2 B-737-48Es, 1 leased B-737-53A, and 3 B-747-48ECs. Orders are outstanding for 11 B-737-48E, 5 B-747-48ECs, 3 B-747-48EFs, and 8 B-767-38EERs. Nonstop flights are inaugurated from Seoul to New York and San Francisco on December 9. Enplanements total 5,057,806. Expenses exceed income and the operating loss is $693,112. The net loss is $58,000.
Airline employment is increased by 25% in 1993 to 3,880 as two more B-747-48ECs are acquired. Service is initiated during March-April to Toyama, Paris, New Delhi, Berlin, and Brussels.
Ho Chi Min City joins the route network on July 1 followed by Honolulu on July 20.
While on final approach for the third time to Mokpo Airport on a July 26 service from Seoul, Flight 733, a B-737-5L9 with 6 crew and 110 passengers, collides with Mount Ungeo, 4 nm. N of the runway (68 dead). This is Asiana’s first major accident.
On November 1, the company becomes launch customer for the B-767-38E freighter.
Passenger boardings increase 15% to 5,950,359 while freight traffic moves ahead by a remarkable 95% to 441.7 million FTKs. Revenues ascend 48% to $651.26 million while expenses climb 54% to $644.15 million. The happy difference results in an operating surplus of $7.1 million. The net loss increases to 63,000.
Employment at the carrier is boosted another 28.9% in 1994 to 5,000. Weekly roundtrips commence on June 23 between Seoul and Khabarovsk; Asiana is the first Korean carrier to offer regularly scheduled flights to the Russian Far Eastern destination.
In early September, a strategic code-sharing alliance is signed with Northwest Airlines; under terms of the agreement, the company will share frequent flyer programs, terminal and lounge facilities at four U. S. airports, and cargo space on flights between Korea and the U. S.
Plans to initiate new thrice-weekly roundtrips to Seattle are postponed in order that the carrier might take advantage of key tourism opportunities.
Code-sharing flights commence in cooperation with Northwest Airlines on October 30 on flights between Detroit and Seoul (NWA) and Seoul and Saipan, Honolulu, San Francisco, Los Angeles, and New York-JFK (Asiana).
The first B-747-48ER arrives in December and service to Russia and mainland China begins at year’s end.
Customer bookings balloon 28.2% to 7,626,936 while freight nearly doubles, climbing to 795.62 million FTKs. Revenues of $993 million allow a net profit (the first) of $37 million.
Two important revenue-sharing pacts are inaugurated in January 1995. One with Air China covers flights to Beijing from Seoul and Pusan while the second, with China Eastern Airlines Company, Ltd., provides for joint income over a route from Seoul to Shanghai.
Thrice-weekly B-767-38EER roundtrips commence between Seoul and Seattle-Tacoma International Airport on May 22.
Having spent $1 million to renovate an 85,000-sq.-ft. facility at New York (JFK) that had previously been employed by Japan Air Lines Company, Ltd. (2), Asiana moves in mid-July. The number of weekly flights into Kennedy advances to 12 as 2 new weekly roundtrips are started between New York and Seoul.
Traffic figures are reported only through September, but are gratifying. Passenger boardings are up 19% over the same period a year earlier to 6,753,412 while cargo rises 47.8% to 858.65 million FTKs. The good traffic report translates into profits: $126.52 million (operating) and $24.43 million (net).
Twice-weekly service is inaugurated on November 1 between Seoul and Brussels; the return flights stop at Vienna.
Thrice-weekly B-767-38EER roundtrips between Seoul and Cairns, Australia, commence on December 3.
Airline employment stands at 6,177 in 1996 and, in January, the company wins the “Market Development Award” from Air Transport World magazine.
Code-sharing flights begin in February with Austrian Airlines, A. G. over a route from Seoul to Vienna. As the result of an investigative report by The Wall Street Journal, the U. S. Department of Justice and FAA both begin a probe during the second week of July to determine if company pilots had received preferential treatment while training in the U. S.
In November, code-sharing begins with Qantas Airways (Pty.), Ltd. from Seoul to Sydney and Cairns, four-times-per-week. The two companies also agree to coordinate ground handling services at the Korean and Australian destinations. Flights to London commence in December.
Full-year traffic figures show a 12.3% increase in customer bookings to 10,030,521 and operating income jumps 14.4% to $1.42 billion. Costs climb 20.9% to $1.36 billion, leaving an operating gain of $62.33 million. There is a huge $64.07-million net loss.
The workforce grows 2.9% in 1997 to 6,404. With the blessing of the South Korean government, Switzerland-based Pacific Investment Capital, Ltd. acquires an $80-million, 19.02% stake during January. During the month, the company places a $175-million order for GE CF6-80C2 engines. It also receives the annual “Market Development Award” from the industry magazine Air Transport World.
On April 1, electronic ticketless travel is introduced systemwide, making Asiana the first airline in the world to have fully integrated this service. Dual-designator frequencies from Seoul to Sydney and Cairns are increased to five per week beginning in April. Frankfurt joins the route network in May.
A code-sharing agreement with THY (Turkish Airlines, A. O.) takes effect on August 1; employing Asiana B-747-48ECs with dual designated flight numbers, the two initiate twice-weekly roundtrips between Seoul and Istanbul.
In the wake of the July Korean Airlines/Korean Air (KAL) disaster on Guam, Asiana, on August 25, decides to suspend operations to Agana International Airport on the island until September 11 when it is expected that the island airfield’s safety devices will be repaired.
During the summer, a strategic alliance is entered into with American Airlines. On September 1, the carrier cuts its roundtrip fares to seven Asian destinations from seven U. S. markets to $679 and up.
At this point, the company firms up an order with Airbus Industrie for three A330-200s and three A330-300s, to be delivered between the fall of 1999 and summer of 2001.
In early October, a B-747-R8F-4Q8F is chartered from ILFC for 10 years, beginning in April 1999.
A new dual-designator alliance is entered into with American Airlines on October 17. The three-year-old code-sharing pact with Northwest Airlines is concluded on October 30.
The next day, twice-weekly B-767-38EER roundtrips commence between Seoul and New Delhi, India. Code-sharing on South Korea-U. S. flights, scheduled to begin with American Airlines on November 20, is postponed.
It is announced on December 2 that the company, since July 1, has run a campaign to collect small change to be used in a special fund-raising program for North Korean children. Through the generous support of the airline’s passengers, it is able to turn 88 million in donations over to the Korean committee of UNICEF.
Late in December, the company defers delivery of its first B-777, as well as the B-747-4Q8F.
Passenger boardings climb 5.3% to 10,565,307 while revenues jump 13.2% to $964.01 million. With costs of $763.62 million, the company enjoys a $200.3 8-million operating profit, but also must face a huge $281.43-million net loss.
At the beginning of 1998, Asiana is the 20th largest airline in the world in terms of operating profit.
In January, because of the nation’s growing economic difficulties, the carrier suspends services from Seoul to Frankfurt, Vienna, Istanbul, and Frankfurt. Passenger flights to Macau and Honolulu are suspended, along with an all-cargo service to New Delhi. Asiana is also forced to delay acceptance of several new aircraft, including one each B-747-48EC and B-767-38EER. Ten airplanes will also be sold.
Other cost-cutting measures put into effect include a hiring freeze, a management reorganization (and the weeding out of 20% of the top executives), rotating one-month unpaid lay offs for all employees to protect all from permanent redundancies, salary cuts, nonpayment of bonuses, and other savings.
With the beginning of the summer schedule in March, new routes are opened from Seoul to the Chinese communities of Changchun, Harbin, and Guangzhou. Some of these are marketed as Flying Magic service.
A block-space, code-sharing agreement is signed with Singapore Airlines, Ltd. on April 10; under its terms, the Korean carrier, starting four days later, places its two-letter “OZ” code on Singapore’s A310-324 thrice-weekly roundtrips between Singapore and Seoul. The new flights replace Asiana’s existing B-767-38EER roundtrips between the two capitals.
Dual-designator service with American Airlines finally begins on July 20. American places its “AA” code on Asiana’s flights from Seoul to Los Angeles, San Francisco, Seattle, and New York (JFK).
Twice-weekly flights are introduced on September 1 between Shanghai and the island resort of Cheju.
On October 1, Asiana is able to place its code on American services from the four gateway cities and other U. S. points.
Landing at Anchorage on November 11 after a service from New York (JFK), Flight 221, a B-747-48EC with 18 crew and 220 passengers, begins to taxi over an icy ramp area towards its gate. As the plane reaches N-6 and begins to turn left, it continues straight ahead, with the nose-wheels sliding sideways. The left, outboard engine of the Jumbojet strikes the left wingtip of Aeroflot Russian International Airlines (ARIA) Flight 853, an Ilyushin Il-62M with a crew of 11 and a contract cleaner aboard preparing for departure to San Francisco. The Boeing’s left wingtip then strikes the Ilyushin’s vertical stabilizer. Except for a sprained wrist claimed by the cleaner, no other injuries are reported. The captain of the Korean 747 immediately orders all four engines shut down and the passengers are disembarked using air stairs. Immediately after the collision, the Russian crew and cleaner, after turning off all power, also exit their aircraft.
While taxiing at New York (JFK) on November 30 after arrival from Anchorage, a B-747-48EF with two crew strikes a crane located in a taxiway safety area and is substantially damaged. Nether man aboard the plane is hurt, but the crane operator receives minor injuries.
In early December, Asiana enters into a major codesharing agreement with China Eastern Airlines Company, Ltd. In addition to the usual sharing of frequent flyer programs, marketing, and ground handling, the two undertake regular shared roundtrip service from Seoul to Yantai, four times a week.
The dual-designator arrangement with China Eastern Airlines is enhanced on December 29. Two additional weekly roundtrips are added from Seoul to Yantai and new twice-daily nonstop roundtrips are inaugurated between Seoul and Shanghai.
Enplanements during the 12 months fall 16.5% to 8.95 million, while cargo traffic drops 13.7% to 1.8 billion FTKs.
The first quarter of 1999 is strong for Asiana and allows its leadership to begin planning for better times. Revenues during the three months total $252 million and exceed the company’s $214-million goal.
When the summer schedule begins on April 1, Asiana increases the number of its weekly roundtrip flights to Osaka (KIX) from 7 to 14. The number of weekly return services from Seoul to Australia simultaneously grows from 4 to 6. The next day, service is resumed to Saipan and Guam.
Exiled Chinese dissident Wang Xizhe, seeking to return home to pay respects to his deceased father, is a passenger on the company’s April 5 B-747-48ER service from New York to Beijing via Seoul. When the Jumbojet arrives at the South Korean capital, Wang, who does not have clearance to continue on to China, is removed from the aircraft and booked on a flight to Bangkok. The Hong Kong-based Information Centre of Human Rights and Democratic Movements in China informs Reuters, Ltd. that the airline had been warned by Chinese authorities of Wang’s boarding and that the carrier would be held responsible if his flight were completed. When Wang arrives in Bangkok, Thai officials prevent him from holding a news conference and order him to return to his point of departure. The dissident returns to Seoul on April 8, returning to New York next day.
As the Korean economy continues its recovery during the spring, Asiana agrees to take delivery of the B-767-38EER and B-747-48ER postponed the previous year.
Following the latest Korean Airlines/Korean Air (KAL) accident on April 15 and government penalties, Asiana’s market share increases. By the end of the month, the company claim’s 40% of all domestic passengers, up from 30% for all of 1998.
Additional new services added during the summer include an expansion of frequencies to Fukushima and replacement of the B-737 flown to Hong Kong with a B-767-38EER. Suspended services to Taipei are resumed, seven times a week. The new restrictions imposed by the Philippine government during May in an effort to save Philippine Airlines (PAL) cause Asiana to scuttle plans for an expansion of flights to Manila.
In the area of cargo, new frequencies are added to Sendai and Frankfurt and from Seoul to Brussels to Seoul via New York (JFK). The number of flights over existing routes from Seoul to New York (JFK), Chicago (ORD), London (LHR), Brussels, Amsterdam, and China are also boosted.
Four men who joined the company in 1990 as pilot trainees are advanced to the rank of captain on November 29 in a ceremony that marks the first time civilian flyers had been so promoted in Korean aviation history. Previously, all Asiana or Korean Air captains had been ex-air force or foreign pilots.
In December, company workers shut the carrier down for five hours one day before the carrier agrees to a 10% wage increase.
Passenger boardings and cargo traffic this year remain level with figures from a year earlier. On revenues of $1.7 billion, a net $9.7-million profit is generated.
New B-737-4Y0 roundtrips to Guilin and Xian in mainland China begin on April 2, 2000; Asiana is the first foreign carrier to land at the former destination. On June 11, in cooperation with Cargolux Airlines International, S. A., twice-weekly Seoul to Brussels roundtrips are started, employing the European carrier’s B-747-47UFs.
On June 14, a company B-737-4Y0, which had earlier in the month been secretly diverted from its usual Seoul-Pusan route for crew training, flies a South Korean delegation to P’yongyang. Following the historic talks, the small plane returns the government leaders in triumph.
A320 Thursday-only roundtrips begin on June 22 from Seoul to Chongqing, China.
ASMARA AIRLINES: Eritrea (1994-1995). Asmara is established in the spring of 1994 to offer regional services. Revenue flights commence in midyear with a fleet of 7 Dornier 228-212s. Operations cease within a year.
ASN AEROSTAN (AIRSTAN): 12 Z. Sultan Str., Kazan, Tatarstan, 420022, Russia; Phone 7 (8432) 329 231; Fax 7 (8432) 329 481; Http://www. kazan. ru/air; Code JSC; Year Founded 1994. Airstan is established at Kazan in 1994 as a closed joint-stock company specializing in long-distance international air carriage of heavy and oversized cargo. It is, in fact, a subsidiary of the industrial-financial corporation TatInTrade, which includes several other Tatarstan Republic enterprises. R. Iskhakov is chairman, with A. Galunov as general director.
At first, all capital of the charter operation consists of one Ilyushin Il-76TD, as well as pilots and technicians, who are recruited from Aeroflot Russian International Airlines (ARIA) and Volga-Dnepr Airlines.
In cooperation with Heavylift Cargo Airlines, Ltd. and several other cargo carriers, the company inaugurates services to 20 nations in Europe, Africa, and Asia.
During 1995b, Taliban freedom fighters in Afghanistan capture the company plane during one of its regular airlifts and hold the crew as prisoners. After some hours, the Ilyushin’s pilots are able to disarm the guard and escape to the U. A.E. flying in difficult conditions at only 50 meters height.
Flights continue during the remainder of the year and beyond into 2000, During these years, the fleet is increased with a second Il-76TD and an Antonov An-26, as well as a Yakevlov Yak-40, which is employed for executive charters.
ASPEN AIRWAYS: United States (1953-1991). Founded by Clyde Bonham as an FBO at Denver, Aspen commences an air taxi service to Colorado’s ski resorts in June 1953. Having obtained a special exemption from the CAB, Aspen begins scheduled service in 1955 with Beech Bonanzas, ferrying members of the Aspen Institute for Humanistic Studies to and from Denver. The operation is enlarged on March 27, 1965 to provide scheduled Douglas DC-3 and de Havilland DH 114 Heron service to its namesake city’s ski areas.
The CAB grants the carrier a certificate for the route on March 9, 1967. Gerald Hickman is named president and the fleet is now increased by the addition of Convair CV-340s and CV-440s. The workforce is now 41 and a total of 15,000 passengers are originated during the year. Operations continue apace in 1968-1969.
Due to a checklist completion mistake, a CV-240 with 3 crew and 49 passengers makes a wheels-up landing at Aspen on January 17, 1970, and skids for 4,300 ft. before stopping; there are no fatalities.
Boardings for the year climb to 42,000 passengers and FTKs rise to 6,000.
Enplanements total 35,916 in 1971. The company enjoys a solid “B” average in 1972. The workforce stands at 82. Passenger boardings skyrocket 56.2% to 82,000 and cargo traffic does better, up 83%.
Enplanements in 1973 total 97,000. The number of employees has fallen to 77 by 1974. Customer bookings accelerate 3.1% to 100,000, but freight traffic is down by 18.6%.
The workforce in 1975 is 121. Two Convair CV-580s are acquired and the company contracts two CV-440s with crews to McCulloch Development Corporation to fly the real estate firm’s prospective customers. Constructed by Pitkin County, a new transportation center and terminal is occupied at Aspen’s Sardy Airfield. Enplanements grow by 20.4% to 114,154.
Employment grows by 9.1% in 1976 to 132. Passenger boardings accelerate 19% to 136,000. The company’s 10 Convair CV-580s assist enplanements to reach 229,949 in 1977. Charter and contract service flights also continue to be operated, not only within the U. S., but to Mexico, Canada, and the Caribbean as well. Net profits total $11,000 on operating income of $6.43 million.
The workforce totals 260 in 1978, an increase of 57.6%. New routes are opened to Durango and Montrose, Colorado, and plans for additional expansion are studied. Meanwhile, a number of new marketing initiatives are undertaken, including three undertaken in cooperation with regional travel agencies.
Passenger boardings jump 10.3% to 256,353 while FTKs rise 29.2% to 45,000. Overall revenues advance to $7.76 million, but expenses fly higher, reaching $8.46 million. This unhappy imbalance results in an operating loss of $697,000 and a net loss of $21,000.
The number of workers is increased by 28% in 1979 to 320. The carrier adopts a deliberate policy emphasizing replacement service and avoiding competition with subsidized airlines; thus, Aspen closes its routes to the New Mexico communities of Albuquerque and Farmington and to the Colorado towns of Gunnison and Durango. At the same time, a new Golden State division is set up and the company moves into California to replace those routes abandoned by Air California, Pacific Southwest Airlines (PSA), and United Airlines in the wake of deregulation.
A hub is established at Burbank and routes are extended from Burbank and Los Angeles to Lake Tahoe; San Francisco and San Jose to Lake Tahoe; Bakersfield to Los Angeles; and Los Angeles to San Francisco via Stockton and Modesto. To provide the extra capacity required, two more CV-580s are purchased and the entire Convair fleet receives a new paint scheme. In addition, the new destinations are trumpeted via several innovative advertising campaigns.
Passenger boardings jump 28% to 328,433 and cargo accelerates 38.7% to 63,000 pounds. Operating income bounces upward by 56.2% to $12.17 million, but expenses (led by fuel prices) sweep to $12.56 million, a 48.4% boost. As a result, the carrier suffers an operating loss of $431,000 and a net failure of $350,000.
The employee population is increased by 7.3% in 1980 to 296 and the fleet includes 10 CV-580s. Terence O. Dennison is appointed vice president operations. In early spring, the route to Montrose, Colorado, is suspended as are flights in the Bakersfield and Los Angeles area. Direct Los Angeles to Lake Tahoe service is inaugurated and during the two-month strike at Pacific Southwest Airlines (PSA), the carrier helps to alleviate traffic demand by covering that company’s Burbank-San Francisco run. The British Aerospace BAe 146 is examined as a Convair replacement.
Customer bookings leap ahead by 6.5% to 349,579 as does freight, by 29.6%, to 92,856 pounds. Revenues accelerate 47.8% to $17.9 million, with expenses lagging behind at $$17.5 million. The profits are $351,000 (operating) and $304,000 (net).
The number of employees is cut by 13.8% in 1981 to 255. A new Denver-based central reservations facility, complete with a $300,000 Rolm ACD/CBX computer system, is occupied during the first quarter. On June 1, Aspen becomes a subsidized replacement carrier for Western Airlines on the major’s Salt Lake City to West Yellowstone route.
However, passenger boardings are down significantly, due largely to the PATCO air traffic controllers’ strike, falling 30.3% to 243,502; cargo falls even more, off 32.5% to 57,179 pounds. Operating income plunges 56.5% to $16.91 million while expenses accelerate to $17.29 million. Consequently, the company suffers a $379,000 operating loss and a net downturn of $656,000.
The workforce in 1982 totals 240 and the fleet includes 10 Convair CV-580s. Enplanements rebound as a variety of new charter destinations are added, including Sun Valley, Jackson Hole, and Durango. Enplanements jump a full 14% to 277,000.
An 11th Convair is purchased in 1983 and, with the bankruptcy of Continental Airlines, Aspen acquires the short-haul Denver to Colorado Springs service, which it operates on behalf of United Airlines. The arrangement helps passenger traffic to increase by 31.9% to 367,000 transported passengers. Cargo skyrockets 92.7% to 747,000 pounds.
The fleet in 1984 includes 11 CV-580s and a new marketing agreement is entered into with United. Orders are outstanding for 8 British Aerospace BAe 146-100s. Customer bookings rise 21.1% to 443,598 and freight jumps 19.9% to 895,044 pounds.
Early in the 20th anniversary year of 1985, the 469-employee Aspen places its first two British Aerospace BAe 146-100s into service. These are employed on the routes from Denver to Amarillo and Lubbock as well as Denver to Aspen ski-season services and charter flights to Aspen from California.
Simultaneously, the company begins twice-daily CV-580 flights over the Essential Air Services (EAS) routes abandoned by Frontier Commuter between Denver and the Wyoming communities of Sheridan and Gillette. Enplanements climb 28.7% to 571,028, while cargo skyrockets 84.4% to 1.65 million FTKs. Revenues ascend 32.4% to $35.45 million.
Airline employment declines by 20% in 1986 to 375. The Denver-based large regional becomes a full-fledged “United Express” codesharing partner on September 1. The long-familiar leafy logo is abandoned as the carrier’s aircraft, including a third BAe 146-100 received late in the year, are repainted in the modified colors of its major new partner.
Passenger boardings swell 12.5% to 642,496 and cargo moves upward a slight 0.6% to 1.66 million FTKs. Revenues advance 7% to $37.92 million, expenses rise 8.3% to $36.92 million, and the operating profit is $1 million. Net profit grows by two thirds to $933,200.
The fleet in 1987 includes 3 BAe 146-100s and 11 CV-580s. As the result of a fare war during ski season, the Texas-Denver BAe service is terminated in January. In February, the carrier moves into a new terminal at Aspen that it shares with Rocky Mountain Airways; connections with the United Airlines gate are made by minibus on the ramp. Charters to the West Coast end in March.
In August, jet service is discontinued from Lubbock, Midland, and Amarillo, Texas, to Denver.
Customer bookings ascend 31.1% to 842,171 and cargo climbs by 15.4% to 1.94 million FTKs. Revenues jump 31% to $49 million, expenses swell 32.2% to $48.79 million, and the operating profit is down to $212,000. Net gain also declines, to $229,000.
Airline employment grows by 34.1% in 1988 to 503 and the “United Express” carrier’s fleet includes 4 BAe 146s and 10 CV-580s. Gary B. Hickman, son of president Gerald Hickman, is appointed chief operating officer.
Just after landing at Durango on February 2 after a service from Denver, a CV-580 with 3 crew and 38 passengers, collides with a snowbank; although the aircraft is damaged, no injuries are reported.
Passenger boardings rise 7.8% to 900,000 and revenues ascend 19% to $58 million. Expenses, however, jump 24.5% to $60.73 million and leave an operating loss of $2.43 million. The net loss is $2.51 million.
The 36-year-old large regional does not enjoy a good final year.
Just after takeoff from Stapleton Airport at Denver on January 20, 1989, a CV-580 with 3 crew and 36 passengers, loses power to the No. 2 engine. The turboprop attempts to return, but while landing, loses power to No. 1 engine. The plane lands on a dirt road near the runway, hits a fence, and comes to rest in a pile of logs with its nosegear collapsed. There are no fatalities.
In October, Farmington, New Mexico-based Mesa Airlines attempts to buy Aspen, but withdraws when a sale to Los Angeles investor Burt Sugarman is announced. Shortly thereafter, the Sugarman arrangement falls through and WestAir Airlines, doing business as “United Express,” of Fresno, California, opens negotiations. High labor costs at Aspen and an opportunity to replace failed Presidential Airways, cause WestAir’s chairman, Timothy Flynn, to back away.
In December, after several months of negotiations, the company is finally able to sell itself. All company stock, the year-round Denver-Aspen route, the seasonal ski vacation jet routes to Aspen from Chicago, Los Angeles, and Dallas (DFW), plus four BAe 146s, are sold to Air Wisconsin, which plans to operate its new acquisition as a subsidiary. The fleet of 10 aging Convairs is sold separately. Aspen owner Donald Ringsby later reports to employees that Mesa Airlines is able to purchase the turboprop routes for $4 million.
Enplanements for the year fall to 798,905 and cargo to 403,000 pounds. Revenues for 550-employee Aspen increase a slight 2.6% to $59.8 million, but costs rocket upward again and generate losses of $5.4 million (operating) and $5.5 million (net).
Final arrangements for these sales are completed by February 1990 with the Air Wisconsin portion of the takeover being finished on May 1. That transaction costs AW $3 million in cash and five-year 8.5% notes for $2.5 million plus the assumption of $2 in liabilities. The workforce is now reduced by 49.1% to 280 and Aspen flies on behalf of its “United Express” parent throughout the year, transporting a total of 403,621 passengers, a 49.5% decline over the previous year. Revenues are $33.3 million and produce an operating loss of $2.3 million and a net loss of $1.4 million. As a cost-saving measure, Air Wisconsin merges its subsidiary in July 1991.
ASPEN AVIATION: 69 E. Airport Road, Aspen, Colorado 81611, United States; Phone (970) 925-2522; Fax (970) 920-9841; Year Founded 1981. AA is set up at Aspen-Pitkin County-Sardy Field, Colorado, in 1981, to offer passenger charter and small group executive flights; many incoming flights bring wealthy skiing parties. By 2000, the carrier employs 9 pilots and operates 2 Learjet 35As and 1 each Beech Super King Air 200, Aero Commander 690D, and Cessna 206 Stationaire.
ASPEN MOUNTAIN AIR: United States (1996-1999). To fill the voice created when Continental Express stops flying into the Aspen/Snowmass market, Ronald P. Stone and Pat Imeson join with local business interests, including the Crown family and Ines Interest, Ltd. (both owners of Aspen Skiing Company), to create the airline service group Peak International.
During the summer of 1996, Peak International, with Stone as chair-man/CEO, purchase majority interest in Lone Star Airlines and the five-year old airline is amalgamated into their new AMA. Aspen founder Stone becomes chairman/CEO, while Lone Star President Paul Trenary resigns. Arrangements are made with Fairchild Dornier to lease a fleet of Dornier 328-110s.
Employing two Fairchild Dornier 328-110s, the company inaugurates scheduled revenue services from a new Aspen hub on November 1; six-times-a-day service is launched between Denver and Aspen and four-times-a-day return nonstops between Denver and Dallas.
Lone Star’s regional markets in Colorado, Texas, Arkansas, Missouri, New Mexico, Oklahoma, Tennessee, and Mexico are also served. Included are its Essential Air Services (EAS) routes to eight south central U. S. communities flown with Fairchild Metro 23 s, including two wet-leased from Merlin Express.
The year’s combined traffic figures for Lone Star and Aspen combine reach 98,218, a 15.5% increase over Lone Star’s 1995 report.
In February 1997, a marketing and code-sharing agreement is signed with Frontier Airlines (2). The arrangement covers passenger services between Aspen and Denver.
A code-sharing agreement is signed with American Airlines during the spring and the route network is increased as twice-daily, dual-designator roundtrips are inaugurated between Dallas-Fort Worth and Aspen and to Knoxville, Tennessee. During the Paris Air Show in June, orders are placed for four Fairchild Dornier 328JET regional jetliners.
On June 27, twice-daily, dual-designator Fairchild-Dornier 328-110 roundtrips are introduced between Dallas (DFW) and Santa Fe, New Mexico. Twice-daily, nonstop, code-sharing roundtrips commence on September 15 between Dallas (DFW) and Pensacola, Florida.
The code-sharing agreement with American Airlines is expanded on December 3. The major places its codes on Aspen’s Dornier 328-110s as they offer two flights daily, except Saturday, between Dallas (DFW) and Chihuahua, Mexico, and two flights daily Monday-Thursday and one flight on Friday and Sunday between Dallas (DFW) and Del Rio, Texas.
These new flights complement the dual-designator the two carriers have introduced over the past several months on Aspen flights from Dallas (DFW) to Pensacola, Santa Fe, Knoxville, and between Denver and Bozeman.
The roundtrip Dallas-Knoxville service is increased on December 18 to thrice daily.
Passenger boardings soar 65.7% to 165,728.
Airline employment stands at 470 at the beginning of 1998. Service is provided to 22 cities with a fleet of 15 jet-prop aircraft. During the first half, the company petitions for landing slots at Chicago (ORD); from that airport, nonstop flights would be launched to Sioux City, Iowa, and Branson, Missouri.
On August 7, the carrier voluntarily seeks protection under Chapter XI of the U. S. bankruptcy code, while simultaneously requesting and obtaining an order from the federal bankruptcy court in Dallas, Texas, approving interim financing that will allow it to continue operations.
The company announces on September 3 that it will reduce its fleet of aircraft to a level sufficient to focus on several key U. S. and transborder routes and that it will maintain its EAS routes until an acceptable replacement carrier is selected by the government. Routes to be continued are from Dallas-Fort Worth to Aspen, Chihuahua, and Branson and from Denver to Aspen and Bozeman.
On September 4, flights are cut from Dallas (DFW) to Del Rio, from Del Rio to Torreon, and from Chihuahua to El Paso. Frequencies from Dallas (DFW) to Pensacola and from Denver to Sioux City are shut down on September 11. Service to Knoxville from Dallas (DFW) ends on September 30 and, on October 30, flights from Dallas (DFW) to Santa Fe cease.
On October 9, Fairchild refuses to renew the carrier’s Dornier 328110 lease. Consequently, AMA must immediately cease service to Aspen from Dallas (DFW) and Denver; from Denver to Bozeman; and from Dallas (DFW) to Chihuahua. Fairchild Metro 23 s will continue to fly on EAS routes from Dallas (DFW) to Hot Springs, Mountain Home, El Dorado, and Harrison in Arkansas; Jonesboro and Brownwood in Texas; Enid and Ponca City in Oklahoma, and the Mississippi community of St. Louis.
During the last week of October, the DOT selects Billings, Montana-based Big Sky Airlines, in preference to three other applicants, to take over the AMA EAS routes from Dallas (DFW). AMA begins to hand over the routes in mid-November, along with the two wet-leased Merlin 23 s it has been operating. Big Sky adds two aircraft of its own and makes arrangements to dedicate a fifth turboprop. The transfer is completed on December 15 without loss of service.
Enplanements during the last year of service total 200,000. AMA Chairman Stone, who has been working to develop a new business strategy patterned after the defunct Aspen Airways, shuts the carrier down at the beginning of 1999.
World History
