NATIONAL AIRLINES (4): P. O. Box 19359, Las Vegas, Nevada 89132, United States; Phone (702) 944-2800; Http://www. national airlines. com; Code N7; Year Founded 1995. America West Airlines
Cofounder Michael J. Conway establishes NA-4 as New Airline, Inc. at Las Vegas, Nevada, in April 1995. Conway, who is chairman, president, and CEO, is able to arrange $2.8 million in financing from initial stock purchases by management and several corporations. Other officers include Senior Vice President/Chief Financial Officer Raymond T. Nakano, Senior Vice President-strategic Planning Mark Suman, and Director of economic Analysis Beverly E. Rouse.
Planning for the inauguration of services from Las Vegas moves forward over the next three years, together with the carrier’s applications to the DOT and FAA for operating authority. In need of an official name, the historic moniker of National Airlines is chosen in February 1998 after the right to employ it is acquired from the assets of bankrupt Pan American World Airlines (2).
On July 30, National is able to announce the completion of $50 million in private placement equity funding. As a result, the company’s principal shareholders become Rio Hotel & Casino and Harrah’s Entertainment (both of which have contributed $15 million) plus Wexford Management LLC (which has put in $7 million). Considerations for a regional linkup with Chautauqua Airlines, owned by Wexford, are made. Another $13 million is acquired from the private sector.
As the year ends, arrangements are made for facilities in the new Concourse D at McCarran International Airport. A new frequent flyer program is designed, staff, including Vice President-Operations James Carr, are hired, and marketing plans are drawn up.
A portion of the new capital is also employed to order four Boeing 757-200s. The first of the new aircraft is a Dash-236 previously operated by Istair Istanbul Airlines, A. O. Wearing an all-white livery with National Airlines titles and a script ribbon “N” on the navy blue tail and engine nacelles, is delivered on February 12, 1999. A B-757-256, flown earlier by Iberia Spanish Airlines (2) (Lineas Aereas de Espana, S. A.), and a onetime Britannia Airways, Ltd. B-757-204 are expected in late spring and summer.
Also during February, National receives its initial Certificate of Public Convenience and Necessity from the DOT. National has the distinction of being the first start-up certified under the government’s new Air Transport Oversight System (ATOS), which had been developed in the wake of the ValuJet Airlines crash in 1996 to increase the level of safety in the certification process. Indeed, National has lost several months from its beginning by serving as a test bed for the process, one which has also cost it about $3 million out-of-pocket.
With increased progress indicated toward the receipt of FAA operating approval, National begins taking reservations on April 19 for a service launch in late May.
In a grand Las Vegas ceremony on May 20, Chairman Conway, surrounded by company employees, FAA representatives present the airline’s Air Carrier Operating Certificate. Following remarks by airline, airport, and community officials, the B-757-236 inaugurates the company’s first scheduled service at 8:30 a. m. local time as Flight 601 from McCarran to Los Angeles (LAX). Chairman Conway and his three cofounders are aboard as it departs under a traditional arched water cannon salute from two airport firetrucks. An hour later, the B-757-256 launches flights to Chicago (MDW). Four daily nonstop roundtrips from Las Vegas to Los Angeles (LAX) and twice-daily nonstop roundtrips to Chicago (MDW) are now begun. Thrice-daily service to New York (JFK) begins on June 14, followed by the introduction of twice-daily flights to San Francisco on June 24.
Five more B-757-200s arrive during June and early August. Consequently, twice-daily nonstop B-757-236 roundtrips are introduced on August 25 between Las Vegas and Dallas (DFW), while a third daily nonstop roundtrip is added between Las Vegas and San Francisco and a fourth daily nonstop roundtrip between Las Vegas and New York (JFK).
Customer bookings this year total 345,000. Although revenues reach $24.18 million, expenses of $48.96 million leave an operating loss of $24.78 million. There is also a net loss of $24.31 million.
The workforce totals 856 at the beginning of 2000. The B-757 fleet now includes 8 Dash-236s, 2 each Dash-256s, Dash-28A, Dash-23As, and 1 Dash-2T7. Twice-daily B-757-236 nonstop return service is inaugurated on January 27 from Las Vegas to Miami.
Previously operated by Air Holland, N. V., a chartered B-757-204 is delivered on April 10. Meanwhile, two more B-757-200s are chartered from GECAS on June 20 for delivery in January.
Virgin Atlantic Airways, Ltd. launches twice-weekly B-747-4Q8 roundtrips on June 8 between London (LGW) and Las Vegas. During the inaugural flight, which is three-fourths full, Virgin Chairman Sir Richard Branson announces that he has obtained a code-sharing, feeder agreement with National Airlines (4). The new partnership pays off more quickly than anticipated as it falls to the U. S. carrier to reprovision the big Boeing for its return to England. Branson’s invited guests and fare-paying passengers had drunk the Jumbojet dry before its Nevada landing.
An order is placed on June 26 for eight more B-757-200s that will be delivered by GECAS between late 2001 and 2002. B-656-204 twice-daily roundtrips are inaugurated on July 13 between Las Vegas and Newark.
Armed hijacker Aaron Amartei Commey forces his way into the cockpit of Flight 19, a B-727-200 preparing for departure to Las Vegas on July 27. While the 22-year-old pirate and the flight crew are engaged, flight attendants hustle all of the passengers safely off the plane. The hijacker surrenders in the small hours of July 28 after police negotiators persuade him to vacate the aircraft.
It is announced on August 25 that new service will be started from Las Vegas to Chicago (ORD) on January 25. At the end of September, company employees reject an organizing offer from the International Association of Machinists.
B-757-200 daily roundtrips begin on October 26 from Las Vegas to Washington, D. C. (DCA).
Blaming its poor financial situation on rising fuel costs and its own failure to hedge its fuel position, the carrier, on December 6, files for Chapter XI bankruptcy protection. It reports assets of $103 million and liabilities of $119 million. Services are continued without interruption as the carrier seeks new financing.
NATIONAL AIRLINES (PTY.), LTD.: P. O. Box 18016, Rand Airport, Johannesburg 1419, South Africa; Phone 27 (11) 827-9333; Fax 27 (11) 824-2678; Http://www. nac. co. za; Code YJ; Year Founded 1983. National Airways Corporation, a subsidiary of the Lonhro Group, acquires control of Wing Airways, Ltd. in February 1983, and the name is changed. Graeme Conlyn remains chairman and Beech King Air 100 and Super King Air 200 services from Johannesburg continue to link cities along a route from Lanseria to Kuruman and Aggeneys and Lanseria to Ulco, Lime Acres, and Postmasburg.
Operations continue apace in 1984 and in February 1985 the carrier acquires the assets of Springbok-based Namakwaland Air Services (Pty.), Ltd. begun a quarter century earlier by the late Joseph Jowell. National is reorganized, with Graeme Conlyn and NAS chief Deon Blig-naut becoming joint managing directors. During the remainder of the year and into 1986, aviation services are enlarged to Namagualand and to the northwestern Cape areas. Among the communities served are Aggeneys, Alexander Bay, Springbok, Cape Town, and Kleinzee.
In 1987, Blignaut and Conlyn manage a fleet comprising 1 each Beech King Air 100 and Super King Air 200. Conlyn becomes sole managing director in 1988.
In 1990, the commuter is reorganized as National Airlines Joint Venture and corporate headquarters are moved to Johannesburg. Jean H. Du Plessis is named general manager with G. Conlyn remaining as managing director. The fleet is upgraded by the replacement of the King Air 100 by 3 Super King Air 200s, 1 Piper PA-31-310 Navajo, and 2 Piper PA-31-350 Navajo Chieftains.
The Navajo and one Navajo Chieftain are withdrawn in 1991 and a fourth Super King Air 200 is acquired in 1992. Operations continue and in 1994 the fleet includes only 2 Super King Air 200s and 2 Navajo Chieftains.
Service is continued in 1995-1999, but by the beginning of the latter year, the fleet has been reduced to one each de Havilland Canada DHC-6-300 and Learjet 45. Ripe for takeover, the company is purchased by Safair (Pty.), Ltd. in July. With backing from the new owners, frequencies are enhanced with a fleet of 5 Beech 1900Cs and 3 Beech 1900Ds.
NATIONAL AIRLINES, S. A.: Chile (1992-1999). National Airlines is established at Santiago in August 1992 to offer scheduled domestic passenger and cargo services between the capital and such local destinations as Arica and Antofagasta. Shareholding is divided between Uauy Holding and Musiet Holding. Operations are started on December 27 with 2 Boeing 737-204As leased from Britannia Airways, Ltd.
Operations continue apace in 1993 as a third B-737-204A is acquired. To compete with LADECO Chilean Airlines, S. A. and LanChile Airlines, S. A., National’s fares are kept at a level 35% below those two older carriers.
In 1994, President Fernando Uauy and Vice President-Commercial Carlos Musiet oversee a workforce of 290. A comprehensive marketing alliance is signed with United Airlines in September. Under its terms, which include code-sharing and frequent flyer mileage benefits, the national is able to improve its services between its Chilean destinations and to provide direct feed for United’s flights from Santiago to Miami.
Through November, enplanements total 232,347 while 3.84 million FTKs are flown. Revenues total $21.74 million, while expenses are $20.69 million. Consequently, there is an operating profit of $1.04 million.
The workforce is radically reduced in 1995 to just 180. Four-times-a-week service to Tacna and Arequipa begins in mid-October, with service to Lima begun at year’s end.
Enplanements jump 20.2% to 311,468, but cargo dives 31.5% to 2.83 million FTKs.
On July 1, 1996, a code-sharing agreement is signed with Aerolineas Argentinas, S. A. Under the pact, passengers will be able to cross the two airlines’ networks on one ticket and with just one check-in. The companies will also jointly promote products and services, institute tariff agreements, cooperate in aircraft maintenance, and begin common catering services.
Although freight traffic continues its plunge, dropping 4.5% to 2.7 million FTKs, customer bookings increase 41.1% to 439,535. The workforce is boosted 61.1% to 290 to help handle the increase.
Domestic destinations visited in 1997 include Antofagasta, Arica, Concepcion, loaque, Puerto Monti, Punta Arenas, and Temuco. A codesharing agreement is entered into with Aerosur, S. A., from which National leases a B-727-23.
On March 21, the chartered jetliner is employed to inaugurate dualdesignator flights from Arica and Iquique to Santa Cruz. Seven-times-a-week roundtrips commence on April 1 between Santiago and Lima, Peru.
Avant Airlines, S. A., which will be taken over by the transportation corporation Tur Bus, becomes a competitor in June. During the summer, daily flights are begun from Santiago to Buenos Aires. On September 26, thrice-weekly roundtrip service is inaugurated from Santiago to Miami.
Passenger boardings increase 52% to 668,010 while freight skyrockets 71.5% to 4.63 million FTKs.
During the first quarter of 1998, the carrier is purchased by Santiago-based Avant Airlines, S. A. for an undisclosed price. Plans are announced for the two carriers to compete with LADECO Chilean Airlines, S. A. and LanChile Airlines, S. A. in an effort to capture a quarter of the nation’s domestic passenger market.
By July, National enjoys a 12.1% market share and Avant 14.1%. As of July 1, the decision is taken to concentrate domestic operations with one airline and long-haul flights with another. On July 6, National turns over its local service operations to Avant Airlines, S. A. and begins to concentrate on international services. Avant is now expected to maintain the combined 26.3% domestic market share of both airlines. This arrangement lasts six months until National is merges into its parent in January 1999.
NATIONAL AIRWAYS: United States (1933-1937). With initial capitalization of $10,000, NA is formed in early 1933 at New York by ex-The New York, Philadelphia and Washington Airway (Ludington Airline) employees Paul Collins and Eugene Vidal. With support is from New York businessman Sam J. Solomon and famed aviatrix Amelia Earhart, two Stinson SM-6000B Tri-Motors are purchased from Ludington.
A contract is arranged with Laurence Whittemore of the then-dormant Boston-Maine Airways to operate his former route to Bangor, Maine, via Portland and Waterville. Revenue flight services commence on August 11. Additionally, Collins contracts with newly formed Central Vermont Airways, owned by the Canadian National Railroad, to fly its routes from Boston to Montpelier, beginning on October 27. Soon the two airlines are operated as one coordinated enterprise.
Two extensions are added on February 7, 1934—Manchester is added as a stop and the Montpelier destination is stretched to Burlington. The “Air Mail Scandal” and associated investigations do not interrupt operations. Service to Montreal, which makes the company an international airline, is launched on March 20. In early June, National undertakes to fly the mail from Boston to Bangor and Burlington. As of October 22, flights to Montreal must be halted for winter, but beginning in the summer of 1935, flights are offered between Bangor and Bar Harbor.
This arrangement is continued with little change over the next three years. On April 8, 1936, a Stinson 6000 crashes while taking off from Burlington (one dead). Having determined that newer flight equipment is essential, the railroad owners order two new Lockheed Model 10A Electras for National.
When Collins cannot come up with the money to pay for the Electras, the railroad interests buy out National Airlines’ partners on March 1, 1937 and continue operations as Boston-Maine/Central Vermont Airways, the marketing title employed since 1934.
World History
