WASHINGTON -- Tahoe Air, a Nevada-based new entrant founded by a
former travel agency owner, is selling a controlling interest to a
California company and beginning service June 25 on another
airline's aircraft.
Pacific Sports Holdings, a Westlake Village-based company with
holdings in the recreation and leisure industry, is buying a
50.001% stake in Tahoe Air for $5 million. It also has an option to
buy an additional 25%.
Tahoe Air wants to restore scheduled jet service to Lake Tahoe
Airport in California from major points in the western U.S., but it
has been short on financing and recently withdrew its application
for a DOT certificate.
Tahoe is still getting off the ground, however, by buying 85% of
the seats on aircraft owned and operated by TEM, an Elko,
Nev.-based carrier that flies as Casino Express and has operated
scheduled and charter service in the U.S. and Canada for 12
years.
Flights to Los Angeles, beginning June 25, and San Jose, Calif.,
beginning July 1, will carry Tahoe Air's logo and livery. Bruce
Wetsel, president and chief executive officer of Tahoe Air, said
the airline is hoping the service will prove to potential investors
that the Tahoe Air plan can work, with the intention of refiling at
the DOT within a year.
The Pacific Sports purchase will not change the carrier's
management team, Wetsel said. That team includes executive vice
president and chief operating officer Mark Sando, the airline's
principal founder.