Financially distressed Mid-Pacific Airlines, owned by KOA Holdings, ceases operations on January 19, 1988. Although it files for bankruptcy, it continues to operate all-cargo services stateside with a fleet of Nihon YS-11As.
Later in the year, a new base is established at West Lafayette, Indiana, and permission is sought from the DOT to inaugurate passenger and charter flights throughout the Midwest and to Hawaii. The DOT counters with cargo-only authority, which is accepted. A plan to change the company’s name to Phoenix Airlines is abandoned when the first aircraft painted with the new titles is involved in a accident. The company is subsequently renamed MPAC.
This privately owned all-cargo carrier is reformed at Indianapolis in January 1989. Mark P. Leininger is named CEO with Jeffrey A. Lehman as general manager. Employing six NAMC YS-11As, the freighter begins both scheduled and charter flights to New York, Buffalo, Norfolk, Newark, Rochester, Syracuse, and Bermuda.
While on final approach to Purdue University Airport at West Lafayette from a March 15 service from Terre Haute, a YS-11A-300F with two crew suddenly pitches down in a deep descent and collides with a dirt hill 500 ft. short of the runway; there are no survivors. Ice is later found on the horizontal stabilizer leading edge.
The airline recovers from the disaster and continues services into the 1990s. Mid-Pacific Air Cargo (MPAC) YS-11A all-cargo services are operated throughout the Midwest on behalf of larger express carriers and various other concerns. In 1992, a British Aerospace (BAe) 146-300QT is acquired from TNT Worldwide Express and operates freight flights on behalf of that patron between New York and Bermuda.
Airline employment in 1993-1994 totals 75. The company, out of the passenger business for almost a decade, ceases operations in 1995.
MID-PACIFIC AIRLINES: United States (1979-1995). Formed at Honolulu on August 31, 1979 by former Hawaiian Airlines executives John Higgins, Ed Nielsen, and Nolan Kramer as the airline operating subsidiary of Mid-Pacific Air Corporation, this new low-cost competitor enters the Hawaiian interisland market on March 15, 1981 with a single Japanese-made NAMC YS-11A. Expansion is delayed as the result of landing-slot allotment problems; however, two more YS-11As are delivered in summer and fall and enter service. Arthur Lewis now becomes chairman.
An intense competition begins with Hawaiian Airlines and Aloha Airlines, who refer to their new competitor as “Mud Pack.”
Still, Hawaii’s latest entrant transports 383,417 passengers on the year. Expenses involved in start-up and in waging the interisland fare war bring a net loss of $1.14 million.
Airline employment in 1982 stands at 300. At the first of the year, three additional NAMCs are purchased from the Japanese carrier TOA Domestic Airlines Company, Ltd. Employing a Boeing 707 Stratoliner leased from Arrow Air, the company inaugurates Mid-Pacific Arrow roundtrips between Honolulu and Pago Pago, American Samoa, on October 1.
The publicly owned commuter advances to the ranks of the large re-gionals, when its passenger traffic skyrockets 114.5% to 822,717 customers (including fully 10% of Aloha Airlines’ market share). Indeed, MPA ranks first among U. S. large regionals in terms of passenger boardings and is becoming a serious threat not only to Aloha Airlines, but to the island state’s senior carrier, Hawaiian Airlines.
A net profit of $537,962 is achieved on revenues of $21.4 million.
In 1983, the company is rerated as a National carrier, receiving its Type 401 certificate from the government. Three more YS-11As are added as the airline begins carrying mail under a contract with the U. S. Post Office. By the end of December, the carrier blankets three Hawaiian Islands from Honolulu with 130 flights each day.
The two-millionth (cumulative) passenger is transported as customer bookings surge by 51.7% to 1,247,900 and revenues skyrocket 67.5% to $35.8 million, sufficient to bring in a net profit of $2.65 million.
Airline employment is 700 in 1984. The fleet now comprises 22 Nihon YS-11As; of these, 15 are employed on scheduled services and 7 are dedicated to charter and contract service operations. Mid-Pacific Air Corporation is set up as a Delaware company on April 5 and on August 4, MPA becomes its principal subsidiary. Orders are placed for two Fokker jetliners and four YS-11As are leased in the fall to the new Fort Worth Airlines and two to the California start-up Far West Airlines. When Far West fails on December 13, the two turboprops are reclaimed.
As fare wars plague the islands, scheduled passenger traffic, despite 130 daily interisland flights, rises only 7.2% to 1,331,000 passengers flown. Revenues increase 3.3% to $36.43 million, but expenses involved in competition jump 19.6% to $36.4 million and cause the operating profit to plunge to $30,000. Net gain disappears altogether and even though the company controls 20% of its market, it is replaced by a net loss of $31,189.
To employ excess capacity, the company, in January 1985, initiates interisland Mid-Pacific Air Cargo (MPAC) all-cargo services with several spare YS-11As. Early in February, MPA, with two aircraft idle on the mainland because of Far West Airlines’ bankruptcy, begins limited deep-discount passenger services to the U. S. West Coast with regular charter flights connecting Las Vegas with the Grand Canyon, Burbank, and Orange County, Los Angeles.
In April, Chairman Arthur Lewis resigns and is succeeded by Jack Y. H. Leong. The following month scheduled Orange County to Las Vegas flights commence. Traffic increases for a period due to the strike at United Airlines.
In July, MPA receives two new $13 million per copy Fokker F.28-4000 “UltraJets” from Holland and upon the failure of Fort Worth Airlines in September, the four YS-11As are repossessed and assigned to the Las Vegas service.
Passenger boardings rise a slight 1.9% to 1,364,000. Financial problems are encountered as a result of the West Coast expansion and an operating loss of $5.7 million is suffered.
As a result of the financial difficulties encountered the previous year, the 705-employee MPA is forced to seek a buyer during the first quarter of 1986. Meanwhile, the California operations of the Honolulu-based commuter cease in March after losing $1.2 million. Oscar Tang’s KOA Holdings, which also owns Kampgrounds of America, steps forward and offers a complicated stock exchange proposition designed to provide an infusion of badly need cash into the ailing carrier. John Higgins becomes chairman, with former World Airways President Donald L. Beck as president/CEO.
Customer bookings for the year decline 5.7% to 1,286,895. There is an $8.6-million net loss-adjusted upward to $12.6 million in a later audit—on revenues of $64.3 million.
While undergoing tests near West Lafayette, Indiana, on January 13, 1987, a YS-11A-213 with three crew loses engine power and must make a forced belly landing in a field. Although the turboprop is badly damaged, there are no fatalities.
President Beck’s 22 other Nihon YS-11As and 2 F.28-4000s maintain scheduled flights between Honolulu, Kahului, Hilo, Kona Lihue, and Hoolehua. Owner Oscar Tang loans his airline $4 million and $25 million of its long-term debt is restructured.
During takeoff from Honolulu on April 10, the No. 1 engine of a YS-11A with 43 passengers catches fire. The pilot aborts the takeoff and turns onto a taxiway, where an emergency evacuation is ordered. During the process, four people are injured, one seriously.
New Vice President-Marketing Franco Mancassola unveils a new “Little Guy” advertising campaign that in commercials simply says, “cheep.” These changes come too late and the fiscal situation continues to deteriorate; in October, 100 employees must be laid off. In December, overtures seeking investment are made to Northwest Airlines and Continental Airlines, plus three Japanese companies; none are interested.
Enplanements fall another 18.8% to 1,045,373 and the financial loss, even following another $2 million Tang injection, is still $6.1 million.
The jetliners are withdrawn in mid-January 1988 just before the financially depleted large regional, unable to find additional capital or win concessions from its creditors, declares Chapter XI bankruptcy on January 19 and ceases all passenger operations following the arrival of a YS-11A at Honolulu from Maui. Although cargo flights continue until February 3,700 of the 850 employees are immediately laid off because Mid-Pacific cannot meet its payroll. In four years, the company has rolled up $29 million in losses.
Later in the year, a new base is established at West Lafayette, Indiana, and permission is sought from the DOT to inaugurate passenger and charter flights throughout the Midwest and to Hawaii. DOT counters with cargo-only authority, which is accepted. A plan to change the company’s name to Phoenix Airlines is abandoned when the first aircraft painted with the new titles is involved in a accident. The company is subsequently renamed Mid-Pacific Air Cargo.
MID SOUTH AVIATION ALLIANCE CORPORATION: 2451 Democrat Road, Suite 100, Memphis, Tennessee 38118, United States; Phone (901) 396-7318 Fax (901) 396-2831; Year Founded 1995. MidSouth is established at Memphis in 1995 to provide aircraft management and charter flights, including nonscheduled executive and cargo flights. Over the next three years, operations are conducted throughout the U. S., Canada, and the Caribbean.
By 2000, Angie Dunehew coordinates the work of 6 pilots and schedules a fleet that includes 1 each Cessna 650 Citation III, Mitsubishi Mu-300 Diamond IA, Beech King Air 90, Beech 58 Baron, and Beech A36 Bonanza.
MID SOUTH COMMUTER AIRLINES: United States (19801984). In late 1980, New Bern, North Carolina-based Resort Commuter Airlines (1), the airline operating division of Resort Air Service, is renamed. The fleet includes 1 Embraer EMB-110 Bandierantes, 3 Piper PA-31-350 Navajo Chieftains, 2 PA-31-310 Navajos, and 1 Beech B-55 Baron. Services are maintained to Washington, D. C. (DCA and IAD), Raleigh/Durham, Danville, Richmond, Charlotte, Pinehurst, Rocky Mount, and Newport News.
Enplanements for the year total 16,000.
Business surges for the North Carolina commuter in 1981. Passenger boardings skyrocket 246.8% to 39,563 and require the purchase of 2 additional EMB-110s to help handle the load. Revenues increase to $2.4 million and expenses are held to a point where a $267,868 operating profit can be realized.
Customer bookings jump 12.5% in 1982 to 45,000. Revenues advance to $2.77 million and expenses are held to $2.59 million. Consequently, profits are made: $188,000 (operating) and $20,000 (net).
A Shorts 330 is acquired in early 1983, but in midyear the company is sold to Lynchburg-based Air Virginia. The integration process continues through the remainder of the year as enplanements advance to 58,000. Early in 1984, MSCA disappears into its new parent.
MID-WEST AIR LINES: United States (1933-1952). Organized in 1933 as the Iowa Airplane Company, this little-known midwestern charter carrier changes its name in 1949 to better reflect its locale. Employing single-engined Cessna equipment, Mid-West launches scheduled services between Omaha and Minneapolis-St. Paul on November 29. This service, which is billed as “the world’s shortest air line,” is maintained and in November 1951 the airline is acquired by the Purdue Research Institute. Operations cease on May 16, 1952.
World History
