AIR IDAHO: United States (1974-1975). Founded at Twin Falls, Idaho, in 1974, Air Idaho launches scheduled de Havilland DH 114 Heron commuter flights to Sun Valley and Salt Lake City. Unable to achieve viability, the company closes in 1975.
AIR ILLINOIS: United States (1968-1985). Established at Carbon-dale, Illinois, in 1968, this small commuter offers local scheduled service with a fleet of Piper PA-31-310 Navajos. Schedules and frequencies grow over the next decade and destinations served include St. Louis, Springfield, Cape Giradeau, and Chicago.
In 1977, enplanements reach 112,000. In mid-December of that year, the airline division of the Natchez, Mississippi-based commuter South Central Air Transport is purchased and merged. As a result, the company finds itself operating a southern route system through Arkansas to New Orleans.
In 1978, the year of the Airline Deregulation Act, the network of President E. R. Dzendolet’s carrier is enlarged to include stops at Mount Vernon and Quincy in Illinois, Memphis, Paducah, and Lincoln. The fleet now comprises 3 de Havilland Canada DHC-6 Twin Otters, and 3 Handley Page HP-37 Jetstreams. Orders are placed for 3 additional Jetstreams and 2 British Aerospace (HS) 748s.
Passenger traffic skyrockets 41.9% as 159,000 passengers are carried.
The workforce is increased by 16.5% in 1979 to 127, but the Jetstream order is cancelled. Bookings advance 17% to 186,000. The employee population grows by 31.9% in 1980 to 211. The fleet is joined by a British Aerospace BAe (HS) 748-B2 and all of the aircraft are now painted in a new gold and burgundy livery. Although passenger boardings decline 2.6% to 178,110, operating income accelerates 34.5% to $8.93 million.
The workforce of President Roger Street’s airline in 1981 stands at 211 as a second BAe (HS) 748-B2 and another DHC-6 are acquired. Service is started or restarted to Quincy, Illinois, and Burlington, Iowa. The American Airlines SABRE computer reservation system is adopted and in addition to a new livery and logo, the company becomes the official year-round airline of the Lake of the Ozarks Resort.
In an effort to expand out of its difficulties, the carrier, on December 1, purchases Decatur Commuter Airlines, the airline division of Decatur Aviation, together with its routes from Decatur to Chicago (ORD) and St. Louis, plus its fleet of two BAe Jetstream 31s.
Passenger bookings climb 5.7% to 182,870 and cargo accelerates 54.5% to 106,000 pounds. Revenues jump 25.9% to $11.2 million.
Airline employment is reduced 4.1% to 203 in 1982. In March, the sixth and seventh Twin Otters are purchased and in April, new frequencies are inaugurated from Evansville to St. Louis, Memphis, Nashville, Chicago (ORD) and Paducah. The following month, a shift is completed to the Eastern Air Lines gates at both Chicago (ORD) and St. Louis.
Two BAe (BAC) 1-11-203s are acquired during the year from Cascade Airways, with the first launching nonstop service on July 15 from Chicago (ORD) to St. Louis and Springfield. The second British-made jetliner enters service in December.
Enplanements for the year increase 37.6% to 251,582. Revenues accelerate 36.4% to $15.33 million. Profits total $99,003 (operating) and $261,247 (net).
Airline employment in 1983 stands at 235, a 15.8% boost. Destinations served now include Champaign/Urbana, Chicago, Springfield, Memphis, Paducah, Cape Girardeau, Columbia, St. Louis, Burlington, Cedar Rapids, and Waterloo.
New joint fares and an interline agreement are negotiated with Trans World Airlines (TWA).
On October 11, Flight 701, a BAe (HS) 748-2A with 3 crew and 7 passengers, encounters serious electrical problems just after takeoff from Springfield. The flight is continued into a thunderstorm and, about 33 min. later while on initial approach to Carbondale, the turboprop loses power in its right generator and crashes near Pickneyville. There are no survivors.
On December 3, government safety inspectors are assigned to ride on each of the company’s 120 or more daily flights. While company and federal officials probe the cause of the accident, the company, under threat of grounding, voluntarily shuts down on December 15. Two hundred employees are laid off the next day as a complete FAA safety investigation follows.
The year’s bookings increase 2.3% to 262,465. Revenues drop 5.8% to $14.8 million and costs force an operating loss of $427,030. Net gain, however, climbs to $2.7 million.
BAC 1-11-200 flights resume on January 14, 1984, after the FAA approves new flying and training rules. Air Illinois announces on March 5 that it can restore four turboprops to service after having completed ground-training requirements for six of its grounded aircraft.
Poor traffic, when added to the financial loss of the shutdown, cause the company to halt all flight operations on April 17 and to file for Chapter XI bankruptcy reorganization in mid-May. Meanwhile, BAC 1-11200 charter operations continue, with the British jetliners occasionally leased to Cleveland-based Wright Airlines.
Efforts are made in early 1985 to combine the company’s aircraft, flight, and maintenance components with the staff and reservations system of Atlantic Gulf Airlines, another airline attempting to emerge from Chapter XI. After a letter of intent is signed with AGA’s owners, United Resources, Atlantic Gulf wet-leases the last Air Illinois BAC 1-11-200. It is employed to operate charters to Providenciales, Grand Turk, and, on behalf of APA International Air, to Puerto Plata.
This gambit fails and the combined operation is sold again in early 1986. Flights continue until the carrier shuts down on September 1. The FAA revokes the Air Illinois operating certificate in late 1987.
In early 1988, a new carrier, Oceanair, is established as successor to Air Illinois/Atlantic Gulf Airlines and takes possession of the two BAC 1-11-200s from bankrupt AGA. An effort is made to overturn the revocation of the Air Illinois’s authority, but this initiative also fails. Oceanair is unable to begin operations.