(1970-1971). ACA is set up at Chicago (MDW) in 1970 to provide scheduled Beech 18 courier and cargo flights to Minneapolis, Detroit, Cleveland, and occasional points in the northeast. Passengers are infrequently flown and operations cease in 1971.
AMERICAN CENTRAL AIRLINES (1): United States (19781979). The first ACA is set up at Greeley, Colorado, in 1978 to provide Piper PA-31-310 Navajo scheduled commuter flights to Denver and Fort Collins. Services cannot be maintained a year.
AMERICAN CENTRAL AIRLINES (2): United States (19801985). Organized as Mid-Continent Airlines (2) in 1964, the small Dubuque-based commuter carrier is acquired by Terry Hudik and Mike Gedman in July 1980, reformed, and then begins scheduled services to five points with a fleet comprising 2 Piper PA-23 Aztecs and 1 PA-31-310 Navajo. A total of 2,003 passengers are flown during the remainder of the year.
Five Piper PA-31-350 Navajo Chieftains are acquired in 1981 as orders are placed for 2, later 5, Embraer EMB-110 Bandeirantes. Four new cities are added to the route network that now includes Minneapolis (MSP), Waterloo, Omaha, Janesville, Dubuque, Sioux City, Cedar Rapids, Des Moines, and Chicago.
Passenger boardings skyrocket 892% for the first full year of reorganized operations, climbing to 17,860, and a $61,000 operating profit is generated.
The workforce is increased 109.6% in 1982 to 174. With others holding rights to the Mid-Continent name, the new corporate identity, American Central Airlines, is unveiled in January. The first EMB-110 is received in the spring and is employed to initiate Essential Air Service (EAS) flights to Clinton and Ottumwa, Iowa, replacing those formerly provided by Mississippi Valley Airlines. When the second Bandeirante is delivered during the summer, the company receives an EAS contract to replace Ozark Airlines’ service to Mason City and Fort Dodge.
Three more EMB-110s arrive in the fall and join the company’s 7 Navajo Chieftains. Attempting to land in dense fog at Dubuque on December 27, a Bandeirante crashes, killing its pilot and copilot, the only people aboard.
Customer bookings climb 170% to 48,229 and revenues skyrocket 117.4% to $5 million. Although expenses ascend 96.5% to $4.4 million, they are not able to prevent a $600,000 operating profit.
The payroll is significantly upgraded in 1983, rising 53.9% to 200 workers. The company’s fleet of 13 Embraer EMB-110P Bandeirantes and 8 Piper PA-31-350 Navajo Chieftains maintain services from the Dubuque, Iowa base to 24 destinations, including Chicago (ORD and MDW), Moline, Rockford, Cedar Rapids, Clinton, Des Moines, Dubuque, Mason City, Ottumwa, Sioux City, Waterloo, Detroit, Manistee, Minneapolis, Rochester, Kansas City, Lincoln, Omaha, Sioux Falls, Beloit/Janesville, Marshfield, Oshkosh, and Wisconsin Rapids.
Passenger boardings during the 12 months skyrocket 133.6% to 112,650.
Early in 1984, the 7 EMB-110s of Fairflight, Ltd. are purchased; upon their delivery later in the year, ACA will become the world’s largest Bandeirante operator with 13. Due to alleged aircraft safety violations, the FAA grounds the 317-employee carrier on December 8. En-planements through November total 170,209.
The company applies for recertification in January 1985 and resumes a limited number of flights along its route network. The loss of a month of revenue makes it impossible for the new president, James Pickett, to continue operation and ACA is forced to file for Chapter XI bankruptcy on March 9. The Bandeirantes continue operations while efforts to reemerge are made. Despite the company’s recertification by the government on June 8, all services cease on July 24 and the assets are sold.
AMERICAN EAGLE (AMR). See AIRCAL; AIR MIDWEST; AIR VIRGINIA; AVAIR; BUSINESS EXPRESS; CHAPARRAL AIRLINES; COMMAND AIRWAYS; EXECUTIVE AIR CHARTER; EXECUTIVE AIRLINES; FLAGSHIP AIRLINES; METRO AIR-LINES/METROFLIGHT; METRO EXPRESS II; NASHVILLE EAGLE; SIMMONS AIRLINES; WINGS WEST AIRLINES
AMERICAN EAGLE AIRLINES (1): United States (19801981). AEA is founded at Baltimore in 1980; equipped with a pair of Boeing 707-321Bs first flown by Pan American World Airways (1), it inaugurates passenger charters on April 13 to Frankfurt, West Germany and to Caribbean destinations. The company also wins a contract to transport Muslims during the summer as part of the annual Hadj pilgrimage to Mecca.
Certification is received for the inauguration of scheduled services over its former charter routes to the Caribbean. American Airlines protests this authority to the CAB due to the similarity in company names. The new and unfilled schedule, together with the costs of fighting the Dallas-based major, almost immediately threatens to bankrupt AEA.
A total of 45,000 passengers are flown in the fourth quarter.
Charter service is resumed for the winter holiday season, but AEA shuts down in April 1981, filing for Chapter XI. bankruptcy protection. It will not reemerge.
AMERICAN EAGLE AIRLINES (2): P. O. Box 61916, MD 5475, Dallas-Fort Worth International Airport, Dallas, Texas 76155, United States; Phone (817) 967-1295; Fax (917) 967-30977; Http://www. aa. com; Code AA; Year Founded 1998. Initially a confederation, followed by four wholly owned coordinated companies, American Eagle is the regional subsidiary the AMR Corporation, parent of affiliated American Airlines. By the end of 1997, the four companies Simmons Airlines, Executive Airlines (3), Flagship Airlines, and Wings West Airlines), whose pilots had signed a single pilot contract in August, are collectively operating 1,400 flights per day to 127 cities in the U. S., Caribbean, and Canada.
The four airlines combined transport a total of 12,117,534 passengers during the month.
The fleet comprises 46 Aero International (Regional) ATR42-320s, 38 ATR72-212/212As, and 115 SAAB 340B/B-Plus turboprops. Orders are outstanding for 3 ATR72-212As, 25 Canadair RJ700s, and 42 Embraer ERJ-145 Amazons, relabeled ExpressJets. AEA is the North American launch customer for the stretched Canadair CRJ-700, which is expected to begin joining the fleet during the first quarter of 2001.
On January 15, 1998, company officials, led by AMR Eagle President Daniel P. Garten, announce a change in operation. The availability of regional jets, the previous August’s single Eagle pilot contract, and changes in the economics of the regional airline business dictate consolidation. Consequently, by the year’s end, AMR will integrate all four of its airlines into a single carrier that becomes the principal subsidiary of AMR Eagle Holding Corporation.
At the same time, it is noted that AMR Eagle and Embraer, the aircraft manufacturer, have signed a $1.1-billion export-finance contract with the National Development Bank of Brazil. The arrangement provides a line of credit that will cover the cost, over three years, of the airline’s acquisition of the 42 ERJ-145 ExpressJets ordered at the June 1997 Paris Air Show, 22 of which are expected before year’s end.
Also in January, a major code-sharing agreement is entered into with Midwest Express Airlines. The agreement will come into effect at the time of the merger. The first two Embraer ERJ-145ER (Extended Range) ExpressJets are delivered on February 28.
During the second quarter, the new carrier’s field services organization begins to take shape. A number of appointments are made at the end of April (effective July 1), including David D. C. K. Kennedy, who becomes senior vice president-field services, while Ed Criner, Flagship Airlines vice president-flight operations is named AEA’s vice president-flight operations.
Reporting to Mr. Kennedy will be six new hub vice presidents: Mike Costello at Dallas/Ft. Worth; Dave Brown at Los Angeles; Jacques Va-chon at Miami; Robert Hamilton at New York (JFK); and former Executive Airlines (3) President George Hazy at San Juan.
G Concourse, located in Terminal 3, adjacent to American Airlines’ H and K concourses at Chicago (ORD), is renovated and now features 20 exclusive Jetway passenger loading bridges for use with the airline’s new regional jets and turboprops.
Two ERJ-145LRs join the fleet at the beginning of April and one of the ERJ-145ERs has an engine change, becoming an RJ-145MR. All of the ExpressJets will eventually be LR (Long Range) models. Those now on hand are employed for training and federally required proving flights.
Also, on April 30, the company’s four semiautonomous carriers (Simmons Airlines, Flagship Airlines, Executive Airlines (3), and Wings West Airlines) begin a seven-month period of amalgamation into this single mammoth operation, now viewed by AMR as a sister of American Airlines. The presidents of Simmons, Flagship, and Wings West are provided with appointments elsewhere within AMR and are replaced with vice presidents at each of the new airline’s hubs. Simmons becomes the core of AEA. It will be followed into the merger by Flagship in May and Wings West in June.
On May 1, the combined new carrier is the world’s largest regional airline. It is also the third largest airline operating out of Chicago (ORD) and, based on daily departures, the seventh largest air carrier in the U. S.
The dual-designator pact with Midwest Express Airlines now begins at Los Angeles and Dallas (DFW). Midwest passengers in Los Angeles are able to connect with Eagle flights to Bakersfield, Carlsbad, Fresno, Monterey, Palm Springs, San Diego, San Luis Obispo, and Santa Barbara. From Dallas (DFW), connections are available to 32 more communities in the South and Southwest.
On May 15, AEA introduces Embraer ERJ-145 ExpressJet services using the new Brazilian jetliners painted in AEA colors. The initial flights, operated by Simmons Airlines, include five daily roundtrips from Chicago (ORD) to Cincinnati, six a day from Chicago to Cleveland, and a daily roundtrip from the Chicago to Milwaukee.
Simultaneously, agreement is reached with the Transport Workers Union of America for a new single-carrier contract. The agreement covers flight dispatchers, mechanics, and ramp-service personnel.
On May 18, American Airlines signs a broad marketing agreement with Iberia Spanish Airlines (2) (Lineas Aereas de Espana, S. A.), which includes linkage of frequent flyer programs and code-sharing.
Four-times-a-day ERJ-145LR service from Chicago (ORD) to Indianapolis begins on June 5, along with five-times-a-day roundtrips to Columbus. Under the May 18 AA-Iberia pact, the Spanish major, beginning on June 10, is allowed to place its “IB” code on certain American Eagle frequencies beyond its Miami gateway to Orlando and Houston (Intercontinental Airport).
Also in early June, the decision is taken to separately maintain the certificate of Puerto Rico-based Executive Airlines (3), moving its operating certificate to Dallas-Ft. Worth on July 1. The physical merger of the company into American Eagle Airlines is delayed.
Twice-daily roundtrip ERJ-145LR service is inaugurated to Des Moines on June 26, with two more daily roundtrips added to the Indianapolis schedule.
On July 1, Iberia Spanish Airlines (2) (Lineas Aereas de Espana, S. A.) begins dual-designator service with AEA aboard the latter’s frequencies from New York (JFK) to Philadelphia and Pittsburgh.
Chicago (ORD) to Cedar Rapids ERJ-145 flights commence on July 7; the Embraers replace turboprops on two of the six daily frequencies. Simultaneously, ERJ-145s begin to replace turboprops on flights from O’Hare to Cleveland, Columbus, and Cincinnati.
Enplanements for July surge 9.2% to 1,231,923 and represent the largest one-month increase in the 14-year history of the American Eagle system.
On August 2, ERJ-145 ExpressJets replace turboprops on two of the five daily company roundtrips between Chicago (ORD) and Dayton.
Twice-daily ERJ-145 service is started on August 7 from Chicago (ORD) to Shreveport, Louisiana. The day’s new schedule also allows the carrier to provide jet service between Shreveport and its Dallas-Fort Worth hub, replacing one of its 12 existing turboprop roundtrips.
Two more turboprop Chicago-Cedar Rapids services become ERJ-145 on August 27. Simultaneously, the airline and its sister, American Airlines, reach agreement with Northwest Airlines that will allow them to accept NWA tickets in the event that a strike, looming in two days, occurs. The next day, all five daily services between Chicago and Dayton become ERJ-145.
While on approach to Chicago (ORD) from Wausau, Wisconsin, on September 17, Flight 4146, an ATR42-320 with 3 crew and 13 passengers, experiences wake turbulence from a Boeing 727. The flight attendant suffers a broken ankle.
By September 22, American Eagle has received 12 of 42 ERJ-145s ordered the previous year. Thrice-daily ERJ-145 flights to Duluth and Superior from Chicago (ORD) commence on September 28.
Twice-daily nonstop ERJ-145 roundtrips begin from Chicago (ORD) to Montgomery, Alabama, on October 5. Daily ERJ-145 nonstop roundtrips are simultaneously introduced between Montgomery and Dallas (DFW).
On November 1, thrice-daily ERJ-145LR roundtrips commence between Chicago (ORD) and the new Northwest Arkansas Regional Airport that serves Fayetteville, Bentonville, Rogers, and Springdale. Simultaneously, the company’s current ATR72-212 service between Dallas (DFW) and Fayetteville’s Drake Airport is transferred to Northwest Arkansas Regional.
The regional, on November 12, exercises 8 of its 25 options for the 50-seat ERJ-145. The move accelerates the company’s plan to attain the maximum number of regional jets permitted to it under existing labor agreements with the Allied Pilots Association (APA). With the new order, American Eagle will reach its limit of 67 aircraft, applicable to jetliners with 45 seats or more, at the end of 2001.
Two of the carrier’s 11 daily ATR72-212 roundtrips between Dallas (DFW) and Northwest Arkansas Regional Airport are replaced on November 14 by ERJ-145LRs.
ATR72-212A nonstop roundtrip service is inaugurated by Executive Airlines (3) between Ft. Lauderdale and Nassau on November 16, four times a day. Simultaneously, American Eagle replaces a turboprop with an ERJ-145LR on one of its eight daily roundtrips between Abilene and Dallas (DFW).
It is announced on November 23 that, effective January 6, an ERJ-145LR will replace an ATR72-212 on one of the carrier’s six daily roundtrips between Chicago (ORD) and Peoria.
In response to a TCAS warning, an ATR72-212A with 3 crew and 48 passengers en route from Nassau on December 1, executes an emergency pull-up at a point 30 mi. SE of Ft. Lauderdale, during which the flight attendant falls and breaks her leg. The service to Ft. Lauderdale is completed and the flight attendant is taken to a local hospital.
On December 4, in a move to strengthen its regional presence in the Northeast, American Eagle purchases Business Express Airlines from the Philadelphia-based investment partnership Dimeling, Schreiber & Park for an undisclosed price. American Eagle gains the Business Express slots at New York (LGA). The regional will operate as a separate entity until all takeover arrangements are completed. Business Express, meanwhile, negotiates with Delta Air Lines and Northwest Airlines concerning its regional partnerships with those majors.
On December 7, ERJ-145LRs replace turboprops on 2 of the carrier’s 11 daily roundtrips between Dallas (DFW) and Houston (HOU).
On December 9, Alaska Air Group president William Ayer announces that a letter of intent for the creation of a marketing partnership has been signed between its subsidiaries, Alaska Airlines and Horizon Air, and AMR Corporation and its subsidiaries, American Airlines and American Eagle. The alliance will greatly expand travel and mileage opportunities for AAG passengers and strengthen the marketing presence for both corporations in California, the Pacific Northwest, and the West Coast. The four airlines will implement a fully reciprocal frequent flyer relationship; code-sharing is also under discussion, but remains subject to labor contract provisions.
Two more daily nonstop ATR72-212A roundtrips are added on December 10 between Ft. Lauderdale and Nassau. Twice-daily Saturday and Sunday ERJ-145LR roundtrips from Columbus to Miami are begun on December 12. American Eagle is the only airline to provide Columbus with nonstop service to Miami, although the service is only for the winter season.
Two days later, on December 14, the company announces additional schedule enhancements. On February 23, the company will augment American Airlines’ twice-daily roundtrips between Long Island MacArthur Airport and Chicago (ORD) by operating two new daily ERJ-145ER roundtrips of its own. Thrice-daily ERJ-145ER roundtrips will start on March 8 from Chicago (ORD) to Memphis.
The number of daily roundtrip SAAB 340B roundtrips between Los Angeles (LAX) and Bakersfield are doubled on December 15 from two to four.
As the result of intensive lobbying by U. S. Senator Trent Lott (R-Miss.), American Eagle announces on December 21 that it will replace turboprops on three of the company’s six daily roundtrips from Jackson, Mississippi, to Dallas (DFW) on February 19.
When an ice storm sweeps across the south on December 23, American Eagle is forced to cancel all of its flights from Dallas (DFW) to
Shreveport and Alexandria, Louisiana, Fort Smith and Texarkana, Arkansas, Jackson, Mississippi, and the Texas communities of Abilene, Killeen, Longview, Tyler, Waco, and Wichita Falls.
ERJ-145LR frequencies from Dallas (DFW) to Hobby Airport are doubled to four on December 28. The next day, a second daily nonstop roundtrip is added between Dallas-Fort Worth and Montgomery, Alabama.
Passenger boardings for the year jump 6.5% to 11.44 million as AEA moves up the ranks. Cargo traffic climbs 13% to 393,000 FTKs and revenues jump 10.2% to $1.12 billion.
Early in January 1999, American Eagle is named 1998 “Regional Carrier of the Year” by Commuter World magazine. Peter M. Bowler becomes the carrier’s new president.
American Airlines, on January 20, officially dedicates its new facilities and gates at its third Dallas (DFW) terminal; nine new gates and other facilities at Terminal B, valued at $120 million, complement existing American Airlines and American Eagle facilities at Terminals A and C.
Also during the month, American Eagle becomes the first U. S. regional airline to be awarded Extended Over-water Certification by the FA A. The new certification allows Executive Airlines (3) to initiate daily ATR72-212Aroundtrips on February 1 between San Juan and Port of Spain, Trinidad.
Both American Airlines and American Eagle begin service from Terminal B at Dallas-Fort Worth on February 1. ERJ-145s replace ATRs on three of the six daily roundtrips between Jackson, Mississippi, and Dallas (DFW) beginning on February 19.
Augmenting the twice-daily American Airlines schedule between Long Island’s MacArthur Airport and Chicago (ORD), American Eagle launches twice-daily ERJ-145 roundtrips between the two points on February 23.
On March 8, American Eagle launches thrice-daily nonstop ERJ-145 roundtrips from Chicago (ORD) to Memphis.
The acquisition of Business Express Airlines is completed on March 11. Initially, it is operated as a separate company, with President Ellmer remaining in place, but now reporting to American Eagle President Bowler. Marketing relationships, including code-sharing with several other airlines, is continued. Rather than perform costly modifications to conform Business Express aircraft to Eagle specifications, Eagle will retire units of the Business Express SAAB fleet as their leases expire and gradually replace them with American Eagle aircraft.
A dual-designator pact with Finnair O/Y takes effect on March 28. In addition to mutual frequent flyer benefits, American Airlines passengers are able to employ their tickets on Finnair flights from New York (JFK) to Helsinki and from Chicago (ORD) to Stockholm.
Finnair also places it’s “AY” code on American and American Eagle flights from New York (JFK) to Boston, Dallas (DFW), Los Angles, Miami, San Francisco, and Washington, D. C. (DCA).
Thrice-daily ERJ-145 nonstops are introduced between Dallas (DFW) and Knoxville on March 29. The world’s largest regional airline, the carrier now offers 1,300 daily flights to 128 cities throughout the U. S., Canada, the Bahamas, and the Caribbean. The same day, it is announced that thrice-daily ERJ-145 nonstop roundtrips will commence on July 1 between Greenville/Spartanburg and Chicago (ORD), with twice-daily ERJ-145 nonstop return service simultaneously launched from the South Carolina community to Dallas (DFW).
Daily nonstop ERJ-145 roundtrips begin from Chicago (ORD) to Madison, Wisconsin, on April 19; the flights replace one of the seven daily ATR42-320 turboprop flights currently operated. ERJ-145 frequencies from Chicago (ORD) to Madison are doubled on April 26. Also on April 26, four of the company’s nine daily ATR42-320 flights between Chicago (ORD) and Grand Rapids, Michigan, are also replaced with ERJ-145s.
On May 8, descending through clouds on a service from Baltimore (BWI), a SAAB 340B with 3 crew and 27 passengers lands some 7,000 ft. beyond the approach end of Runway 4R at New York (JFK). The turboprop skids 300 ft. and travels 215 ft. across the 600-ft. Engineered Materials Arresting System (EMAS) before its landing gear sinks approximately 30 inches into the EMAS, halting the plane. One customer receives minor injuries. This is the first operational use of the new foam concrete arrestor bed installed later in the previous year.
After a year of detail resolution, American Airlines and Japan Air Lines Company, Ltd. (2) implement the first phase of code-sharing on routes between the U. S. and Japan and on other routes beginning on May 10. JAL initially places its code on American Airlines and American Eagle flights from Dallas (DFW), Chicago (ORD), San Jose, and Seattle to Tokyo (NRT) and on American’s new route from Dallas (DFW) to Osaka (KIX). JAL also is able to assign its designator on American Airlines and American Eagle frequencies from Los Angeles, Dallas (DFW), and Los Angeles and other U. S. communities.
Infolatina in Mexico City reports on May 14 that competition from global airline alliances such as “OneWorld” is getting stiffer for the two major Mexican airlines owned by the holding company CINTRA. It is reported that AEA-2 is now planning to introduce ERJ-145 frequencies into Chihuahua, Coahuila, and other parts of northern Mexico.
Having provided a two month notice, the carrier, on May 19, ceases its unprofitable thrice-daily roundtrips between Chicago (ORD) and Central Wisconsin Airport.
Nonstop ERJ-145 roundtrips are started on May 20 between Chicago (ORD) and Pittsburgh, four times a day. In addition, as Executive Airlines (3) continues amalgamation, it simultaneously initiates daily ATR72-212A return service between San Juan and Grenada.
Five-times-a-day ERJ-145LR roundtrips commence on June 1 between Baltimore (BWI) and Chicago (ORD). The same day, a third daily nonstop ERJ-145 roundtrip is added between Dallas (DFW) and Montgomery. The unprofitable thrice-daily flights between Montgomery and Chicago (ORD) are eliminated, as are the twice-daily services between Chicago (ORD) and Shreveport and Los Angeles and Carlsbad/Palomar.
Also eliminated, on June 15, are the unprofitable five-times-a-day nonstop roundtrips between Dallas (DFW) and Gregg County Airport at Longview, Texas.
Handlers at Fort-de-France, Martinique, and Pointe-a-Pitre, Guadeloupe, who have for some time been involved in an industrial dispute with American Eagle, prevent the carrier from operating its flights into those two points from San Juan on June 18. Consequently, the carrier indefinitely suspends those services.
ERJ-145 nonstop roundtrips between Cleveland and New York (LGA) are started on July 29, six times a day. The new service is made possible by the carrier’s addition of the La Guardia Airport landing slots that came with the acquisition of Business Express.
Four-times-a-day ERJ-135 roundtrips between Chicago (ORD) and Omaha commence on August 1.
The carrier’s first ERJ-135 is delivered at Dallas (DFW) in ceremonies on August 18. The new aircraft will undergo a two-month workup and enter revenue service in October.
Twice-daily ERJ-145 roundtrips commence on August 26 between Dallas (DFW) and Grand Rapids, Michigan.
The carrier’s new ERJ-135 is introduced on October 1 on routes between Chicago (ORD) and both Evansville and Madison; at the same time, turboprops are replaced by ERJ-145s on the route from Chicago (ORD) to Milwaukee. New ERJ-145 roundtrips commence on October 2 from Chicago (ORD) to Fort Wayne and Green Bay.
Thrice-daily ERJ-145 return flights begin on November 1 between Cleveland and New York (JFK).
Executive Airlines is not integrated during the year. On December 14, the carrier accepts its 44th ERJ-145, the 200th regional jet unit to come off the Embraer production line.
Customer bookings inch up 0.1% to 11,458,000, while cargo falls 9.1% to 336,000 FTKs. Revenues jump 15.4% to $1.3 billion.
Fired by the company for refusing to fly during a 1996 ice storm, Capt. Michael LaGrotte is awarded $10 million by a jury in a civil suit that concludes on January 2, 2000.
Employing ERJ-145s, American Eagle takes over the eight-times-a-day American Airlines service on January 5 between Dallas (LOV) and Austin.
New twice-daily ERJ-145 roundtrips are launched on February 21 from Dallas (DFW) to Cedar Rapids, along with new four-times-a-day ERJ return service from Dallas (DFW) to Milwaukee.
A code-sharing agreement is signed with Northwest Airlines on February 29; under its terms, Eagle places the “NW” code on its SAAB 340B services from Los Angles to Bakersfield, Fresno, Monterey, Palm Springs, San Diego, Santa Barbara, and San Luis Obispo.
American takes over two-thirds of the American Eagle service between Dallas (DFW) and Knoxville on March 2 providing Fokker 100 roundtrips twice daily; Eagle provides a third service employing an ERJ-145. The same day, new ERJ-145 nonstops are inaugurated twice daily from Dallas (DFW) to Fort Wayne.
Bob Reding is appointed chief operating officer, also in March.
The major also relieves Eagle of its Chicago (ORD) to Baltimore (BWI) responsibility on April 2, flying MD-80s between the two points four times a day. The same day, 5 of the 11 daily flights from Dallas (DFW) to Lubbock are upgraded to ERJ-145s.
New thrice-daily ERJ-145 return service from Dallas (DFW) to Corpus Christi and Lubbock and from Chicago (ORD) to Chattanooga begins on April 3. This is followed by the introduction of twice-daily ERJ roundtrips between Chicago (ORD) and Baton Rouge on April 24.
On May 1, ERJ-145s replace SAAB 340Bs on four of the carrier’s nine daily roundtrips between Dallas (DFW) and Midland and Odessa. The unprofitable Chicago (ORD) to Lansing route is closed the same day.
New thrice-daily ERJ-135 return service is introduced on May 26 from Dallas to Savannah.
In June, CEO Reding announces that the carrier’s Chicago (ORD) operation will be all-jet by year’s end and that a new 13-gate satellite terminal, featuring covered boarding bridges, will be built at Dallas (DFW).
Four of nine daily roundtrips from Dallas (DFW) to Oklahoma City are upgraded to ERJ-145 on July 5, the same day the carrier’s last SAAB 340B is withdrawn at Miami.
When a Farmingdale, New York, Executive Airlines Jetstream 31 crashes near Wilkes-Barre in July, Eagle officials point out that the operator should not be confused with the Puerto Rico-based Eagle carrier Executive Airlines.
Twice-daily ERJ-145 roundtrips commence on September 6 from Dallas (DFW) to Madison, Wisconsin. On September 26, the carrier announces that it will become a launch customer for the new Embraer ERJ-140 and that it is converting its remaining ERJ-135 orders into Dash-140 requests.
Dallas (DFW) to Fort Smith, Arkansas, twice-daily ERJ-145 return flights are started on October 5. On October 27, a historic agreement is signed with Trans World Airlines (TWA) under which the American Eagle subsidiary Business Express will provide “TWExpress” services to nine new markets and five existing “TWExpress” cities from which Trans States Airlines will withdraw by January 5.
Chicago (ORD) does, indeed, become all-jet on November 2 when the service to Traverse City becomes the last converted from turboprop to ERJ. A new 13-gate facility, complete with covered passenger bridges, is opened north of Terminal A at Dallas (DFW) on November 4.
Employing SAAB 340Bs, “TWExpress” service is launched on December 2 from New York (JFK) to Albany, Buffalo, Montreal, Providence, Rochester, Syracuse, and Worcester, Massachusetts.
Thrice-daily roundtrips are launched on December 15 from Chicago (ORD) to Greensboro, North Carolina.
AMERICAN EXPORT AIRLINES (AMEX): United States (1937-1945). A subsidiary of the shipping company American Export Lines created to offer transatlantic air service, this carrier is incorporated in April 1937 as American Export Airlines (Amex). John E. Slater is named board chairman and CEO. Application is made to the U. S. government for a route to Europe and in September 1938, a Consolidated Model 28 or PBY-5 flying boat is purchased with which to undertake route surveys.
On May 9, 1939, the company approaches the newly formed CAB for a transatlantic certificate. The PBY-5 undertakes three transatlantic survey flights. The CAB begins consideration of the company’s route request in October, but places it on hold as the European war intensifies. Amex renews its efforts amending its route request from London and Paris to Lisbon. In December, orders are placed for three as yet to be designed Vought-Sikorsky VS-44A flying boats.
On July 15, 1940, the CAB awards and President Franklin D. Roosevelt confirms a seven-year temporary route permit for service from New York to Lisbon. Capt. Charles F. Blair is appointed chief pilot to operate projected airmail service. Blair will recall his service in his often reprinted memoir Red Ball in the Sky (New York: Random House, 1952, 1957, 1969).
The Amex’s authority is legally challenged in the U. S. Court of Appeals by Pan American Airways (PAA), with the result that American Export Airlines is forced to restructure and separate from its parent.
A little later, the carrier requests a $1.2-million mail subsidy from the Appropriations Committee of the U. S. Senate; this, too, is opposed by PAA and the mail contracts are not granted. On October 15, a contract is drawn up for the purchase of TACA (Transport Aereos Central Americanos, S. A.). This arrangement will also be opposed both in the U. S. and in Latin America and the CAB denies approval of the foreign takeover on December 4, 1941. On December 7, the Japanese attack Pearl Harbor.
Although support for mail carriage is not received, Amex presses on. On January 12, 1942 the company signs a contract with the Naval Air Transport Service (NATS) to operate a wartime transatlantic route in support of the military. Three brand new Vought-Sikorsky VS-44A flying boats are purchased, labeled “Flying Aces,” and extolled for their comforts (full-length beds, minimum vibration, full galleys, lounges, dressing rooms, and smoking room) in company advertising.
The first $2.1-million VS-44A is christened Excalibur by Mrs. Henry A. Wallace on January 17, although it takes three attempts before the champagne bottle, finally weighed down with a length of angle iron, breaks across the plane’s duralumin-skinned bow. The next day, Amex’s chief pilot, Capt. Blair, makes two proving flights from cold Long Island Sound.
A temporary CAB certificate is received on February 10 for a transatlantic route, New York to Foynes (Northern Ireland). Meanwhile, Blair and his crew work the Excalibur to flight readiness in March and April, making practice takeoffs and landings from the St. Johns River at Florida’s Jacksonville Naval Air Station.
Meanwhile, the second VS-44A, the Exeter, also arrives in April. The first NATS VS-44A European mission is undertaken by the Excalibur as a proving flight on May 26; regularly scheduled weekly roundtrips begin on June 20.
Chief pilot Blair, on June 22-23, makes the first westbound nonstop transatlantic flight with passengers and mail, flying the Excalibur from Foynes to New York in 25 hrs. 40 min. The Royal Navy’s Adm. A. B. C. Cunningham, en route to Washington as Britain’s representative to the Combined Chiefs of Staff, is an impressed traveler on this inaugural service. The Excambian, arrives in June and joins the Exeter in beginning regular nonstop operations between New York and Ireland on July 1.
Crossings are successfully made throughout the war as the VS-44As prove to be the longest-legged aircraft in commercial service at the time and the only ones capable of flying commercially scheduled, nonstop, transatlantic routes. During a rushed liftoff from the Bay of Exploits at Botwood, Newfoundland, on October 3, the Excalibur fails to become airborne and crashes; Flight Engineer Michael Doyle and half the passengers are killed.
To be on the safe side in terms of potential weather difficulties, in the winter season the southern route is flown via Bermuda and Bathurst. Following a reorganization in February 1943, Amex’s entire transatlantic service is taken under NATS control. On July 14, the Exeter and Excam-bian receive their final Approved Type Certificates from the government.
Not only do the two flying boats launch nonstop flights along such wartime supply avenues as Bermuda-Trinidad-Puerto Rico-Africa, but establish several records in 1944 that hold for a few years:. In January, Capt. Blair flew a 21 hr. 26 min. Foynes to New York service with 19 passengers and 2,686 pounds of mail. The fastest nonstop Europe to America flight of 16 hrs. 57 min. occurred in July and a nonstop New York to Foynes transatlantic speed record of 3,329 in 14 hrs. 17 mins. was established in October. The Navy contract is concluded on December 31. In just over a year and a half, the VS-44As have completed 405 transatlantic crossings.
In January 1945 American Export begins flying leased Douglas C-54s to Casablanca for the USAAF’s Air Transport Command. During the spring, merger negotiations begin between Amex CEO Slater and Ralph Damon, who, as executive vice president, is in charge of American Airlines during the military absence of C. R. Smith.
On June 1, the CAB announces a finding in its North Atlantic Route Case. Both Amex and Transcontinental and Western Air Lines (TWA) will be allowed to compete on the over-ocean service with Pan American Airways (PAA), with the former operating about the 50th parallel, including London. Simultaneously, it is announced that Amex has been purchased (for $3 million) by American Airlines and will constitute its new Trans-Atlantic Division. CAB approval for the arrangement is received on July 5.
AMERICAN FALCON, S. A.: Av. Santa Fe, 1060 Buenos Aires, Argentina; Phone 54 (11) 4811 0215; Fax: 54 (11) 4815 6657; Http://www. americanfalcon. com; Code WK; Year Founded 1995.
American Falcon is initially established in 1995 as an affiliate of Florida-based Falcon Air Express to provide lift for members of the North American Olympic Committee at the Mar del Plate Pan American Games.
Over the next five years, both a wet - and a dry-leased fleet is established that comprises, at one time or another, 2 Boeing 707-320s, 5 Fokker F.28-4000s, and 2 Douglas DC-9-32s. On behalf of over 80 travel agencies, seasonal charters are offered in summer and winter to such Argentinean and international destinations as Punta Cana, Saint Martin, Margarita Island, Cancun, Havana, Rio de Janeiro, and San Salvador.
The company also flies charters on behalf of the Argentine National Football Team, the San Lorenzo Racing Club, and others, while simultaneously operating corporate flights for Coca-Cola, Bianchi, Arcor, General Motors, Daimler-Chrysler, Siembra, and Perez Compaq.
Finally, replacement scheduled services are from time to time provided on behalf of Southern Wings, S. A. and LAPA (Lineas Aereas Privadas Argentinas, S. A.).
AMERICAN FLIGHT SERVICES: P. O. Box 16638, Washington Dulles International Airport, Washington, D. C. 20041, United States; Phone (703) 581-1600; Fax (703) 771-8002; Code CY; Year Founded 1987. Originally established in 1987 as Chantilly Aviation, this passenger charter and aircraft sales agency has had a corporate image change by 1997. Daniel Y. Stapleton Jr. is president and he continues to oversee revenue flights that are made with a fleet of 2 Cessna 172s, 1 C-182RG, 1 C-182, 1 Beech A-36, 1 Piper PA-23 Aztec, 1 PA-31-310 Navajo, and 1 PA-31-350 Navajo Chieftain.
AMERICAN FLYERS AIRLINE CORPORATION: United States (1949-1971). Established at Ardmore, Oklahoma in 1949 by Reed W. Pigman, this charter operation flies without serious incident during the next 16 years. On April 1, 1960, two each Lockheed L-049 and L-149 Constellations are purchased from Delta Air Lines. This is Pigman’s first four-engine equipment.
The former Qantas Empire Airways (Pty.), Ltd. L-1049G Southern Prodigal is leased from Lockheed in 1961 and during the next year, two more L-1049Gs are also purchased. Arrangements are made in 1962 to acquire a pair of Lockheed L-188Cs, which had originally been ordered by Capital Airlines and then passed to the start-up Sports Aloft, which is unable to begin operations.
The new L-188Cs enter service in January and February 1963. On September 23, a DC-3 must make an emergency wheels-up landing at Shreveport, Louisiana, but none of the 31 persons aboard is hurt.
Previously leased by Capitol Airways and first flown by Trans-Canada Airlines, Ltd., two L-1049E Super Constellations are purchased from California Airmotive on April 8, 1964. They are followed into service by a pair of L-1049Es first flown by Qantas Empire Airways (Pty.), Ltd.
In the first use of a large turboprop for a coast-to-coast charter by an entertainment group, the L-188A is leased by The Beatles at a cost of $75,000. Between August 19 and September 20, it transports the Fab Four and its entourage on its 24-city tour across the U. S.
Coming in from a ferry flight, an L-749 Constellation with three crewmen aboard overshoots the runway while landing at Ardmore, Oklahoma, on September 19, 1965; injuries are minor. The company wins a CAB permit, on September 30, to undertake services to Mexico. Revenues for the year total $8.16 million; expenses are $7.6 million and the net profit is $441,367.
En route from Fort Ord, California, to Fort Benning, Georgia, on an NATS charter on April 22, 1966, Flight 280D, a Lockheed L-188AElec-tra with 92 servicemen and a crew of 6, strikes a 963-ft. hill while on initial approach to Ardmore, Oklahoma, and crashes (83 dead). The tragedy is later determined to have been caused by a heart attack suffered by pilot-owner Pigman.
Three L-188Cs are purchased from Northwest Airlines between June and November. As the result of the CAB’s reopened transatlantic charter investigation, an over-ocean certificate is also won by the supplemental on November 26, effective that day. Revenues total $8.65 million. Although a $79,756 operating loss is suffered, a $542,765 net profit is realized.
A fourth L-188C arrives from Northwest Airlines on January 24, 1967 and two Boeing 727-185Cs join the eight Electras late in the year.
A total of 230,000 passengers are originated. Revenues advance 23% to $10,593,913. This year, a $279,796 operating profit is obtained, but a net loss of $549,727 occurs. The employee population is 350.
Early in 1968, the Boeing jetliners enter service and in midyear the company is purchased by the Pittsburgh Coke and Chemical Company. Despite the receipt of $13,673,227 in revenues, the year’s net loss increases to $3,161,668.
Headquarters are moved to Harrisburg, Pennsylvania, in 1969, the same year two Douglas DC-8-63CFs are acquired. Merger discussions begin with Universal Airline Company. The fleet now includes 2 B-727-185Cs, 2 DC-8-63CFs, and 4 Lockheed Electras.
The 136 members of an air charter group sponsored by the Association of English and American Students Abroad are stranded at New York (JFK) on September 6. AFA reports that the British Board of Trade has bared the landing of its aircraft in London because of the “charter unworthiness” of the group’s sponsor.
Enplanements total 318,941 and revenues reach $20.8 million. The net loss doubles, up to $6.28 million.
Planning for a merger with Universal moves ahead in 1970 and as a result, the workforce is cut back by 63.7% to 196. In January, an L-188A is sold to Holiday Airlines.
A total of 343,686 charter passengers are carried, an increase of 7.2%. Revenues advance to $21.55 million. The loss declines by two million in each reporting category, but continues as minus figures: $3.83 million (operating) and $5.07 million (net).
Operations continue largely unchanged until June 4, 1971 when the purchase of AFA by Universal is confirmed.
AMERICAN INTER-ISLAND: United States (1977-1982). After the April 27, 1976 crash of an American Airlines’ B-727-223A at Harry S. Truman Airport at St. Thomas, the Allied Pilots Association (APA), AA’s pilot union, indicates its unwillingness to continue operations into an airport which has been plagued with problems over the years.
Having acquired a fleet of four (later five) Convair CV-440s from Delta Air Transport, S. A. and formed this subsidiary with Cyrus Collins as president, American halts jetliner flights to St. Thomas on May 24, 1977. With APA approval, American Inter-Island plans to operate a 45-mile shuttle service between St. Thomas and Alexander Hamilton Airport on St. Croix where they will be able to connect with American jets. Revenue flights commence on November 1.
After runway improvements at St. Thomas have been completed, American reinstates 727-223A service to Harry S. Truman Airport on June 10, 1982, directly from Florida and New York. Once the subsidiary is no longer required, it is sold for $3 million to Carlsbad, California-based Air Resorts Airlines.
ARA will briefly operate its new acquisition on scheduled and charter services between St. Thomas, St. Croix, and San Juan. By year’s end, the Caribbean operation is closed down and the five Convairs are flown to the Golden State.
AMERICAN INTERNATIONAL AIRWAYS (1): United States (1945-1948). AIA is established in late 1945 to offer nonscheduled charter services to various overseas destinations, including Europe. In the spring of 1947, following their return to San Diego by the bankrupt Universal Airways, five Boeing 314s are purchased for $500,000 from the U. S. War Assets Administration. The Anzac Clipper, California Clipper, American Clipper, Dixie Clipper, and Capetown Clipper are reconditioned using parts from a sixth Boeing 314, the Atlantic Clipper.
All of the ships are completely refurbished and given back the luxurious fittings removed by the previous owners. The Capetown Clipper is renamed Bermuda Sky Queen and is the first to be refurbished. She is ferried to Baltimore in July and, after an inspection by CAB examiners, is placed into service under the command of Capt. Charles Martin on an initial October 2 flight from Baltimore to Poole, via Foynes and Gander.
En route from England to Maryland on the return leg of her inaugural roundtrip on October 14, the flying boat, under charter to London-based Air Liaison, Ltd., runs out of fuel because of stiff head winds and lands at sea. The aircraft, its 7-member crew, and 62 English emigrant passengers, drift for 100 miles before the USCG’s Bibb arrives. After all aboard are transferred to the cutter, the Bermuda Sky Queen drifts into the ship and is fatally damaged. She must be sunk by gunfire.
During the last two months of the year and into the next, the four remaining Boeing 314s are hangared at San Diego. All are sold to World Airways in 1948. AIA (1), after operating less than one complete transatlantic service, ceases operations due to recessionary pressures.
AMERICAN INTERNATIONAL AIRWAYS (2): United States (1980-1984). Organized as a nonscheduled subsidiary of American International Industries at Atlantic City, New Jersey, in late 1980, this company is successor to Commercial Airlines, a charter operator certified earlier in the year. Overseen by former Hughes Airwest President Russell V. Stephenson, William Davis (also ex-Hughes), and one-time McCulloch International Airlines executive John E. Gallagher, the carrier begins nonscheduled revenue flight operations on September 15, 1981, with one (later three) Douglas DC-9-33RC wet-leased from Hawaiian Airlines (HAL).
The FAA grants the company a permit on December 1 to operate its own Part 121 charter flights. Apair of de Havilland Canada DHC-7s are acquired during the spring of 1982 to offer short-haul East Coast charters to Atlantic City. Sixty thousand passengers are transported to the gambling mecca from Miami, St. Louis, Chicago, and New Orleans before year’s end.
AMI continues to emphasize these specialized tour services until October 15, when nongambling public charter flights are launched from Dallas (DFW) to Las Vegas, the U. S. West Coast, and Mexico. Permission is received from the government to inaugurate scheduled passenger and cargo flights on December 6.
During that year, 425,105 travelers fly the new entrant’s DC-9-33CFs and two DHC-7s. This turnout encourages company officials to consider a complete shift to scheduled service. In December, the carrier inaugurates the first such flight to Atlantic City.
Full commitment to scheduled service is taken in February 1983 and routes are extended from a hub at Atlantic City to Boston, Cleveland, Detroit, Ft. Lauderdale, Miami, Orlando, and Tampa. Meanwhile, in April, two DC-9-80s (MD-80s) are chartered from Hawaiian Airlines (HAL) . Three casinos, which offer “Stay and Play” packages for those arriving at Atlantic City, underwrite the new routes to Boston, Cleveland, and Detroit. Scheduled service is a large initial success; 28,000 passengers (84.4% load factor) are transported in June alone.
Other new markets entered during the summer months include Chicago, Pittsburgh, West Palm Beach, and Philadelphia, site of the carrier’s soon-to-be new hub. The final changeover from charter to scheduled operations is completed during the fourth quarter, by which time services are operated into 11 Northeast, Midwest, and Florida markets.
American International’s 7 chartered DC-9-33CFs and leased DHC planes fly 374,809 passengers on the year, but, despite casino aid, scheduled start-up costs are heavy and, on revenues of $52.9 million, a net loss of $11.8 million is suffered, atop an operating loss of $8.9 million.
1984 is a significant year for the new national. On January 5, a major new hub is opened at Philadelphia, leading to an immediate traffic boost. In March, Bruce B. Edmondson becomes the new president/CEO. The fleet of 7 DC-9-33CFs (now with a new paint scheme, using a dark blue upper fuselage and new “American International” titles) is, by summer, providing low-cost service between Philadelphia and Atlantic City and to 11 other markets in the Northeast, Midwest, and Florida.
Unfortunately, the financial realities of commerce cannot keep pace with the company’s dream; over $15 million is lost in the year’s first half. On July 19, American International Industries, in which Renobased KB Equities is major shareholder, is forced to file for Chapter XI bankruptcy. Airline operations continue until suspended on September 14, pursuant to receipt of a court injunction grounding half the fleet. Although it is announced that flights will resume in three days, they do not.
During the first half of 1988 , the former airline’s fitness certificate is purchased by Connie Kalitta Services with plans to restart the airline, which will eventually be successful.
AMERICAN INTERNATIONAL AIRWAYS (3): United States (1991-1999). The 600-employee all-cargo airline Connie Kalitta Services is renamed in 1991. With a fleet of 2 Douglas DC-8-61Fs and 1 Boeing 727-100F, President/CEO Conrad “Connie” Kalitta’s carrier undertakes to continue passenger/cargo flights to international and domestic destinations under the day-to-day direction of Vice President/ General Manager William Gray. The holding company, Bounty Aviation—named after the racing car owner’s vehicle Bounty Hunter—is established to control upcoming additions.
On the year, AIA transports a total of 187.68 million FTKs of cargo, down 5.9% from the previous year.
The fleet is dramatically increased during 1992 by the addition of 1 more DC-8-61F, 1 each B-727-23F and B-727-35F, 10 DC-8-50Fs (including 2 Dash-55Fs from Air Charter Systems, Ltd.), 1 DC-8-73F, 2 DC-9-10Fs, and 4 B-747-146/-146Fs, the latter purchased from Japan Air Lines Company, Ltd. (2). Kalitta Flying Services is established under the leadership of President Donald Schilling to provide on-demand air ambulance and freight flights with smaller aircraft. At the same time, American International Cargo is set up; capitalized by Bounty Aviation (60%), it will be headed by Vice President/Managing Partner Betty Ward, who owns the remaining shares.
The first B-747-146F arrives on October 30 as one of three Jumbojets to be delivered during the year, having been converted by GATX-Airlog from a passenger plane to a freighter in a record 86 days.
Cargo traffic during the 12 months skyrockets 150.3% to 400.15 million FTKs. Profits are made: $8.6 million (operating) and $4.3 million (net).
Airline employment is cut 22.8% in 1993 to 502 as the DOT reclassifies the freight operator as a national airline. In May, the company begins to fly old Zantop International Airlines routes as American International Freight. The new subsidiary’s headquarters will eventually be transferred to Terre Haute, Indiana under Vice President/General Manager Steve Murray.
A heavy aircraft maintenance concern is established at Oscoda, Michigan, and becomes the AIA division Bounty Maintenance Services. On August 2, AIA is one of seven carriers to win an Air Force contract to provide long - and short-range international airlift services under the Civil Reserve Air Fleet program; the pact is valued at $5 million.
Freight jumps again, up 43% to 572.13 million FTKs. Revenues increase 81.8% to $149.4 million, expenses are kept low, and grant an operating profit of $25.5 million. Net gain nearly quadruples to $18.96 million, placing it 21st among the world’s airlines.
The workforce is reduced another 6.4% in 1994 to 470. The fleet now includes 1 each B-727-23F, B-727-35F, B-727-22C, 1 leased B-747-132F, B-747-238BF, DC-8-62, and DC-8-63CF, plus 2 each B-747-146s, B-747-146Fs, DC-8-51F, DC-8-52s, DC-8-54Fs, and DC-8-61Fs, 3 DC-8-61s, 4 L-1011-200s, 6 DC-8-55Fs, and 16 B-727-223s.
On March 15, one of the carrier’s B-747-146s is painted in the colors of the fictitious PAC Atlantic Air and employed in the new Wesley Snipes motion picture Drop Zone. Later in the year, a contract is signed with Marshall Aerospace, Ltd. in Cambridge, England, for the conversion of the L-1011-200 TriStars into a freighters. Four others will also be purchased and converted. They will join the B-747-146s in providing passenger charters to customers such as tour operators and cruise lines.
Cargo accelerates 7.5% to 614.87 million FTKs and revenues skyrocket 85.6% to $287 million. Expenses grow by 83.7% to $256.07 million and allow profits to continue to grow to $30.92 million (operating) and $27.23 million (net).
Airline employment will grow dramatically during 1995, reaching a total of 2,000 workers by year’s end. During the first week of January, the carrier purchases the failed MGM Grand Air and its fleet of 3 DC-8-62s and 3 B-727-191s. American International is now restructured into Grand Holdings, Inc., with AIA and MGM Grand Air as its two subsidiaries. Grand Holdings, Inc. President David P. Ahles indicates that MGM’s outstanding charters will be honored with the DC-8s and that the B-727s will either be converted to cargo configuration or sold as luxury aircraft “as is.”
While landing at Panama City, Panama, on June 3 in heavy rain after a cargo flight from Miami, a B-747-238, with five crew collides with the approach lights about 230 feet from the runway; although the Jumbojet is badly damaged, no personnel injuries are reported.
On July 1, majority interest in MGM Grand Air is sold to Richard Page’s Minneapolis-based Front Page Tours; AIA continues to hold a 20% interest. President Page renames his new unit Champion Airlines and it is provided with 1 DC-8-62 and 1 each Boeing 727-91, B-727-223, and B-727-224A, all leased from AIA, plus a 200-person workforce (a 66.7% increase over what it had been under MGM), that includes most of the former MGM employees.
Also during the month, Marshall Aerospace begins test flying the company’s L-1011-200F and two B-747-269Bs are purchased from Kuwait Airways Corporation, Ltd.
The premier TriStar freighter is delivered during the second week of August and is placed into service on company routes from Miami to South America. In September, one of the new B-747-269Bs is contracted out to Warner Bros. and is painted in the livery of the fictional Oceanic Airways. The aircraft spends two days at Key West, Florida, taking part in the filming of the forthcoming action film Executive Decision starring Kurt Russell and Steven Segal.
Two more L-1011-200Fs arrive during late fall and are placed upon U. S. transcontinental services. A contract is obtained to ship 1.5 million lbs. every night between December 10-24.
The carrier’s 54 aircraft carry 1.04 billion FTKs, a 38% increase. Expenses outdistance income and there are losses: $2.45 million (operating) and $5.58 million (net).
The workforce is increased by 50% in 1996 to 3,000. During September, a B-747-136 is leased to Hollywood; it is repainted to resemble the U. S. government’s VC-25A for the Harrison Ford film Air Force One.
Cargo traffic increases 13.8% to 1.19 billion FTKs. Expenses are such, however, as to generate a $9.7-million operating gain, but a $12.11-million net loss.
At the beginning of 1997, the 3,000-employee company has all 8 of its L-1011-200Fs in service, wearing the company’s red and white livery.
Flight 903, a B-747-269B freighter with seven crew makes a hard landing at Manaus, Brazil, on March 22 following a flight from Miami; the Jumbojet sustains slight damage and no one is injured.
The 20% stake in Champion Airlines is sold to Carl Pohlad and Northwest Airlines on March 27 as the two gain control over the Minneapolis-based charter operation.
During late spring, three L-1011-200Fs are wet-leased to Emery Worldwide, which wishes to compare them in cargo service with similarly chartered DC-10s.
An agreement is signed with Travel Charter International in April under which the company will initiate passenger charters from Detroit to Europe on behalf of the tour operator. A pair of L-1011s will provide lift to Paris, Frankfurt, Rome, and Athens.
On May 1, the company, via the good offices of Fortis Aviation, purchases three Boeing 747-2B4BCs from Middle East Airlines, S. A.L. (2) for $60 million. The Jumbojets will be delivered in September after conversion into full freighters. The Lockheed wide-bodies assist AIA to boost its traffic during the summer job action at UPS (United Parcel Service).
In anticipation of significant growth in the new year, Emery Worldwide makes arrangements during early August to charter three of AIA’s L-1011-200Fs. At the same time, discussions are held between Chairman Kalitta and the owners of Kitty Hawk, Inc. concerning a possible merger.
AIA’s American International Freight division initiates four-times-a-week Convair 580 roundtrips on September 8 between Terre Haute and Toronto. Also during the second week of September, an agreement is signed with Alaska Airlines to share space on one of the major’s B-737-200C flights between Seattle and Anchorage and Juneau.
On September 22, Conrad Kalitta signs a letter of intent to combine the Kalitta companies with Kitty Hawk, Inc.; Kalitta will receive 5.1 million shares of Kitty Hawk common stock, $22 million in cash, and a “significant management role” in the combined operation. In a related transaction, Kitty Hawk Air Cargo, the airline operating subsidiary of Kitty Hawk, Inc., purchases 16 AIA B-727s for $51 million in cash. The first three aircraft will start flying under its new livery on October 1, with the remainder arriving at approximately one per month thereafter.
The next day, a public offering of 4.1 million shares of common stock is sold by Kitty Hawk. Net proceeds of the equity offering and proceeds from a $340-million offering of senior secured notes of the company (due in 2004) will fund the merger with Kalitta, retire the existing debt, and be used for general corporate purposes.
In November, the company is formally purchased into Kitty Hawk, Inc., parent of Kitty Hawk Air Cargo. Connie Kalitta becomes a member of the Kitty Hawk board and plans are put in place to amalgamate the two companies.
A total of 1.41 billion FTKs are operated, an increase of 18.4% over 1996. Operating revenues, however, decline by 5% to $426.49 million while expenses rise 2.4% to $449.53 million. The previous year’s operating gain becomes a $22.57-million loss, while the net loss grows to $47.41 million.
At the beginning of 1998, AIA-3 is the 24th largest airline in the world in terms of freight carried. The fleet now includes 4 B-747-100Fs, 6 B-747-200Fs, 12 DC-8-50Fs, 12 DC-8-61Fs, and 8 L-1011-200Fs.
Although it is anticipated that the carrier will disappear into Kitty Hawk Air Cargo during the first quarter, the amalgamation process is slowed.
For departure from Tocumen International Airport at Panama City on February 6, the captain of Flight 840, an L-1011-200F with five crew, elects to use a runway that is 2,000 ft. shorter than the longer of the parallel runways. During the takeoff, after the landing gear is rotated, he elects to abort; after touchdown, all main landing gear tires of the TriStar freighter are blown and the airliner is stopped on the runway. No injuries are reported.
On March 12, AIA contracts with Boeing Wichita for the modification of two B-747-2B4BCs combi jetliners into special freighter configuration. The first of the two will begin modification in June with delivery scheduled in September; the second will arrive in Wichita in July and be delivered in October.
Following the difficulties encountered with opening the cargo handling operation at Hong Kong’s new Chek Lap Kok Airport after July 6, a number of carriers opt to fly into the new airport at Macau and to utilize the facilities of its MASC Ogden Cargo Services. Among them is AIA, which flies an empty B-747-2B4BC to Macau from Melbourne during the third week of July and departs full for Los Angeles. Thereafter, it is sent to Wichita for modification.
Conrad Kalitta retires during the summer and, on September 2, Simu-Flite Training International President Charles C. Carson II, a former executive with Southern Air Transport, is named AIA president. While Kitty Hawk reorganizes several other acquired Kalitta units, its management confirms that AIA will remain in Ypsilanti.
Clark Stevens, former Mesa Air Group chief operating officer, becomes AIA vice president-technical services at month’s end.
The carrier’s first B-747-2B4BC is received from Boeing’s conversion facility in Wichita in early October and is placed under a three-year aircraft, crew, maintenance, and insurance (ACMI) contract with Fast Air Chile, S. A.
The second B-747-2B4BC arrives from Boeing on November 13 and begins revenue services on November 17 under a two-year ACMI contract with North Atlantic Airways. Under terms of this arrangement, as with other ACMI pacts, AIA provides the aircraft, crew, maintenance, and insurance while the shipper arranges all freight, cargo handling, fuel, and other costs. The ACMI agreement will bring into the airline’s coffers approximately $1.5 million monthly.
Chairman/CEO Thomas Christopher of the parent Kitty Hawk Air Cargo announces on December 11 that the company is evaluating the economics of its passenger charter business. One B-747-146 has been parked pending a decision about its disposition or cargo conversion; the second B-747-146 will be parked in early January. The two remaining L-1011s will remain in service as the evaluation is continued.
Further actions to achieve profitability at the AIA division are revealed by Chairman Christopher on December 28. To cut losses, the workforce will be reduced during 1999 in excess of 50% from 2,700 to 1,200 and a reduction in the number of aircraft from 42 to 19. All of the Convair turboprops plus the Stage II DC-8-50 and DC-8-61 will be retired. Emphasis will be placed on the divisions core business of moving freight using its own aircraft.
This year, cargo traffic falls 6.06% to 1,325,613,000 FTKs. Revenues decline by 7.8% to $417.59 million, while costs drop 16.4% to $397.56 million. There is a $20.3-million operating profit and a net loss of $9.22 million.
To create a more unified image among its operating units on February 3, 1999, Kitty Hawk, Inc. changes the name of AIA-3 to Kitty Hawk International.
World History
