It’s time once again for the third annual edition of “Airlines We Lost.” This was a pretty active year, as you can probably imagine. Sadly, my wish last year for Alitalia to be on this year’s list has not come true. That airline soliders on while others have not been so lucky to have a government behind them to prop them up. As I said, last year, let us hope that all the former employees of these airlines find new jobs with ease. I’m probably taking Friday off, so I’ll be back again Monday. Happy New Year!


AlpiEagles – January 3, 2008


We were barely into 2008 when AlpiEagles became the first airline of the year to shut down. To be honest, I don’t know much about these guys, but if I couldn’t include Alitalia, I had to at least find one Italian airline. A Google search found some references that make me think it wasn’t much of a surprise that these guys went under. In fact, I’m somewhat amazed they lasted as long as they did.



Boston-Maine (Pan Am) – February 29, 2008

It’s not often that I’m happy to see an airline go out of business, but this is most certainly one of them. When the Pan Am name and colors were slapped on this two-bit outfit flying old 727s into backwater airports, it was an embarrassment. To make things even worse, this airline was effectively a union-buster that was given the Pan Am name and routes when the previous version of Pan Am was shut down by the parent company. Earlier this year, the DOT put out a scathing report that the airline was financially unfit, lacked proper management oversight, and didn’t follow rules.


Big Sky – March 8, 2008

Big Sky was a sad loss, at least for those who relied on the airline to get around the upper Midwest for years. Big Sky was acquired by Mesaba’s parent, but when Mesaba was sold to Northwest, the parent company wanted out of the airline business. The 19-seaters weren’t making much money, so it was time to call it quits. I remember when I was at America West and we signed a codeshare with Big Sky. There were very few airports they served that I’d even heard of before, but they were the lifeline for the people who lived in those places.



Adam Air – March 18, 2008

If anyone is actually surprised by this one, you must not pay much attention to aviation accidents. Adam Air came out of Indonesia and did a good job of convincing people not to fly it. There were a number of accidents and incidents over its relatively short life span, and ultimately the Indonesian government mercifully shut them down. We should all be able to sleep easier at night knowing that this airline is gone from the scene.



Aloha Airlines – March 31, 2008

For me, this is the saddest failure of the year. If this were the Academy Awards when they show the people who died in the last year, Aloha would undoubtedly get the loudest applause. The oldest airline to fail last year, Aloha succumbed to a brutal competitive environment thanks to the entry of go! into the Interisland Hawaiian market. Lawsuits have dragged on, but it appears they have recently been settled with the understanding that go!, the very airline that killed Aloha, will rebrand as Aloha. This was so unpalatable that even the judge put a temporary stop to it.



ATA – April 3, 2008

Though ATA was an airline that many people hated, I actually never had a bad experience flying them. In fact, I always had good experiences. They reached their zenith in the early 2000s as they grew their Chicago and Indianapolis hubs under now-United drone John Tague but collapsed mightily soon after. Southwest picked up the remains, and the airline limped along for awhile, but ultimately, the owners bought a couple other airlines and shut down the original. A sad end for an airline with a long history.



Skybus – April 4, 2008

Ah yes, remember Skybus? It seems like it was only around for a few minutes, so you may have forgotten them by now. The idea was to offer ultra low fare flights originally only from its Columbus hub. Columbus? Yeah. That might go a long way to explain why it didn’t work. But this airline called it quits before it actually had to. In fact, there was money left in the bank, but the management decided it just wasn’t going to work in the end. By this time next year, we’ll probably have forgotten completely that they ever existed.



Skyway – April 5, 2008

Poor little Skyway, better known as Midwest Connect, died because of Midwest’s insistence on not actually flying any airplanes itself. Skyway was Midwest’s wholly-owned regional subsidiary, but Midwest decided it would rather have SkyWest operate the routes instead. So while Skyway lives on as a ground operations company, it no longer has any planes. Then again, Midwest doesn’t have many of its own planes left either.



Oasis HongKong – April 9, 2008

Like Skybus, Oasis HongKong had a meteoric rise only to come crashing down hard. The airline was running long haul, low fare flights between Hong Kong and both London and Vancouver. Apparently, it’s fares were too low, because one day it just disappeared. Many have argued that the long haul, low fare model doesn’t work, though Air Asia X is currently going to do its best to prove that hypothesis wrong. (Nonexistent labor costs help, by the way.)



Eos Airlines – April 26, 2008

There’s a special place for Eos in my eyes, because I interned with the airline during business school, long before it got started. In fact, it was just me and David Spurlock in a Palo Alto office working on getting funding for the airline back in 2003. The experience was great, but high fuel prices, a very small niche market, and, according to others, weak management, did the airline in. With fuel at today’s prices, it undoubtedly could have held on longer, but it’s not clear that it would have survived.



Nationwide Airlines – April 29, 2008

I’m sure there were a few thousand airlines in Africa that failed this year, but none had a higher profile than Nationwide. This airline, based in South Africa, grew to have a fairly sizable operation that even served London. In 2007, Nationwide was shut down for regulatory non-compliance, but it briefly came back. Of course, a temporary shut down like that is just as bad as being shut down for good, so it did just that and decided to call it quits.



Far Eastern Air Transport – May 12, 2008

I don’t know really know a ton about Far Eastern Air Transport except that their tails had FAT spelled out in big block letters. That’s good comedy. I was surprised to find that this airline was actually around for fifty years, primarily as a very strong domestic carrier in Taiwan. Increased competition (in the air and on the rails) put this airline into financial trouble, and it finally called it quits after struggling to the right the ship for awhile.



Silverjet – May 30, 2008

Like Eos, Silverjet tried to do the all-premium airline model and failed miserably. I’m told Silverjet had a very nice facility at London’s Luton airport, but that wasn’t enough to make it successful. Locating the airline at Luton probably didn’t help much either. Toward the end, there was all kinds of drama. It was said that a Middle Eastern firm would pump money into the airline and refocus it, but that never came through and the airline ran out of luck . . . and money.



Champion – May 31, 2008

Though Champion flew charters with its 727 fleet toward the end, its 2 letter code “MG” alludes to its roots as MGM Grand Air. MGM was a luxurious airline flying between LA and New York, but Champion did a lot of sports charters and some leisure work as well. In the end, the aging fleet wasn’t competitive in the charter market and the airline simply opted to shut down and go quietly into the night. Fortunately, it didn’t go away until after delaying the Spurs to a playoff game against the Lakers. Thanks, guys.



Air Midwest – June 30, 2008

Little Air Midwest was another casualty in the 19 seat aircraft market that really took a hit this year. This airline had been owned by Mesa for several years, and ultimately Mesa opted to completely shut down its 19 seat operation. I had the chance to fly Air Midwest on one of its little Beech 1900s from Yuma to Phoenix, and I certainly had no complaints. Then again, the weather was good that day. Were it not, I might have had a different opinion of the little airline.



ExpressJet (branded service) – September 1, 2008

Let’s get one thing clear. ExpressJet still exists and is still flying around as Continental Express and as a charter airline. The piece that died was the “branded” ExpressJet operation that was set up to fly point-to-point between smaller cities; sort of a Southwest Express in my mind. If Aloha’s failure tugged at the heartstrings, this one bothers the brain. This model still looks interesting to me, especially with lower fuel prices and a different aircraft type. I just think ExpressJet was ahead of its time on this one.



Zoom – August 28, 2008

This quirky airline had a very strange setup. The original airline was Canadian and began flying Transatlantic from Canada. Then they wanted to fly back across the Atlantic to the US from the UK so they set up a UK subsidiary to do the work. Flights went from London to places like San Diego, where no other nonstop service existed. The idea may have made sense in someone’s head, but it didn’t work at all. They collapsed under their own weight.



XL – September 12, 2008

You knew XL was set on being a low cost carrier when it decided that letters were too expensive and shortened its name from Excel. The British low cost charter operation focused on shuttling pasty white Brits to sunspots, but apparently it wasn’t concerned about getting them back when it stranded fifty thousand travelers after its shutdown. Another 200,000 had future bookings so this was likely a more expensive winter than many had planned.


AeroCalifornia – October 4, 2008

Wait, didn’t these guys already shut down? You know it, but somehow the Mexican airline didn’t make my 2006 list. AeroCalifornia operated aircraft so old they were actually flight tested by Charles Lindbergh (um, maybe not), but they were considered airworthy enough to fly to the US until 2006 when it first shut down. The airline made a brief comeback with only domestic Mexican operations, but that again ended abruptly when they ran out of money.



Sterling – October 29, 2008

Sterling quickly rose to be a massive low fare airline in Scandinavia and Europe in general, especially after acquiring Maersk. I flew Maersk once and loved the product, but Sterling had plenty of ownership shifts and never fully found its groove. It didn’t help that its most recent owners were Icelandic, not exactly a good place to be from a financial perspective these days. Cimber Air says it’s going to resurrect the airline, but, well, we’ll see about that.



European – November 30, 2008

Oh man, am I finally done? European wouldn’t get a mention here except for two things. First, it was one of the last operators (if not the last) of the 737-200 in Europe. And second, it operated for Palmair, an airline I really enjoyed learning about this year. Palmair was surprised by the failure of European, but it has found an aircraft from Jet2 to pick up the slack for now. Meanwhile, European will probably disappear quietly without any fanfare at all.

[Airlines We Lost in 2007]
[Airlines We Lost in 2006]

A couple months ago, I wrote about the Which? magazine survey that ranked single-airplane Palmair one of the top airlines in the world. While the survey results aren’t exactly helpful for 99% of the people in the world (and therefore not a great survey), the more I’ve learned about Palmair since then, I’d say it’s hard to disagree that these guys do a great job.

It was with great surprise that I received a comment on the blog from Teresia Rossello, the woman who lays out Palmair’s seating plan on her kitchen table every night. She kindly offered to send me a copy of the Which? magazine with the survey results in it as well as a copy of the Palmair inflight magazine. When it arrived, I couldn’t put it down.
If you didn’t read the previous article, Palmair is based in Bournemouth on the Southern coast of England. Palmair is primarily a tour company that happens to run an airline to transport the ghostly white Brits down to warm sun destinations. You can see all the cities to which they fly on the Palmair website or at left. (They also have a bunch of cool looking day trips scattered throughout the year.)

The airline itself is set up in a very unique way, and it’s exactly how I would set up an airline if I started from scratch today. The aircraft, a 737-200, is operated by European Aviation. As far as I can tell, the plane is a dedicated Palmair aircraft, but it is operated by European Aviation pilots. In the inflight magazine (which is good for the summer season), there are pictures and biographies of all the pilots. Some of these guys have some pretty cool experience. For example:

[Captain] Haydn [Crenshaw] started flying with BEA initially on Vanguards progressing through the BAC 1-11 Boeing 737 fleets and ultimately flying Boeing 777’s for British Airways. Together with his wife Marcia, and five children, his adventurous family have skied in the USA, walked in the Grand Canyon and been diving in the Gulf of Thailand.

It’s a different story with the flight attendant, er, stewardesses. Yup, they insist on calling them stewardesses, and while they may employ men from time to time, they don’t have any this year. And yes, they are employed by Palmair unlike the pilots. I’ve always thought that employing the customer-facing employees directly and outsourcing the rest would be the ideal way to set up an airline.

Interviews are actually held at the house of the founders. Peter Bath is now deceased, but his wife Elizabeth still holds court. The stewardesses really are a blast from the past. How about this biography on Holly Jenkins:

Bournemouth born and bred, Holly studied A Levels in Art, Textiles and English Literature at St Peter’s Sixth Form before going on to Bournemouth Arts Institute. She enjoys dressmaking, painting flowers and making home made cards. Holly loves the beach, especially Mudeford.

Ok, so they aren’t all like that, but they all do have pretty interesting and strong backgrounds. Reading through the magazine, and having emailed with Teresia, you really do get the feeling that this is an airline with a lot of happy people working for it.

So I look at this airline and I see a very small company that’s dedicated to extremely personal service during all aspects of the trip. You can’t even book online because they want to speak to you in person. One of my readers, Simon, commented on the last post that

Bournemouth and the area around it is full of retired people – the sort of people who have time to write to these surveys and also “can’t be doing with that British Airways” largely because they would only be happy if BA made Bournemouth their hub.

If that’s the case, then Palmair is doing everything right in targeting those elderly travelers. Travel among retirees is a booming business, and they tend to want and need extra care in their travels. If I lived in this area, I would certainly pay more to travel with Palmair knowing that I’d be taken care of every step of the way.

Palmair appears to know its target market well, and while it’ll never be a huge airline, it can do a great job of serving its small target market. Now, I haven’t seen any financial information, but I’ll assume that since this is primarily packaged with tours, they can run a profitable venture. I just wish I had the chance to try them out for myself.

Regular readers of the blog know that I’m not a fan of all these “Best of” surveys. That’s why I haven’t written about JD Power’s boring surveys or anything else like that. But, when a survey has an interesting angle, it certainly catches my eye. This includes a recent British survey showing Palmair as one of the top four airlines in the world. Who?

This year’s Which? Awards (out of the UK) features “the best companies and individuals that seek to serve the interests of consumers.” In the airline category, it’s not surprising to see Air New Zealand, Jet Airways, and Singapore Airlines (the eventual winner) make the list of finalists. But that fourth finalist? Palmair. They ended up tying with Air New Zealand for third place.

I must admit that I’ve never heard of these guys, so I thought I’d dig in a little more. The airline seems like an unlikely hero. Based in Bournemouth, on the Southern coast of England, Palmair has a single 737-200 chartered from European Air Charter. The airplane started life with Sabena nearly 35 years ago, but it’s still going strong.

The airline exists to appear solely as a way to funnel pasty white Brits down to warm and sunny places to try to get a little color. You can’t book online, and it’s recommended that you use a travel agent or call them directly. You get a hot meal, but you won’t get your seat assignment until you arrive at the airport. You can only bring 20 kilos of baggage with you as well. So what is so great about these guys?

There aren’t any reviews on SkyTrax to help us out, but there have been plenty of articles popping up since the airline made it on the list. One from the Telegraph shows that flying with a focus on personal service has really set them apart. Just a sampling of what they do well.

• “Singapore Airlines has 100 planes including the A380 which is the largest plane in service, on-board massages and a choice of dvds. All we can offer is the choice of tea or coffee . . .”
• Until 2006, [founder Peter] Bath made sure he was in the departure lounge for each flight to greet the passengers. He then stood on the Tarmac at Bournemouth Airport in Dorset where the airline is based and waved off every single flight.”
• When Mr Bath passed away, long-standing airport representative Teresia Rossello took over the role. She also ensures each customer can have their choice of seat by drawing out a plan in her kitchen every night.
• Stewardesses place fresh flowers on the plane, including the toilets, every day and the company has removed a row of seats to give customers more room.

Sounds nice, right? I’m sure it is, but it’s easy to do with only one airplane. Good luck finding anyone who can replicate this on a large scale. It really makes you wonder how this tiny airline made it on to such a big list. Apparently, there were 70,000 votes by the general public to pick the winner. Sounds like there was a heck of a write-in campaign on behalf of this airline. It seems that every person who has heard of the airline must have felt compelled to go and vote.

So this doesn’t really change my view of surveys. I don’t find this particularly useful at all, since I highly doubt I’ll ever be in Bournemouth, and if I am, I’m unlikely to be flying to a sun spot. This may be an excellent airline, but if it doesn’t fly anywhere you need to be, is it really helpful? In fact, I’d imagine most people would find this news completely worthless, but I imagine all of us would enjoy flying on an airline like this, if it existed in our own backyard.