Following the decision to end East African Airways Corporation (EAAC) , the Nairobi government forms a new national carrier for the Republic of Kenya and on January 22, 1977, signs a management contract with Aer Lingus Irish Airlines, Ltd. A Douglas DC-9-52 and three Fokker F.27-200s acquired from the assets of the dead multinational are placed on regional and domestic routes.
Two Boeing 707-321s are leased from British Midland Airways, Ltd. and begin international service on February 4 on the Nairobi-London route via Athens, Rome, and Frankfurt. Chairman Eliud Mathu and Aer Lingus Irish Airlines, Ltd. Managing Director Donald Downing, serving as an advisor, place orders for two Boeing 720Bs. During the peak summer safari season, a B-747-148 is chartered from the Irish flag carrier.
Three used B-707-351Bs Stratoliners previously flown by Northwest Airlines and a used B-720-047B, first flown by the U. S. carrier Western Airlines, are delivered in late spring and early summer 1978, allowing development of additional routes and frequencies in Africa and the Middle East.
Enplanements total 356,894.
In 1979, the fleet comprises 3 owned B-707-351Bs, 1 B-720B, 1 DC-9-52, and 3 F.27-200s. Air Madagascar, S. A. begins to pay the company royalties for its Nairobi segment of a longer African route.
Freight traffic declines 11% to 22.4 million FTKs, but passenger boardings rise 5% to 375,678.
Routes are opened to Athens, Rome, and Zurich in 1980. The summer safari Jumbojet service is now turned over to KLM (Royal Dutch Airlines, N. V.) for operation.
Bookings accelerate to 402,566.
The workforce stands at 2,600 and 1 F.27-200 is sold in 1981. Richard Nyaga becomes managing director.
Passenger boardings accelerate 1.7% to 409,520 and a total of 16.5 million FTKs are operated.
Nonstop Nairobi to Bombay B-707-351B service is inaugurated in 1982. Cargo service receives greater emphasis, particularly the transport of perishables to the Mideast. Government subsidy ceases in October. Enplanements drop to 392,476 as the effects of the world recession are felt.
The employee population grows 1.7% in 1983 to 2,594. Tanzania operations commence and the government requests that a third-level service be initiated. Late in the year, the company proposes to the Ministry of Transport the acquisition of two DC-8-71s with which to replace the aging Stratoliners.
Freight soars 29.4% to 30.31 million FTKs and passenger traffic rebounds, growing 8.3% to 428,195 passengers carried.
Ninety-four employees are laid off in 1984, a 3.7% dip. Routes are extended to Lilongwe, Dar es Salaam, Kigali, and Bujumbura. Orders are placed for two Airbus Industrie A310-304s, rather than the DC-8s previously considered.
Cargo grows 4% to 31.45 million FTKs and passenger boardings rise 15% to 502,377.
The employee population is increased in 1985 by 300. Leo Odero succeeds Richard Nyagah as managing director in September, and in November, four-times-per-week European service is begun with an Airbus A310-203 leased from Condor Flugdienst, GmbH. Due to a shortage of foreign exchange, foreign airlines cannot repatriate income earned in Zambia, where Kenya Airways now has $3.5 million frozen.
Freight for the year dips 3% to 30.36 million FTKs, but passenger bookings jump 11% to 559,997.
In March 1986, service is launched to Kilimanjaro. Two A310-304s are delivered, one each in May and September; christened Nyayo Star and Harambee Star, both are placed on the European routes, allowing return of the one leased from the German charter carrier. These are the first Dash-300s flown by any African carrier.
Enplanements for the year total 442,209.
Domestic destinations served in 1987 include Kilimanjaro, Mombasa, Malindi, Kisumu, and Nairobi. From the capital, flights are undertaken to Cairo, Athens, London, Rome, Frankfurt, Paris, Dubai, Khartoum, Jeddah, Addis Ababa, the Seychelles, Mogadishu, Entebbe, Dar es Salaam, Harare, and Lusaka. The company’s Stratoliners are now remodeled into B-707Fs.
Through September, the 2,745-employee carrier books 485,943 passengers, a boost of 9%. In October, following the suspension of General Manager Fred Neto and other senior officials, Executive Chairman Leo Odero is forced to take over day-to-day management activities, with David Kagari placed temporarily in charge of commercial services. Joseph Nyagah is appointed managing director at year’s end.
Flight 650, an F.27-200 with 4 crew and 39 passengers arriving from Nairobi on July 10, 1988, approaches its destination too fast, lands gear up, and skids for 600 m.; although the wreck must be written off, there are no fatalities.
Half-year figures only are reported, and show that a total of 334,436 passengers are carried, a 9.4% increase of the same period a year earlier. Freight is also up, by 14%, to 29.24 FTKs.
The first two of an order for three Fokker 50s arrive in November; christened Simba and Chui, they replace F.27-200s on routes from Nairobi to Mombasa 10 times per day, Malindi twice daily, and Kisumu 12 times per week.
Operations continue apace in 1989. In February, the company’s DC-9-32 is put up for sale and a DC-8-71 is leased to finish the winter season.
On June 30, it is reported that the cumulative loss is $40.8 million. An economy move begins: 1,000 temporary employees are laid off and frequencies to Addis Ababa, Entebbe, Kigali, and Kisumu are reduced.
Upon departure from Addis Ababa on a July 11 service to Bole, a B-707-351B with 10 crew and 66 passengers, is unable to retract its landing gear. Although the Stratoliner returns to its point of departure, the brakes fail upon touchdown, causing the aircraft to overrun a wet runway. There are no fatalities.
The first of three ordered B-757-23As arrives in November and a third A310-304, named Uhuru Star, also arrives under charter from ILFC, allowing retirement of the two B-720-047Bs to commence.
Enplanements for the year double to 760,461. Although there is an operating profit of $13.5 million, the net loss is $12.7 million.
In 1990, the 2,860-employee flag carrier operates 2 owned and 1 leased A310-304s and 2 B-757-23As. The first of the latter, received late the previous year and christened Jamhuri Star, enters service in January, the same month during which Swissair, A. G. begins a two-year assistance contract. The European line will provide help in reorganization and support in the areas of flight operations, information technology, passenger service, and marketing.
In May, Tel Aviv is added as a stop on one of the flights from Nairobi to London.
By the end of the year, the 707/720 fleet and last F.27-200 are largely phased out and a lease with the GPA Group on a DC-8-71 is cancelled. The third Fokker 50, Twiga, arrives in December.
Enplanements rise 7.5% to 643,398 and freight climbs 25.2% to 44.49 million FTKs.
In cooperation with South African Airways (Pty.), Ltd., weekly B-757-23A roundtrip flights commence in January 1991 between Nairobi and Johannesburg. The reciprocal service had been delayed throughout the previous year as a result of conflicting presentations made to Kenyan President Danial Moi by African National Congress Deputy President Nelson Mandella and South African Foreign Minister Pik Botha.
It is announced in February that the carrier will receive $1.6 million in UN Development Project funds over the next four years; the ICAO-administered financing will allow for the upgrading of procedures and training of personnel.
Frequency on the new Johannesburg route becomes daily in April, the same month during which the carrier inaugurates twice-weekly service from Nairobi to Bangkok via Bombay.
In July, Philip Ndegwa, a prominent local businessman and former governor of the Central Bank of Kenya, becomes chairman and David Namu is named chief general or administrative manager, reporting to Ndegwa. These two men are mandated by the government to turn the company around.
A two-year assistance agreement with Swissair, A. G. concludes in December. With the onset of recession and negative numbers, traffic figures are no longer released.
In 1992, the fleet is altered again. The former Western Airlines B-720B is stored in January and two B-757-23As are withdrawn and replaced by two leased B-737-266As, one of which receives the name Umoja Star, beginning in February. These are placed into service over regional routes to Dar es Salaam, Entebbe, and Zanzibar.
Although not an airline man himself, Ndegwa, unlike his predecessors, is convinced that he needs advice from those who are. To that end, a contract is signed, also in February, with Speedwing Consulting, a subsidiary of British Airways, Ltd. (2).
The Speedwing team that comes out from London is headed by BA executive Brian Davies; during the summer and fall he stresses to Ndegwa that one of Kenya Airways’ greatest requirements is for topflight managers. The chairman asks the consultant if he would consider taking up the challenge himself; Davies agrees and is appointed managing director in November.
A $30-million loss is reported for the year.
In 1993, Davies oversees a workforce of 2,624 and a fleet of 3 A310-304s, 1 B-707-351B/F, 2 leased B-737-266As, and 3 Fokker 50s. Uneconomical charter flights to Paris, along with scheduled services to Athens, are eliminated during the first quarter. In June, a day-long corporate workshop is held for all 2,700 employees. It is announced that, after years of losses now equal to $800 million, the first quarterly profit since 1977, $6.9 million, has been earned.
More hard work lies ahead. Jomo Kenyatta Airport at Nairobi is turned into a hub operation, feeding passengers from London and other European points to domestic and regional airports. Thrice-weekly roundtrips are inaugurated from Nairobi to Harare via Lilongwe.
Much of 1994 is spent in preparing the airline for privatization in late 1995. In the spring, the Fokker 50s are assigned the additional responsibility of providing backup for the B-737-266As on regional services. A contract is signed with International Finance Corporation (IFC) and one of its executives, Michael Tiller, arrives to oversee the privatization process.
Late in the year, the government assumes the carrier’s $89.6 million of debt arrears and makes plans to convert $31.3 million in loans into equity. Plans are also made to acquire four A340-300s early in the coming year.
A total of 1.8 million passengers are flown during the 12 months and a $16.9 million profit is recorded.
Work towards privatization continues throughout 1995. A request for proposals is made of the world’s major airline groups, with negotiations set to start as early as August.
On March 26, the airline is listed on the Nairobi stock exchange. Pilots, meanwhile, win a court case against the airline and are ordered to receive a 90% retroactive salary increase.
In late fall, KLM (Royal Dutch Airlines, N. V.) expresses interest in purchasing shareholding. Thrice-weekly Nairobi to Amsterdam roundtrips commence in November.
After several months of discussion, the Kenya government approves the KLM partnership plan in mid-December.
Enplanements total 800,000 and financial data is posted: operating revenues are $165 million and a net gain of $16 million is realized.
KLM (Royal Dutch Airlines, N. V.) purchases a $26 million, 26% stake in the company on March 1, 1996. Although the Dutch carrier does not seek a management contract, it does agree to provide up to $3 million worth of helpful services in kind, including new computer systems. This sale is followed on April 6 by implementation of additional public offerings, which allow shareholding to be held by Kenya Airways staff (3%), overseas institutions (14%), and local institutions or individuals (34%).
By late April, the government’s interest in the first national carrier in Africa to be privatized is only 23%. The airline’s board is changed, with two KLM officials receiving seats. KLM agrees to train all Kenya Airways pilots.
On June 3, Kenya Airways is successfully launched on the Nairobi stock exchange.
Meanwhile, a marketing alliance is formalized with KLM (Royal Dutch Airlines, N. V.) that calls for join service on routes from Amsterdam to Nairobi and code-sharing on Kenya Airways flights out of Nairobi to the rest of Africa.
Services to Frankfurt, Zurich, Copenhagen, and Stockholm are withdrawn and ticket offices are closed in New York, Tokyo, Los Angeles, and Hong Kong.
Under its new alliance with KLM, Kenya Airways, beginning in November, operates an A310-304 replacement service from Nairobi to Amsterdam; in effect, one of Kenya’s London flights travels by way of Amsterdam, allowing one of KLM’s four weekly MD-11 services to be cut.
Orders are placed at year’s end for two B-737-3U8s with which to replace the B-737-266As.
Enplanements are 794,067. Operating income is $178 million and lower costs allow a net profit of $16 million to be posted, despite the route closures.
Employment stands at 2,350 in 1997. A310-304 dual-designator return service with KLM (Royal Dutch Airlines, N. V.) from Nairobi to Amsterdam begins. At this point, a third B-737-3U8 is ordered.
In late May, a standoff arises between the company and Aero Zambia, S. A. over flight schedules and landing rights between the two countries. On June 8, Zambian President Chiluba meets with a Kenyan government delegation led by Transport and Communications Minister Wilson Ayah and thereafter orders a lifting of suspensions imposed upon Kenya flights to Lusaka.
Pointing out that Kenya Airways has not, however, acted in good faith with Aero Zambia to find a more equitable mode of sharing passenger traffic, Zambian Transport Minister Suresh Desai and Aero Zambia Managing Director Yowondwossen Mengishu announce on June 11 that differences have not been resolved nor landing rights reinstated.
Toward the end of the year, a code-sharing agreement is signed with Mombasa-based Eagle Aviation, Ltd.
Although customer bookings decline 1% to 786,205, freight traffic accelerates 6.3% to 892.9 million FTKs. Net profit totals $21.4 million.
The pact with Eagle Aviation, Ltd. begins in early 1998. One Eagle Avions de Transport Regional ATR42-320, operating under Kenya Airways’ “KQ” flight code, offers increased frequencies to Malindi, Kisumu, and Eldoret from both Nairobi and Mombasa. During the spring and summer, plans are discussed for the initiation of additional services to the domestic communities of Garissa, Lodwar, Rudolf, and Lamu Island.
Discussions are also held with the government of Tanzania concerning the introduction of additional services to that nation once a new bilateral air agreement is signed. Flights would be started with the second Eagle ATR to Arusha and Kilimanjaro from Nairobi and to Mwanza on Lake Victoria from Kisumu.
Also in the first quarter, Kenya Airways becomes an all-jet operator. The last three Fokker 50s are leased to the Spanish carrier Air Nostrum, S. A. and the premier unit of two new B-737-3U8s is delivered during the first week of April and enters service over the company’s regional routes later in the month.
With great ceremony, a twice-weekly A310-304 return service is opened from Nairobi to Lagos on April 29. The new route allows the company to complete a plan to connect the four major hubs in Africa— Cairo, Lagos, Johannesburg, and Nairobi.
A code-sharing agreement is signed with Alitalia, S. p.A. on May 8 for twice-weekly, dual-designator return flights over the route between Nairobi and Rome.
Authority is granted in May and employed to launch twice-weekly roundtrips from Nairobi up to Cairo via Khartoum. A third weekly roundtrip to Lagos is launched at the end of the month with a B-737-3U8.
In addition, Kenya Airways, with South African Airways (Pty.), Ltd., has become one of the two African airlines seeking an equity stake in Uganda Airways Corporation. Ugandan officials reveal at the start of June that Kenya Airways has failed a prequalification review for participation in the divestiture program of UAC.
The second B-737-3U8 arrives at the beginning of June. On June 6, Managing Director Davis and 50 children from the King Baudouin Children’s Home place the new aircraft into service on a flight from Nairobi to Mombasa. Also during June, twice-weekly B-737-3U8 return flights are started between Nairobi and Douala, Cameroon.
At the end of the year, plans are made for receipt of the third B-737-3U8 early in the new year.
Passenger boardings this year accelerate 22% to 1.05 million.
Airline employment in 1999 stands at 2,775, an 18.1% increase.
In an investigative report published in the Nairobi Sunday Standard on January 3, Managing Director Davies is alleged to have established, without the approval of the airline’s board of directors, Simba Finance, Ltd., a private firm. Simba, in turn, has borrowed $130 million from Kenya Airways to lease four B-737-300s and two Cessna lightplanes. The U. S. Export-Import Bank is found to be a major shareholder in Simba and has structured the loan and guaranteed the leases. Although the article does not specifically say so, it all but accuses Davies of some kind of wrongdoing.
The news for the managing director only gets worse the next day. While taxiing to the terminal after a service from Nairobi on January 4, thieves wave down and force a B-737-3U8 to halt on the Lagos, Nigeria, runway. The passengers are robbed, several pieces of luggage are removed from the cargo hold, and the perpetrators make a clean getaway. The event makes headlines in the January 6 issue of The International Herald Tribune.
Leaders of East Africa end their 2 1/2-year embargo of Burundi on January 26; Kenya Airways, which has honored the sanctions since their imposition in July 1996, resumes flights to Bujumbura on February 1.
With the beginning of the new schedule on March 28, European services are increased to 25 weekly flights, with additional frequencies added to Abidjan, Dubai, Entebbe, Dar es Salaam, and Zanzibar. City-pair connections are increased by 73% over what they had been at the beginning of the year.
Former Managing Director Nyaga is reappointed to his old post on April 15, effective upon the conclusion of Managing Director Davies’ contract on July 31. Chairman Isaac Omolo Okero reports the change as being made under amiable conditions and that Nyaga and Davies will work closely together over the next three months to secure a smooth transition.
Martin Wahome, a human resources manager with the local Block Hotel, is honored in special Nairobi ceremonies on April 27th as the airline’s one-millionth passenger.
Under the code-sharing agreement with Eagle Aviation, Ltd., an Eagle ATR42-320 initiates new twice-daily nonstop Interlink roundtrips on May 1 between Nairobi and Lokichoggio.
In a ceremony keynoted by Kenyan transport and telecommunications minister William ole Ntimama, Kenya Airways and KLM: Royal Dutch Airlines, N. V. open their first joint sales office at a facility in Barclays Plaza, Nairobi, on May 13.
Interlink services are expanded on June 1 with new flights from Nairobi to Malindi, Lamu, Kisumu, and Eldoret.
The carrier’s three Fokker 50s, out on lease to Air Nostrum, Ltd., are withdrawn on June 17 and are sold to the Spanish airline.
On August 18, Managing Director Nyaga announces that his board of directors has just approved a new cost-cutting plan designed to save $4.72 million during the remainder of the year. The package includes instructions in the areas of fuel management, route and crew rationalization, and more cost-efficient purchasing.
In September, a cost-cutting program, designed to save $4.7 million, is put into place.
Passenger boardings surge 20% to 435,000 while cargo jumps 28% to 24.06 million FTKs. Net gain climbs to $38.09 million.
Airline employment at the beginning of 2000 stands at 2,780, a 0.1% increase over the previous 12 months.
An agreement is signed with Air Botswana on January 26, calling for the resumption of service between Gaborone and Nairobi within several months. On January 28, the carrier announces that it will invest $750 million over the next five years to modernize its fleet with new Boeing equipment. The three A310-304s will be replaced with B-767-300s.
Just after an unusually long takeoff from Abidjan on its January 30 return service to Nairobi via Lagos, Flight 431, the A310-304 Haram-bee Star with 11 crew and 158 passengers, stays low and stalls, crashing 1.5 km offshore into the sea. There are no survivors. Confusion surrounds the initial rescue effort and the investigation thereafter will be described as “particularly secretive.” (Flight International, January 23, 2001).
The Boeing order announced in late January is officially placed on February 15.
On February 16, a wet-leased B-767-306ER arrives from KLM (Royal Dutch Airlines, N. V.) to replace the lost A310-304.
The cockpit voice recorder is recovered by divers on February 24 and sent to Ottawa, Canada, for analysis.
In March, a wholly owned subsidiary, Kenya Flamingo Airways, Ltd., is established to operate the Kenya Airlink feeder services now provided under contract by Eagle Aviation, Ltd.
A new service is introduced on May 22 between Nairobi and Eldoret. Also in May, weekly return frequencies from Nairobi to Johannesburg are doubled from three to six. Previously flown by Emirates Airlines, a fourth A310, a Dash-308, arrives on May 25 under a 15-month lease from the Airbus Industrie Financial Services (AIFS).
The Nairobi to Johannesburg service becomes daily on June 1. Due to an increase in demand, the B-767-306ER wet-leased from KLM (Royal Dutch Airlines, N. V.) for use on the code-shared route between Amsterdam and Nairobi is replaced with a larger MD-11 on July 21.
It is reported on August 8 that experts at Transport Canada have found the black box recovered from the January 30 crash defective and thus will not reveal any early clues as to the cause of the disaster. A B-737-3U8 is severely damaged as the result of a hard landing in crosswinds at Khartoum on September 23.
On November 6, in an effort to promote trade in the countries forming the newly created Common Markets for Eastern and Southern Africa, Kenya Airways reduces fares for its daily Dar es Salaam-Nairobi-Harare flights from $1,020 to $450. It also introduces reduced-fare daily roundtrips from Dar es Salaam-Nairobi-Dubai and Zanzibar-Nairobi-Dubai.
On November 13, a memorandum of understanding is signed with KLM (Royal Dutch Airlines, N. V.) and Martinair Holland, N. V. for
The establishment of a joint sales and service organization in Nairobi. When the organization comes into being in 2001, it will employ Nairobi Airport as a hub from which to fly leased freighters on intra-African services. Sales and services in the Kenyan and African cargo markets will also be handled.
A strategic marketing and code-sharing agreement is finalized with Air Malawi, Ltd. on November 20. The pact formalizes dual-designator activities between the two airlines that have been occurring for some time.
KENYA FLAMINGO AIRWAYS, LTD.: Kenya Airways, Ltd., Barclays Plaza, 5th Floor, Loita Street, P. O. Box 41010, Nairobi, Kenya; Phone 254 (2) 822288; Fax 254 (2) 336254; Http://www. kenyaflamingo. com; Year Founded 2000. Kenya Flamingo is set up in
March 2000 as a wholly owned subsidiary of Kenya Airways, Ltd. to take over the Kenya Interlink feeder routes currently operated under contract by Eagle Aviation, Ltd. Two SAAB 340Bs, one of which is christened Naivasha, are leased from SAAB Aircraft Leasing.
With delivery of the Swedish-made turboprops, the new regional begins operations on June 30. SAAB 340B roundtrips begin on December 8 from Nairobi to Eldoret.
KESTREL INTERNATIONAL AIRWAYS, LTD.: United Kingdom (1970-1972). Peter Anderson and George Corson form KIAL at Lydd Airport in October 1970. Equipping it with a single Douglas DC-3, christened the Maid of Kent, the partners begin revenue operations late in the month. When Lydd Airport proves unsatisfactory, the company is transferred to Castle Donington Airport on February 28, 1971. From here, the company operates a variety of ad hoc charters, many of which are equipment haulage for Ford Motor Company to Antwerp and Cologne.
Early in 1972, the company, planning to enter the inclusive-tour business, is renamed KIAL. On March 1, a former British Midland Airways, Ltd. Viscount 815 is purchased. The machine not only flies tours to Palma for Tristar Travel, but also replacement services in the U. K. for both British Midland Airways, Ltd. and Dan-Air/Dan Air Services, Ltd.
During the dock strike of July and August, the company’s two aircraft fly stranded shipments around the country, including cigarettes from Southend to Belfast. The Maid of Kent is sold in August. Following the September 23 conclusion of the Dan-Air/Dan Air Services, Ltd. replacement service contract, it proves difficult to find charters for the big Viscount. On November 1, KIAL ceases operations and returns the unpaid for Viscount to its previous owner.
KETCHUM AIR SERVICE: P. O. Box 190588, Anchorage, Alaska 999519, United States; Phone (907) 243-5525; Fax (907) 243-8311; Http://www. ketchumair. com; Code K3; Year Founded 1966. Former USAF pilot Lindley H. “Ketch” Ketchum brings his wife Marguerite and their children on a tour of Alaska in 1961 and so taken are the couple that they elect to make the state their home. In 1962, the management of an air taxi service at Anchorage becomes available and the family takes it over. In 1965, Ketchum Air Service is incorporated and continues to offer statewide charter and contract service floatplane flights from Anchorage’s Lake Hood. Craig Ketchum joins the staff as a pilot during the 1970s, helping his father fly the aircraft and manage the concern. The most traumatic event of the period is the loss, on September 12, 1975, of a de Havilland DHC-2 Beaver and its occupants in a crash near Kijik.
After years of flying sportsmen and rural residents to backcountry locations, the Ketchums notice a change in the Alaska bush flying business in the early 1980s. As more summer visitors arrive to enjoy nature’s wonders, more scenic tour flights are provided. By mid-decade, the company’s fleet has grown to comprise 1 Cessna 185, 2 Cessna 206s, and 2 Beavers.
Scheduled services to and between Anchorage, South Central, Cordova, Valdez, and Prince William Sound are started during the late 1980s. Increased activity, particularly over Prince William Sound, necessitates the opening of branch offices in Valdez and Cordova in 1991. In 1992-1994, the 10-employee company operation operates 3 Cessna 206s, 4 Beavers, 3 DHC-3 Otters, and 1 DHC-3 Turbo Otter.
During the mid-1990s, floatplane tours over Wrangell-St. Elias National Park and the Columbia Glacier become very popular. The number of sport fishing and hunting trips also increases, with rental houseboats added to the sport-fishing program. In 1995-1996, two de Havilland DHC-6-300 Twin Otters are added and Craig Ketchum and his wife, Bertsie, take over the business. In the spring of 1997, the company is taken over by its longtime rival Taquan Air Services, but is allowed to continue operations under its own name.
KEY AIRLINES (1): United States (1969-1988). Ogden, Utah-based Thunderbird Airlines is renamed Key Airlines on January 1, 1969. Cessna smallplane operations to Salt Lake City and Logan are continued until August 1975, when the company is purchased by Johns-Manville Company and merged with another new acquisition, Gooding, Idaho-based Sun Valley Airlines (formerly Janss Airways), to create the 120-employee Sun Valley Key Airlines.
The amalgamated airline is given a large-aircraft exemption by the CAB and begins operation of 2 Convair CV-440s, 3 de Havilland Canada DHC-6 Twin Otters, and 6 Piper PA-31-310 Navajos over a route from Salt Lake City to Boise via Sun Valley. In November, the name reverts to Key Airlines.
Enplanements total 44,888, a 14% rise over Key’s bookings the previous year.
A warm winter and lack of snow at ski resorts in its service area create traffic difficulties for Key in 1976.
Passenger boardings decline 9.4% to 40,878. Enplanements decline sharply in 1977, falling to 18,569.
The severe winter of 1978, however, results in a sharp traffic boom upward as the number of passengers boarded climbs 63.7% to 51,154. Costs of fuel and inflation in 1979 lead to the carrier’s end in early 1980.
KEY AIRLINES (2): United States (1983-1993). The Salt Lake City division of Tiger Air, a subsidiary of Tiger International Corporation, is purchased by the Key Holding Group in 1983. The new subsidiary’s corporate identity is changed to Key Airlines and contract flights are undertaken for the Department of Defense to various U. S. destinations.
Worldwide charter authority is sought and obtained and charter and inclusive-tour flights commence in 1984. Destinations visited include Florida, Mexico, and the Caribbean.
At this point, the workforce totals 200 and the fleet includes 4 chartered Boeing 727-22s, 1 B-727-51,2 Convair CV-580s, 1 Cessna 421, 1 Cessna Conquest, 1 Cessna Cheyenne, 1 Bell 206L LongRanger, and 1 Bell 222.
Airline employment grows 20% in 1985 to 270 as 4 more leased B-727-100s, Dash-95s, join the fleet. Permission is sought for the introduction of scheduled services.
Meanwhile, the number of charter passengers flown totals 540,000.
The workforce is increased again in 1986, up by 15.8% to 220. The scheduled permission is not received and in midyear the carrier is sold to Presidential Airways.
Operating under the colors of both airlines, the company transports a cumulative total of 675,000 passengers, a 25% boost. Revenues advance 32% to $32 million.
In March 1987, the company is sold to and becomes a wholly owned subsidiary of WorldCorp, the newly formed holding company that is also parent to World Airways.
Passenger boardings advance by 6.4% to 532,000 and revenues climb to $48.2 million. Unhappily, expenses are higher than income and losses are suffered: $1.4 million (operating) and $1.79 million (net).
The four B-727-22s, three B-727-95s, and B-727-51 of the World subsidiary are able to maintain positive traffic levels in 1988.
The number of passengers flown increases by 6% to 566,000. Revenues plunge 19.2% to $38.94 million, expenses drop 13.3%, but still total $43.03 million, and the operating loss deepens to $4.08 million. The net loss swells to $5.21 million.
Airline employment is increased by 18.5% in 1989 as the carrier enjoys a good year. A number of international charters are operated employing DC-10-30s leased from World Airways.
Passenger boardings move ahead by 13.9% to 644,454 and revenues increase 40.8% to $54.82 million. Expenses jump 32.2% to $56.89 million and halve the operating loss to $2.06 million. Net loss, however, worsens to $6.41 million.
The payroll swells 7.1% in 1990 to 254 and the fleet is increased by the addition of 2 B-727-228s. The principal passenger destinations continue to be Europe, the Caribbean, Florida, Las Vegas, Florida, Canada, and Mexico.
Customer bookings move ahead by 2.2% to 665,221 and revenues jump 25.2% to $68.61 million. Expenses grow by 18.1% to $67.18 million and allow an operating profit of $2.72 million. The net loss improves to $2.41 million.
The World Airlines sister carrier sees its company workforce cut 26% in 1991 to 188. The company joins with American Trans Air in mid-October to call into question the “nationality” of Aerocancun, S. A. de C. V., which is owned by the Spanish Oasis International Group, S. A. in violation of the U. S.-Mexico air agreement. In December, Caribbean Connection charter flights commence from Savannah to St. Thomas.
The fleet’s 10 aircraft transport a total of 442,000 passengers, a decline of 33%. Revenues fall 18.9% to $55.66 million, expenses slip 14.9% to $56.08 million, and the operating loss is $420,000. The net loss surges to $6.98 million.
In 1992, President Thomas Kolfenbach oversees the same fleet and a workforce of 254. During February, scheduled rights are acquired from the DOT and twice-weekly roundtrip B-727-228 scheduled services commence on April 1 from Savannah to St. Thomas. Key flights from its other U. S. gateways at Atlanta, Baltimore, Boston, New York (JFK), and Philadelphia feed into the Savannah hub for connections.
Chicago (MDW) becomes a sixth gateway on May 17 as the other Caribbean points served with charters receive scheduled services: Aruba, St. Martin, Montego Bay, and Cancun. During the summer, scheduled flights are launched to Antigua, Cozumel, Cura9ao, Nassau, and Freeport.
Through September, the last month data is supplied, the charter operator flies 294,182 passengers.
WorldCorp sells Key to a group of Savannah investors on February 2, 1993; they, in turn, attempt to pass it to a new Florida airline Skybus (2), which is unable to complete the takeover. As a result, Key files for Chapter XI bankruptcy protection on February 11 and begins to seek a new backer.
Key continues to operate charters until May 10, when operations cease and all aircraft are returned to their lessors. The Chapter XI status is converted to Chapter VII liquidation and all remaining assets are sold.
KEY AVIA (KLUICH AVIA): Russia (1994-1995). Key Avia is established at Samar in 1994 to offer domestic passenger and cargo charters. I. N. Kuznetsova is named general director and he launches revenue services with an unspecified number of Antonov An-2s and Ilyushin Il-76s. Flights cease in late 1995.
KEY LIME AIR: 7625 South Peoria Street, Suite D-15, Englewood, Colorado 80112, United States; Phone (303) 619-6667; Fax (303) 768-8144; Year Founded 1998. Key Lime Air is established by Clifford D. Honeycutt at Englewood, Colorado, in 1998 to provide regional express and small cargo services. Revenue operations begin with a fleet that includes 5 Fairchild Metros, 5 Piper PA-31-310 Navajos, 1 Cessna 404 Titan, and 1 Learjet.
KEY WEST AIRLINES: United States (1980-1981). KWAis created at Boca Raton, Florida, in 1980 to provide daily roundtrip air taxi flights to Miami via Fort Lauderdale. Cessna lightplane revenue flights are duly inaugurated, but in the face of the summer PATCO air traffic controllers’ strike, cannot be maintained beyond September 1981.
KEYSTONE AIR SERVICE, LTD.: P. O. Box 2140, Swan River, Manitoba, R0L 1Z0, Canada; Phone (204) 734-9351; Fax (204) 7349181; Http://www. keystoneair. mc. ca; Year Founded 1985; Keystone is established at Swan River in 1985 to provide twice-daily roundtrip passenger flights to Winnipeg. Twice-daily return service is extended to Dauphin in 1989. In addition to regular flight service and aircraft maintenance, passenger charters are often operated on behalf of government employees, industry executives, sportsmen, and trades people to points in Northern Ontario, Manitoba, Saskatchewan, Alberta, Minnesota, and North Dakota.
Flights continue during the 1990s. A new base is occupied at St. Andrews, Manitoba, in 1998, followed by the opening of a new facility at Red Deer, Alberta, in December 1999. The fleet in 2000 includes 1 each Beech 99, Beech Super King Air 200, Piper PA-31-350 Navajo Chieftain, and PA-34 Seneca.
KEYSTONE AIRLINE: United States (1936-1937). Keystone is organized at Philadelphia in the fall of 1936 to offer passenger and air express flights to New York City employing a Sikorsky S-38 amphibian. Revenue services commence in November. Without a mail subsidy or traffic in winter, the operation ceases in February 1937.
KEYSTONE AIRLINES: United States (1967-1977). In order to expedite the expansion of its local route network in 1969, Connellsville, Pennsylvania-based Pitt Airlines is renamed Keystone Commuter.
Services are inaugurated beyond the Pittsburg region to Wheeling, Akron, Erie, and other communities.
Operations continue apace over much of the next decade, during which time the company is renamed Keystone Airlines and the fleet is upgraded by the addition of several Beech 99s and Embraer EMB-110P1 Bandeirantes. Walter Christman purchases the company in September 1977 and renames it Christman Air System.
World History
