Tahoe Air’s bank deal brings sky-high hopes

Tuesday, Feb. 24, 1998 | 1:44 a.m.

The Tahoe basin-based airline has signed an agreement with Ally Capital Corp. that will result in the investment bank raising about $7 million for the airline.

"One small step for mankind, one giant step for Tahoe Air," said Mark Sando, the airline's on-site project manager.

Ally Capitol will get some of its investors to take a stake in the airline, according to Tod Lindner, the bank's managing director.

"There's a huge market for this," Lindner added.

Tahoe Air, formed by a group of airline industry veterans to return commercial service to the Lake Tahoe Airport, hopes by this summer to be flying commercial passengers to Los Angeles and San Francisco.

The Lake Tahoe Airport hasn't seen a commercial airline carry passengers onto its runways for nearly two years.

Mitch Barker, public affairs officer for the Federal Aviation Administration, said there is no time frame for attaining certification for an airline.

"We try to accommodate a company's needs to the best of our ability," Barker said. "But if there are problems, they must be fixed."

In order to combat any problems which might arise, Sando said Tahoe Air will begin the certification process by mid-March.

The FAA had decided to cut funding for the airport's control tower because of lack of activity. But the agency then opted for partial funding after being lobbied by many Nevada and California representatives and senators and by city representatives.

Airport and city officials are optimistic that a return in commercial service would help re-establish full federal funding for the airport.