First company to name itself in honor of America’s inland oceans is established at Cleveland, Ohio, in the spring of 1921. Employing an Aero-marine-modified Curtiss HS-2L flying boat, the line flies 100 passengers during the summer to Toledo and Detroit.
Although plans are made to expand and acquire at least three additional HS-2Ls for the next season, the company is forced, by financial realities, to close down in late fall.
GREAT LAKES AVIATION: 1965 330th Street, Spencer, Iowa, 51301-9211, United States; Phone (712) 262-1000; Fax (712) 2621001; Http://www. greatlakesav. com. Code ZK; Year Founded 1979.
When two-year-old Spencer, Iowa-based Spirit Lakes Airways fails in the summer of 1979, Douglas G. Voss and his colleagues I. L. Simpson,
D. K. Evans, and W. E. Winger reform it, registering this successor on October 25.
Charter replacement flights are flown over the next two years and a limited Beech B-58 Baron scheduled service linking the company base with Des Moines is started in October 1981.
Certification as a small regional airline is received from the CAB on June 25, 1982 and regular scheduled services are begun on August 1. The same day, the company begins to honor a marketing agreement with Ozark Air Lines. Destinations served include Des Moines, Dodge, and Spencer in Iowa; Fairmont and Minneapolis (MSP) in Minnesota; and the Nebraska city of Omaha.
Within four years, the fleet comprises two Beech 99s and a number of Cessna 402s.
Airline employment is increased by 15.4% in 1987 to 75 and the fleet now includes 3 Beech 99s and 1 Beech 1900. A total of 25,461 passengers are flown, a 0.7% increase.
In 1988, the fleet is enlarged by the addition of another Beech 1900. Passenger boardings skyrocket 116.9% to 55,237.
On August 1, 1989, the company takes over the Wisconsin-based Alliance Airlines. As a result, the route system grows to 15 cities in 5 states.
During 1990, two additional Beech 99s and five Beech 1900Cs are acquired. Service is inaugurated by the 272-employee large regional from Minneapolis to the Nebraska communities of Grand Island and Norfolk. Enplanements total 166,456.
The fleet at the beginning of 1991 is comprised of 19 Beech 1900Cs and a marketing agreement, not quite code-sharing in status, is signed in March with United Airlines. The last of 257 Beech 1900Cs constructed is delivered to the carrier in September. Passenger boardings leap skyward by 50% to 249,251.
Two more Beech 1900Cs join Chairman/CEO Voss’s fleet in 1992 as the large regional advances its relationship with its partner to that of “United Express” carrier. Its aircraft, repainted in modified United colors, feed 6 communities from Minneapolis (MSP), 20 from Chicago (ORD), 2 from Detroit, and 8 from Denver.
In December, a cooperative internship agreement is signed with the Aerospace program at the University of North Dakota.
Customer bookings accelerate 59% to 396,153. Revenues exceed expenses and there are profits: $7.35 million (operating) and $497,590 (net).
In 1993, the workforce is increased 25% to 700 and the fleet comprises 34 Beech 1900Cs, including 12 added during the year.
Effective in January, graduates of the UND Spectrum airline pilot degree program are able to earn internships with GLA under which they will fly as paid first officers on the company’s Beech 1900Cs.
A new roundtrip service, independent of “United Express,” is launched five times per day in March between Chicago’s Meigs Field and Minneapolis (MSP).
Customer bookings increase 54.7% to 611,528 and revenues surge 44.5% to $58.72 million. Expenses leap ahead by 47.3%, but that figure is only $49.04 million and allows an operating profit of $9.68 million. Net gain reaches $2.12 million.
Airline employment is increased by 20.9% in 1994 to 846. During the spring and summer, five new Beech 1900Ds are delivered and placed into service.
The company continues to connect Denver, Chicago, Minneapolis (MSP), and Detroit (DTT) with 54 locations in 9 midwest and mountain states. The third Embraer EMB-120 Brasilia leased since January enters service on June 10. On June 19, thrice-daily nonstop roundtrips commence from Rapid City, South Dakota, to Minneapolis (MSP).
For the year as a whole, passenger boardings accelerate 8.5% to 663,627 and revenues leap ahead by 17.4% to $68.81 million. With expenses of $63.61 million, the pretax gain is $5.2 million and net profit totals $403,841. Both profit lines are down from the previous reporting period.
Midway Connection flights commence in July 1995 as the company maintains its growing route network with a fleet of 39 Beech 1900s and 12 Brasilias. By mandate of the FAA, each of the latter must be withdrawn from service for inspection of their propeller blades, a process that is both expensive and inconvenient to scheduling.
Service from Arizona to Mexico is launched in August. In early October, two Beech 1900Ds are received and placed into Midway Connection service.
Enplanements soar 21.3% to 805,516 and revenues surge 20.3% to $84.19 million. Costs, however, climb 31.1% to $84.95 million and leave losses. The operating loss is $758,000, but a large $2.68-million net loss is also suffered.
The employee population stands at 1,250 in 1996. GLA continues to offer “United Express” frequencies to 54 upper Midwest destinations. It also flies independently to 13 points in the Southwest and provides Midway Connection flights to another 13 markets on the East Coast.
The company begins to transition from FAR Part 135 to FAR Part 121; the upgrade to the more-stringent operational standard will not be simple. In the wake of the May Valujet Airlines disaster, this company, as several other similar airlines attempting to upgrade, becomes a target for increased FAA safety surveillance.
The fourth quarter is a traffic and financial fiasco as increased fuel costs, bad weather, and pilot defections to other airlines combine to force a major downturn. Disaster strikes during this period.
On November 19, “United Express” Flight 5925, a Beech 1900C-1 with 3 crew and 10 passengers, first stops at Burlington on a service from Chicago before departing to Quincy. At the latter point, a Beech King Air 90 with two crew and a Piper Cherokee, are both taxiing for takeoff from the uncontrolled airport.
Due to confusion in communications, the 1900C touches down just as the King Air begins its takeoff roll. Both planes collide, their wings interlock, and they skid 110ft. down the runway. Three people on the ground witness the event and rush to the scene, but are unable to open the jammed door of the commuter plane. All aboard, plus those in the King Air, perish. This is the first fatal U. S. commuter airline accident of the year and the first ever involving a scheduled airline at an airport operating without an FAA control tower.
At year’s end, three Beech 1900Cs are returned to their lessors. Overall passenger boardings do jump 25.8% to 1,012,791 on 165,972 scheduled departures, but the net loss line skyrockets to $12.8 million.
The company’s 18th year picks up where the 17th left off—badly. Early in 1997, three more Beech 1900Cs are returned to their lessors as the carrier experiences a major cash flow problem; service to 12 destinations is eliminated.
At the prompting of the FAA, GLA voluntarily suspends services for a period beginning on May 17. The action is taken after FAA safety inspectors from the Des Moines Flight Standards District Office find a number of maintenance and reporting deficiencies, as well as problems with improperly trained personnel and aircraft that are not airworthy. On top of the fiscal and operational problems—indeed, as part of them— Midway Airlines (2) announces that it will terminate its Midway Connection agreement on November 1.
Following the May 17 “voluntary” shutdown, the carrier’s fleet is ferried to the company’s maintenance center at Spencer, Iowa. There, company mechanics and FAA officials begin detailed aircraft inspections, completing a check of four Beech 1900Ds within four days.
After reaching a consent agreement with the FAA under which it admits to no wrongdoing, GLA, under tight government scrutiny, resumes flights to 5 cities over the Memorial Day weekend with 10 of its 53 aircraft.
On June 1, Jeffrey Redlin is appointed the company’s new maintenance director. By June 11, GLA is serving a total of 21 cities (as compared to its 70-market network prior to May 17). Company officials now take the unusual step of criticizing the FAA, claiming that a shortage of aircraft inspectors is delaying its full return to service. The agency denies the charge and points out that serious maintenance problems continue to exist at the airline’s Iowa repair base.
New services are inaugurated during the summer to Kearney, Nebraska, on July 10 and Lamar, Colorado, plus Goodland, Kansas, on August 1.
The Midway Connection arrangement duly ends on November 1.
Thrice-daily roundtrips are restarted in December from Aberdeen, South Dakota, to Denver. Passenger boardings this year plunge 33.3% to 674,844 (on 102,722 scheduled departures), due almost entirely to the carrier’s temporary service suspension. Operating income totals $83.8 million, but expenses ascend to $97.4 million. Consequently, there is a $13.6-million operating loss. The net loss worsens to $18.3 million.
The fleet at the beginning of 1998 includes 42 Beech 1900s and 8 EMB-120s. Following the January termination of the “United Express” contract between United Airlines and Mesa Air Group covering the latter’s services to Denver, United authorizes GLA to operate the routes on its behalf. Simultaneously, United and GLA enter into negotiations concerning shared codes and financial support for the regional’s flights into the expensive Colorado airport.
At this point, Beech manufacturer Raytheon Aircraft and GLA enter into a refinancing arrangement. In exchange for a 10-year warrant to acquire up to a million shares of GLA common stock, Raytheon provides a $4-million short-term loan, a $5-million line of credit, and arranges the transfer of 15 Beech 1900Ds previously leased to Mesa.
While negotiations on code-sharing with United continue into the spring, Mesa Air Group, in April, turns over four Beech 1900Ds. On April 23, these allow GLA to inaugurate twice weekly “United Express” flights from Denver to Dodge City, Great Bend, Salina, and Worland, Wyoming. Thrice weekly flights from Denver are to Garden City, Liberal, Alamosa, Pueblo, Laramie, Rock Springs, and North Platte. Flights from Denver to Scottsbluff, Nebraska are four times per week.
GLA and United Airlines continue their talks on code-sharing and financial assistance. The airline, under its own identity, continues to offer 16 weekday flights between Springfield, Illinois, and Chicago (Meigs Field).
“United Express” flights commence on June 1 from Denver to Cortez, Telluride, Cody, Wyoming, Farmington, Santa Fe. On June 15, the carrier’s eight daily roundtrips from Springfield, Illinois, to Chicago (Meigs Field) are converted to “United Express.” Additionally, five weekday “United Express” flights are scheduled between Springfield and Chicago (ORD), with a reduced schedule on weekends.
By midyear, the company operates a fleet of 8 EMB-120s and 40 Beech 1900Ds to 68 airports in 13 states.
While en route from Denver on August 19, Flight 6105, a Beech 1900D, suffers the separation of the leading edge of a propeller that enters the cabin and causes a loss of pressurization. The aircraft returns to its point of origin and completes a safe emergency landing.
During the Northwest Airlines strike that begins on August 29, customers of the Minneapolis-based major are accepted by GLA without penalty or additional restrictions.
With “Northwest Airlink” partner Mesaba Airlines shut down and unable to begin its planned services to the Michigan communities of Sault Ste. Marie and Alpena, GLA flies to the rescue on September 9. “United Express” Beech 1900 roundtrips, which the carrier had been scheduled to end in favor of Mesaba, are continued between those cities and Chicago (ORD) on weekdays through September 30, with twice-daily roundtrips on weekends. Plans to cease service to Pellston on October 7 in favor of Mesaba are shelved the next day as, instead, a second weekday and Sunday “United Express” EMB-120 roundtrip is introduced between that Michigan city and Chicago (ORD), also through September 30.
Pilots at Northwest Airlines ratify a new contract on September 12. As is the case with its major partner, Mesaba Airlines resumes “Northwest Airlink” service over its route network on September 14, reaching 100% pre-strike status within two days.
A third daily nonstop “United Express” return service is introduced on October 1 between Dickinson, North Dakota, and Denver. With appreciation to GLA, Mesaba Airlines inaugurates new “Northwest Air-link” turboprop services to Pellston, Alpena, and Saute St. Marie in early October.
On October 25, capacity on Great Lake’s six daily “United Express” roundtrips between Bismarck and Denver is increased by 70% by the introduction of EMB-120 Brasilias. A third nonstop roundtrip “United Express” service is simultaneously added between Dickinson, North Dakota, and Denver. At the same time, thrice-daily EMB-120 “United Express” roundtrips commence from Chicago (ORD) and Decatur, Illinois.
The company’s turboprop “United Express” service to Fargo is replaced on December 15 when Atlantic Coast Airlines introduces thrice-daily Canadair CRJ-200 “United Express” jetliner service to Hector International Airport at the North Dakota city from Chicago (ORD).
As the year draws to a close, GLA is providing “United Express” service to 72 airports in 13 states, with 8 EMB-120s and 40 Beech 1900Ds. On December 30, the maintenance base at Springfield, Illinois, is closed, its employees being offered positions elsewhere.
Customer bookings for the year surge 29.1% to 873,073. Revenues accelerate 36.1% to $114.03 million, while costs are held to $107.51 million. The operating profit is $6.51 million and there is a $2.72-million net profit.
Per an announcement made on February 26, 1999, the carrier drops its thrice-daily “United Express” roundtrip service on April 3 between Aberdeen and Denver. Traffic and revenues generated on the route have not been sufficient to cover expenses. Thrice-daily Beech 1900D “United Express” roundtrips begin on April 18 from Denver to Amarillo, Texas.
In response to a continuing crew attrition problem, Great Lakes, on August 26, is forced to suspend service from Minneapolis (MSP) to Fairmont, Minnesota, Devils Lake and Jamestown, North Dakota, Brookings and Huron, South Dakota, while also reducing frequencies to Chicago (ORD) and Denver. The carrier promises to reinstate these “United Express” flights by mid-September. The next day, the DOT, indicating that sufficient notice has not been given, orders service reinstated. Great Lakes, after an accord is reached with DOT, resumes twice-daily “United Express” service on September 9 to Mount Vernon, Fairmont, Devils Lake, Jamestown, and Brookings.
Due to the failure of the U. S. Congress to pass an anticipated law giving smaller airlines increased access to large airports, Great Lakes can obtain no additional slots at Chicago (ORD). Consequently, in December, service must be halted between that point and Quincy, Illinois.
Passenger boardings jump 21.1% to 1,058,000. Revenues climb 15.2% to $131.37 million, while expenses are up 14.1% to $122.66 million. The operating profit grows to $8.7 million, while net gain inches up to $2.72 million.
Airline employment at the beginning of 2000 stands at 1,300, a 4% increase over the previous 12 months.
The number of daily “United Express” return services from Denver is significantly expanded on April 2: to Santa Fe (6 to 11), to Cheyenne (6 to 8), to Riverton, (4 to 5), to Sheridan, (4 to 5), to Grand Island, (3 to 4), and to Kearney, (3 to 4). All three one-stops to Pierre, South Dakota, become nonstops.
On June 8, the number of daily “United Express” roundtrips out of Denver is once more boosted: to Hayden/Steamboat Springs (3 to 4), to Colorado Springs (3 to 4), to Vail/Eagle (4 to 8, with 7 on weekends), to Telluride (2 to 3), and to Sheridan (5 to 6). Simultaneously, twice-daily return flights begin to Gunnison, Colorado.
At the end of the year, work is nearly completed on a new relationship with United Airlines. On February 8, it will change from a “United Express” partner to a full code-sharing affiliate. As such, it will be able to rename under its own independent identity and carry UA flight numbers in connecting passenger itineraries that include United/United Express flights. The regional will also be free to enter into code-sharing arrangements with other airlines, including Frontier Airlines (2) with which it is holding discussions.
World History
