Alaska Star Airlines

Star Air Service

Company type	Private
Industry	Airline
Founded	1932 in Anchorage, Alaska, United States
Founder	Steven E. "Steve" Mills, John E. "Jack" Waterworth, Charles H. "Charlie" Ruttan
Fate	Renamed Alaska Star Airlines in 1942; later became Alaska Airlines
Headquarters	Anchorage , United States
Area served	Alaska

Star Air Service, which later became known as Star Air Lines and subsequently Alaska Star Airlines, operated throughout Alaska from 1932 until 1944. Established by three aviators with financial support from an Alaska mining entrepreneur, the enterprise commenced with a biplane featuring an open cockpit that was shipped to Alaska in March 1932 and officially incorporated in Anchorage with a capital of $4,000. Initial achievements in pilot instruction were soon overshadowed by an accident that prompted investment in a larger aircraft equipped with an enclosed cabin, facilitating operations throughout all seasons.

By 1934, faced with an excess of aircraft and a limited market, Star Air Service merged with McGee Airways, resulting in the largest airline in Alaska at that time. Although the company expanded, it encountered ongoing financial difficulties and management challenges; notably, one of the founders lost his pilot certification, and another perished in a crash in 1936. In 1937, new investors took control of the business, rebranding it as Star Air Lines.

The regulation of airline routes within Alaska began in 1938, encouraging consolidation within the industry. In 1942, Raymond Marshall, a businessman from New York, acquired Star Air Lines along with three smaller carriers, broadening service to include Fairbanks, Nome, and the Kuskokwim Delta. The airline was renamed Alaska Star Airlines before securing naming rights in 1943 and adopting the name Alaska Airlines, which continues to operate today.

Company founders

Steven E. "Steve" Mills was born in Dayton, Wyoming in 1896 and relocated to Seattle following his service in World War I. While employed as a furnace inspector at Seattle Gas Company, he pursued flight training at Washington Aircraft Company located at Boeing Field. By 1928, Mills had become the chief instructor at the company’s flying school before moving to Alaska in 1932.

John E. "Jack" Waterworth hailed from Oelwein, Iowa and grew up in Seattle. After studying pharmacy at the University of Washington, he transitioned into aviation with financial backing from industrialist Norton Clapp. Waterworth trained under Mills and worked as both a flight instructor and charter pilot, conducting numerous flights across the northwest region as well as occasional long-distance aircraft ferrying.

Charles H. "Charlie" Ruttan was a young Canadian from Winnipeg, Manitoba, aged 22 when he moved to Victoria, British Columbia and trained under Mills’ guidance.

Wesley Earl Dunkle was a prosperous mining engineer based in Alaska and superintendent of the Lucky Shot Mine located in the Chugach Mountains near Anchorage. Developing an enthusiasm for aviation while taking flying lessons in Seattle alongside Mills and Waterworth, Dunkle recognized a market for affordable flight instruction in Alaska. He encouraged them to establish a flying school in Anchorage and provided a loan on condition they offer him free lessons once they relocated.

Early history in Seattle

Mills and Waterworth initially planned to launch a flying school and charter service based in Seattle with intentions to expand into Alaska. To finance this venture, Mills secured a mortgage on his home to acquire a two-seat Davis monoplane, initiating operations under the name Northern Air Service. After Waterworth crashed this aircraft near Centralia, Washington, additional funding was required to purchase another plane.

Charlie Ruttan, already licensed as a transport pilot, joined the partnership and contributed funds for acquiring a two-seat Fleet Deluxe B-5 biplane purchased from Glendale, California in 1931. Unable to fly it to Alaska that year due to timing constraints, the group continued their activities based out of Seattle through the winter months.

Early operations in Alaska

In the early months of 1932, the founders transported the Fleet biplane to Seward, Alaska, arriving on March 26. On April 14, 1932, they officially established Star Air Service in Anchorage with an initial capital of $4,000. Mills took on the role of chief pilot, Waterworth acted as instructor, and Ruttan managed business affairs. Financial support came from Earl Dunkle along with other local investors.

Star Air Service concentrated primarily on providing flight training and charter flights. Operations were temporarily suspended after an accident involving a borrowed Fleet biplane; subsequently, Dunkle contributed funds to acquire a three-seat Curtiss Robin featuring an enclosed cockpit, enhancing winter flight capabilities.

During 1932, Anchorage—then a frontier community with approximately 2,200 residents—witnessed the emergence of three airlines: McGee Airways, Woodley Airways, and Star Air Service. These companies played a key role in helping Anchorage overtake Fairbanks as Alaska’s leading commercial center by securing contracts from businesses and government entities as well as attracting international interest. Initially offering unscheduled "bush" flights, they transported trappers, hunters, tourists, sales representatives, fishermen, and game hunters throughout the Territory. Pilots frequently spent extended periods away from their home base during these assignments.

Pilots worked on commission and extended credit to seasonal sectors such as fishing and mining, settling accounts after the season ended. The introduction of air mail contracts by the Post Office Department provided consistent income and expanded access to remote communities. Before this development, mail delivery relied on steamships in summer and dog sleds during winter; now flights carried letters, postcards, small seed packets, and newspapers in colder months while larger parcels were held until summer.

By 1934, all Anchorage-based airlines encountered financial challenges due to an excess of aircraft and insufficient business volume to generate the cash reserves needed for survival during economic downturns.

Merger with McGee Airways

In the winter of 1934, "Mac" McGee—the founder of McGee Airways—expressed interest in returning to mining and advocated for consolidation among Anchorage aviation services. Star Air Service acquired McGee Airways for $50,000, with McGee agreeing to oversee the combined operation if payment installments were delayed. This merger established Star Air Service as Alaska’s largest airline; however, ongoing financial difficulties prompted McGee to resume management duties. He compensated himself with three percent of gross revenue until fully repaid before returning to mining activities.

By 1936, Star Air Service operated a fleet of 15 aircraft and generated approximately $190,000 in annual gross revenue. After McGee departed again in August of that year, pilot Kenny Neese assumed managerial responsibilities while Steve Mills became chief pilot. Tragically, Mills perished in Alaska’s worst aviation accident during a fishing trip crash on the Kenai Peninsula that same month.

Neese sought to implement scheduled services; however, pilots Don Goodman and Oscar Winchell disagreed with this direction and left to establish Alaska Interior Airlines in November 1936. Neese resigned in early 1937, prompting McGee’s return to management. He acquired Alaska Interior Airlines and expanded the company’s fleet. During this timeframe, founder Charlie Ruttan exited the organization.

In November 1937, Don Goodman gathered investors—including miner David Strandberg and his sons—to purchase Star Air Service. The company was renamed Star Air Lines and its operations were stabilized under this new ownership structure.

Period of governmental oversight

The Civil Aeronautics Act of 1938 created the Civil Aeronautics Authority, marking the end of Alaska's unregulated bush flying era by allocating designated routes to specific carriers. Airlines that had maintained uninterrupted service between May and August 1938 received certificates under a "grandfather clause," which prompted industry consolidation—larger airlines expanded while smaller operators faded away. Goodman and the Strandbergs aimed to establish Star Air Lines as a leading airline within Alaska.

Before the outbreak of World War II, Star Air Lines reached its highest operational capacity, managing a fleet of 15 aircraft equipped with radio stations serving the Kuskokwim and Yukon deltas extending down to Bristol Bay, making it the largest airline in Alaska at that time. Nevertheless, the company faced financial constraints that hindered investment in modernizing its fleet.

Government intervention intensified following the 1940 Civil Aeronautics Board (CAB) hearings, which significantly influenced Alaska's aviation sector. Both Star Air Lines and Woodley Airways applied for authorization to operate a route connecting Alaska and Seattle. Although the CAB approved Star’s application in March 1941, President Franklin D. Roosevelt exercised his veto power to block it. In 1940, Pan American Airways briefly operated a flying boat service between Seattle, Ketchikan, and Juneau, but this route was terminated with the onset of World War II.

Mergers and acquisitions

In 1942, Art Woodley of Woodley Airways attempted an acquisition of Star Air Lines to assume its $80,000 debt load; however, he negotiated covertly due to competitive tensions. He engaged attorney Homer Robinson as an intermediary, who disclosed that affluent investor Raymond W. Marshall was the actual buyer and subsequently became the new proprietor.

Under Marshall’s direction, the airline expanded through purchasing three active Alaskan air services: Mirow Air Service (operating Nome–Fairbanks routes) and Lavery Air Service (serving Fairbanks–Anchorage) were each acquired for $60,000 on May 15, 1942; Pollack Flying Service (covering Fairbanks–Kuskokwim routes) was purchased for $125,000 on December 8, 1942. The consolidated company adopted the name Alaska Star Airlines on July 6, 1942.

Mirow Air Service had been founded by Hans Mirow, who initiated scheduled flights between Nome and Anchorage in 1934 before his fatal crash; his widow subsequently sold the business to Star Air Lines. Lavery Air Service was established in 1935 by Fairbanks native William L. "Bill" Lavery, who pioneered scheduled service between Fairbanks and Anchorage. Pollack Flying Service was launched in 1933 by Frank Pollack; after selling to Alaska Star Airlines, he took on the role of Fairbanks operations manager.

Formation of Alaska Airlines

To be taken seriously by CAB regulators for new route approvals, Art Woodley was advised to rename Woodley Airways. He dispatched his attorney to register the name Alaska Airlines but failed to pay the $15 registration fee. Meanwhile, Alaska Star Airlines formally changed its name to Alaska Airlines on September 16, 1943, and officially incorporated under this designation on May 2, 1944.

Woodley Airways underwent rebranding as Pacific Northern Airways (PNA) in 1945 and later became Pacific Northern Airlines in 1947.

Aircraft livery and branding

The initial Star Air Service Fleet 7 biplane bore a three-line identification accompanied by a barnstar emblem representing the North Star. The founders named this aircraft Northstar and initially considered naming their company North Star Airlines but ultimately selected Star Air Service.

The subsequent aircraft, a Curtiss Robin model, prominently featured "STAR" with "AIR SERVICE INC." and "ANCHORAGE ALASKA" displayed underneath; this plane did not carry a barnstar emblem.

Between 1937 and 1942, Bellanca aircraft sported an orange paint scheme with a barnstar logo composed of light brown and black points enclosed within a black border matching the plane’s color.

Following the transition to Alaska Star Airlines, a new emblem was introduced depicting the North Star positioned above a partial globe.

Routes and destinations

In 1942, the CAB issued provisional certificates to Star for routes such as Anchorage to McGrath, Pilot Point, Seward, Fairbanks, and Seldovia; Fairbanks to McGrath; McGrath to Bethel and Ruby; as well as all locations east of the Yukon River, south of the 64th parallel, and westward of Prince William Sound. The acquisition of Mirow Air Service introduced a route connecting Nome and Fairbanks.

Certification for the Anchorage-Fairbanks-Seattle-Portland corridor was not granted to Alaska Airlines until 1951.

Pilots

During the 1930s, bush pilots played an indispensable role in establishing Alaska's aviation network and fostering regional development. Flying primarily single-engine planes throughout the Territory, these aviators operated without access to weather forecasts, navigational aids, radios, or dependable maps, frequently landing on rudimentary airstrips. Their daring efforts provided vital support to Alaskan communities despite considerable risks.

See also

• List of defunct airlines of the United States

Bibliography

• Anchorage Centennial Commission Aviation Committee, "Honoring 100 Alaska Bush Pilots". Anchorage, Alaska, June 24, 1967
• Archie Satterfield, "The Alaska Airlines Story". Alaska Northwest Publishing Company, Anchorage, Alaska, 1981.
• Raymond H. Brandley, Waco Airplanes - Ask Any Pilot - The Versatile Cabin Series, R.H. Brandly, US, 1981.
• John P. Bagoy, Legends & Legacies, Anchorage 1910-1935, 2001,
• Robert W. Stevens, Alaskan Aviation History, Polynyas Press, Des Moines, Washington, 1989,
• McLaren & Dickson, Roy Dickson 1930s Alaska Bush Pilot, Plane Truth Publishing, Nashville, Tennessee, 2009.

Further reading

• International Directory of Company Histories, Vol. 29. St. James Press, 1999.
• Alaska Airlines: General Information and History, Seattle: Alaska Airlines, 1992.
• Archie Satterfield (1981). The Alaska Airlines Story. Anchorage, AK: Alaska Northwest Pub. Co., 207 p.
• Robert J. Serling, Character & Characters: The Spirit of Alaska Airlines (Seattle: Documentary Media LLC, 2008), 492 pp., hardback,
• Robert W. Stevens D.D.L. (1989). Alaskan Aviation History. Des Moines, IA: Polynyas Press, 1095 pp., hardback 2 volume set.
• Pat Wachel (1967). Oscar Winchell Alaska's Flying Cowboy. Minneapolis, MN: T.S. Denison & Company, Inc., 210 pp., hardback.
• Stephen E. Mills & James Phillips (1969). Sourdough Sky. Superior Publishing.

External links

• Alaska Airlines 75th Anniversary Web Site
• Roy Dickson 1930s Alaska Bush Pilot
• Alaska Aviation Heritage Museum
• Airlines of North America
• Alaska's Digital Archives