SAN FRANCISCO-OAKLAND HELICOPTER AIRLINES (SFO-1): United States (1961-1977). Founded on January 6, 1961 by five former Los Angeles Airways (LAA) executives, SFO, certified by the CAB as an air taxi operator, launches scheduled service in the San Francisco Bay area on June 1 with two leased Sikorsky S-62s.
Successful without subsidy, the helicopter carrier is offering nearly a 100 flights per day by December 1962 between the business districts of San Francisco (Marin County Heliport), Oakland, and Berkeley and the two major airports in the first two cities. It is also providing mail service on an interim basis.
Enplanements for the year total 104,000 and the new entrant is now the second largest helicopter airline, preceded only by New York Airways (2).
In February 1963, the rotary-wing carrier spends $1 million for the purchase of three more S-62s. In hearings before the CAB, SFO argues that its fellow rotary-wing operators, particularly LAA and NYA, are expensive and wasteful of the subsidy they are receiving from the government. SFO suggests that it can make a profit without a grant and thereby wets the appetite of subsidy-cutters in Congress, who will eventually take away federal support from all four of the nation’s helicopter carriers.
The CAB in November awards SFO the first permanent certificate ever granted a helicopter airline. The airline is also receives permanent authority to fly the U. S. Mail at straight mail pay and with no airmail subsidy.
An S-62A with 11 aboard crashes at Oakland on December 2, but only minor injuries are reported.
Enplanements for the year total 125,080, but the loss is nearly $375,000.
Airline employment in 1964 stands at 280 and the fleet includes 4 S-62s. Early in the year, the downtown San Francisco heliport is closed, leading to a traffic downturn. New frequencies are launched to Marin County Heliport in an effort to make up the difference.
In March, the company is able to begin using the rooftop of a 120-ft.-high municipal parking garage in Oakland as its downtown landing site in that city. When flights begin, they are the first scheduled passenger rooftop services in the world. Air express service is now added.
In order to take advantage of what has become a profitable business of helicopter repair, a new maintenance base is established at Oakland; simultaneously, corporate headquarters are transferred across the Bay from San Francisco. Late in the year, the company purchases two Sikorsky S-61Ns.
Passenger boardings decline by 6% to 118,000 and revenues are $1.01 million. The loss is cut to $187,000.
The workforce in 1965 is 325 and the fleet now includes 6 helicopters. The first Sikorsky S-61N is delivered in the spring and following its introduction, new routes and facilities are added. Service is provided to San Francisco Peninsula and the entire East Bay area. New heliports are opened at Palo Alto, Lafayette, and San Jose.
An S-62 with two aboard is forced to ditch in the Bay four mi. NE of Oakland on April 15 after an engine malfunction. The next day, another S-62 suffers an engine malfunction that causes it to crash-land at San Francisco. The tail rotor of an S-62 strikes a truck while the helicopter is taxiing at San Francisco on May 5. No one is seriously hurt in the three accidents noted.
On May 25, a contract is signed with Trans World Airlines (TWA) for the establishment of scheduled service between San Jose and Palo Alto and to the TWA terminal at San Francisco. The major guarantees the service’s break-even costs to an extent not covered by operating revenues and promises a $9,000 monthly profit if costs are held to a specified level.
In June, as the result of a CAB exemption received on June 6, SFO proposes hovercraft service. Although financially stable, it begins a shuttle and subsidy arrangement with American Airlines at San Francisco on July 14. The shuttle is implemented with the second new S-61N now received.
Employing British-made Westland (Saunders-Roe) SR. N5 Jet Skimmer hovercraft, the carrier begins an experimental trans-San Francisco Bay air-cushioned vehicle service on August 10. The third S-61N arrives during the fall, but, to keep capacity in line with traffic, the number of daily services must be reduced to 88.
Passenger bookings increase to 139,725, but the year’s losses total $342,739.
The fleet in early 1966 comprises 3 S-61Ns, one S-62A, and 2 Westland SR. N5 Jet Skimmers. The carrier reports on June first that Trans World Airlines (TWA) and American Airlines will underwrite, for 2 years, the costs of 74 daily flights between San Francisco and Oakland and will guarantee an additional $9,000 income per month. The majors also promise to help raise $2 million for promotion and expansion.
The employee population in 1967 numbers 399 and the fleet still includes 4 helicopters. The flight completion rate reaches a peak of 97.6%, load factor reaches 39%, and a 49% break-even point is reached.
A total of 289,000 passengers are originated and 760,000 freight ton-miles are flown. Maintenance work is received from the U. S. military under contract and although a figure is not cited, it is noted that the company enjoys a profitable year.
The workforce declines in 1968 to 328. Freight ton-miles total 526 and customer bookings advance 13.5% to 327,879. Revenues are $3.28 million.
The company’s fortunes now begin to slide, as the Vietnam War starts to wind down. Maintenance business is lost and several routes are cut. Passenger boardings in 1969 drop to below 300,000.
The most stringent retrenchment measures are taken in February 1970. These prove insufficient and on August 1 company officials declare Chapter XI bankruptcy. Under court guidance, management and scheduling are improved, even as the number of routes is cut to just two.
SFO-1 succeeds in remaining alive and offering limited services, although enplanements for the year decline to 230,000. The company disposes of several helicopters and continues its Chapter XI operations in 1971. Enplanements for the year are 190,000.
The workforce in 1972 is 122. Depressed conditions continue through the first three quarters; however, traffic loads begin to improve significantly in the third. Improvements are attributed to schedule refinement and a major effort to capture more of the Los Angeles and San Francisco markets through a joint fare arrangement with Pacific Southwest Airlines (PSA). Increased bookings in the final quarter help the year’s en-planement total to remain level with 1971’s.
Freight ton-miles increase, however, by 5.99% to 312,000.
After almost three years of operation under bankruptcy, the carrier completes a reorganization program during the summer of 1973. The workforce is increased by 31 employees.
Customer bookings jump 17.1% to 226,000 and cargo traffic is up by 15.1% as 2,000 freight ton-miles are flown.
Airline employment in 1974 is 150. Enplanements rise again, up 5.3% to 238,000.
Twenty-seven employees are laid off in 1975 or not replaced. A unique new marketing campaign is undertaken when the three Sikorsky S-61s are painted in a black and yellow “bumblebee” pattern; labeled “Bumblecopters,” they emphasize “beeline” service in the San Francisco Bay region.
The gambit does not appear to work as passenger boardings decline 7.3% to 225,000. Cargo is also down, an even larger 27.3%.
Bumblebee flights continue until August 1976 when a job action by company mechanics forces the operator to shut its doors. Having lost $4.7 million since the 1970 turnaround, the carrier cannot be reorganized and it is liquidated in August 1977.
SAN FRANCISCO-OAKLAND HELICOPTER AIRLINES (SFO-2): United States (1981-1987). In the fall of 1981, AirTrans Holdings, Inc. owner Dean Hanson purchases the name of the first SFO. Employing 3 Bell 206L LongRangers, the new rotary-wing carrier inaugurates scheduled passenger flights on November 12 linking Oakland International Airport with San Francisco and the downtown Oakland Convention Center heliport.
Early in 1982, flights are initiated to Concord, San Jose, and to Lawrence Livermore Laboratories.
A total of 21,084 passengers are carried in the first full year.
As the result of a traffic downturn early in 1983, SFO-2 is forced to curtail operations. The LongRangers are grounded and a single Bell 206B JetRanger is employed to operate across San Francisco Bay between SFO and Oakland. Still, President Hanson makes plans to open a heliport at San Rafael, in Marin County.
Bookings remain level at 21,616.
Airline employment in 1984 is 34 as 2 Sikorsky S-58Ts are acquired. Enplanement totals are not released, but despite the introduction of the new aircraft and the opening of the San Rafael heliport, they are still down.
Passenger boardings in 1985, however, total 19,047. The 42-employee helicopter airline experiences a big traffic downturn in 1986 as customer bookings plunge 45.1% to 10,477. Unable to maintain its economic viability, the helicopter operator shuts its doors in 1987.
In the fall of 1990, the company’s dormant certificate is revoked. The company petitions for its restoration, citing plans to resume twice-daily Concord-Bakersfield flights with two Piper PA-31T Cheyennes and a PA-31-310 Navajo. Authority is restored in early 1991.
World History
