Family Airlines

Family Airlines was an American airline venture proposed in the early 1990s as a low-cost carrier aimed primarily at leisure and family travelers. The company attracted attention by publicizing a planned US$249 fare between Los Angeles and New York City, positioning itself as an alternative to conventional airlines that it argued were too expensive for families. Barry Michaels served as the venture’s chief executive and leading public representative. The proposed airline intended to use second-hand Boeing 747-100 and 747-200 aircraft, with an initial fleet of approximately three to five aircraft. Its first proposed route was a multi-stop service linking Las Vegas, Los Angeles, Newark, and Miami, with Las Vegas serving as a base point. The company also discussed later services to destinations including San Francisco, Phoenix, Honolulu, and Boston. The business plan depended on obtaining or leasing parked wide-body aircraft, including aircraft associated with European and Asian operators and a former Pan Am 747. Family Airlines established offices in the Las Vegas area in 1992 and announced plans to begin flying later that year. It did not, however, obtain the regulatory approvals required to launch. In March 1993, the Federal Aviation Administration stopped processing the company’s application. The United States Department of Transportation subsequently reviewed legal actions and judgments involving Michaels and requested that he relinquish control of the proposed airline; Michaels agreed in April 1993. The venture was also affected by securities-related litigation. In 1996, the Securities and Exchange Commission sued Barry Michaels and Holly S. Michaels over the alleged fraudulent offering of unregistered stock connected with the airline. A federal court ordered the defendants to return money to investors and imposed civil penalties. These events effectively ended the original Family Airlines project. The business concept resurfaced in the 2000s and 2010s under the Avatar Airlines name. A new application submitted in 2008 proposed operating up to twelve Boeing 747-400s in a high-density configuration, initially connecting Los Angeles, New York, and Miami. The application was denied in 2009. Another filing followed under the Avatar Airlines name in 2010, and a further application was associated with a move of the corporate headquarters to Boca Raton, Florida, in 2014. The later venture continued to promote a low-cost Boeing 747 model and eventually added long-haul cargo to its stated ambitions, but it did not commence scheduled airline operations. Publicly reported information in 2020 did not establish that the company had obtained FAA or DOT certification.

Family Airlines emerged in the early 1990s as a proposed American low-cost airline led by Barry Michaels. Its concept was built around unusually low fares and the use of inexpensive, previously operated Boeing 747 aircraft. The company said it wanted to serve families and leisure travelers who found established airline pricing inaccessible. It received publicity after announcing a US$249 fare between Los Angeles and New York City, while also indicating that some business traffic might be pursued on shorter routes such as San Francisco–Los Angeles. In 1992, Family Airlines outlined a fleet of three to five Boeing 747-100 or 747-200 aircraft. The first planned routing would have connected Las Vegas, Los Angeles, Newark, and Miami, with Las Vegas as both a commercial focus and a base for the proposed network. Additional plans mentioned San Francisco, Phoenix, Honolulu, and Boston. The company discussed acquiring or leasing parked aircraft from European and Asian carriers, including a former Pan Am 747. It moved into premises near McCarran International Airport in the Las Vegas Valley in September 1992 and publicly targeted a November start for some services, but no scheduled flights began. Regulatory problems halted the project. In March 1993, the FAA announced that it would stop processing the application to begin service. The Department of Transportation then examined lawsuits and judgments involving Michaels and asked him to surrender control of the proposed airline. He agreed to do so on April 27, 1993. The company’s difficulties were compounded by a securities case: in June 1996, the SEC sued Barry Michaels and Holly S. Michaels over an alleged fraudulent offering of unregistered stock. A federal judge ordered restitution of funds to investors and imposed civil penalties. The underlying airline concept later returned under the Avatar Airlines name. In January 2008, a new application proposed as many as twelve Boeing 747-400s configured for 581 passengers, with initial routes between Los Angeles, New York, and Miami. Observers noted that the plan had changed little from the 1990s proposal, and the application was denied the following year. Another application was filed in 2010 under the Avatar name. In March 2014, the company relocated its corporate headquarters to Boca Raton, Florida, and filed again with the Department of Transportation. That filing stated that Michaels was no longer in management, although he subsequently represented himself as the airline’s chairman in a meeting with Jacksonville airport officials. According to information attributed to Michaels’s professional résumé, Avatar Airlines restarted again in 2019. By March 2020 it was described as being based in Boca Raton with Michaels as chief executive. The revised plan retained the low-cost, high-density Boeing 747 model and added long-haul cargo transportation. There was no confirmed commencement of airline operations, and publicly available reporting did not establish that the venture had received the required FAA and DOT certifications. Family Airlines is therefore best understood as a defunct or superseded airline project rather than an operating carrier.

• 2019

  Reported restart of Avatar Airlines

  [1]Family Airlinesen.wikipedia.org

  Publicly described company information indicated another restart under the Avatar Airlines identity.

• 2014

  Move to Boca Raton and further filing

  [1]Family Airlinesen.wikipedia.org

  The renamed venture relocated its headquarters to Boca Raton and submitted another DOT application.

• 2010

  Avatar Airlines filing

  [1]Family Airlinesen.wikipedia.org

  The project filed again under the Avatar Airlines name.

• 2009

  Application denied

  [1]Family Airlinesen.wikipedia.org

  The revived airline’s application was denied.

• 2008

  Revived application proposes Boeing 747-400 fleet

  [1]Family Airlinesen.wikipedia.org

  A new application proposed up to twelve high-density 747-400 aircraft serving Los Angeles, New York, Miami, and later destinations.

• 1996

  SEC securities case

  [1]Family Airlinesen.wikipedia.org

  The SEC brought an action concerning an alleged unregistered stock offering linked to the airline venture.

• 1993

  FAA application processing halted

  [1]Family Airlinesen.wikipedia.org

  The FAA announced that it would no longer process the company’s application to start service.

• 1993

  Barry Michaels relinquishes control

  [1]Family Airlinesen.wikipedia.org

  Following Department of Transportation scrutiny, Michaels agreed to give up control of the proposed airline.

• 1992

  Low-cost airline proposal publicized

  [1]Family Airlinesen.wikipedia.org

  Family Airlines promoted a low-fare leisure and family travel model using second-hand Boeing 747 aircraft and announced a proposed Las Vegas–Los Angeles–Newark–Miami routing.

• 1992

  Las Vegas-area offices established

  [1]Family Airlinesen.wikipedia.org

  The proposed airline moved into a building near McCarran International Airport and continued to target a November launch.

A proposed ultra-low-cost, leisure-oriented airline focused on family travel, low fares, high-density Boeing 747 operations, and later long-haul cargo.

• Passenger airline service

  Low-cost passenger air service

  The core proposed offering was scheduled, low-fare passenger transportation for leisure and family travelers. Family Airlines planned to use high-capacity Boeing 747 aircraft and to compete through low pricing rather than a premium service proposition. The network was expected to focus on domestic long-haul routes linking western, northeastern, and southeastern United States markets, with Hawaii also discussed.

• Wide-body aircraft operation

  Boeing 747 high-density service

  The proposed fleet consisted of used Boeing 747-100, 747-200, and later 747-400 aircraft. The 2008 plan called for 747-400s configured for as many as 581 passengers, reflecting the venture’s strategy of spreading operating costs across a large number of seats.

• Air cargo service · 2019

  Long-haul air cargo

  In the later Avatar Airlines iteration, long-haul cargo transportation was added to the passenger-focused business model. The plan remained associated with Boeing 747 aircraft, but no confirmed cargo operation was established.

• 1996

  SEC action over unregistered airline stock offering

  The Securities and Exchange Commission sued Barry Michaels and Holly S. Michaels, alleging that they fraudulently offered unregistered stock connected with the airline. A federal judge ordered the couple to return US$363,306 to investors and imposed civil penalties reported as US$181,000 per person.

  Source

Read more

• 2019

  Add long-haul cargo to the business modelStrategy

  Background

  The revived venture continued to face the challenge of making a high-capacity 747 low-cost model viable.

  Action taken

  Avatar Airlines incorporated long-haul cargo transportation into its stated plans while retaining proposed passenger service.

  Aftermath

  As of 2020, operations and required FAA and DOT certifications remained unconfirmed.

  Source

• 2010

  Continue under the Avatar Airlines identityStrategy

  Background

  The proposed carrier sought to continue its business plan after the earlier application failed.

  Action taken

  A further application was filed under the Avatar Airlines name.

  Aftermath

  The filing did not proceed to commercial operations.

  Source

• 2008

  Revive the carrier with a larger 747-400 planStrategy

  Background

  The airline project returned after years of inactivity with a proposal substantially similar to its earlier low-cost model.

  Action taken

  The new application proposed up to twelve Boeing 747-400s configured for 581 seats and initial Los Angeles–New York–Miami service.

  Aftermath

  The application was denied in 2009, and the project later continued under the Avatar Airlines name.

  Source

• 1992

  Adopt a US$249 fare propositionPrice change

  Background

  Family Airlines sought to attract families and leisure travelers who considered conventional airline fares too high.

  Action taken

  The proposed carrier publicized a US$249 Los Angeles–New York fare and discussed a similarly priced Los Angeles or San Francisco–Honolulu service.

  Aftermath

  The fare strategy generated publicity, but the airline never began scheduled operations.

  Source

• 1992

  Build a high-capacity used-747 fleetStrategy

  Background

  The business model depended on obtaining inexpensive parked or previously operated wide-body aircraft.

  Action taken

  Family Airlines announced plans to lease or purchase three to five Boeing 747-100 or 747-200 aircraft.

  Aftermath

  The aircraft plan did not progress into a certified operating fleet.

  Source

1. 1Family Airlinesen.wikipedia.org