JET ALSACE, S. A.: France (1992-1993). This charter carrier is established in its namesake department in 1992 to offer charter and inclusive-tour passenger flights to destinations in both Europe and the Mediterranean. Revenue operations commence with one each leased McDonnell Douglas MD-82 and MD-83.
Having accumulated debts of FFr 24 million ($4.2 million), but no significant income, the operator, unable to assemble additional financing, goes bankrupt in February 1993.
JET AMERICAAIRLINES (1): United States (1980-1987). Founded in Long Beach, California, by J. Thomas Talbot in September 1980, this new entrant must first defeat a coalition of local homeowners intent upon preventing the start-up of what they believe will be extremely noisy services. To win support, the carrier acquires a pair of new Mc-
Donnell Douglas MD-82s and it is these noise-restrained jetliners that commence coach-class operations on November 16, 1981 over Jet America’s only route, Long Beach-Chicago (ORD).
With a load factor of 63%, the 2 aircraft ferry 21,339 passengers by December 31. Start-up and other costs bring an anticipated loss of $3.2 million.
Fire engulfs a jet engine moments before an MD-82 is about to takeoff from Long Beach for Chicago on March 10, 1982; no injuries are reported. The initial service continues to be so successful that a second route—to Dallas (DFW)-is opened by the company’s MD-82s, now increased to three, in September.
As is the case for many U. S. air transport companies starting up in the era of deregulation, Jet America’s first year is rather shaky.
Although 205,361 passengers are transported, the airline’s $38.2 million in operating expenses exceed the $29.9 millions of revenue earned, leaving a net loss of $8.3 million atop an operating loss of $9.3 million.
In 1983, St. Louis is added to the route network and four MD-83s are acquired.
Passenger traffic nearly doubles, up 94% to 398,324. Revenues do double, rising to $60 million, while with expenses under control, an operating profit of $3.86 million is posted. to the sale of $4.6 million worth of tax benefits, the net profit jumps to $7.97 million.
Oakland becomes the company’s fourth destination in 1984. During the summer, two Boeing 707 Stratoliners are leased and placed into service on various charter routes. The company suffers a number of technical problems with the old planes and they are returned toward year’s end.
Passenger boardings rise by 35% to 537,737 and freight skyrockets 188% to 4.2 million FTKs. As the result of heavy competition, Jet America earns no profit, suffering instead a net loss of $3.7 million. On the plus side, however, its $90.2 millions in revenues boost it into the CAB category of “National.”
In March 1985, twice-daily service is started linking Oakland with Detroit via Chicago and daily flights connect Long Beach with Detroit, also via Chicago.
An MD-83 with 138 aboard makes a second emergency landing at Chicago (ORD) on April 1 because of a landing gear problem that ground crews apparently failed to correct after a first emergency landing a few hours earlier.
At the end of August, the carrier files a complaint with the DOT charging the New Orleans-based air taxi service Jet America Corporation with deceptive practices in assuming the Jet America name within its corporate restructuring and then not reporting same. The two begin to litigate the name issue in California courts. In mid-September, the Louisiana concern files an affidavit noting that it operates only small aircraft in on-demand service, that there is no actual public confusion over the similarity of names, and that, even though it registered the Jet America moniker first, it is being harassed by the California national.
The 695-employee carrier now also initiates a frequency to Los Angeles (Orange County Airport) late in the year and agrees, in principle, to acquire the Kentucky-based charter company Best Airlines and its two DC-9s.
Despite participation in the costly fare-wars, Jet America is able to increase its customer bookings by 43.9% to 774,145 and cargo traffic by 33.5% to 6.8 million FTKs. Revenues ascend 13% to $102 million, costs jump 14.2% to 99.56 million, and an operating profit of $2.41 million is achieved. Net loss doubles to $8.1 million.
Airline employment jumps 10.8% in 1986 to 818, but financial troubles prove terminal. Atlanta-based Delta Air Lines announces its intention to acquire the company; however, the $18.7-million deal is not consummated. During the summer, Jet America reports an $8.7-million net loss for the first half and advises the DOT that it has a working capital deficit of $27 million and a negative net worth of $2.8 million.
In the fall, management reaches the decision to sell the carrier to another suitor, Alaska Airlines parent Alaska Air Group, for $25 million. The new owners elect to operate their prize as a separate subsidiary until such time as the government approves the takeover. In October, nonstop MD-83 service is initiated to Orange County Airport from Chicago.
Twice-daily nonstop flights commence in December from Washington, D. C. (DCA) to Minneapolis (MSP), as well as direct flights from Orange County to Portland and Seattle, plus nonstop service between St. Louis and Las Vegas, Orange County, and Portland. The Detroit service is expanded by the addition of flights from the Michigan city to Chicago, Long Beach, Las Vegas, Orange County, and Portland.
The year’s cumulative passenger boardings rise 17.1% to 906,470, but revenues drop 10.7% to $91.02 million. Expenses are also down, but not far enough, falling 34.5% to $92.65 million. The operating loss is $1.62 million and the net loss nearly doubles to $15.81 million.
The amalgamation process requires nine months and Jet America, spawned of deregulation, disappears within its new parent on October 1, 1987. During its last three quarters of life, the new entrant transports a total of 789,000 passengers. Revenues of $72.5 million are earned, but expenses are so high that losses ensue: $11 million (operating) and $15.8 million (net).
JET AMERICA AIRLINES (2): United States (1989-1994). David Weekly establishes JAA-2 at Fort Lauderdale, Florida, in 1989. Passenger charters are inaugurated and continued with a fleet of 1 each Gates Learjet 25, Learjet 35A, and Learjet 36, plus a Beech Super King Air 200. A base is also established at Lewisburg, West Virginia, where 1 each Learjet 35A and a Mitsubishi Mu-2J turboprop are stationed.
Unable to maintain viability in the face of recession, the company shuts its doors in 1994.
World History
