McCulloch International Airlines#McCulloch Properties

File:Lockheed L-049 N90823 Havasu LGB 06.02.71 edited-2.jpg at Long Beach 1971. Not a McCulloch International Airlines aircraft, this is from MPI's pre-airline activity, thus Lake Havasu City titles. See External links for McCulloch Electra photo]]

Robert P. McCulloch controlled a property development company, McCulloch Properties, Inc., (MPI){{anchor|McCulloch Properties}} that developed land in the American west, the most famous site being Lake Havasu City. Starting in January 1964,{{cite book|last=Wildfang|first=Frederic B.|title=Lake Havasu City|publisher=Arcadia|location=Charleston, South Carolina|year=2005|page=99|url=https://books.google.com/books?id=t_5bdQIrEzQC&pg=PA99}} McCulloch flew prospective buyers to Lake Havasu for free using a fleet of Lockheed Constellations and then Electras as an uncertificated carrier. To qualify for a trip, a potential buyer put down a deposit, which was fully refundable. At the time MPI sought to purchase VIA, it was flying potential customers from Detroit, Cleveland, Chicago, Milwaukee, Minneapolis, Denver, Phoenix, Dallas, Long Beach, Oakland, Houston, Portland, Spokane, and Seattle.{{cite journal|journal=Civil Aeronautics Board Reports|volume=55|pages=112|date=September–December 1970|publisher=U.S. Government Printing Office|location=Washington, DC|url=https://hdl.handle.net/2027/uc1.b3534412?urlappend=%3Bseq=132%3Bownerid=9007199258448718-136|hdl=2027/uc1.b3534412|hdl-access=free|title=Acquisition of Vance International Airways, Inc.|ref={{sfnref|Acquisition|1970}}}} The July 1970 US civil aircraft register shows MPI as the registered owner of three Constellations and five Electras (details in Fleet below). MPI wanted to certificate its air operation so it could sell charters when the fleet was not transporting prospective property customers; MPI projected post-acquisition Vance making almost as much revenue in 1971 from third parties as from captive MPI business.{{sfn|Acquisition|1970|p=116}}

{{main|Vance International Airways}}

Vance International Airways was a small, unsuccessful Seattle-based supplemental air carrier, doing about $500,000 per year in revenue in 1968 and 1969; the CAB viewed the carrier as "deteriorating". In 1966 VIA accepted financing that in certain circumstances allowed the new investor to acquire 50% of the carrier, and in some circumstances required the existing owner, Vance Roberts, to buy out the investor or vice versa. McCulloch worked with this investor to exercise those options, forcing out Roberts with the investor turning over the carrier to McCulloch after the CAB approved the transaction on 18 September 1970. On 3 November 1970 the CAB approved a name change to McCulloch International Airlines (MIA).

MPI's total acquisition cost for MIA was about $1.4 million, equivalent to over $10 million in 2024 dollars.{{sfn|Acquisition|1970|p=114}}

MPI moved the headquarters of the airline to Long Beach, California from Seattle.{{cite report|url=https://hdl.handle.net/2027/mdp.39015011147033?urlappend=%3Bseq=163%3Bownerid=13510798887517511-169|hdl=2027/mdp.39015011147033|hdl-access=free|page=inside back cover|title=Air Carrier Financial Statistics|publisher=Civil Aeronautics Board|date=30 June 1975}} New ownership made an immediate difference, as 1971 MIA revenues were over 20 times the level of Vance International in the late 1960s. However, MPI accounted for 85% of 1971 revenues and 80% of 1972 revenues.{{cite journal|journal=Civil Aeronautics Board Reports|volume=72|title=Transatlantic Route Proceeding and Supplemental Renewal Proceeding|date=December 1976 – February 1977 |publisher=U.S. Government Printing Office|location=Washington, DC|page=402 |hdl=2027/osu.32437011657752 |url=https://hdl.handle.net/2027/osu.32437011657752?urlappend=%3Bseq=424%3Bownerid=107325354-428|hdl-access=free|ref={{sfnref|Proceeding|1977}}}} This was far greater than what projections called for (54% in 1971),{{sfn|Acquisition|1970|p=116}} indicating less diversified revenues than desired. And even with the captive income, MIA was small relative other supplemental carriers. In 1971, the biggest supplemental carriers had revenues over five times that of MIA, and did that without captive income.{{cite journal|journal=Aviation Week & Space Technology|date=12 June 1972 |title=Supplemental Airlines Revenues and Expenses—1971 |url=https://archive.aviationweek.com/issue/19720612|page=31|volume=96|number=24|issn=0005-2175}} MIA also did not participate much in the biggest charter market, international. In 1973, for instance, international passenger miles were over four times those of domestic for supplemental carriers,{{sfn|Handbook|1975|p=39}} but for MIA it was the other way around. Further, MIA did no military business at all, nor did it attempt air freight,{{sfn|Handbook|1975|p=40}} though the Electra was a popular freighter.

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In October 1975, FGH Financial acquired 81% of the airline. FGH comprised four equal partners, Francis T. Fox, John E. Gallagher, Richard F.B. Goates and John L. Holleran. Gallagher was the president of MIA, the other three were California-based transportation consultants or executives. The MPI land business was slowing and MIA was operating only three Electras, a fourth was on short-term lease to Pacific Southwest Airlines and MIA had leased in a Douglas DC-8 which was flying mostly third-party charter business. McCulloch Properties wanted to step back and allow MIA to develop a third party business by re-equipping with jets. FGH paid $1.5 million (over $8.5 million in 2024 dollars) for 81% of the company, with MPI financing about $400,000 of that. For the price, FGH also received the four Electras, plus spare engines and parts. FGH financed the sale price with a bank loan and planned to sell the Electras over time.{{cite journal|journal=Civil Aeronautics Board Reports|volume=68 Part 1|pages=546–586|date=August–October 1975|publisher=U.S. Government Printing Office|location=Washington, DC|url=https://hdl.handle.net/2027/osu.32437011658156?urlappend=%3Bseq=578%3Bownerid=107202401-600|hdl=2027/osu.32437011658156|hdl-access=free|title=FGH Acquisition of McCulloch|ref={{sfnref|FGH|1975}}}}

Unfortunately, FGH found the environment, coming out of the 1973–1975 recession, hostile relative to the aim of reequipping with new/newer aircraft, and was forced to rely on the Electras.{{sfn|Inomotivator|1978|p=78}} MIA also flew a series of smaller first-generation (turbojet vs turbofan) jet aircraft during this time.{{cite web|url=https://www.airhistory.net/operators/9392/McCulloch-International-Airlines|title=McCulloch International Airlines photos|website=airhistory.net|publisher=AirHistory.net—The Aviation History Photo Archive|access-date=5 September 2024}} One such was the Starship aircraft MIA flew when it sold, for $146,000, a charter to Peter Frampton to support his European tour (this required CAB approval since MIA did not have Europe charter authority).[https://www.newspapers.com/image/172549324 item in Peopletalk Philadelphia Inquirer, 12 November 1976] The company filed for bankruptcy 1 August 1977.{{sfn|Inomotivator|1978|p=78}} A year later, the CAB approved the takeover of the remains of MIA by a company called Inomotivator (comprising three lawyers), but nothing came of that.{{cite journal|journal=Civil Aeronautics Board Reports|volume=78|pages=75–81|date=August–September 1978|publisher=U.S. Government Printing Office|location=Washington, DC|url=https://hdl.handle.net/2027/osu.32437011657497?urlappend=%3Bseq=101%3Bownerid=107440848-105|hdl=2027/osu.32437011657497|hdl-access=free|title=Inomotivator, Inc., Acquisition of Control of McCulloch International Airlines, Inc.|ref={{sfnref|Inomotivator|1978}}}}

The US Civil Aircraft Register for July 1970 shows McCulloch Properties owning three Lockheed L-049 Constellations (N6000C,{{cite report|title=United States Civil Aircraft Register|publisher=Department of Transportation, Federal Aviation Administration, Aeronautical Center|date=July 1, 1970|volume=2|url=https://hdl.handle.net/2027/mdp.39015023915591?urlappend=%3Bseq=200%3Bownerid=914437-200|hdl=2027/mdp.39015023915591|hdl-access=free|page=1038|ref={{sfnref|Register Jul Vol 2|1970}}}} N90823,{{sfn|Register Jul Vol 2|1970|p=1736}} N90931{{sfn|Register Jul Vol 2|1970|p=1736}}) and five Electras (N6106A,{{sfn|Register Jul Vol 2|1970|p=1066}} N6118A,{{sfn|Register Jul Vol 2|1970|p=1069}} N6130A,{{sfn|Register Jul Vol 2|1970|p=1072}} N6131A,{{sfn|Register Jul Vol 2|1970|p=1073}} N6132A{{sfn|Register Jul Vol 2|1970|p=1073}}).

The US Civil Aircraft Register for July 1972 shows McCulloch International Airlines owning nine Electras (N6106A,{{cite report|title=United States Civil Aircraft Register|publisher=Department of Transportation, Federal Aviation Administration, Aeronautical Center|date=July 1, 1972|volume=2|url=https://hdl.handle.net/2027/mdp.39015023915641?urlappend=%3Bseq=150%3Bownerid=2505904-232|hdl=2027/mdp.39015023915641|hdl-access=free|page=892|ref={{sfnref|Register Jul Vol 2|1972}}}} N6112A,{{sfn|Register Jul Vol 2|1972|p=894}} N6118A,{{sfn|Register Jul Vol 2|1972|p=895}} N6124A,{{sfn|Register Jul Vol 2|1972|p=896}} N6126A,{{sfn|Register Jul Vol 2|1972|p=897}} N6129A,{{sfn|Register Jul Vol 2|1972|p=897}} N6130A,{{sfn|Register Jul Vol 2|1972|p=898}} N6131A,{{sfn|Register Jul Vol 2|1972|p=898}} N6132A{{sfn|Register Jul Vol 2|1972|p=898}})

The most obvious legacy of McCulloch International Airlines is Lake Havasu City in Arizona. From 1964 to 1978, MPI promotional flights (including those, from November 1970, flown by MIA) to Lake Havasu City totalled 2,702.{{sfn|Wildfang|2005|p=100}} in 1970, when the CAB was deciding whether to approve MPI's purchase of Vance International, MPI had already sold over $118 million of land in Lake Havasu City, equivalent to over $900 million in 2024 dollars.{{sfn|Acquisition|1970|p=112}}

• Supplemental air carrier
• List of defunct airlines of the United States

{{Reflist}}

• McCulloch International Airlines Electra photo: {{cite web|url=https://www.airhistory.net/photo/251315/N6106A|website=airhistory.net|title=N6106A Lockheed L-188A Electra McCulloch International Airlines|publisher=AirHistory.net—The Aviation History Photo Archive|access-date=19 October 2024|format=photo|date=23 September 1977}}
• The Rolling Stones exiting a McCulloch Electra: {{cite web|url=https://riverscenemagazine.com/rockumentary-exposes-mcculloch-connection/|website=riverscenemagazine.com|title=Rockumentary Exposes McCulloch Connection|publisher=Desert Focus Media LLC|access-date=4 September 2024}}
• Frampton Comes Alive tour aircraft, the Starship, with McCulloch titles: {{cite web|url=https://www.airhistory.net/photo/655757/N7201U|website=airhistory.net|title=N7201U|publisher=AirHistory.net—The Aviation History Photo Archive|access-date=4 September 2024|format=photo|date=July 1978}}

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