Air21: Difference between revisions

Content deleted Content added

Inline

Revision as of 22:16, 12 March 2011

Air 21 Airlines was the name of a successful but short-lived airline based in Fresno, California, lead by Mark Morro, and Founded by David Miller and co-founded by David J. VanderLugt. The airline operated five Fokker F28 64-passenger twin-jet aircraft named "Friendships" by Fokker. The Fokker F-28 is manufactured in Holland and was the oldest airplane manufacturer in the world at the time of its demise.

History

Although some people believed the name related to '21' or Blackjack (due to the airline flying to Las Vegas) the name, created by CEO Morro, was intended to refer to an airline for the 21st Century, as indicated by its slogan "Your Low-Cost carrier and Low-Cost Airline for the Twenty-First Century" ^[1]. The original paper airline named MVP, was founded by David Miller, on his kitchen table, in January 1994. Miller was an airline Captain with several type ratings and extensive experience in operations as a management pilot and executive, as well as a sought after consultant with an international resumes. Shortly after expressing an interest to do this airline, he hooked up with his Co-Founder, David J. VanderLugt, the Treasurer of a small startup airline in Visalia, California - that David Miller was consulting for.^[2] In September 1994, while just 38-years old, Miller suffered from 2 heart attacks, 2-days apart (from malaria he contracted when working in Africa). He recovered quickly and presented himself with VanderLugt at D.O.T. (Department of Transportation) in Washington DC, in October 1994 to file the necessary paperwork of the intent to seek certification for operations.^[3]

The two entrepreneurs located suitable offices in Fresno, California at the major airport and set to work in December 1994. In January 1995, the airline leased from the City of Fresno, 50,000 sq/ft of hangar space at $00.50 sq/ft, and 6,000 sq/ft of office space at $00.06 sq/ft. The administrative offices were WWII Army Barracks, next door to the hangar, both had been recently upgraded to modern standards by the City of Fresno: they were newly carpeted, painted, and brightly lit.^[4].

In March 1995, Miller and VanderLugt decided to take the airline public with an IPO under a brand new California Securities Regulation 25102N. Miller hired a city father from Fresno and CEO of Gottschalks Department Stores, Joe Levy to be their Chairman who then hired Mark Morro and conferred co-founder status.

David Miller secured the conference room at the local Holiday Inn at the airport, they locked themselves into the room for 16/hour days (Miller, VanderLugt, Morro) and with the help of a FAX machine and a Securities lawyer, by mid May 1995 they had a 100-page prospectus for an IPO for AIR 21 AIRLINES.^[5]

Gearing up

The F-28 was chosen as the aircraft of choice over the DC-9.

Certification

It commenced operations in December 1995, was known to be in business in January 1997 and perhaps through 1997 ^[6]. It seems however that the airline entered Chapter 11, Title 11, United States Code Chapter 11 bankruptcy in January 1997 after the total buyout of the company by an investment banker, David Walsh went south after infighting with shareholder/lenders broke out. Morro departed the airline after the board approved the buyout and named Walsh as the new CEO. Air 21 converted its filing to a Chapter 7 status in March 1997

The hand writing on the wall for the airline, really started after the Mothers Day crash of ValuJet Airlines that killed everyone aboard one of their DC-9-30 jets. The NTSB eventually ruled for criminal negligence,^[7] but almost from the beginning the news media were totally focused on shoddy business and operating practices of ValuJet (which condemned everyone else). Every "Low Cost- Low Fare" airline started during the mid-1990s failed, primarily because of the bad publicity, all except Air Tran Airways. It is rumored in the industry that Miller had a very early hand in the design of the VJ business plan, but left for unknown reasons.^[8] Despite herculean efforts, the original Air 21 management could not halt the declining numbers of passengers.

Bankruptcy

Air 21 had 188 employees when the David Walsh Deal came unglued and by January 1997 ceased flying. 1997.^[9] David Miller and Joe Leay worked with the U.S. Bankruptcy Court and completed all of the required filings the Court. In the end, the airline operated and owned FIVE Fokker F-28 Friendship twin jet aircraft and roughly $5 million dollars in parts.

The airline was very progressive in many of its practices. It was the second airline in the world to be paperless and to have all of its maintenance records digitized and available to the FAA 24/7.^[10] The "Low Cost - Low fare" airlines were set to replace the commuter "propeller" airlines. The local "propeller" airline in Fresno paid its Captains $30,000/year, First Officers $20,000/year, and hard-working Flight Attendants $900/month. Air 21 paid: Captains $48,000, First Officers $30,000/year, and hard-work Flight Attendants $18,000/year. The airline served "Otis Spunkmeyer" muffins on all flights, and the finest spirits and wines. It had fares as low as $39 one-way: another example $119 roundtrip to fly from Colorado Springs to Fresno at a time when other airlines were charging potentially $467.50 ^[11].

References

^ http://thetravelinsider.info/airlines/airlineslogansa.htm#air21
^ Flyboys: Iron Men - Aluminum Airplanes. pp-34
^ Airlines Of The World - The Maverick Men Who Made Them. pp-78
^ http://en.wikipedia.org/wiki/Fresno_Yosemite_International_Airport
^ Airlines Of The World - The Maverick Men Who Made Them. pp-83
^ See 'Civil use' section of this entry http://en.wikipedia.org/wiki/Fresno_Yosemite_International_Airport
^ http://en.wikipedia.org/wiki/ValuJet_Flight_592
^ Flyboys: Iron Men - Aluminum Airplanes. pp-56
^ Fresno Bee, The End For Air 21
^ Airlines Of The World - The Maverick Men Who Made Them. pp-106
^ http://www.time.com/time/magazine/article/0,9171,135798,00.html

[1] ttp://thetravelinsider.info/airlines/airlineslogansa.htm#air21

[2] Flyboys: Iron Men - Aluminum Airplanes. pp-34

[3] Airlines Of The World - The Maverick Men Who Made Them. pp-78

[4] ttp://en.wikipedia.org/wiki/Fresno_Yosemite_International_Airport

[5] Airlines Of The World - The Maverick Men Who Made Them. pp-83

[6] See 'Civil use' section of this entry http://en.wikipedia.org/wiki/Fresno_Yosemite_International_Airport

[7] ttp://en.wikipedia.org/wiki/ValuJet_Flight_592

[8] Flyboys: Iron Men - Aluminum Airplanes. pp-56

[9] Fresno Bee, The End For Air 21

[10] Airlines Of The World - The Maverick Men Who Made Them. pp-106

[11] ttp://www.time.com/time/magazine/article/0,9171,135798,00.html

[1]

[2]

[3]

[4]

[5]

[6]

[7]

[8]

[9]

[10]

[11]

@@ Line 1: / Line 1: @@
+{{orphan|date=September 2009}}
-Air 21 Airlines was a successful but short-lived airline based in Fresno, California, founded by David J. Vander Lugt and David Miller.  Mr. Morro led the airline as a senior officer and negotiated Air 21’s aircraft lease agreement with US Air to deliver five (5) Fokker F28 64-passenger twin-jet aircraft named “Friendships” by Fokker.  The Fokker F-28 was manufactured in Holland and was the oldest airplane manufacturer in the world at the time of its demise.
+{{cleanup-expert|Defunct Airlines|date=February 2011}}
-				                 																                 													Contents
-    ● 1 History
-    ● 2 Operations
-    ● 3 Bankruptcy
-    ● 5 Success
-    ● 6 References
+'''Air 21 Airlines''' was the name of a successful but short-lived [[airline]] based in [[Fresno, California]], lead by Mark Morro, and    Founded by David Miller and co-founded by David J. VanderLugt.  The airline operated five [[Fokker F28]] 64-passenger twin-jet aircraft named "Friendships" by [[Fokker]].  The Fokker F-28 is manufactured in [[Holland]] and was the oldest [[airplane]] manufacturer in the world at the time of its demise.
 ==History==
-Although some people believed the name related to ‘21’ or blackjack (due to the airline flying to Las Vegas) the name, created by CEO Morro, was intended to refer to an airline for the 21st century, as indicated by its slogan “Your Low-Cost carrier and Low-Cost Airline for the 21st Century, [1].  The original paper airline was named MVP Airlines, founded by David J. Vander Lugt, President/CEO and David Miller, Vice President/Secretary in January 1994 and incorporated in Las Vegas, Nevada. Miller was an airline captain with several type ratings and extensive experience in operations as a management pilot and executive, as well as a sought after consultant.  Mr. Vander Lugt past aviation experience includes serving as a Flight Engineer on military transport jets.  Mr. Vander Lugt was working as a real estate agent in Exeter, Ca. and also served as the Treasurer of a small start up paper airline when he met Mr. Miller. [2] [3]
+Although some people believed the name related to '21' or [[Blackjack]] (due to the airline flying to [[Las Vegas metropolitan area|Las Vegas]]) the name, created by CEO Morro, was intended to refer to an airline for the 21st Century, as indicated by its slogan "Your Low-Cost carrier and Low-Cost Airline for the Twenty-First Century" <ref>http://thetravelinsider.info/airlines/airlineslogansa.htm#air21</ref>.  The original paper airline named MVP, was founded by  David Miller, on his kitchen table, in January 1994.  Miller was an airline Captain with several type ratings and extensive experience in operations as a management pilot and executive, as well as a sought after consultant with an international resumes.  Shortly after expressing an interest to do this airline, he hooked up with his Co-Founder, David J. VanderLugt, the Treasurer of a small startup airline in [[Visalia, California]] - that David Miller was consulting for.<ref>Flyboys: Iron Men - Aluminum Airplanes. pp-34</ref>   In September 1994, while just 38-years old, Miller suffered from 2 [[heart attack]]s, 2-days apart (from [[malaria]] he contracted when working in Africa).  He recovered quickly and presented himself with VanderLugt at D.O.T. (Department of Transportation) in [[Washington DC]], in October 1994 to file the necessary paperwork of the intent to seek certification for operations.<ref>Airlines Of The World - The Maverick Men Who Made Them. pp-78</ref>
+The two entrepreneurs located suitable offices in Fresno, California at the major [[airport]] and set to work in December 1994.  In January 1995, the airline leased from the City of Fresno, 50,000 sq/ft of hangar space at $00.50 sq/ft, and 6,000 sq/ft of office space at $00.06 sq/ft.  The administrative offices were [[World War II|WWII Army Barracks]], next door to the hangar, both had been recently upgraded to modern standards by the City of Fresno: they were newly carpeted, painted, and brightly lit.<ref>http://en.wikipedia.org/wiki/Fresno_Yosemite_International_Airport</ref>.
-After working with two other aviation consultants to develop the MVP business plan, Miller and Vander Lugt traveled to Washington DC in September of 1994 to meet with Carol Woods (Analyst) at D.O.T. to present the business plan and file the necessary paperwork for the Show Case Order with the intent to seek certification to operate the airline.
+In March 1995, Miller and VanderLugt decided to take the airline public with an [[Initial public offering|IPO]] under a brand new California Securities Regulation 25102N.  Miller hired a city father from Fresno and CEO of [[Gottschalks]] Department Stores, Joe Levy to be their Chairman who then hired Mark Morro and conferred co-founder status.
-In January 1995, the airline leased 50,000 sq. ft. of hanger space at $0.50 per sq. ft. and 6,000 sq. ft. of office space at $0.06 per sq. ft.  The administrative offices were WWII Army barracks, next door to the hangar which City of Fresno had recently upgraded. [4] [5]
+David Miller secured the [[conference room]] at the local [[Holiday Inn]] at the airport, they locked themselves into the room for 16/hour days (Miller, VanderLugt, Morro) and with the help of a FAX machine and a Securities lawyer, by mid May 1995 they had a 100-page [[prospectus (finance)|prospectus]] for an IPO for AIR 21 AIRLINES.<ref>Airlines Of The World - The Maverick Men Who Made Them. pp-83</ref>
-In March 1995, Miller and Vander Lugt made the decision to take the airline public with an IPO under a brand new California Securities Regulation 25102N after changing the name of the airline to Air 21.  Vander Lugt and Miller asked Joe Levy to serve as Chairman of the Board and Mr. Levy hired Mark Moro who was conferred co-founder status.
+==Gearing up==
-Miller, Morro and Vander Lugt secured a conference room at the local Holiday Inn at the airport where they locked themselves into the room for 16 hour days to write a prospectus for Air 21.  By mid May of 1995, after working with a securities lawyer, a 100 page prospectus for an IPO for Air 21 Airlines was now ready to present to investors to raise the necessary funding to start the airline.  By October of 1995 Air 21 had enough investors to satisfy the first phase of funding requirements.  On October 28, 1995 the Fresno airport put out the welcome mat for Air 21’s first Fokker F28 passenger jet aircraft delivery. [6] [7]
+The F-28 was chosen as the aircraft of choice over the DC-9.
+==Certification==
-In late November 1995 D.O.T. awarded a Show Cause Order giving Air 21 the economic authority to proceed with the FAA proving runs and final inspections.  On December 18, 1995 the FAA in Fresno issued Air 21’s Air Carrier Certificate.  On December 21, 1995 Air 21 flew its first revenue flight to San Francisco.  On January 6, 1996 Air 21’s board voted to merge with Jet Engine Supply, establishing Air 21 as a NASDQ company listed as “FLYE”. [8]
+It commenced operations in December 1995, was known to be in business in January 1997 and perhaps through 1997 <ref>See 'Civil use' section of this entry http://en.wikipedia.org/wiki/Fresno_Yosemite_International_Airport</ref>.  It seems however that the airline entered Chapter 11, Title 11, United States Code Chapter 11 [[bankruptcy]] in January 1997 after the total buyout of the company by an investment banker, David Walsh went south after infighting with shareholder/lenders broke out.  Morro departed the airline after the board approved the buyout and named Walsh as the new CEO.  Air 21 converted its filing to a Chapter 7 status in March 1997
+The hand writing on the wall for the airline, really started after the Mothers Day crash of [[ValuJet Airlines]] that killed everyone aboard one of their DC-9-30 jets.  The NTSB eventually ruled for [[criminal negligence]],<ref>http://en.wikipedia.org/wiki/ValuJet_Flight_592</ref> but almost from the beginning the news media were totally focused on shoddy business and operating practices of ValuJet (which condemned everyone else).  Every "Low Cost- Low Fare" airline started during the mid-1990s failed, primarily because of the bad publicity, all except [[Air Tran Airways]]. It is rumored in the industry that Miller had a very early hand in the design of the VJ business plan, but left for unknown reasons.<ref>Flyboys: Iron Men - Aluminum Airplanes. pp-56</ref>  Despite herculean efforts, the original Air 21 management could not halt the declining numbers of passengers.
-==Operations==
-Air 21 had 188 employees operating three (3) F-28s in its first year of operations.  The airline was very progressive in many of its practices.  It was the second airline in the world to be paperless regarding its maintenance records which were digitized and available to the FAA24/7. [ 10]  Vander Lugt and Miller were also instrumental in establishing one of the first ticket-less airline reservation system.  The “Low Cost – Low Fare” airlines were set to replace the commuter “propeller” airlines.  The local “propeller” airline in Fresno paid its Captains $30,000/year, First Officers $20,000/year, and hard- working Flight Attendants $900/ month.  Air 21 paid Captains $48,000, First Officers $30,000/year and Flight Attendants $18,000/year.  The airline served “Otis Spunkmeyer” muffins on all flights and the finest spirits and wine.  It had fares to Las Vegas as low as $39 and $49 one-way and $119 round trip from Colorado Springs to Fresno at a time when other airlines were charging potentially $467 for the same trip. [9][10][11][12]
 ==Bankruptcy==
+Air 21 had 188 employees when the David Walsh Deal came unglued and by January 1997 ceased flying.   1997.<ref>Fresno Bee, The End For Air 21</ref>  David Miller and Joe Leay worked with the [[U.S. Bankruptcy Court]] and completed all of the required filings  the Court.  In the end, the airline operated and owned FIVE Fokker F-28 Friendship twin jet aircraft and roughly $5 million dollars in parts.
-The first half of 1996 was a good year for Air 21 with the stock prices rising to over $6.00 per share. Air 21 had a commitment from US Air to deliver two more F-28s by April or May and when US Air delayed its delivery schedule by six months, Air 21’s rapid growth was severely impacted.  Air 21 had already locked in station leases in several other cities anticipating the other two F-28 aircraft which was designed to put Air 21 over the break even point and would begin to show a steady profit.  On May 11, 1996 Value Jet (the model “Low Cost Airline”) crashed in Florida, killing all on board.  From this point on the news media were totally focused on shoddy business and operating practices of Value Jet.  This turn of events in the airline industry reflected badly on all of the “Low Cost” airline operators and Air 21 could not halt the declining numbers of passengers.  Morro borrowed $3M from several local business men in Fresno to keep the airline alive, but soon Air 21 ran out of money.  It flew its last flight on December 21, 1996 one year to the day from Air 21’s first revenue flight.  In January 1997 the airline entered Chapter 11bankruptcy.   An investment banker made an offer to buy Air 21 which was not accepted .  The Air 21 Board of Directors accepted Mr. Morrow’s resignation and in March of 1997, Air 21 converted its filing to a Chapter 7 status. [13]
+The airline was very progressive in many of its practices.  It was the second airline in the world to be paperless and to have all of its maintenance records digitized and available to the FAA 24/7.<ref>Airlines Of The World - The Maverick Men Who Made Them. pp-106</ref>  The "Low Cost - Low fare" airlines were set to replace the commuter "propeller" airlines.  The local "propeller" airline in Fresno paid its Captains $30,000/year, First Officers $20,000/year, and hard-working Flight Attendants $900/month.  Air 21 paid: Captains $48,000, First Officers $30,000/year, and hard-work Flight Attendants $18,000/year.  The airline served "Otis Spunkmeyer" muffins on all flights, and the finest spirits and wines.  It had fares as low as $39 one-way: another example $119 roundtrip to fly from [[Colorado Springs]] to Fresno at a time when other airlines were charging potentially $467.50 <ref>http://www.time.com/time/magazine/article/0,9171,135798,00.html</ref>.
-== Success ==
-Some people can have success but still fail.  Some people can fail but still succeed.  Miller and Vander Lugt showed the world another Horatio Alger story, that if someone has an idea, heart and hard work – they can accomplish anything.  After all, since 1903 and the Wright Brother’s first flight …. how many people have started an airline?  200, 300, 400?  Out of the billions of people who have lived on the planet since 1903, how many people have envisioned a jet airline start-up and were able to gather the finances and resources to actually fly? 100, 200?  The same would be true of those mighty mavericks who started railroads, car companies, steel mills, shipping lines etc …  It is a success to grab hold of one of these monsters tails and hang on for as long as you can.  In 2003 Mr. Vander Lugt was invited to Dubai, UAE to develop a start-up cargo airline for Al Raise Cargo.   [See Wikipedia Al Rais Cargo Airlines]
 == References ==
+{{Reflist}}
-.	 ^  www.thetravellinsider.info/airlines/airlineslogansa.htm#air21
-.	 ^  Flyboys: Iron Men – Aluminum Airplanes. pp-34
+[[Category:Defunct airlines of the United States]]
-.	 ^  Fresno Bee: Investor Group Plans New Airline, Oct. 22, 1994 archives or  davevanderlugt@yahoo.com for additional copies.
+[[Category:Airlines established in 1995]]
-.	 ^  Airlines of The World – the Maverick Men Who Made Them. pp-78
+[[Category:Airlines disestablished in 1997]]
-.	 ^  www.en.wikipedia.org/wiki/Fresno_Yosemite_International_Airport
-.	 ^  Fresno Bee: Welcome mat put out for Air 21, Oct. 28,1995 archives or
-            davevanderlugt@yahoo.com for additional copies.
-.	 ^  Airlines of The World – the Maverick Men Who Made Them. pp-83
-.	 ^  Fresno Bee: Air 21 votes to merge Jan. 6, 1996, archives or
-            davevanderlugt@yahoo.com for additional copies.
-.	 ^  Flyboys: Iron Men – Aluminum Airplanes. pp-56
-.	 ^  Airlines of The World – the Maverick Men Who Made Them. pp-106
-.	 ^   Fresno Bee: Air 21 prepares for L.A. and Colorado city takeoff  Jan. 2, 1996, archives or
-             davevanderlugt@yahoo.com for additional copies.
-.	 ^   www.time.com/time/magazine/article/0,9171,135798,,00.html
-.	 ^   Fresno Bee:  The End For Air 21