At Santa Monica, California, in 1979 to provide scheduled Cessna light-plane passenger and cargo commuter flights to San Diego and points in Mexico. Traffic does not develop and the company fails before its first birthday.
MEY-AIR, A. S.: Norway (1970-1974). Mey-Air is established at Oslo in the summer of 1970 to operate both local air taxi flights and charters to regional destinations. Revenue services commence with 1 each Beech 99, Beech King Air 90, and Convair CV-240.
At the end of the year, the decision is taken to enter the inclusive-tour charter arena. Contracts with tour operators are undertaken and orders are placed for a pair of Boeing 737-2H5s. As the Boeings are not immediately available, a single NAMC YS-11A is leased and employed, beginning in late March 1971. The two “Baby Boeings” are delivered in September and October, respectively, and allow the expansion of flights to southern Europe and the Mediterranean during the winter holiday season.
The company remains in business until financial trouble forces it to shut its doors in February 1974.
MGM GRAND AIR: United States (1987-1995). Capitalized at $20 million by MGM Grand, Inc., owner Kerkor “Kirk” Kerkorian, former owner of Western Airlines, and President/CEO Charles Domoney receive the new entrant’s Type 401 certificate from the DOT on June 10, 1987. MGM Grand Air begins scheduled, all-first-class luxury service between Los Angeles and New York (Newark) on September 8. Roundtrip fares charged on the three former Regent Air 34-passenger configured Boeing 727-191s employed is $2,034. For this fee, customers aboard the aircraft are able to enjoy four staterooms and a stand-up bar, plus gourmet meals served by flight attendants dressed in tuxedos and red bow ties.
In December, a $16-million order is placed for three hush-kitted Douglas DC-8-62s, newly available from the Italian flag line Alitalia, S. p.A. A total of 31,000 passengers are carried during the 4 remaining months of the year and revenues of $7.08 million are earned. The operating and net losses are each $2.4 million.
In May 1988, a new frequent flyer plan is introduced; travelers are rewarded with a free ticket for every 10 trips. The Douglas transports begin modification at Burbank, California; $14 million will be spent on airframe and engine upgrades, $7 million on hush-kitting, and $18 million on avionics.
Still, enplanements for the year decline to 27,037, even as revenues advance to $22.3 million. Expenses more than exceed income and the operating loss doubles to $4.9 million. The net loss is $5.4 million.
The workforce is reduced by 1.7% in 1989 to 175. The carrier is reconfigured in May so that all of the seats on its four daily Los Angeles to New York frequencies are first-class; flight attendants now wear tuxedos and serve caviar.
Passenger boardings jump 18.3% to 31,988 and revenues ascend 35.8% to $30.23 million. Costs move ahead by 9.8% to $29.87 million and allow an operating profit of $360,000. The net loss “improves” to $2.57 million.
In August 1990, the company’s three Boeings are switched to worldwide charter operations as the three DC-8-62s from Alitalia, S. p.A. are placed on the company’s transcontinental route. In honor of their arrival, a luxurious coach-class service, Grand Class Coach, is introduced. An “alignment of service” agreement is signed with British Airways, Ltd. (2) in November. Under its terms, the two carriers are able to offer “the ultimate in luxury travel” as passengers are able to fly from London to New York (JFK) aboard the Concorde. Following an overnight stay at a luxury hotel in New York City, they are able to continue in first-class DC-8-62 service to Los Angeles, all for a one-way fare of $3,966.
Scheduled customer bookings for the year jump 8.8% to 34,807 while 12,000 charter passengers are also flown. Revenues advance to $34.7 million; however, the costs of bringing the Douglas transports on line result in an operating loss of $10.9 million and a net loss of $15 million.
Company employment is increased 3.3% in 1991 to 315 as letters of intent are signed for two Boeing 757-200s.
Passenger boardings increase 48.5% to 51,693. Revenues ascend 36.9% to $47.31 million, expenses are up 14.8% to $52.23 million, and the operating loss is $4.91 million, an improvement over the previous year. The net loss is cut to $8.88 million.
The payroll is reduced by 1.3% in 1992 to 311 and the fleet includes the 3 DC-8-62s and 3 B-727-191s. On January 1, MGM Grand becomes a member of the United Airlines Mileage Plus frequent flyer program. Former Pan American World Airways (1) official and Eastern Air Lines President Robert Gould succeeds Charles Demoney as presi-dent/CEO late in the year. He immediately orders abandonment of uneconomical scheduled services, effective December 31, and concentrates on “upscale” charter operations.
Economic conditions and overcapacity combine to push customer bookings down by 13.8% to 44,553. Although revenues are up 5.7% to $50 million, expenses shoot up 13.1% and as a result, operating loss deepens to $9.08 million. The net loss worsens to $14.66 million.
The employee population declines 55.6% in 1993 to 138. The fleet of three DC-8-62s and three B-727-191s begin a year-long refurbishment program. In January, a contract is signed with Fun Sun Tours for charters to Latin America and the Caribbean and a former Eastern Air Lines B-757-225 is leased to provide additional nonscheduled capacity.
The service changeover results in a decline in passenger boardings of 23.5% to 34,096. Revenues decline 57.9% to $21.03 million, but expenses increase 68.4% to $99.47 million and cause a dismal $78.44-million operating loss. The net loss is, if anything, slightly worse, growing to $79.91 million.
On September 8, 1994, the company resumes scheduled service. Leaving the company’s three DC-8-62s to fly charters, the ultra-luxury airline’s three B-727-191s are unable to make a profit on their new first-class-only New York-Las Vegas-Los Angeles route. Tickets, at $1,423 each, do not sell and only 24,000 scheduled passengers are flown by the 300-worker airline by year’s end. The resumed scheduled flights are again ended on December 31.
Revenues increase by 3.7% to $21.81 million and even though costs are down by 73.3%, they still total $26.54 million. The operating loss “improves” to minus $4.72 million and there is a net profit of $3.94 million.
Parent company MGM Grand, Inc. will shut the company down during the first week of January 1995 and sell it to drag race king Conrad Kalitta. Kalitta, owner of the Ypsilanti, Michigan-based American International Airways (3), wants the aircraft to fulfill existing charter contracts. The carrier’s last charter is, however, completed as two DC-8-62s transport the American Museum of Natural History’s 125th Anniversary Around-the-World Expedition, a 33-day trek flown from New York (JFK) via France, Tanzania, Madagascar, Mynamar, Mongolia, Borneo, Papua New Guinea, Rarotonga, Easter Island, Brazil, and Cuba.
MHS AVIATION SDN. BHD.: Malaysia (1996-1998). The helicopter operating division of Malaysian Helicopter Service, Sdn. Bhd. is split off from its parent in early 1996 into a stand-alone company. Ma’som Mahadi is chief operating officer of this concern, which includes eight Sikorsky S-61Ns, two S-76As, six S-76Cs, four Eurocopter AS-332L Super Pumas, and two each SA-360Js, AS-355F2s, Bell 412Ps, and Bell 412SPs. Offshore support remains the company’s principal business.
On January 15, 1997, it is announced that MHS Aviation will be sold at mid-year to DRIR Equities for $31.7 million.
Rotary-wing work continues apace during the remainder of the decade. In addition to offshore support missions, helicopters are also chartered for executive, passenger, and cargo flights and power line inspections.
In February 1998, a Super Puma is passed to Lloyd Helicopters (Pty.), Ltd. under a lease-purchase contract. Later in the year, the operator is renamed Naluri BHD.
MI AVIA: 2 Sokolnicheski Val, Moscow, 107113, Russia; Year Founded 1993. In 1993, the Mil helicopter design bureau at Moscow is allowed to establish an air transport division in order to earn hard currency to support the establishment. Under the direction of CEO V. Tol-bushkin, ad hoc charter work, including executive and passenger, cargo, energy and agricultural support, is launched with 2 each Mi-10Ks and Mi-17s, plus 5 Mi-26s.
Helicopter work continues during the remainder of the decade and into the new millennium.
World History
