McCulloch International Airlines

Last updated
McCulloch International Airlines
Commenced operations3 November 1970 (1970-11-03)
re-named from Vance International Airways
Ceased operations1 August 1977 (1977-08-01)
files for bankruptcy
Operating bases Long Beach, California
Fleet sizesee Fleet below
Parent company McCulloch Properties (until October 1975)
FGH Financial (from October 1975)
Headquarters Long Beach, California
United States
Key peopleJohn E. Gallagher, President
Francis T. Fox
Richard F.B. Goates
John L. Holleran
Founder Robert P. McCulloch

McCulloch International Airlines (MIA) was a supplemental air carrier, a charter carrier regulated by the Civil Aeronautics Board (CAB), the now-defunct Federal agency that from 1938 to 1978 tightly controlled almost all commercial air transportation in the United States. The airline was created from Vance International Airways (VIA), an earlier supplemental air carrier, and from the aviation activities of Robert P. McCulloch, an entrepreneur (still known for the eponymous chainsaw brand he developed) and industrialist who flew potential customers to see new communities he was developing, most notably Lake Havasu City.

Contents

The airline was sold to a management/investor group in 1975. Unfortunately, its fortunes took a quick turn for the worse and the airline was bankrupt by 1977.

MIA operated the Starship for Peter Frampton for his 1976 European tour at the height of his fame. This aircraft (flown by other operators) had previously been used for other famous rock tours during the 1970s such as Led Zeppelin.

History

Context

McCulloch Properties (MPI) Constellation at Long Beach in February 1971. Not a McCulloch International Airlines aircraft, this is an aircraft from MPI's pre-airline activity, hence the Lake Havasu City titles Lockheed L-049 N90823 Havasu LGB 06.02.71 edited-2.jpg
McCulloch Properties (MPI) Constellation at Long Beach in February 1971. Not a McCulloch International Airlines aircraft, this is an aircraft from MPI's pre-airline activity, hence the Lake Havasu City titles

Robert P. McCulloch controlled a property development company, McCulloch Properties, Inc., (MPI) that developed land in the American west, the most famous site being Lake Havasu City. Starting in January 1964, [1] McCulloch flew prospective buyers to Lake Havasu for free using a fleet of Lockheed Constellations and then Electras as an uncertificated carrier. To qualify for a trip, a potential buyer put down a deposit, which was fully refundable. At the time MPI sought to purchase VIA, it was flying potential customers from Detroit, Cleveland, Chicago, Milwaukee, Minneapolis, Denver, Phoenix, Dallas, Long Beach, Oakland, Houston, Portland, Spokane, and Seattle. [2] The July 1970 US civil aircraft register shows MPI as the registered owner of three Constellations and five Electras (details in Fleet below). MPI wanted to certificate its air operation so it could sell charters when the fleet was not transporting prospective property customers; MPI projected post-acquisition Vance making almost as much revenue in 1971 from third parties as from captive MPI business. [3]

Vance International Airways was a small, unsuccessful Seattle-based supplemental air carrier, doing about $500,000 per year in revenue in 1968 and 1969; the CAB viewed the carrier as "deteriorating". In 1966 VIA accepted financing that in certain circumstances allowed the new investor to acquire 50% of the carrier, and in some circumstances required the existing owner, Vance Roberts, to buy out the investor or vice versa. McCulloch worked with this investor to exercise those options, forcing out Roberts with the investor turning over the carrier to McCulloch after the CAB approved the transaction on 18 September 1970. On 3 November 1970 the CAB approved a name change to McCulloch International Airlines (MIA).

MPI's total acquisition cost for MIA was about $1.4 million, equivalent to over $10 million in 2024 dollars. [4]

Wholly-owned subsidiary until October 1975

MPI moved the headquarters of the airline to Long Beach, California from Seattle. [5] New ownership made an immediate difference, as 1971 MIA revenues were over 20 times the level of Vance International in the late 1960s. However, MPI accounted for 85% of 1971 revenues and 80% of 1972 revenues. [6] This was far greater than what projections called for (54% in 1971), [3] indicating less diversified revenues than desired. And even with the captive income, MIA was small relative other supplemental carriers. In 1971, the biggest supplemental carriers had revenues over five times that of MIA, and did that without captive income. [7] MIA also did not participate much in the biggest charter market, international. In 1973, for instance, international passenger miles were over four times those of domestic for supplemental carriers, [8] but for MIA it was the other way around. Further, MIA did no military business at all, nor did it attempt air freight, [9] though the Electra was a popular freighter.

McCulloch International Airlines Financial Results, 1971 thru 1977
USD 0001971 [10] 1972 [10] 1973 [11] 1974 [11] 1975 [12] 1976 [12] 1977 [13]
Operating revenue11,53715,38411,8138,6167,7858,2394,494
Operating profit (loss)903(781)927(48)(600)(1,875)(914)
Operating margin (%)7.8-5.17.8-0.6-7.7-22.8-20.3

FGH Financial ownership until August 1977 bankruptcy

In October 1975, FGH Financial acquired 81% of the airline. FGH comprised four equal partners, Francis T. Fox, John E. Gallagher, Richard F.B. Goates and John L. Holleran. Gallagher was the president of MIA, the other three were California-based transportation consultants or executives. The MPI land business was slowing and MIA was operating only three Electras, a fourth was on short-term lease to Pacific Southwest Airlines and MIA had leased in a Douglas DC-8 which was flying mostly third-party charter business. McCulloch Properties wanted to step back and allow MIA to develop a third party business by re-equipping with jets. FGH paid $1.5 million (over $8.5 million in 2024 dollars) for 81% of the company, with MPI financing about $400,000 of that. For the price, FGH also received the four Electras, plus spare engines and parts. FGH financed the sale price with a bank loan and planned to sell the Electras over time. [14]

Unfortunately, FGH found the environment, coming out of the 1973–1975 recession, hostile relative to the aim of reequipping with new/newer aircraft, and was forced to rely on the Electras. [15] MIA also flew a series of smaller first-generation (turbojet vs turbofan) jet aircraft during this time. [16] One such was the Starship aircraft MIA flew when it sold, for $146,000, a charter to Peter Frampton to support his European tour (this required CAB approval since MIA did not have Europe charter authority). [17] The company filed for bankruptcy 1 August 1977. [15] A year later, the CAB approved the takeover of the remains of MIA by a company called Inomotivator (comprising three lawyers), but nothing came of that. [18]

Fleet

The US Civil Aircraft Register for July 1970 shows McCulloch Properties owning three Lockheed L-049 Constellations (N6000C, [19] N90823, [20] N90931 [20] ) and five Electras (N6106A, [21] N6118A, [22] N6130A, [23] N6131A, [24] N6132A [24] ).

The US Civil Aircraft Register for July 1972 shows McCulloch International Airlines owning nine Electras (N6106A, [25] N6112A, [26] N6118A, [27] N6124A, [28] N6126A, [29] N6129A, [29] N6130A, [30] N6131A, [30] N6132A [30] )

Legacy

The most obvious legacy of McCulloch International Airlines is Lake Havasu City in Arizona. From 1964 to 1978, MPI promotional flights (including those, from November 1970, flown by MIA) to Lake Havasu City totalled 2,702. [31] in 1970, when the CAB was deciding whether to approve MPI's purchase of Vance International, MPI had already sold over $118 million of land in Lake Havasu City, equivalent to over $900 million in 2024 dollars. [32]

See also

Related Research Articles

<span class="mw-page-title-main">Civil Aeronautics Board</span> US federal airline regulator, 1939 to 1985

The Civil Aeronautics Board (CAB) was an agency of the federal government of the United States, formed in 1938 and abolished in 1985, that regulated aviation services and conducted air accident investigations. The agency was headquartered in Washington, D.C.

Marquette Airlines was a brief-lived trunk air carrier, a United States scheduled airline that operated between St. Louis to Detroit from 1938 to 1940 before merging into Transcontinental & Western Air (TWA).

<span class="mw-page-title-main">Saturn Airways</span> US charter airline 1948–1976 bought by Trans International

Saturn Airways was a US supplemental air carrier, certificated as such by the Civil Aeronautics Board (CAB), the now-defunct Federal agency that, at the time, tightly regulated almost all US air transport. Saturn operated from 1948 until 1976. Originally a Florida company, Saturn moved to Oakland, California in 1967 where its headquarters were located on the grounds of Oakland International Airport.

<span class="mw-page-title-main">Wiggins Airways</span> US passenger airline (1949–1953), now a cargo carrier

Wiggins Airways is a long-lived American aviation company that pursued many lines of business during its existence, including:

<span class="mw-page-title-main">Northeast Airlines</span> Defunct airline of the United States (1933–1972)

Northeast Airlines was an American trunk carrier, a scheduled airline based in Boston, Massachusetts originally founded as Boston-Maine Airways that chiefly operated in the northeastern United States, and later to Canada, Florida, the Bahamas, Bermuda and other cities. It was notably small and unprofitable relative to other trunk carriers, being less than half the size, by revenue, than the next biggest trunk in 1971. Northeast was acquired by and merged into Delta Air Lines in August 1972.

<span class="mw-page-title-main">Universal Airlines (United States)</span> US charter airline, 1966–1972

Universal Airlines was a United States supplemental air carrier that operated from 1966 to 1972, based initially at Willow Run Airport in Ypsilanti, Michigan and later at Oakland International Airport in California. Universal was a re-naming of Zantop Air Transport. At the time, "supplemental" was the Civil Aeronautics Board (CAB) term for a charter airline, the CAB being the Federal agency that tightly regulated US carriers in that era.

<span class="mw-page-title-main">American Flyers Airline</span> US airline (1949–1971) that merged into Universal

American Flyers Airline Corporation (AFA) was a United States airline that operated from 1949 to 1971, certificated as a supplemental air carrier by the Civil Aeronautics Board (CAB), the now defunct Federal agency that, at the time, regulated almost all commercial air transportation in the United States. AFA was owned and operated by aviator Reed Pigman until his death in an AFA accident in 1966. In 1967, ownership passed to a Pennsylvania company, and in 1971, AFA merged into Universal Airlines, another supplemental airline.

<span class="mw-page-title-main">Southern Air Transport</span> Defunct US airline once owned by the CIA

Southern Air Transport (SAT), based in Miami, Florida, was, in its final incarnation, a cargo airline. However, it started life as an irregular air carrier, a type of carrier defined and tightly controlled until 1978 by the Civil Aeronautics Board (CAB), a now defunct Federal agency that, at the time, closely regulated almost all US commercial air transportation. For much of that time the carrier was owned by the Central Intelligence Agency (CIA) (1960–1973).

<span class="mw-page-title-main">Air New England (1970–1981)</span> Former US regional airline (1970–1981)

Air New England (ANE) was a US regional airline in New England during the 1970s and early 1980s. It was headquartered at Logan International Airport in the East Boston area of Boston, Massachusetts. ANE was noneconomic for most of its existence. From 1975 through its last year, 1981, ANE depended heavily on government subsidies. Depending on the year, these accounted for 17 to 25% of operating revenues, despite which the airline was generally unprofitable. ANE collapsed in the early years of US airline deregulation.

<span class="mw-page-title-main">Trans Caribbean Airways</span> Small US airline flying to the Caribbean 1945–1971

Trans Caribbean Airways (TCA) was an irregular air carrier until 1957, when it was certificated by the Civil Aeronautics Board (CAB) as an international air carrier to fly from New York City to San Juan, Puerto Rico. TCA thereafter operated as a small scheduled airline specializing in flying from New York to the Caribbean, adding a small number of additional routes over time until it was purchased by American Airlines in 1971.

<span class="mw-page-title-main">Zantop International Airlines</span> US cargo airline (1972–2005)

Zantop International Airlines, Inc., (ZIA) was a United States charter operator, originally uncertificated by the Civil Aeronautics Board (CAB), the now defunct Federal agency that, at the time, otherwise tightly regulated almost all US air transport. ZIA escaped CAB regulation by not being a common carrier, but originally worked exclusively for the Big Three automakers, transporting parts. In 1977 it received its certification as a supplemental air carrier from the CAB. ZIA was incorporated in May 1972 as a Michigan corporation, the stock of which was predominantly owned by the Zantop family.

<span class="mw-page-title-main">Wright Air Lines</span> Cleveland Lakefront airline (1966–1985)

On the surface, Wright Air Lines was no different than many other many other small turboprop airlines that collapsed in the early years of the deregulated US airline industry. What set Wright apart was:

<span class="mw-page-title-main">AAXICO Airlines</span> US airline 1945–1965 that merged with Saturn

AAXICO Airlines was an airline based in the United States. AAXICO is an acronym for American Air Export and Import Company. Initially founded as a non-scheduled airline or irregular air carrier, AAXICO was awarded certification as a scheduled air cargo airline in 1955 by the Civil Aeronautics Board (CAB), the now-defunct Federal agency that, at the time, tightly regulated almost all US air transport. However, in 1962 AAXICO reverted to a supplemental air carrier. In 1965, it was nominally bought by Saturn Airways, another supplemental airline, but AAXICO was the surviving management and ownership.

<span class="mw-page-title-main">Vance International Airways</span> Small US charter carrier that became McCulloch (1960–1970)

Vance International Airlines (VIA) was a small US air taxi and supplemental air carrier, a type of airline defined and regulated by the Civil Aeronautics Board (CAB), a now defunct Federal agency that from 1938 to 1978, tightly regulated almost all commercial air transportation in the United States. VIA was named after Vance B. Roberts, an example of a company named for the first name rather than last name of its founder.

<span class="mw-page-title-main">Local service carrier</span> Airline type created/regulated by US govt 1943–1978

Local service carriers, or local service airlines, originally known as feeder carriers or feeder airlines, were a category of US domestic airline created/regulated by the Civil Aeronautics Board (CAB), the now-defunct federal agency that tightly regulated the US airline industry 1938–1978. Initially 23 such airlines were certificated from 1943 to 1949 to serve smaller US domestic markets unserved/poorly served by existing domestic carriers, the trunk carriers, which flew the main, or trunk, routes. However, not all of these started operation and some that did later had their certificates withdrawn. One other carrier was certificated in 1950 as a replacement. "Feeder airline" alludes to another purpose, that such airlines would feed passengers to trunk carriers. It was expected that a significant number of passenger itineraries would involve a connection between a local service carrier and a trunk carrier.

<span class="mw-page-title-main">Intrastate airline</span> Pre-1979 US airline that minimized participation in interstate commerce

Intrastate airlines in the United States were air carriers operating solely within a single US state and taking other steps to minimize participation in interstate commerce, thus enabling them to escape tight Federal economic airline regulation prior to US airline deregulation in 1979. These intrastate carriers therefore amounted to a small unregulated, or less regulated, sector within what was otherwise then a tightly regulated industry. As detailed below, flying within the geographic boundaries of a single state was a necessary but not sufficient condition to qualify as an intrastate carrier.

Purdue University has a history of operating airlines directly or through affiliates, including:

<span class="mw-page-title-main">Trunk carrier</span> Type of US airline in the regulated era (1938–1978)

Trunk carriers or trunk airlines or trunklines or trunks, were the US scheduled airlines certificated in the period 1939–1941 by the Civil Aeronautics Authority (CAA) or its immediate successor, the Civil Aeronautics Board (CAB) after the passage of the 1938 Civil Aeronautics Act on the basis of grandfathering: those carriers that were able to show they performed scheduled service prior to the passage of the Act. During the regulated period (1938–1978) these carriers were an especially protected class, with the CAB regulating the industry in many respects in the interests of these companies, a form of regulatory capture. The importance of these carriers is reflected is shown that in 2024, the three largest airlines in the United States, American Airlines, Delta Air Lines and United Airlines were among the carriers certificated through this grandfathering in 1939.

<span class="mw-page-title-main">United States Overseas Airlines</span> US supplemental airline (1946–1964)

United States Overseas Airlines (USOA) was a supplemental air carrier founded and controlled by Dr. Ralph Cox Jr, a dentist turned aviator, based at Cape May County Airport in Wildwood, New Jersey, where it had a substantial operation. It was one of the larger and more capable of the supplemental airlines, also known as irregular air carriers, during a period where such airlines were not simply charter carriers but could also provide a limited amount of scheduled service. USOA's operations included scheduled flights that spanned the Pacific. However, in the early 1960s USOA fell into significant financial distress leading to its 1964 shuttering by the Civil Aeronautics Board, the defunct federal agency that, at the time, controlled almost all commercial air transportation in the United States.

<span class="mw-page-title-main">Johnson Flying Service</span> US mountain airline (1924–1975) that merged into Evergreen

Johnson Flying Service (JFS) was an American certificated supplemental air carrier, a type of airline defined and regulated after World War II by the Civil Aeronautics Board (CAB), a now defunct federal agency which tightly regulated almost all commercial air transportation in the United States during the period 1938–1978. From 1965, supplemental air carriers were charter airlines; until 1965, they were scheduled/charter hybrids.

References

  1. ↑ Wildfang, Frederic B. (2005). Lake Havasu City. Charleston, South Carolina: Arcadia. p. 99.
  2. ↑ "Acquisition of Vance International Airways, Inc". Civil Aeronautics Board Reports. 55. Washington, DC: U.S. Government Printing Office: 112. September–December 1970. hdl: 2027/uc1.b3534412 .
  3. 1 2 Acquisition 1970, p. 116.
  4. ↑ Acquisition 1970, p. 114.
  5. ↑ Air Carrier Financial Statistics (Report). Civil Aeronautics Board. 30 June 1975. p. inside back cover. hdl: 2027/mdp.39015011147033 .
  6. ↑ "Transatlantic Route Proceeding and Supplemental Renewal Proceeding". Civil Aeronautics Board Reports. 72. Washington, DC: U.S. Government Printing Office: 402. December 1976 – February 1977. hdl: 2027/osu.32437011657752 .
  7. ↑ "Supplemental Airlines Revenues and Expenses—1971". Aviation Week & Space Technology. 96 (24): 31. 12 June 1972. ISSN   0005-2175.{{cite journal}}: CS1 maint: date and year (link)
  8. ↑ Handbook 1975, p. 39.
  9. ↑ Handbook 1975, p. 40.
  10. 1 2 Proceeding 1977, p. 415.
  11. 1 2 "Part IV. Income Statement Data of the Supplemental Air Carriers". Supplement to the Handbook of Airline Statistics: Covering Calendar Years 1973 and 1974 (Report). Civil Aeronautics Board. November 1975. p. 78. hdl: 2027/uc1.31822024247041 .
  12. 1 2 "Part IV. Income Statement Data of the Supplemental Air Carriers". Supplement to the Handbook of Airline Statistics: Calendar Years 1975 and 1976 (Report). Civil Aeronautics Board. December 1977. p. 74. hdl: 2027/uc1.31822008525891 .
  13. ↑ "Part IV. Income Statement Data of the Charter Air Carriers". Supplement to the Handbook of Airline Statistics: Calendar Years 1977 and 1978 (Report). Civil Aeronautics Board. November 1979. p. 74. hdl: 2027/osu.32435025695669 .
  14. ↑ "FGH Acquisition of McCulloch". Civil Aeronautics Board Reports. 68 Part 1. Washington, DC: U.S. Government Printing Office: 546–586. August–October 1975. hdl: 2027/osu.32437011658156 .
  15. 1 2 Inomotivator 1978, p. 78.
  16. ↑ "McCulloch International Airlines photos". airhistory.net. AirHistory.net—The Aviation History Photo Archive. Retrieved 5 September 2024.
  17. ↑ item in Peopletalk Philadelphia Inquirer, 12 November 1976
  18. ↑ "Inomotivator, Inc., Acquisition of Control of McCulloch International Airlines, Inc". Civil Aeronautics Board Reports. 78. Washington, DC: U.S. Government Printing Office: 75–81. August–September 1978. hdl: 2027/osu.32437011657497 .
  19. ↑ United States Civil Aircraft Register (Report). Vol. 2. Department of Transportation, Federal Aviation Administration, Aeronautical Center. July 1, 1970. p. 1038. hdl: 2027/mdp.39015023915591 .
  20. 1 2 Register Jul Vol 2 1970, p. 1736.
  21. ↑ Register Jul Vol 2 1970, p. 1066.
  22. ↑ Register Jul Vol 2 1970, p. 1069.
  23. ↑ Register Jul Vol 2 1970, p. 1072.
  24. 1 2 Register Jul Vol 2 1970, p. 1073.
  25. ↑ United States Civil Aircraft Register (Report). Vol. 2. Department of Transportation, Federal Aviation Administration, Aeronautical Center. July 1, 1972. p. 892. hdl: 2027/mdp.39015023915641 .
  26. ↑ Register Jul Vol 2 1972, p. 894.
  27. ↑ Register Jul Vol 2 1972, p. 895.
  28. ↑ Register Jul Vol 2 1972, p. 896.
  29. 1 2 Register Jul Vol 2 1972, p. 897.
  30. 1 2 3 Register Jul Vol 2 1972, p. 898.
  31. ↑ Wildfang 2005, p. 100.
  32. ↑ Acquisition 1970, p. 112.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.