Airline looks to go National

Friday, Jan. 22, 1999 | 10:23 a.m.

The U.S. Transportation Department has started its review of an application for certification from National Airlines.

National, the Las Vegas-based air carrier that plans to begin nonstop service between McCarran International Airport and New York, Miami, Los Angeles and San Francisco by the end of March, needs approval from two federal agencies before it can begin flying passengers.

Within five years, company officials hope to have 40 planes and serve 22 major U.S. cities. That's bigger than Reno Air got before it ran into financial trouble just over a year ago.

"We've heard that all the operational people have signed off on it and we're just waiting for the legal department to review it," National's Dik Shimizu said of the company's bid for a Transportation Department show-cause order.

The DOT certification is to determine whether a company is financially qualified to operate. Agency spokesman Bill Mosley said the certification covers issues of whether there is adequate financing for the company, whether the management is qualified to operate a scheduled airline and whether management leaders have complied with transportation laws in the past.

In addition, DOT investigators will review National's incorporation records to determine if the airline has less than 25 percent foreign ownership, one of the criteria for permitting the company to operate.

National officials aren't expecting any problems in the DOT certification process. The $47.3 million in start-up capital the company reported it had when the company announced its plans last summer is $20 million more than most new airlines begin with.

Qualification and ownership issues shouldn't be a problem either. Chief Executive Michael Conway has assembled a team that has gone through a start-up before -- most of his senior managers were on board with him when he co-founded America West Airlines in Phoenix in 1981.

"This is the most seasoned team ever to start up an airline," Conway said. "They've all gone through this process before."

Mosley said once a decision is reached on a show-cause order, there's a 14-day comment period during which DOT administrators hear objections from parties that would be affected by National's start-up. If any objections are received, National would have seven days in which to reply.

The other half of the certification process will be conducted by the Federal Aviation Administration, which examines safety and airworthiness issues.

Sometime next month, National will take delivery of its first Boeing 757 jet painted with its multicolored logo. Shimizu said the FAA will notify the company of the approximate date it will get certification. That way, National will be able to target when it can start selling tickets.

National officials are still targeting the end of the first quarter for the first flight. With a 30-day advance time frame for ticket sales, the company should be taking its first reservations around the end of February or early March.

Conway said employees already are looking forward to the arrival of the first plane with National colors.

"We've worked so long with what's essentially a dream," he said. "It'll be an emotional day when we see the first one come in."

Although the planes haven't come in yet, National officials already have a pretty good idea what the pilots and flight attendants will be wearing and what kinds of uniforms will be on the employees meeting customers and baggage.

The flight crews will wear dark blue uniforms.

Shimizu said pilots, flight attendants and customer service representatives will wear uniforms designed by All Built, the company that designed uniforms at the Harrah's hotel-casino in Las Vegas.

Maintenance and ramp uniforms were designed by L and N, a company that provides attire for the Rio hotel-casino.

Shimizu said it was strictly coincidental that Harrah's and Rio are the two companies that are helping finance National's launch.

The two companies kicked in $15 million each in return for special marketing privileges with the airline. Conway said his staff is continuing to meet with managers of Harrah's and Rio to determine exactly how they will cross-market the resorts and the airline.