Air21

Air 21 Airlines was the name of a successful but short-lived airline based in Fresno, California, led 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 was manufactured in the Netherlands. Fokker 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" . 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. Miller 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.

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..

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.

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 . 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, 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. 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. 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. 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 .