Channel Air Ferries, Ltd., is registered at London on May 8, 1936 as a subsidiary of Olley Air Services, Ltd. Employing a Short Scion, the company begins daily summer-only Brighton-Ryde service on May 23. Flights cease in late September.
In the spring of 1937, the Great Western and Southern railroads purchase shareholding. On July 3, a new London (Croydon)-Deauville weekend de Havilland DH 84 Dragon service is undertaken, with the frequency changed to daily in August and ad hoc in September; flights to Deauville from Brighton are offered on the same basis during August-September. Timed to connect with the Cornish Riviera express of the Great Western Railway, a weekday Penzance-Scilly Dragon return service is initiated on September 15. From the new Land’s End airfield near St. Just on the mainland, the DH 84 flies to a golf course on St. Mary’s, Scilly.
In order to transport staff and gramophone disks for Radio Luxembourg, twice-weekly London (Croydon)-Luxembourg service is started in June 1938. On August 8, alternating with Railway Air Services, Ltd., the company undertakes a Bristol-Cardiff-Plymouth route.
Other routes undertaken include Penzance-Scilly-Plymouth, Brighton-Bembridge-Bournemouth, which becomes London (Croydon) to Cardiff, via Brighton, Bembridge, Bournemouth, and Bristol. Also, a summer-only, on-demand London (Heston)-London (Crydon) is initiated. In accordance with the Air Navigation Order of September 16, the new Air Transport Licensing Board (ATLB) issues a provisional permit to the company for operation of a Land’s End-Scilly service.
Following the formation of Great Western and Southern Air Lines, Ltd. on December 5, the new entrant gradually assumes Channel Air Ferries’ services plus several of Railway Air Services, operating them under the Channel Air Ferries name until March 24, 1939.