November 12, 2001 Pelican's Perch #49: Starting an Airline |
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Nowadays, starting a new airline requires tens of millions of dollars in capital and nearly that many pages of FAA paperwork. But back in the 1950s, all it took was a $10,000 WWII-surplus transport, a few hungry time-building pilots, and a lot of chutzpah. AVweb's John Deakin was just starting his aviation career back then, and he tells a first-person tale of such a venture that actually got off the ground, albeit briefly.
November 12, 2001
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| About the Author ... |
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John Deakin is a 35,000-hour pilot who worked his way up the aviation food chain
via charter, corporate, and cargo flying; spent five years in Southeast Asia
with Air America; 33 years with Japan Airlines, mostly as a 747 captain; and
now flies the Gulfstream IV for a West Coast operator.
He also flies his own
V35 Bonanza (N1BE) and is very active in the warbird and vintage aircraft
scene, flying the C-46, M-404, DC-3, F8F Bearcat, Constellation, B-29, and
others. He is also a National Designated Pilot Examiner (NDPER), able to give
type ratings and check rides on 43 different aircraft types.
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While
hanging around and working at the Sarasota-Bradenton airport (SRQ) in the
mid-50s, I became aware of a small group of pilots my father called
"airport bums." It was years before I realized that was intended as
a derogatory term, for they were my heroes. That was probably why Dad put me
into forced labor in the family glass-blowing business at age 12 to 17. Years
later, I accused him of violating the child labor laws, but he just grinned
and said, "Yeah, but it sure kept you out of trouble!" In these more
complex times, one wonders what "trouble" he had in mind. The local
"heroes" all drank, smoked and womanized to excess, so perhaps
that's what he was worried about. Oddly enough, I never smoked or drank, and I
was much too busy with airplanes to womanize, even if one had taken an
interest in the greasy, smelly kid with the airplane grease under his
fingernails.
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PBY.
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For some years, the local talk among these airport bums was about possible
ways to make money with airplanes, preferably with the least possible amount
of work. The grand idea was to acquire a surplus military cargo aircraft, and
fly cargo north and south between the Americas. I didn't realize it at the
time, but the primary considerations were the warm sunshine, easy booze, easy
women, and similar companions to be found in the bars throughout the
Caribbean. Me, I just wanted to fly whatever was used, and I was fascinated by
the talk, along with the inevitable war stories of airlines and old jobs in
the past.
The first really serious scheme was to get a PBY, convert it to cargo use,
and fly it to the western Yucatan, landing in the ocean near the fishing
fleet. We would haul supplies for the fleet down from Florida, and haul fresh
Red Snapper back. A common theme throughout all those years and ideas was
"Pay for the round trip with the cargo southbound, then all the
northbound cargo is pure profit."
Before we could buy the airplane, we had to find the money, for the local
airport bums didn't have any, of course. The only pilots with money were
airline captains, everyone knew that.
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deHavilland Dove.
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The primary character in this story must be Bill Woods, whom I have not
seen or heard from in 40 years. He just showed up around SRQ, and somehow
began flying oddball charter flights, picking up a buck here and there, and in
general, just hanging around. He took me along a few times in the deHavilland
Dove, and I learned a lot on several charters to Cuba (pre-Castro) and Grand
Cayman, as well as points north such as Harrisburg (in the winter). I remember
distinctly the first time he let me make a full formal position report at some
point between Key West and Cozumel, talking to "Boyeros Radio," the
primary ATC contact in Havana. GMT time was still something of a mystery to
me, and position reports were really complex for a neophyte. I went to great
trouble to note the time we guessed we were over some fix, something like 2347Z,
and the time to the next fix, which was well over an hour down the line.
Bravely, I picked up the big gooseneck mike, and trying to imitate Bill's deep
radio voice, said, "Boyeros, deHavilland 73795, over (whatever) at two
three four seven, eight thousand, IFR, (whatever) at two five zero two,
(whatever) next." I was really proud of myself.
Bill had his hands full, for we were in heavy weather, no autopilot, lots
of rain and turbulence, and like most old airplanes, we were getting really
wet inside from leaks. (To this day, I believe the primary advantage of
pressurization is that all the leaks are OUT.)
The report was done on a junky old HF radio, and there were lots of
thunderstorms around (in fact, we were probably in one), so it was no surprise
when Boyeros came back in heavily accented English mixed with a lot of static
with "Say again time over next position?"
I checked my scrawled notes, and repeated, "Estimating (whatever) at
two five zero two."
There was a long pause, and I figured he'd gotten it. But then he came
back, and said, "deHavilland 73795, confirm your estimate is "two
FIVE zero two?"
"That's affirmative, Boyeros, two five zero two."
Bill had been swearing steadily at the rough weather, but now he broke into
a torrent of abuse, this time directed at me. "THERE'S NO SUCH THING AS A
TIME OF TWO FIVE ZERO TWO, YOU STUPID *******!" He grabbed the mike, and
corrected the report, much to Boyeros' relief.
I'm not sure why Bill let me hang around him after that, perhaps it was for
the entertainment value.
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PBY.
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In the early days of the operation, Dick Prim (USN Retired) was another
"local character." Oddly enough for an airport bum, he also actually
had a real flying job with Tropicana, first with a Bonanza, then a Travelair.
He also had an instructor's rating (they were ratings in those days), and he
was the instructor who put me through my instrument training in "The Navy
Way," consisting primarily of shooting LF Range approaches to the Tampa
airport, and basic maneuvering on primary instruments, because that's all the
little Tri-Pacer had. He insisted that all takeoffs and touchdowns were
"zero-zero," and since the windows were covered with amber Plexiglas
(he could see out), and I wore blue Plexiglas goggles that allowed me to see
the instruments in blue, ALL outside view was totally blocked by the
combination of blue and amber. That excellent training would save six lives in
an iced-up Twin Bonanza years later, but that's another story.
Bill and Dick scoured the area for "investors" to help launch the
new airline. The pitch was to put up some small amount of money, say $2,000
each, and become a "stockholder" in this "airline." The
real attractant was that all stockholders would get to ride along to the hot
spots of the Caribbean, any time they wanted, free. There were a lot of
hustlers in Florida in those days, and in short order, we had something like
ten "investors," referred to behind their backs as
"pigeons."
A PBY was found, a deposit made, and plans were made to go get it. Then
somehow, the PBY was sold to a buyer in the Philippines. There was talk of me
going along as the copilot on the flight out there, but somehow that never
happened. I was crushed.
Now, you have to understand, no one but me knew I was a part of this new
airline, and of course, I had no idea that others didn't know that. After all,
how could this thing ever do without me, I was right there! I was 17.
Part of the problem was legal. The rules of the day were much simpler then,
but genuine, legal cargo aircraft had to be operated under a certificate, and
they were expensive. Bill figured out early on that the only way we could work
it was to buy some airplane with a "Limited" certificate, and the
only way we could operate legally (well, sort of legally) was to actually buy
the cargo, transport it on our own airplane, then sell it at the other end.
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TB-25N.
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Military surplus North American B-25s were still pretty common, and there
were a fair number of them available. Most of them would sell for about
$10,000, in flyable condition, so the attention turned to that type. In 1958,
we bought N9868C, which my logbook shows as a TB-25N. We spent months
converting it from a medium bomber to a cargo aircraft, by stripping out
everything not necessary for flight. The top of the bomb bay was removed (we
later found that is a structural item), and a heavy floor was built in the
bottom of the bomb bay. I did so much of the work on it that I suppose they
felt they couldn't leave me behind on the first flights, so I got to go.
On January 27, 1959, Bill Woods test-hopped it, and "checked himself
out." I got about 20 minutes of stick time. There were a number of test
flights after that, a flight down to Venice for the installation of an old
ART-13B HF radio, and I got to go on all those, picking up a little time here
and there, and getting my first landings. I had 471 total hours when I got my
first landing in the B-25.
I didn't get to go along for Bill's type rating ride, and I remember being
livid over that. What a pest I must have been! But I worked on that airplane,
man, how I worked! No job was too dirty, and I'd often be working long past
midnight, trying to meet some artificial deadline or other. Somehow, the story
was always, "We gotta be ready by Monday," but somehow, months
slipped by.
On March 17, 1959, we did our first "revenue" flight under the
moniker of "Caribbean Air Transport," and by then I was so firmly
ensconced in the right seat, I suppose no one had the heart to tell me I
couldn't go. I do remember one half-hearted attempt to boot me out, someone
said, "John, you can't go, you'd need a passport."
I whipped my new passport out, and just said, "Got it." Somewhere
along the way, $500 per month was mentioned as pay, but I rarely got it. I'm
not sure Bill did much better, but once in awhile he'd slip me a one-hundred
dollar bill.
During the two or three years it took for this dream to come together, the
basic idea always remained, "Pay for the round trip with the southbound
load, and then anything northbound will be gravy." But the nature of the
trips changed, from landing in the water to pick up a load of fresh fish (A
B-25 is not exactly amphibious), to a more conventional operation, with Belize
(then British Honduras) as the key point in Central America.
To my knowledge, no advance arrangements were made in Belize. Bill made all
the arrangements for us to buy frozen meat, vegetables, bread, ice cream (in
dry ice), and other edibles, to be delivered at the aircraft. I personally
loaded every box, first by filling the nose compartment, then the
"tunnel" under the pilot's seat, then the bomb bay, the waist
section, and finally, I stuffed the really light stuff (bread) back in the
tail. About seven thousand pounds in all, full fuel, four or five
"investors," and away we went, 1:05 to Key West, then 3:15 to
Belize.
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B-25 cockpit.
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Bill made the takeoffs, after which I happily did all the flying and made
all the landings, a pattern that was repeated all the time we flew together. I
literally never got a takeoff, and he never did a landing. I thought that was
a bit bizarre, but was too afraid of losing the landings to ask for a takeoff.
As soon as we arrived on that first trip, Bill went hustling into town to
arrange for trucks and a place to sell our stuff. He showed up back at the
airport with trucks a few hours later, and we unloaded. The frozen stuff was
starting to melt, but the ice cream was doing well, and we got it to a
warehouse with refrigeration pretty quickly. That evening, we put the word out
through the embassies and hotels that there was fresh American produce, ice
cream, bread, and meat available. Our "investors" were helpful in
this, for they hit every bar and whorehouse in town that night, and put out
the word without even intending to. Girls and booze were really cheap in that
town, and stories of those nights assured an eager flow of investors when the
stories got back home. In a few cases, the stories got back to the wives, and
those investors tended to drop out. I can't understand why.
Our investors may have done good work in spreading the word the night we
arrived, but they weren't much use the next day, so Bill and I sold the
goodies by ourselves, making up prices as we went along. We were absolutely
mobbed, and sold out before noon. I remember charging $10 for a big Florida
watermelon, and two proper British ladies nearly coming to blows over it. One
was a certain "Lady Hoare," who was the wife of the local "High
British Official," and didn't let anyone forget it. Fortunately, I heard
her name before I was introduced, or I'd have had a hard time controlling
myself. Honest, I couldn't make this up, she insisted on being called
"Lady Hoare." After a time, it developed a certain ring.
Bill and I were elated that night, for the income would not only pay for
the round trip, but showed a very nice profit, even without a northbound load!
But then we paid the hotel bill, and found our "investors" had
managed to charge all manner of things to their rooms at the Fort George
Hotel, the finest hotel in town. Some were not too clearly identified, but we
were pretty sure some of the local bar girls were involved. I remember some
yelling and shouting over the bill, but I left all those business arrangements
to Bill, I had enough to do maintaining, flying, and loading the airplane (and
selling the produce). Those investors sure slept well going home, and it
wasn't fuel fumes we smelled, either. Bill had also celebrated the successful
sale of our goods, so he slept all the way home, after making the takeoff as
usual.
Immediate plans were made to fly a weekly trip, and there was even some
discussion of a whole fleet of B-25s serving the countries of Central America.
We made another trip the following week, with much the same results, and an
even quicker, more profitable sale! We missed the third week for some reason,
but made the fourth week, and so the pattern continued. These were glory days
for me, as I was doing the B-25 trips, ferrying new Pipers from the factory at
Lock Haven, doing a lot of charter, and flying everything I could get my hands
on in the area. One fellow bought an old Lockheed 12, and scared himself to
death in it. Looking for help, he asked me if I knew how to fly one.
"Sure," said I, never having touched one. So I checked myself out in
it, then turned around and gave him "dual," until he felt
comfortable. I had all of 540 hours total, and 90 hours of twin time. Another
fellow bought an AT-6, and he was also scared to death of it, so I went into
my "Aw shucks, I can fly it" act again. After he satisfied himself
that he didn't have the basic skills for that airplane, he let me use it
anytime, anywhere, all I had to do was put gas in it. There were always
suckers willing to pay for the gas for rides or some stick time, so it wasn't
long before I was "instructing" from the back seat, sublimely
unaware of the pitfalls. I figured it was legal, as long as I wasn't signing
off dual instruction.
But alas, the "pigeons" became an insurmountable obstacle to
profitability, and we were soon sacrificing paying cargo for freeloading
passengers. I can recall one memorable trip where I had three people in the
nose, one lying in the "tunnel," two sitting on the footrests down
near the floor, two in the normal passenger seats, two on the deck behind the
pilot's seats, and of course, two in the pilot seats. Twelve people, just
crammed in, and 7,000 pounds of cargo. I think Boeing heard about me, and
later used that model for 757 seating.
Weight and balance was "interesting." On about the second trip,
while loading, the tail came down and hit the ground with a thump.
"Hmmm," I thought. Maybe that's not good? So I shifted the load
until it came back up. It didn't seem much different from the first load as
far as space and density, and the airplane had flown fine, so I figured right
away that as long as the nose wheel would stay on the ground, we'd be ok.
After that, I cut a length of 2x4 just the right size, and used that to block
up the tail. As we fired up and taxied away, the 2x4 would fall, and we'd be
fine.
One of these days I'm going to work out the moments, and see where we must
have been, but I'm not sure I really want to know.
The investors (vice-presidents all, of course) soon fell to squabbling, a
lawsuit was filed that grounded the B-25 just hours before a trip, and I was
devastated. I'd been hustling Bill to be allowed to get a type rating, and
while he was agreeable, we'd not been able to find the time, fuel, or someone
to do it. It really hurt, because I just knew I'd never get another chance,
and I felt all that B-25 time was lost, if I didn't have the rating. They also
owed me several thousand dollars in back pay, but I didn't care nearly as much
about that.
Then it dawned on me that the airplane was just sitting there, full of
fuel. It wasn't chained down or anything, and the airplane certainly didn't
know about the lawsuit. I started calling around, and found an FAA Inspector
in the Miami GADO (now FSDO) who was qualified to do B-24 type ratings, and
more importantly, willing! Coincidentally, his name was Harry Mitchell, and he
said he was a relative of Billy Mitchell, after whom the B-25 is named! I took
this as a very good omen. My next problem was a copilot. My dad was a private
pilot, active in the restoration and flying of Fairchild PT-19s, so I figured
he'd do, and astoundingly, he was willing! What fools these Deakins be.
I had timed all this very carefully so that Bill Woods was out of town, as
I didn't want to risk asking anyone for permission, even him. I figured I
could later tell him I had the chance and I didn't know where to call him. But
as we were getting ready to go, I saw him drive up to the distant FBO, and I
figured he'd really be mad if he saw me just taxi out. So I went running up to
him, breathless, "Bill, I've got an FAA guy who will give me a rating
ride, is that all right with you?" Bless his heart, Bill just grinned,
waved me off, and said, "I don't wanna know nothing about it!"
Dad and I finished preflighting, and fired her up. About then, one of the
more active stockholders, also an airport bum, happened to drive up, and
wanted to know what we were doing. I hollered back that we were just going to
move the airplane, and he said, "Wait, I'll go with you," and he
drove away to park.
This particular person and I had never really gotten along. He probably
figured I was just a smart-ass punk (I can't understand that!), and I saw him
as someone who might want to get rid of me. At the time, I didn't know he was
also a private pilot, and wanted desperately to get some B-25 time. Of course,
I was in the way of that, so the "vibrations" I was getting were
pretty close to the mark.
As soon as he disappeared around the corner of the hangar, I made my move,
taxiing out at a brisk speed. There was a new control tower, and I'd hung
around up there a lot, so I knew both controllers. I think Frank Dyer was
working that day, but it might have been Chuck Downs. The angry stockholder
realized there was more afoot than just moving the airplane around, and he
called the tower to order me back.
"9868C, we have a phone call ordering you to return to the ramp."
"Roger, 68C is ready for takeoff."
"68C, did you understand the order to return to the ramp?"
"That's affirmative, but that has nothing to do with you, if there's
no traffic, you are required to clear us for takeoff."
"Johnny, I sure hope you know what you're doing, 9868C, you're cleared
for takeoff."
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B-25.
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And away we went. The beauty of the whole thing is that no one knew where I
was going, and the assumption would be St. Petersburg, where Bill had gotten
his type rating. I turned in that direction until I thought we were out of
sight, then set course for Miami International. I later heard that phone calls
were indeed made to St. Pete, but of course, no one there knew anything.
I think Harry Mitchell was a little shocked when he saw my age, or the lack
thereof, and he started out a little stern. He quizzed me rather closely, and
I told him the whole story, 100% straight. I think he was a little amused by
the whole thing, and for some reason, he decided to go ahead, even taking the
right seat and leaving my dad behind (can you picture a modern FAA type doing
that?). The oral went very well, mostly because I'd worked on the airplane so
much, had even changed an engine pretty much on my own, so I knew the systems
cold. I had over 100 hours in it by then, had bootlegged a little practice in
it, had made a number of real instrument approaches, so the flight check went
pretty well, too. Harry mumbled something about judgment, stealing airplanes
and being more careful, but I don't remember much about that, I was in a daze
at having my first type rating, with just over 600 total hours, at 19.
Dad and I landed back at SRQ after dark, with no one around, when I fully
expected flashing lights and sirens. I quietly secured the airplane in the
same old spot, and figured she'd never fly again. I was afraid the manuals
would disappear, so I put them in my car trunk for safety. Good thing I did.
Nothing ever came of my airplane theft! The angry stockholder had a few
angry words for the way I'd left him in the lurch, and claimed he wouldn't
have stood in my way. He said he just wanted to go along. I've always felt a
little bad about that.
The last revenue flight was on 6/23/59, and I swiped the airplane for my
rating ride on 7/14/59.
Figuring poor old 68C would never get out of litigation, we promptly went
looking for new pigeons, another airplane, and a new name. It didn't take
long, I show a test hop on N3451G on 8/2/59, only two weeks later, with the
company reborn as "Caribbean Enterprises." In that airplane, I
became a captain, flew through hurricanes, suffered engine failures, and had
many other adventures, but that's for another column, perhaps.
I did have one more minor brush with 68C. Somehow, a year or two later, the
litigation was settled, and 68C was sold to Warren Henderson, at that time a
minor politician/businessman in Venice, the next town south of Sarasota. He
was part of a group that wanted to do something similar, something about
horsemeat to the islands, or something, I don't remember. I approached the new
owners about perhaps flying for them, but got brushed off rather rudely, with
them saying something about hiring a "real pilot." Then I told them
the old corporation still owed me a lot of back pay, and they got even more
unpleasant, just blew me off.
But a few days later, just as I knew they would, the old and the new owners
together approached me a bit more courteously, with "John, we can't find
the manuals, do you have any idea where they might be?"
"Gee, (all innocence) they're not in the airplane?"
"No, we looked, really hard, and we can't fly it unless we have the
original manuals, with the serial number, and all. In fact, we can't even
complete the sale, and that's what we're here for. You know, keeping those
manuals is stealing and a crime, we wouldn't want to get the police involved,
here."
"Really! Gee, I think not paying employees is a kind of stealing, and
I think that's illegal, too?"
You never saw so many jaw muscles jump at once.
One finally gritted his teeth, and said, "How much?" Good man,
right to the essential point!
"Oh, about three months back pay, at $500 per month - cash."
They retired to a point several hundred feet away, and had a heated
discussion, followed by everyone fishing out their wallets. They came trooping
back to where I was leaning against my car (a neat little '55 Chevy) and said,
"All we've got here in cash is $700, take it or leave it."
I counted it out calmly, while they just steamed, thought it over, and
said, "Ok, I'll take it."
Then I popped open my trunk, and said, "Why lookee here, I do believe
these are what you're looking for."
Would you believe, they never even said "Thank you?" They grabbed
the manuals, shot me a brace of dirty looks, and off they went.
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Cessna 310D.
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There is a tiny sequel. For most of 1960, I flew a brand-new Cessna 310D
for the Secretary of State of Florida, Tom Adams, one of the nicest bosses
I've ever had. I had dropped him off somewhere in Florida, and was on the way
somewhere else, when who should I happen to see in the FBO but Warren
Henderson, then running for some Florida office. He was shaking hands as
politicians do, but as he got to me, he remembered. I saw the flash of anger
in his eyes, but he covered it up well, smiled, and asked, "How are you,
John?"
"Fine, how are you?"
"Oh, we've got problems, I'm on the campaign trail, trying to get home
to Venice tonight, and have to leave again in the morning, but my airplane is
out of commission, it's a real mess."
I thought for a moment, then decided what the heck. "Well, I'm taking
off right now with an empty airplane, and I'd be glad to drop you off in
Venice, if you like."
He looked startled, and I could see the question in his eyes. I just
grinned, and said, "No charge, this time." He had the grace to grin
back, and accepted my offer. In Venice, as he climbed out of the back seat, we
shook hands, and I said, "Hey, I hope there are no hard feelings?"
He just said, "I'll just say one thing, you're one smart son of a bitch,
and thanks for the lift!" And he was gone.
My boss was a Democrat, and I think Henderson was a Republican, maybe
that's why he was so huffy?
Be careful up there!
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