MESA AIRLINES: United States (1980-1994). Founded by Larry L. Risley at Farmington, New Mexico, in October 1980, this small regional begins life as a division of Mesa Aviation Services, where Risley is president and chief mechanic. Piper Saratoga frequencies are inaugurated to Albuquerque with the new commuter entrant operating as the intrastate Mesa Air Shuttle.
Enplanements total 14,100 in 1981, the first full year of service. When the owners of Mesa Aviation Services lose faith in their infant air transport division in 1982, Risley and his wife Janie mortgage their home and raise $125,000 with which to purchase the shuttle’s assets. Passenger boardings for the year fall to 10,300.
The fleet in 1983 includes 2 Piper PA-31-310 Navajos, 2 Piper PA-34 Senecas, and 1 Cessna 310. Mesa now obtains an Essential Air Service contract from the U. S. government to provide service to several New Mexico cities. The first Beech 99 is received in May.
Flights begin not only to the capital, but to Vernal and Grand Junction, Colorado, as well.
The economy’s recovery assists the company to attract additional customers; late in the year, it is revealed that Mesa has flown 29,136 passengers for that year.
The workforce grows 102.9% in 1984 to 69 as the corporate name and identity is changed. Service is started to Carlsbad, Hobbs, and Roswell, New Mexico, and Lubbock, Texas.
The company’s 6 new Beech 99s transport 65,381 customers, a 150.3% increase over the previous 12 months. Revenues total $2.16 million and expenses are $2.19 million, leaving an operating loss of $30,000 and a net downturn of $17,000.
As 1985 begins, a route is extended to Midland and Odessa, Texas, and a Beech 1900 is acquired. The Essential Air Service (EAS) designation for several more New Mexican routes is acquired.
Passenger boardings increase 84.3% to 120,537. Profits of $290,000 (operating) and $185,000 (net) are posted on revenues of $4.96 million.
The 177-employee Mesa continues to safeguard its independence in 1986, a status reinforced by the fact that Southwest Airlines, which dominates the Albuquerque hub, has no feeder arrangements. Mesa is the chief benefactor when Air Midwest abandons its former Essential Air Service (EAS) destinations in New Mexico early in the year, allowing Mesa to take them over.
Employing a fleet for 4 Beech 1900s, 5 Beech 99s, and 1 Cessna 208 Caravan I, the newly elevated large regional enjoys a remarkable year operating what its publicity department labels as “low-cost, low-fare, high-frequency” services.
Customer boardings increase again, up 78.3% to 214,956. Revenues jump 100.6% to $9.96 million, expenses are up 87.6% to $8.76 million, and the operating profit is $1.19 million. A net gain of $742,000 is achieved.
Airline employment at the nation’s biggest remaining independent large regional climbs by 42.1% in 1987 to 270. The fleet now includes 5 Beech 1900s, 5 Beech 99s, 2 CATpass Beech King Airs, and 1 Cessna 208 Caravan I. Mesa is launch customer for the Beech 1300, a commuter version of the King Air 200, with an order for five.
The company name is changed to Mesa Airlines in January and in March, Mesa becomes a public corporation, initiating a $7-million initial public stock offering. Losses are suffered during the second quarter as the result of a fare war begun on April 1 with Trans-Colorado Airlines. Over the next three months, this “Continental Express” carrier unsuccessfully attempts to move into Mesa’s major markets. A merger is arranged with Wyoming carrier Centennial Airlines; however, creditors cannot come to terms on the takeover and the arrangement falls through, causing the bankruptcy of the small regional.
Mesa steps in during June to takeover failed Centennial Airlines’ Wyoming route system and during the same month, a secondary hub is begun at Denver. A new service is also started from Dallas (DFW) to the New Mexico community of Roswell in October.
On the year, passenger bookings increase another 31.6% to 283,261. Revenues advance by 41.4% to $15.6 million and low expenses allow profits of $1.7 million (operating) and $623,247 (net).
The workforce is cut by 5.5% in 1988 to 420 and 1 Beech 99 is removed. Orders are placed for two additional Beech 1900s and two Beech 1300s. In February, the DOJ files suit against the carrier for discriminatory hiring practices. Later, the unprofitable Wyoming routes acquired with Centennial Airlines are all gradually eliminated. The first Beech 1300 is delivered in September.
Customer bookings consequently decline by 2% to 277,578. Revenues grow 15.9% to $18 million and operating income reaches $1.97 million. Net profit declines to $409,206.
The employee population grows a dramatic 55.7% in 1989 to 383. In February, service is inaugurated to the Arizona communities of Prescott, Havasu, and Bullhead City, as well as San Diego, California. In early spring, a new subsidiary, Skyway Airlines, is created. Outfitted with three Beech 1900s and appointed a “Midwest Express Connection” carrier, the Mesa offspring, flying under its parent’s certificate, inaugurates hub-and-spoke flights from Milwaukee to eight communities on April
17. The summer is spent defeating a takeover bid by StatesWest and losing its own takeover bid for Air Midwest.
The last Beech 99 is retired in October. A bid is made, also in October to take over financially troubled Aspen Airways; however, this effort is ended when a sale of the Colorado commuter to Los Angeles investor Burt Sugarman is announced. Shortly thereafter, the Sugarman arrangement collapses, as do Aspen’s negotiations with WestAir Airlines.
At year’s end, the company places the winning bid ($4 million, reports Aspen owner Donald Ringsby to his employees) for Aspen Airways’ turboprop routes and stations. After these are peeled away from the Denver-based carrier, the remainder of the operation, save for the separately-sold fleet of 10 aging Convair 580s, is acquired by Air Wisconsin.
The fleet at year’s end includes 13 Beech 1900s, 10 Beech 1300s, and 2 Cessna 208 Caravan Is; orders are outstanding for 10 additional 1900s.
Having survived and prospered in both the boardroom and the field, the large regional does equally as well in the air and the accounting office. Passenger boardings shoot up 44.2% to 400,187 and revenues accelerate 28.6% to $22.5 million. Expenses climb 33% to $20.6 million and leave the carrier with an operating profit of $1.9 million. Net profit skyrockets to $1.04 million.
The remaining Beech 99s are retired in 1990 in favor of seven additional 1900s and nine more 1300s. Orders are placed for eight Embraer EMB-120 Brasilias with options on eight others. Four of the Brazilian-made turboprops are now leased from Air Midwest. As a result of the Aspen Airways arrangement, Mesa now enters into its first codesharing agreement, with United Airlines, from a base at Denver. Beginning in February, Mesa, doing business as “United Express,” replaces Aspen Airways on the Casper, Wyoming-Farmington, New Mexico, route. The same month, Skyway Airlines wins tentative government approval to operate as a commuter.
The first Brasilia is delivered in April and by June 1, “United Express” flights have started over 11 former Aspen routes in Colorado, South Dakota, and Wyoming. New livery is adopted, including the modified United Airlines scheme employed on the ex-Aspen system. Op-penheimer & Co and Jessup, Josephthal & Co in late July underwrite and manage a public offering of two million shares of common stock.
In August, Mesa becomes launch customer for the new Beech 1900D by signing a letter of intent for the purchase of 25 machines at $3.95 million per copy. The first secondary stock offering is made in December and brings in $5.5 million in new equity.
Customer bookings skyrocket 87.2% to 749,118 and revenues increase 104.2% to $45.95 million. Expenses are up 94.3% to $40.04 million and allow an operating profit of $5.9 million and net profit of $3.57 million.
In 1991, the fleet of the 250-employee large regional is altered again and now comprises 40 1900Cs, 4 Embraer EMB-120 Brasilias, and 10 Fairchild Metro Ils. During the first quarter, the carrier acquires the “USAir Express” partner Air Midwest, headquartered at Wichita. The Cessna Caravans and Beech 1300s are retired during the second quarter. On July 1, the company joins with United Airlines to celebrate the fifth anniversary of their “United Express” partnership.
Like Skyways Airlines, the Mesa-owned Midwest Express feeder Air Midwest, upon its merger in July, continues its code-sharing activities as a subsidiary under its own name. Also during the month, the company’s Farmington headquarters complex is nearly doubled in size by the opening of a new training facility.
On August 1, Beech 1900C flights commence from Albuquerque to Grand Junction, Colorado, via either Farmington or Durango. On August 28, a contract is signed for the purchase of 58 Beech 1900Ds. Twice-daily nonstop and daily one stop Beech 1900C service begins in September from Phoenix to Grand Junction.
Late in the fall, Air Midwest CEO Robert Priddy agrees to travel to Jacksonville and establish a new subsidiary, Florida Gulf Airlines. The first Beech 1900D arrives at the company’s Farmington base in late November.
On behalf of the major USAir, FloridaGulf Airlines begins “US-Air Express” service from Tampa in December. After a period of crew training, the new Beech 1900D enters scheduled service in midmonth.
Passenger boardings by Mesa and its subsidiaries zoom upward this year by 43.5% to pass the one million-mark in annual boardings for the first time (1,074,870). Revenues ascend 69.3% to $77.78 million, expenses rise 74.5% to $69.85 million, and the operating profit moves up to $7.92 million. Net gain reaches $5.03 million.
Early in 1992, the negotiations are completed for the acquisition of national carrier and “United Express” partner WestAir Airlines. When the announcement is made in February, it is revealed that the transaction, which is completed in late June, will be worth $41.4 million. Also in June, a secondary public stock offering is made that brings in another $30 million in new equity.
WestAir Airlines continues to operate on behalf of the major at San Francisco and Seattle. A decision is taken not to purchase the Chicago (ORD) operations of Air Wisconsin.
On October 1, a code-sharing agreement is entered into with America West Airlines to create “America West Express” commuter service through the integration of routes from each carrier’s existing Phoenix operations. America West Airlines’ six de Havilland DHC-8s are given over to the collective enterprise and Mesa’s Metros are withdrawn. Also on this day, the major transfers its routes to Durango and Grand Junction, Colorado, plus Yuma, Arizona, to the regional.
The America West Airlines route to Flagstaff is transferred on November 1, followed by the service to Palm Springs on December 1. Late in the month, a $90-million order is placed for 20 Beech 1900Ds. The purchase will include spare parts, training, and five formerly employed Beech 1900Cs.
Customer bookings for the year skyrocket 198.1% to 3,204,372 and revenues rise 16.2% to $85 million. Operating income moves to $9.6 million and the net profit is $5.4 million. Revenues for all of the divisions combined totals $316.6 million, allowing profits of $24.1 million (operating) and $14.2 million (net).
Airline employment in 1993 totals 650. In January, the company receives the 1992 “Regional Airline of the Year” award from Air Transport World magazine.
In February, a new CalPac division is established to provide “United Express” flights from Los Angeles as an extension of the United feed to and from Denver. In May, a $6.2-million write-off is taken on the WestAir division, half of it coming from two WestAir Airlines Shorts 360s. Another secondary public stock offering is completed during June and nets $84 million in equity.
During the summer and on a seasonal basis, the subsidiary Florida Gulf Airlines initiates “USAir Express” flights to communities surrounding Boston.
With the delivery of six Beech 1900Ds and two more Brasilias, the CalPac is able to increase its flights out of Denver by 30% during the summer. More flights are added to the Midland, Odessa, and Liberal routes while new frequencies are initiated to Lubbock, Jackson Hole, and Rock Springs. WestAir Airlines President Jonathan Ornstein is named executive vice president on October 1.
The code-sharing alliance with Midwest Express is terminated and on October 8 the code-sharing arrangement with America West Airlines is expanded. A new, small regional, Superior Airlines, is created to initiate commuter feed from America West’s Columbus, Ohio, hub. Westair Commuter Airlines President Jonathan Ornstein becomes Mesa’s executive vice president later in the month.
Superior Airlines begins services on December 15 from Columbus to Rochester, Detroit, Landing, Flint, Toledo, Dayton, Akron, Canton, Louisville, Rockford, Indianapolis, South Bend, Des Moines, and Cedar Rapids.
At year’s end, Falls Creek, Pennsylvania-based Crown Airways is purchased, along with its routes feeding Pittsburgh. Also in December, the megaregional becomes U. S. launch customer by placing contracts with Fokker for two Model 70 twinjets, plus six options, to begin delivery in 1995.
Collectively, Mesa’s group of airlines enplane a total of 2,097,653 passengers, down a million from the previous year. Revenues climb 11.7% to $353.6 million and expenses are $115.52 million. Operating income rises to $32.25 million and net gain reaches $26.35 million.
In January 1994, Mesa confirms its orders for two Fokker 70s, equipped with Rolls Royce Tay 620 turbofan engines, for delivery next year.
During February, Mesa is one of the investors joining with the financial group AmWest Partners, led by Texas-based Air Partners I. P—fresh from its bailout of Continental Airlines—in an effort to bring the major America West Airlines out of Chapter XI.
In March, the new Pittsburgh-based subsidiary Crown Airways is renamed Liberty Express and offers are made to takeover the “USAir
Express” partner CCAir and the “United Express” operator Sunaire Express. In April, the transition of Skyway Airlines into Superior Airlines, doing business as “America West Express” at Columbus, is completed.
Following two unsuccessful attempts to acquire CCAir, that financially troubled small regional’s board finally approves, in April, its takeover in an exchange of stock. During the spring, a new code-sharing agreement is signed with America West Airlines; good through the year 2004, the contract specifies a 97% completion reliability rate.
In May, the St. Croix, Virgin Island-based “United Express” carrier Sunaire Express is obtained from its parent, Aeroflight Holdings. In exchange for an investment of between $600,000 and $750,000 in the company as part of its Chapter XI bankruptcy reorganization, which will allow it to eventually pay off its $2.3 million debt, Mesa will expend a total of $3.1 million, including an infusion of $750,000 in cash.
Executive Vice President Jonathan Ornstein departs in June to become president/CEO of “Continental Express.”
A letter of intent is signed with USAir on August 24 for the purchase of certain ground equipment and facilities at Reading, Pennsylvania, and aircraft, including nine Beech 1900Bs and five Shorts 360s. On October 23, Florida Gulf is purchased from USAir for $28 million and becomes the “USAir Express” carrier for Baltimore, Philadelphia, and Boston.
Also in August, Blaine Jones is appointed president of all of Mesa’s operating division except the WestAir unit. Twice-daily nonstop roundtrips commence on October 1 between Denver and Cody, Wyo.
Also in October, a 10-year marketing agreement is signed with United Airlines for the provision of “United Express” services from Denver. The first de Havilland Canada DHC-8-300s enter service, but will not prove effective in operations from
In December, the corporate organization is changed. Mesa becomes Mesa Air Group, with five operating divisions: Air Midwest, Florida Gulf, Liberty Express, and WestAir Commuter Airlines Mountain West Airlines (4), which replaces the original Mesa Airlines with components from it and several other units.
For the year, 4,457,989 passengers are transported and a $58.87 million net profit is generated.
MESABA AIRLINES: 7501 26th Ave. South, Minneapolis, Minnesota 55450, United States; Phone (612) 726-5151; Fax (612) 7265541; Http://www. mesaba. com; Code XJ; Year Founded 1944. Pioneer aviator Gordon K. “Gordy” Newstrom establishes the fixed-base operation (FBO) Mesaba Aviation at Coleraine, Minnesota, in early 1944. “Mesaba” is the Native American name for the iron ore range in northern Minnesota. Charters are flown with a Piper J3 Cub.
Later in the decade, the company is moved to Kent County Airport at Grand Rapids. Charter flights to Minneapolis and other points around the Gopher State are regularly undertaken during the next three decades as Mesaba flourishes as a general aviation contractor.
Mesaba Aviation is sold in 1971 to the Duluth-based Halvorson company, which, in 1973 establishes an airline division using the Mesaba name and inaugurates scheduled services to Minneapolis (MSP) on May 4 with a Cessna 421. Operations, under the direction of founder New-strom, continue apace over the next five years, losing money each year.
Early in 1977, Lowell Swenson and his sons Robert E. and Philip establish the FBO Northern Eagle Airways (NEA) at Thief River Falls, Minnesota. A year later, in October 1978, the Swensons purchase the financially troubled Halvorson company. Robert becomes its CEO while Philip becomes president of NEA. Detroit Lakes, Minnesota-based Ede-Aire is purchased late in the year.
The number of Cessna lightplanes flown is increased during 1979-1980. In 1981, the family dissolves Halvorson and combines its aviation activities into a new Mesaba Aviation, Inc.
Enplanements total 10,527 and the carrier posts a net loss of $178,000.
In 1982, the Swensons oversee a workforce of 50, a fleet of 2 Beech 99s, and the inauguration of Essential Air Service (EAS) services to
Alexandria, Detroit Lakes, and Thief River Falls. Mesaba becomes a public stock company in the fall and $4 million is raised in a stock offering.
Bookings triple to 31,720 and a profit of $188,000 is recorded.
The fleet in 1983 includes 5 Beech 99s, 4 Cessna 172s, and 1 each Cessna 180, Cessna 185, Cessna 206, and Cessna 210.
A marketing arrangement is entered into with Republic Airlines, which also helps the company plan for FAA Part 121 certification.
Passenger boardings climb again, up to 56,534. The profit is $425,000, on revenues of $6 million.
Airline employment in 1984 stands at 150 and the fleet now comprises 2 newly delivered Fokker F.27-200s and 7 Beech 99s. Having received its Part 121 Air Carrier Certificate from the DOT in only five months, Mesaba in July inaugurates EAS flights to a variety of destinations, including the Minnesota communities of Bemidji, Brainerd, Fairmont, Grand Rapids, Hibbing, Mankato, Minneapolis (MSP), and Worthington. Fort Dodge and Mason City, Iowa, Omaha, Nebraska, Devils Lake and Jamestown North Dakota, and Huron, Brookings, Pierre, Mitchell, Sioux Falls, and Rapid City, South Dakota, are also visited.
In November, the carrier, having discontinued its marketing relationship with Republic Airlines, transfers its base from Grand Rapids to a former Republic hangar at Minneapolis (MSP). From there, flight activities are coordinated with Northwest Airlines in a code-sharing arrangement and a new commuter network that comes to be known as Northwest Airlink.
Mesaba launches the very first Northwest Airlink service from Minneapolis on December 1. Denoting the arrangement, company aircraft are painted with red fuselage tops, black bottoms, and white titles and markings.
Customer bookings increase 83% to 86,285, but cargo is off by 3% to 216,021 pounds. Profits total $439,995 (operating) and $202,216 (net).
Despite ferocious competition from Express Airlines I, business is good for the Minneapolis-based small regional in 1985 and orders are placed for seven Fairchild Metro IIIs. The Texas-based airplane manufacturer not only purchases five Beech 99s, it also promises Mesaba $1 million in “fleet integration” payments to be made as its aircraft are delivered. A third F.27-200 arrives in October, financed by $2 million in debentures from the Northwest subsidiary Northwest Aircraft, Inc.
Passenger boardings jump 54.1% to 132,967 while freight climbs 10% to 230,000 pounds. Revenues ascend 42% to $9.7 million and with expenses held down, operating profit rises to $1.06 million while net gain reaches $361,155.
The fleet of the Northwest Airlink partner in 1986 includes 5 Fokker F.27-200s (2 delivered after March) and 7 Fairchild Metro IIIs. The carrier profits from the massive route realignment that follows the merger of Republic Airlines into its code-sharing major associate on October 1. Northwest divides its Minneapolis markets between Mesaba and Republic’s former commuter affiliate Express Airlines I.
Customer bookings increase 91.1% to 254,157. Cargo, on the other hand, declines by 12.3% to 202,000 pounds. Revenues rise 59.6% to $19.58 million, but expenses swell 84.6% to $20.64 million and leave an operating loss of $1.05 million. The net loss is $508,000, even with a profitable fourth quarter.
The fleet in 1987 comprises 7 Fairchild Metro IIIs and 5 Fokker F.27-200s; the workforce remains at 370. A charter operation is begun in January and quickly requires the purchase of a sixth, but dedicated, F.27-200. An aggressive marketing campaign is undertaken to offer discount fares to discretionary traffic in those six markets where it supplements the major. As much of the traffic for the new charters comes from the athletic teams of the Big Ten Conference, Mesaba gains its long-standing nickname of “The Big Ten Airline.”
Northwest takes over almost all of Mesaba’s reservations and advertising, while continuing to handle check-in, baggage, and ticketing.
Passenger boardings increase 45.8% to 370,637 and freight is up nearly as much, by 42%, to 286,000 pounds. Revenues advance by 40.3% to $21.8 million and costs allow a net gain of $1.3 million.
During the first quarter of 1988, the company’s strong cash flow enables it to pay off all of its long-term bank loans. The one-millionth passenger (cumulative) is boarded on March 3. In August, the company is chosen by its major partner to become the new Northwest Airlink carrier for Detroit and Milwaukee, succeeding Simmons Airlines, which is purchased by American Airlines.
During the peak of the summer, Mesaba reaches a point where it is connecting 75% of its Minneapolis passengers directly to Northwest. A new $4.5-million, 80,000-sq.-ft. headquarters and maintenance facility at Minneapolis (MSP) is occupied in October and service to the two new hubs begins in December. During the final quarter, three more F.27-200s are leased, along with five F.27-500s and two F.27-600s.
The year’s customer bookings decline 4% to 385,461 and cargo drops 17.9% to 235,000 pounds. Operating income jumps 11.9% to $2.82 million and net profit totals $1.67 million.
The workforce increases in 1989, climbing by 49.7% to 904. The fleet’s 15 Fokkers and 16 Metro Ills now provide Northwest Airlink service to 3 hubs from 34 destinations in 10 states.
In celebration of its improved status, Mesaba unveils a new corporate logo. In addition, a new headquarters and maintenance facility is occupied at Minneapolis (MSP). The two-millionth passenger (cumulative) is boarded in November.
Northwest’s trust is not in error as its regional partner enplanes a total of 757,956 passengers on the year, a remarkable 96.9% increase. Freight traffic skyrockets 140% to 563,319 pounds. Revenues increase 101% to $63.82 million, expenses swell 102.6% to $58.6 million, and the operating profit is doubled to $5.22 million. Net gain reaches $2.87 million.
The payroll is increased by a slight 0.8% in 1990 to 911 and the fleet remains the same. A new Northwest Airlink aircraft livery is introduced in June, with the company’s turboprops painted red above a white line just below the windowline; fuselage bottoms and underwings are grey. In July, five-times-per-day nonstop Northwest Airlink service is initiated from Detroit to Pellston, Michigan. Roundtrips start in November from Detroit to Cincinnati, Cleveland, Columbus, and Kalamazoo.
One roundtrip is added in December from Detroit to Lansing and a new maintenance facility finishes construction at Detroit. The State of Michigan honors the large regional with its “Excellence Award of Aviation Enhancement.”
Passenger boardings leap upward by 22.8% to 931,080 and freight climbs 26.4% to 712,187 pounds. Revenues ascend 36.9% to $87.36 million, expenses rise 36.1% to $79.77 million, and operating profit increases to $7.59 million. Net profit doubles to $4.28 million.
Company employment is cut a slight 0.1% in 1991 to 910. President Swenson’s fleet comprises 21 Fairchild Metro Ills and 15 Fokker F.27s. Orders are placed for 25 de Havilland Canada DHC-8-102s.
In January, one roundtrip is added from Detroit to Cincinnati and daily roundtrip Metro II flights are inaugurated from Minneapolis to La Crosse. Thrice-daily roundtrips are undertaken in April between Detroit and Youngstown while in May, thrice-daily Metro III flights are launched from Chicago to New Haven, Connecticut, via intermediate stops.
In July, thrice-daily Metro III frequencies begin from Detroit to Charleston, West Virginia, and Lexington, Kentucky, while daily F.27 service is begun from Detroit to Fort Wayne. Justin Dart Jr., chairman of the President’s Committee on the Employment of People with Disabilities, and his assistant, John Lancaster, are refused boarding on an August 5 flight because the company, under current law, has a right and a policy denying people in wheelchairs access to aircraft of less than 30 seats. The 2 men drive 165 miles to their destinations and the policy is subsequently changed.
On September 3, thrice-daily Metro III service is launched from Detroit to London, Ontario.
Also during the year, a new hangar is built at Detroit to support its growing Michigan hub operation; it also acquires a hangar in Wausau, Wisconsin.
Customer bookings rise 12% to pass the million-mark in annual boardings for the first time (1,041,986) while freight swells 6% to 753,820 pounds. Revenues are $90.23 million and expenses are $82.55 million, leaving an operating profit of $9.2 million and net profit of $5.41 million.
The payroll resumes its upward momentum in 1992, growing by 25.4% to 1,285. The first leased DHC-8-102s join the fleet in May and by year’s end the fleet includes 17 of the Canadian-made turboprops, 8 F.27-200s, 5 F.27-500s, and 21 Metro IIIs. All are painted in the distinctive red Northwest Airlink livery. Service is initiated from the Detroit hub to five new Midwestern destinations.
Passenger boardings jump 19.3% to 1,243,476 and revenues ascend 20% to $118.8 million. Expenses swell 18.6% to $106.4 million, leaving an operating profit of $12.4 million. Net profit climbs to $6.6 million.
The employee population inches up a slight 0.2% in 1993 to 1,289 and the fleet now includes 25 leased DHC-8-102s, 5 chartered and 3 owned F.27-200s, 3 leased F.27-500s, 1 F.27-600 chartered from the Danish carrier Alkair Flight Operations, A. S., and 17 owned and 4 leased (from Trans-States Airlines) Metro IIIs.
With Northwest on the verge of bankruptcy, this will be a trying year for Mesaba, its Northwest Airlink partner.
In the spring, flights begin to Thunder Bay, Ontario, from Minneapolis (MSP). Other new routes initiated include Knoxville-Tri-Cities-Washington, D. C. (IAD). A dispute breaks out between the regional and its parent over the interpretation of the level of promotional fares to Mesaba destinations.
On July 1, daily flights commence between St. Cloud and Minneapolis (MSP). On October 1, negotiations are completed for the takeover of the new Fort Lauderdale-based charter operator Sun Express Airlines by parent AirTran Corporation and plans are made to turn it over to a new subsidiary, Conquest Sun Airlines. In November, Minnesota Twins baseball owner Carl Pohlad purchases a 13.3% interest in AirTran Corporation for $10 million.
Customer bookings for the year jump 12.6% to 1,400,222 and cargo is up by an impressive 64% to 1,309,184 pounds. Revenues total $129.6 million and expenses are $122.9 million; as a result, the operating profit is $6.5 million and net gain reaches $3.7 million.
Airline employment is increased by 0.9% in 1994 to 1,300. The $2.5-million purchase of Sun Express Airlines, now Conquest Sun Airlines, along with its certificate and two chartered Boeing 737s (a Dash-214 and a Dash-2E1A), is completed by AirTran Corporation in May. The arrangement is immediately condemned by Northwest’s pilots union, which correctly points out that the purchase violates the scope clause in the collective bargaining portion of the major’s contract with Mesaba’s parent AirTran Corporation. That wording restricts Airtran to the operation of aircraft with less than 70 seats.
In June, Northwest threatens to withhold some $894,000 in prorated payments to Mesaba if a resolution of the Conquest Sun Airlines issue is not immediately forthcoming. AirTran shareholders meet in July to find a way out of the impasse. Chairman Swenson unveils a plan on August 1 which, as soon as certain tax and legal problems are resolved with Northwest, will result in the spin-off of Conquest Sun Airlines to Air-Tran stockholders and the formation of AirTran Airways. Phaseout of the company’s F.27s continues, with only three left in service. The last is retired on October 1.
For the year as a whole, passenger boardings increase by 3% to 1,436,529 while freight jumps 33% to 1.7 million pounds. Revenues advance 5.5% to $136.7 million, while costs are up only 2.4% to $125.9 million. Consequently, there is a $10.8-million operating surplus and a net gain of $5.9 million. These figures are later adjusted downward to $4.7 million in each category.
The workforce grows another 7.7% in 1995 to 1,400. When AirTran Airways is finally spun off into a wholly owned subsidiary during September, Chairman Swenson, Chief Financial Officer Jack Olbrych, and other officials transfer to it. Northwest, meanwhile, takes a 29.7% stake in Mesaba and signs a new 10-year Northwest Airlink agreement. The pact includes provisions under Northwest will assume responsibility for the regional’s scheduling and aircraft routing for two years while guaranteeing Mesaba a minimum $17.6-million pretax income annually.
On October 1, former Business Express Airlines President/CEO Bryan Bedford takes over the same post with Mesaba; Vice Presi-dent/Chief Operating Officer John F. Fredericksen becomes vice president-finance and is succeeded by Darrell Richardson.
During the fall, a competition is held between the SAAB 340 and the Dornier 328-110 to win the carrier’s favor as replacement for its current fleet of Metro Ills and DHC-8-100s.
Mesaba’s parent, Mesaba Holdings, and Northwest, in conjunction with Wayne County, build a new regional airline terminal at Detroit. The new $17-million “G” concourse is opened in October.
Enplanements move ahead by 3% to 1,485,929 and operating income jumps 22.1% to $129.1 million. Costs climb 18.2% to $119.4 million and allow profits to grow. Pretax gain ascends to $9.7 million while a net $5.49-million profit is posted. The figures also include nine months for AirTran Airways and are later adjusted upward to $12.3 million (operating) and $6.97 million (net).
The employee population is increased by 16.5% in 1996 to 1,616. Mesaba now operates to 61 cities in 16 states and 2 Canadian provinces.
On March 11, large orders for new equipment are placed: 27 SAAB 340Bs and 20 used SAAB 340As, 16 of the latter first flown by Metroflight, the AMR subsidiary. In addition, options are taken on 10 new and 12 pre-owned units. The SAAB order alone will be worth $600 million over the next 30 months.
Also during March, Mesaba signs and amends its Airline Services Agreement with Northwest Airlines. The pact allows for Mesaba’s inclusion in all fare sales and calls for Northwest to take over all inventory and pricing functions.
In early May, a facility upgrade begins at the Minneapolis (MSP) hub. It includes improved passenger seating and the addition of workstations with telephones and modem hook-ups for business travelers’ computers.
The first refurbished Metroflight SAAB 340A, painted in the carrier’s bright red Northwest Airlink livery, arrives during the third week of May, with others following at the rate of two per month into the fall of 1998.
On July 15, a fifth DHC-8 service is inaugurated from Detroit Metro Airport to Muskegon. During the summer, new frequencies are inaugurated from Detroit to Elmira and Corning, New York, and from Minneapolis (MSP) to Rochester, Minnesota, and Winnipeg.
In September, the first SAAB 340B is delivered. On November 1, Northwest reaches the decision to replace its 22 DC-9-10s that do not meet Stage 3 noise requirements with 12 Avro RJ85s. Once in hand, the regional jets will be subleased to Mesaba and employed to replace the older aircraft with enhanced JetLink services from Detroit and Minneapolis (MSP).
In late December, Mesaba starts daily point-to-point return flights from Pittsburgh to Detroit. By year’s end, 10 SAAB 340s from the March order are on hand.
Customer bookings soar 27.5% to 1,894,000 and revenues accelerate 8.9% to $185.7 million. Expenses move up by 4.6% to $166.18 million, but still allow an operating gain of $19.58 million. A net $11.98-million profit is reported.
Daily SAAB 340 return service is inaugurated on May 22, 1997 from Minneapolis (MSP) to Kenora, Ontario. The seasonal flights, which will end on September 3, are designed to “offer convenient service to some of the best fishing in the world” at the Lake of the Woods.
Arecord number of passengers (210,000) are transported during May. A record number of passengers (210,000) are transported during May. Also in May, Mesaba moves into a new 9,000-sq.-ft. regional terminal at the end of the Green Concourse at Minneapolis (MSP).
At the beginning of June, the last Metro III is retired, allowing the company to offer an all-cabin-class fleet.
On June 4, a memorandum of understanding is signed between Northwest and Mesaba Holdings covering an enhancement of Mesaba’s
Northwest Airlink services. Under its terms, the carrier will replace Express Airlines One at Minneapolis and on August 1 will increase its daily departures from 65 to some 130. In exchange for enhanced revenues, Northwest is provided with a warrant to purchase up to 880,000 of its Northwest Airlink partner’s common shares.
On June 6, the first RJ85s enter service, replacing Northwest DC-9-10s on new “JetLink” frequencies from Minneapolis (MSP) to Cincinnati, Des Moines, Grand Forks, Green Bay, and Rochester and from Detroit to Des Moines and Cincinnati.
Given the carrier’s new responsibilities and its success with the three RJ85s already in service, parent Northwest during the last week of July places a $620-million order for 24 more, which will begin delivery, under lease, to Mesaba beginning the following May.
The previous year’s SAAB options are revised in October. All of those earmarked the previous March are converted into a firm order for 19 340B-Plus turboprops, which will begin delivery in February.
On December 16, twice-daily RJ85 roundtrips are inaugurated from Minneapolis (MSP) to Aspen. At year’s end, Mesaba serves 91 cities in 19 states and Canada.
Passenger boardings surge 53.2% to 2,899,800. Operating revenues jump 49.3% to $277.22 million, while expenses climb to $246.85 million. The operating gain reaches up to $30.36 million, while net profit totals $19.8 million.
In January 1998, the company receives the 1997 “Regional Airline of the Year” award from Air Transport World magazine. This is the first time in five years that a U. S.-based regional has received the prestigious award.
The first enhanced SAAB 340B-Plus arrives in February followed by a second in March. Both wear a special silver grey livery to mark the company’s twenty-fifth anniversary.
On April 6, Mesaba signs an agreement with Northwest to operate six additional RJ85s in Northwest Airlink service.
The winter service from Minneapolis to Aspen ends on April 13.
The carrier celebrates the twenty-fifth anniversary of its start of scheduled services on May 4. To mark the occasion, the airline places into revenue service a new SAAB 340B, The Silver City Flyer, wearing a special commemorative paint scheme that notes the anniversary and the Air Transport World designation. The aircraft is the 39th of its type to enter Mesaba service since June 1996.
Also in May, President/CEO Bedford announces that the board has decided, in an effort to enhance shareholder value, to declare a 3-for-2 common stock split.
Daily Avro RJ85 Northwest Airlink roundtrips commence on June 1 from Minneapolis (MSP) to Aspen for the summer season, which will extend until September 8. Beginning today, the company acquires one new RJ85 every month through November in accordance with the April 6 arrangement.
On a Friday in mid-June, the company base is subjected to a violent hailstorm and other bad weather that forces it to temporarily ground 9 SAAB 340A/Bs, 3 DHC-8s, and 4 RJ85s and to cancel 292 flights through the following Tuesday. A number of SAABs suffer extensive surface damage.
Also during the month, CEO Bedford is named Regional Airline Executive of the Year by Commuter Regional Airline News. By midyear, Mesaba provides service to 91 communities in 19 states and 3 Canadian provinces.
Following a period of union organizing activities, the carrier’s 780 customer service and ramp service workers vote 589-191 on July 6 in an election supervised by the NMB not to accept representation from the International Association of Machinists and Aerospace Workers (IAM).
In late summer, a new maintenance and crew housing facility is opened at Rhinelander-Oneida County Airport in Wisconsin.
Company officials announce on August 18 that if Northwest pilots go on strike on August 29, Mesaba will temporarily cease operations at the same time. The carrier tells the press that nearly 80% of its traffic connects to other Northwest flights from either Minneapolis or Detroit.
Without these customers, it is not economically feasible to operate to smaller communities.
As a result of the Northwest and Mesaba action, many small communities are left without air service: Bemidji, Brainerd, Chisholm, Duluth, Eau Claire, Fort Dodge, Grand Forks, Hancock, Hibbings, Houghton, International Falls, Rockford, Superior, Thief River Falls, and Watertown. Plans to launch service to Sault Ste. Marie and Alpena, Michigan, are put on hold.
On September 3, Transportation Secretary Rodney Slater orders Mesaba and its fellow Northwest Airlink feeder Express Airlines I to resume service to 17 small towns in 11 states in the Midwest and South. As the DOT official puts it, federal rules prohibit the carriers from suspending air service below mandated levels without first filing a 90-day notice.
Although Express Airlines I reaches a preliminary agreement with the DOT on September 5, Mesaba remains dormant. On September 8, Secretary Slater and Attorney General Janet Reno announce that they will file suit against Mesaba, requiring it to reinstate scheduled air passenger service at 13 communities that have been without Essential Air Service since August 31. The suit also names Northwest, which will be required to provide the necessary support for its Northwest Airlink partner to meet its obligations.
With Mesaba shut down and unable to begin its planned services to Michigan, Great Lakes Aviation 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 from Chicago (ORD) to Sault Ste. Marie and Alpena 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 by Great Lakes Aviation the next day as a second weekday and Sunday “United Express” roundtrip is introduced between that Michigan city and Chicago (ORD), also through September 30.
Also on September 10, the carrier acknowledges that the DOT and DOJ have, in fact, filed a lawsuit against them, together with Northwest, in an attempt to force it to provide service to the 13 EAS communities.
Northwest itself now steps into the dispute between the DOT and DOJ and its Northwest Airlink affiliates. The major presents the same arguments that both Mesaba and Express Airlines I have unsuccessfully employed with government officials. In its emergency petition with the U. S. Court of Appeals for the District of Columbia, Northwest asks the court to stay the effects of the DOT order requiring Northwest to provide support services so that its affiliates can resume EAS services. Northwest argues that its constitutional right to a hearing has been violated because the DOT issued a final order adversely affecting the carrier’s interests without providing it with notice. Furthermore, as preparations for the pilot strike were made earlier in the month, the major had specifically and legally executed an agreement with the Northwest Air-link partners suspending all of its obligations, including code-sharing (an important legal point now in play), should a job action occur.
None of these suits come to trial as the Northwest strike is tentatively settled late in the evening. As is the case with Express Airlines I, Mesaba resumes service over its route network on September 14, reaching 100% prestrike status within two days.
With appreciation to Great Lakes Aviation, Mesaba inaugurates turboprop services to Pellston, Alpena, and Sault St. Marie in early October.
Twice-daily Avro RJ85 Northwest Airlink roundtrips commence on October 25 between Minneapolis (MSP) and Flint, Michigan.
On December 3, company officials reveal plans to break ground for a 126,000-sq.-ft. RJ85 maintenance hangar at Cincinnati in the spring. Also in December, the last de Havilland Canada DHC-8 is retired.
Northwest, which has vowed to complete a deal with Continental Airlines despite an antitrust lawsuit from the government, completes its acquisition of a controlling stake in Continental. The arrangement gives the nation’s 4th-largest airline a 14% equity stake in Continental as well as voting control of up to 51% of the No. 5 carrier. Executives from both airlines indicate that they will proceed to implement domestic codesharing involving upwards of 850 flights.
During the 12 months, customer bookings increase 42% to 4,116,000; freight traffic, on the other hand, skyrockets by 121.4% to 155,000 FTKs. Revenues advance 19% to $331.75 million, while expenses, although up 21.3%, are $299.53 million. The operating profit moves up to $32.22 million, while net gain grows to $21.27 million.
On January 7, 1999, Northwest and Continental Airlines begin linking a major portion of their domestic flight schedules and implementing more international dual-designator flights. The two majors, despite DOT opposition, initiate code-sharing on approximately 850 domestic and international flights to 95 destinations.
As part of the arrangement, Continental code-shares daily on Northwest and Northwest Airlink domestic flights, including cities where it does not currently fly, such as Sioux City, Boise, Knoxville, and Spokane.
In keeping with the code-sharing agreement implemented between Northwest and Continental Airlines in December, Mesaba, on January 14, officially enters into a dual-designator arrangement with Continental. Under terms of the pact, the major’s “CO” designator will be placed on all of Mesaba’s Northwest Airlink flights in and out of Detroit (DDT) and Minneapolis (MSP) which connect to Continental flights in their hubs at Newark (EWR), Houston (lAH), and Cleveland.
On February 18, Northwest places an agreement with Bombardier Aerospace for the acquisition of 54 Canadair CRJ-200LRs. A new RJ85 is received, also on February 18, followed by another on February 25. With their arrival, the company now has 20 of the 36 RJ85s order earlier.
Mesaba begins thrice-daily Avro RJ85 Northwest Airlink roundtrips from Memphis to Cincinnati on March 1. Also from Memphis, beginning on April 4, the carrier operates its RJ85s on Northwest Airlink flights thrice daily to Wichita and Huntsville. Thrice-daily RJ85 Northwest Airlink roundtrips also begin from Memphis to Fayetteville (Northwest Arkansas Regional Airport) on May 15, replacing the SAAB 340 service previously operated by Express Airlines I. On May 20, the Mesaba Avro is flown to Minneapolis (MSP), where it is introduced to the local population and media.
One of the company’s two daily SAAB 340 Northwest Airlink roundtrips between Minneapolis (MSP) and Traverse City, Michigan, is upgraded to Avro RJ85 service on June 15.
Mesaba President/CEO Bedford assumes the same post with Chautauqua Airlines on June 30.
A Bridge Hiring pact is signed with Western Michigan University at Kalamazoo on August 19. Under its terms, graduates of the WMU College of Aviation will be granted flight officer interviews by the Northwest Airlink partner.
In September, a compact is entered into with Western Michigan University for the training of pilots. The deal guarantees WMU aviation program graduates a hiring interview.
Paul F. Foley is named president/CEO in October.
Twice-weekday and thrice-weekend RJ85 roundtrips commence on December 18 from Minneapolis (MSP) to Aspen.
Passenger boardings this year accelerate 32.4% to 5,452,000, while cargo rises 14.8% to 260,000 FTKs. Revenues advance 22.4% to $406.19 million, while expenses climb 20% to $359.36 million. The operating profit jumps to $46.83 million, while net gain reaches $31.06 million.
Airline employment at the beginning of 2000 stands at 3,124, a 12.6% increase over the previous 12 months. The new 126,000-sq.-ft. Cincinnati Maintenance Facility opens in February.
Weekend RJ85 seasonal service is initiated on February 5 between Memphis and Aspen; the flights will end on April 1.
On May 1, RJ85s replace SAAB 340s on two of the company’s five daily return services from Detroit to Appleton and one of six to the Wisconsin city from Minneapolis (MSP). Avros, the 36th being just received, also replace SAABs on two of three daily flights between Detroit and Bloomington, Illinois.
Ten days later, one of three SAAB 340 services from MSP to Thief River Falls Regional Airport—the afternoon flight—is discontinued.
Initially ordered in October 1996, the last of 36 RJ85s, including 6 that have arrived since January, is delivered on May 22. To remain under the scope clause Northwest has in the contract with its pilots, all of the planes have been configured for 69 seats.
New daily RJ85 service is launched from Memphis to Des Moines on June 1 and twice daily to Charlotte on June 15. The latter service is coordinated with Northwest Airlines, which also operates a daily DC-931 frequency between the two cities. Also on June 15, Express Airlines I CRJ200ERs replace RJ85s on the Memphis-Wichita route and on one route from Memphis to Huntsville.
Mesaba is named second best-managed company among non-state-owned regional-sized airlines in the “2000 Index of Competitiveness” published by Aviation Week and Space Technology on July 10.
Daily DC-9-31 roundtrips are launched by Northwest on September 1 from Detroit to Charleston, South Carolina, and complement a pair of twice-daily Avro RJ85 frequencies simultaneously started between the city pair by Mesaba.
The Rapid City-Sioux Falls route is closed on October 5. Northwest Airlines, on November 1, proposes to Mesaba Holdings that it acquire, for $13 a share, all of the shares of Mesaba Holdings that Northwest does not already own. The major currently holds approximately 28% of the outstanding shares and has warrants to acquire additional shares that would increase its stake to 40%. The offer is made in the wake of one made several weeks earlier by Mesa Air Group.
A massive computer system failure is suffered on December 21, which affects the airlines ability to allow flights to depart as scheduled. Approximately 150 flights must be cancelled.
Enplanements for the year total 6,103,709.
MESEA AIRLINES, LTD.: M-1 Zamrudpur Community Centre, Kaliash Colony, New Delhi, India; Year Founded 1992. Mesea is established in 1992 as a subsidiary of the Mid-East Integrated Steel Company, Ltd. to provide rotary-wing work from bases at New Delhi, Bombay, and Juhu. Operations begin with a fleet of 3 Mil Mi-172 helicopters.
METAVIA AIRLINES (PTY.), LTD.: P. O. Box 787106, Edenvale, 1610, South Africa; Phone 27 (11) 883 0072; Fax 27 (11) 883 0078; Code OW; Year Founded 1984. Meteorological Aviation or Metavia is established at Neispruit in late 1984 by a group of scientists and pilots researching weather conditions in southern Africa and the Transval. Following the signing of a bilateral air agreement between the governments of Mozambique and South Africa, the company, in May 1985, launches twice-daily Cessna return flights to Maputo. This route is particularly important during the Mozambique civil war, as it allows access to schools, supplies, and medical facilities in the Lowveld.
Cessna services are continued outside the limelight until July 1993, when a single Czech-made Letov L-410UVP is added to the fleet. Thrice-daily roundtrips begin from Jan Smuts Airport to Nelspruit. From that point into 1998, Managing Director Peter Farquhar’s 25-worker company operates 1 Cessna 310 and 2 Piper PA-31-350 Navajo Chieftains. Two more L-410UVPs enter service during these years.
In December, the company is purchased by SA Airlink (Pty.), Ltd., which allows its new subsidiary to continue operations under its original name.
METEOR AIR TRANSPORT: United States (1951-1958). Meteor is set up at Teterboro, New Jersey, in 1951 to operate nonscheduled allcargo charters throughout the U. S. and to South America. Revenue flights commence with 2 Curtiss C-46 Commandos leased from the USAF.
During the next four years, two more Commandos are chartered and two purchased. One of these, with five crew and two passengers, is lost at St. Louis on May 24, 1953 while on a ferry flight (six dead).
Transatlantic passenger charters, employing two leased Douglas DC-4s, begin in 1956. Unable to maintain economic viability, the company shuts its doors in 1958.
METHOW AVIATION: 3311 109th Street, SW, Building 221, Everett, Washington 98204, United States; Phone (206) 355-2055; Fax (206) 290-9522; Year Founded 1990. Hugh Glassburn establishes MA at Everett in 1990 to provide FAR Part 135 freight charters to various destinations in the Northwest. By 2000, he is operating 6 Beech 18s and 1 Douglas DC-3.
METRO AIRLINES: United States (1967-1992). NASA Commuter Airlines is formed by Jay L. Seaborn, CEO of a hospital service company, at Houston in 1967 to offer nonscheduled executive charter and scheduled air taxi flights to Houston (IAH) in support of the new space center at Clear Lake City. Orders are placed for four de Havilland Canada DHC-6-100 Twin Otters and an interline agreement is negotiated with National Airlines.
In response to local demand for passenger and cargo commuter service and the federal government’s interest in having short takeoff and landing (STOL) Beech B-80 Queenaire and Twin Otter operations begin around major cities, work begins on construction of the company’s own STOLport at Clear Lake City.
When construction on the new international airport lags in early 1968, the tiny carrier sells its Canadian-made turboprops, earning $300,000 in the process. When both the airport and STOLport near completion at year’s end, NASA Commuter Airlines buys two more Twin Otters. The National Airlines agreement is cancelled in early 1969 and the carrier is reformed. Under its Metro name, it negotiates a new major alliance with Continental Airlines.
Regularly scheduled third-level feeder flights commence on June 8 and at the world’s first commercial STOLport at Clear Lake City, Texas, the 2-plane company can offer 25 half-hour roundtrips to Houston daily. Among the company’s passengers are the Apollo astronauts, including one who would figure in Metro’s future, Frank Borman. On October 3, a Beech Queen Air crashes at Denver (five dead).
From the beginning, the working relationship with Continental Airlines functions as a model for future regional affiliations. Within the next seven years, routes are opened to additional points on the Gulf Coast and in east Texas. As revenues and passenger boardings increase, the company is able to augment its original pair of de Havilland DHC-6-100 Twin Otters with three more, plus two Beech 99s.
Meanwhile, with the opening of the new Dallas-Fort Worth International Airport in 1974, the carrier’s parent, having fallen on hard financial times as a result of the oil crisis, is purchased for $3 million and merged with the interests of veterinarian and real estate investor Edmond A. Henderson. Henderson becomes chairman and an airline division, with Jay Seaborn as president/CEO, begins to operate as the Metroflight subsidiary out of Dallas-Fort Worth, complete with a feeder contract from Braniff International Airways. A Beech 99 with six aboard crashes at Galveston on April 30; there are no survivors.
Enplanements for the year are 189,196.
The workforce in 1975 is 132. Metroflight enjoys a very good year. Passenger boardings jump 18.8% to 233,370. The company hauls 169 tons of cargo and 98 tons of mail. Employment is increased by 36% in 1976 to 191. Destinations added to the route network include the Texas cities of Paris, Greenville, Lufkin, and Nacogdoches. In addition, frequencies are increased to Tyler and between Dallas-Fort Worth and Gladewater, Kilgore, and Longview. In July, the fleet is increased to 12 Twin Otters with delivery of the 500th Canadian turboprop built.
Customer bookings accelerate 21% to 238,376 while cargo does better, up 32.4% to 3.01 million FTKs.
By March 1977, the carrier is operating 1,234 scheduled flights weekly. On April 1, President/CEO Seaborn completes negotiations (begun the previous year) for the acquisition of Great Plains Airlines, together with its Texas and Oklahoma routes. After reviewing its existing code-sharing situation and reviewing new proposals, Metroflight now agrees to accept affiliation with American Airlines.
Enplanements for the year total 261,045.
Bookings grow again in 1978, rising 21.5% to 393,661; freight traffic is up 29.5% to 872,743 pounds. Orders are placed for five Shorts 330s and the fleet is increased by the addition of two DHC-6s.
In 1979, enplanements increase by 17.2% to 461,000; cargo jumps 16.6% to 1.01 million FTKs. During these past three years, the company survives and profits from the “Texas airline fare war” through creative marketing. The battle was most heated between Southwest Airlines (2) and Braniff International Airways, but also with Continental Airlines involvement.
By 1980, Metro has opened service to 24 cities in Texas, Oklahoma, and Louisiana, including Houston, Clear Lake City, Galveston, Victoria, Corpus Christi, and Lake Jackson. New markets entered include Wichita Falls, Lake Charles, Oklahoma City, McAlester, Stillwater, and Lafayette. Passengers on flights to these locations are treated to the new in-flight magazine Sunworld. In addition, the fleet is upgraded through the acquisition of a Convair CV-580 and five Shorts 330s. Orders are placed for four Embraer EMB-120 Brasilias and four DHC-8s. In November, a complete refurbishment of the interiors of the 16 Twin Otters is started. During the year, ticket counters at all carrier locations are remodeled.
Boardings climb 6.6% to 441,013. Profits are earned: $1.73 million (operating) and $979,000 (net).
Airline employment in 1981 stands at 550, a 17% boost. In the spring, the carrier replaces the Frontier Airlines (1) service over the route from Dallas (DFW) to Fayetteville via Fort Smith. It also begins flying regularly from San Antonio to Laredo and undertakes an Essential Air Services contract to service the Oklahoma communities of Ponce City and Enid.
Having just become a member of the CAB classification category known as the large regional, Metroflight is one of the few air transport concerns not injured by the summer’s PATCO air traffic controllers’ strike and subsequent ATC restrictions. As a result of adroit advertising, passenger traffic returns to prestrike levels by September and in October the carrier sets an all-time company monthly boarding record of 63,001 revenue passengers.
On October 30 with a $3.7-million stock offering, Metroflight becomes a publicly owned Delaware holding concern and its financial health is opened to casual examination for the first time. Metroflight becomes the principal operating entity for this new holding company, one of five regionals it controls.
The acquisition of three more Convair CV-580s is required in the fourth quarter to help handle the seating demand; orders are also placed for four DHC-8s for 1986 delivery.
On the year, overall traffic jumps 38%, with 609,071 passengers carried. On revenues of $22.7 million, up 40.5%, costs advance by 40.6% to $20.3 million. As a result, the firm’s new stockholders can see an operating gain of $2.42 million and a net profit of $1.36 million.
The payroll is reduced by 1.1% in 1982 to 535. During the spring, the company begins replacement service from Dallas (DFW) to Fayetteville and Fort Smith, Arkansas, on behalf of Frontier Airlines (1). Following the October 31 merger of Texas International Airlines and Continental Airlines, Metro’s interline partner of 13 years, the large regional ends its relationship with the latter and opts to start, in December, a new code-sharing partnership with Frank Borman’s Eastern Air Lines.
Metro now provides feed to Eastern at Houston and San Antonio, but must also face the renewal of competition in a prime market when Continental Airlines reestablishes the Houston to Beaumont and Port Arthur route. Four Convair CV-580s are purchased from Frontier for $1.6 million each and begin new service from the Dallas (DFW) hub.
Enplanements rise 10.5% to 673,066 and revenues climb 48.2% to $33.7 million. Expenses also rise by 56.9% to $31.9 million. These figures cause a decline in operating profit to $1.8 million and a huge fall in net gain to $194,000.
Five employees are laid off in 1983 as the workforce falls 1.9%; the fleet now includes 6 CV-580s, 17 DHC-6s, and 5 Shorts 330s; one of the former is sold during the year while all of the latter are leased out. In March, a $1-million operations and Convair maintenance hangar is occupied at Lawton, Oklahoma, where the CV-580s are now based.
A DHC-6-200 is destroyed by a tornado at Lawton on April 1. A Shorts 330 is destroyed on the ground by a storm at Beaumont, Texas, on May 20.
Twin Otter flights are initiated between Houston (IAH) and Southwest Houston and Sugarland and CV-580 service begins from Dallas (DFW) to Lafayette, Louisiana. Metro’s new code-sharing feeder arrangement with Eastern Air Lines is now implemented. On October 1, while Metro continues services to Enid, Lawton, Ponca City, and Stillwater from a base at Oklahoma City, its southern route network operating through Houston and San Antonio become Eastern Metro Express routes. Company aircraft are now painted in a modified Eastern livery.
In November, the Eastern Air Lines partnership is extended to Atlanta. There an affiliate, Metro Express Airlines, is created at and equipped with 12 British Aerospace BAe Jetstream 31s. Metro Vice President Michael J. Brady is transferred over from the parent to become president.
Meanwhile, prior to this launching, traffic on the year falls off 12.2% as a total of 612,736 passengers are flown. Still, revenues increase 4.8% to $35.3 million, yielding a $10,000 operating profit. Net profit, however, drops to $133,000.
The payroll is boosted 45.5% in 1984 to 800 and Metro’s fleet, plus that of its Atlanta-based subsidiary, includes 8 CV-580s, 14 DHC-6s, 11 Jetstream 31s, and 1 DHC-8-101. Orders are outstanding for seven more DHC-8s and one Jetstream. Metro’s Hartsfield-based Metro Express Airlines division, doing business as Eastern Metro Express, begins revenue service on April 2 from Atlanta to Panama City, Florida, and Chattanooga. The industry’s first dedicated code-sharing arrangement is instrumental in boosting the company’s overall passenger boardings.
Destinations served by the parent and its subsidiary now include Metro’s earlier Oklahoma destinations plus the Texas communities of Beaumont, Clear Lake City, Houston, Laredo, Longview, San Antonio, Sugar Land, Tyler, and Victoria. Also served are Lake Charles, Louisiana, Montgomery, Alabama, Fort Walton Beach and Panama City, Florida, Atlanta, Albany, and Augusta, Georgia, and Chattanooga and Tri-Cities, Tennessee.
World History
