Air21
Encyclopedia
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.
(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.
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.
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.
Airline
An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...
based in Fresno, California
Fresno, California
Fresno is a city in central California, United States, the county seat of Fresno County. As of the 2010 census, the city's population was 510,365, making it the fifth largest city in California, the largest inland city in California, and the 34th largest in the nation...
, led by Mark Morro, and founded by David Miller and co-founded by David J. VanderLugt. The airline operated five Fokker F28
Fokker F28
The Fokker F28 Fellowship is a short range jet airliner designed and built by defunct Dutch aircraft manufacturer Fokker.-Design and development:...
64-passenger twin-jet aircraft named "Friendships" by Fokker
Fokker
Fokker was a Dutch aircraft manufacturer named after its founder, Anthony Fokker. The company operated under several different names, starting out in 1912 in Schwerin, Germany, moving to the Netherlands in 1919....
. 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 BlackjackBlackjack
Blackjack, also known as Twenty-one or Vingt-et-un , is the most widely played casino banking game in the world...
(due to the airline flying to Las Vegas
Las Vegas metropolitan area
The Las Vegas Valley is the heart of the Las Vegas-Paradise, NV MSA also known as the Las Vegas–Paradise–Henderson MSA which includes all of Clark County, Nevada, and is a metropolitan area in the southern part of the U.S. state of Nevada. The Valley is defined by the Las Vegas Valley landform, a ...
) 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
Visalia, California
Visalia is a Central California city situated in the heart of California’s agricultural San Joaquin Valley, approximately southeast of San Francisco and north of Los Angeles...
- 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
Airport
An airport is a location where aircraft such as fixed-wing aircraft, helicopters, and blimps take off and land. Aircraft may be stored or maintained at an 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
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, 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
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
under a brand new California Securities Regulation 25102N. Miller hired a city father from Fresno and CEO of Gottschalks
Gottschalks
Gottschalks was a middle-tier American department store that operated 58 department stores and three specialty apparel stores in six western states ; some locations ran as Harris-Gottschalks stores...
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
Holiday Inn
Holiday Inn is a brand of hotels, formally a economy motel chain, forming part of the British InterContinental Hotels Group . It is one of the world's largest hotel chains with 238,440 bedrooms and 1,301 hotels globally. There are currently 5 hotels in the pipeline...
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
Prospectus (finance)
In finance, a prospectus is a document that describes a financial security for potential buyers. A prospectus commonly provides investors with material information about mutual funds, stocks, bonds and other investments, such as a description of the company's business, financial statements,...
for an IPO for AIR 21 AIRLINES.
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 bankruptcyBankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
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
ValuJet Airlines
ValuJet Airlines was an American low-cost carrier, headquartered in unincorporated Clayton County, Georgia, that operated regularly scheduled domestic and international flights in the Eastern United States and Canada during the 1990s...
that killed everyone aboard one of their DC-9-30 jets. The NTSB eventually ruled for criminal negligence
Criminal negligence
In the criminal law, criminal negligence is one of the three general classes of mens rea element required to constitute a conventional as opposed to strict liability offense. It is defined as an act that is:-Concept:...
, 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.