Star Air Service

Star Air Service
Company type	Private
Industry	Aviation
Founded	1932 in Anchorage, Alaska, United States
Founders	Steven E. "Steve" Mills, John E. "Jack" Waterworth, Charles H. "Charlie" Ruttan
Fate	Merged and renamed multiple times; became Alaska Airlines in 1943
Headquarters	Anchorage, United States
Key people	Steve Mills (chief pilot), Jack Waterworth (instructor), Charlie Ruttan (business manager), Earl Dunkle (financier)
Products	Flight training, charter services, scheduled airline services

Star Air Service, which later operated under the names Star Air Lines and Alaska Star Airlines, was an aviation company based in Alaska from 1932 until 1944. Established by three aviators with financial support from a prosperous miner in Alaska, the enterprise commenced by transporting an open-cockpit biplane to Alaska in March 1932. The company was incorporated in Anchorage with an initial capital of $4,000. Initially, Star Air Service focused on training novice pilots but encountered difficulties after their aircraft was involved in a crash. Subsequently, their financier provided funds for acquiring a larger plane equipped with an enclosed cabin, allowing for flight operations during winter months.

In 1932, three air services operating out of Anchorage competed within a saturated market, which led to the 1934 merger between McGee Airways and Star Air Service. This consolidation resulted in the formation of Alaska’s largest airline. Despite expansion, financial challenges and leadership problems remained; one of the founders lost his pilot certification, and another tragically died in an accident in 1936. The company’s ownership changed hands in 1937 when new investors assumed control and rebranded the airline as Star Air Lines.

With the introduction of government route regulations in 1938 and ongoing financial difficulties throughout Alaska’s aviation industry, further mergers became necessary. In 1942, Raymond Marshall, a businessman from New York, purchased Star Air Lines and combined it with three smaller airlines. This expanded their service network to include destinations such as Fairbanks, Nome, and the Kuskokwim Delta area. The airline was renamed Alaska Star Airlines before adopting its current name, Alaska Airlines, in September 1943 following a competitive naming contest. This company continues to operate today as a significant regional carrier.

Company founders

Steven E. "Steve" Mills was born in Dayton, Wyoming in 1896 and relocated to Seattle after serving during World War I. He worked as a furnace inspector while simultaneously taking flying lessons at Washington Aircraft Company based at Boeing Field. By 1928, Mills had become the chief flight instructor at the company’s flying school before moving to Alaska in 1932.

John E. "Jack" Waterworth originated from Oelwein, Iowa and was raised in Seattle. He pursued pharmacy studies at the University of Washington. Supported financially by industrialist Norton Clapp, Waterworth trained under Mills as a pilot and opted to pursue aviation rather than pharmacy. He worked extensively as a flight instructor and charter pilot across the northwestern United States with occasional long-distance flights.

Charles H. "Charlie" Ruttan was a 22-year-old Canadian from Winnipeg, Manitoba who later moved to Victoria, British Columbia. He received flight training under Mills’ guidance.

Wesley Earl Dunkle was a wealthy mining engineer from Alaska who managed the Lucky Shot Mine located in the Chugach Mountains. Interested in aviation himself, Dunkle befriended both Mills and Waterworth while learning to fly in Seattle. Recognizing the potential demand for affordable flight instruction in Alaska, he encouraged them to establish a flying school in Anchorage and offered financial assistance on condition that they provide him with free lessons once they relocated.

Early history in Seattle

Mills and Waterworth initially planned to launch a flying school alongside a charter service based in Seattle with intentions to later expand into Alaska. To finance this venture, Mills secured a mortgage on his home to purchase a two-seat Davis monoplane, creating Northern Air Service. After Waterworth crashed and totaled the aircraft near Centralia, Washington, additional funding became necessary.

Charlie Ruttan joined the partnership holding a transport pilot license already. He provided loans enabling them to acquire a two-seat Fleet Deluxe B-5 biplane from Glendale, California in 1931. Due to seasonal limitations on flying conditions, they maintained operations throughout winter by continuing activities based out of Seattle.

Initial Activities in Alaska

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

At first, Star Air Service concentrated on providing flight training and charter services. Operations were temporarily suspended following a crash involving a borrowed Fleet biplane. This setback was followed by further investment from Dunkle, which facilitated acquiring a three-seat Curtiss Robin featuring an enclosed cockpit to enhance winter flying capabilities.

In 1932, Anchorage—a modest frontier settlement with a population near 2,200—witnessed the emergence of three airlines: McGee Airways, Woodley Airways, and Star Air Service. These carriers played a crucial role in establishing Anchorage as Alaska’s leading city by securing commercial contracts, government agreements, and attracting international interest. Their unscheduled "bush" flights catered to trappers, hunters, tourists, sales representatives, and commercial fishermen throughout the Territory. Pilots operated on commission and frequently extended credit to seasonal sectors such as fishing and mining.

The awarding of air mail contracts by the Post Office Department provided consistent income and extended service routes to isolated villages. Before this development, mail delivery depended on steamships during summer months and dog sled teams in winter. Winter mail was limited to letters, postcards, lightweight seed shipments, and newspapers destined for libraries or publishers; other parcels were deferred until summer.

By 1934, all Anchorage-based airlines encountered financial hardships due to an excess of aircraft relative to available business volume, preventing the accumulation of cash reserves for lean periods.

Consolidation with McGee Airways

During the winter of 1934, "Mac" McGee, founder of McGee Airways, aimed to return to mining and advocated for merging Anchorage’s aviation services. Star Air Service acquired McGee Airways for $50,000, with McGee overseeing the merged entity until full payment was made. This consolidation positioned Star Air Service as Alaska’s largest airline; however, ongoing financial challenges led McGee to resume management duties. He compensated himself with three percent of gross revenues until reimbursed before resuming his mining pursuits.

By 1936, Star Air Service operated a fleet of 15 aircraft generating $190,000 in gross income. After McGee’s departure that year, pilot Kenny Neese assumed management responsibilities while Steve Mills continued as chief pilot. On August 30, 1936, a tragic accident claimed the lives of Mills and five passengers—the most severe aviation catastrophe in Alaska’s history.

Neese sought to implement scheduled flight services but faced opposition from pilots Don Goodman and Oscar Winchell, who subsequently established Alaska Interior Airlines in late 1936. Neese resigned in early 1937; McGee returned to restore stability. Founder Charlie Ruttan exited the company as McGee acquired Alaska Interior Airlines, expanding the fleet and revitalizing operations.

Later in 1937, Don Goodman collaborated with miners and businessmen to form a corporation that purchased Star Air Service. The company was rebranded as Star Air Lines on November 27. Miner David Strandberg and his sons became principal shareholders, signaling a strategic transformation in corporate structure and investment focused on growth.

Era of government regulation

The establishment of the Civil Aeronautics Act in 1938 led to the formation of the Civil Aeronautics Authority, effectively bringing an end to Alaska's unrestricted bush flying period by designating specific routes to individual carriers. This legislation featured a "grandfather clause" that awarded route certificates to airlines maintaining uninterrupted service from May through August 1938. As a result, the regulatory framework encouraged consolidation within the airline sector, benefiting larger operators. Goodman and the Strandberg family aspired to elevate Star Air Lines into a leading Alaskan carrier.

Before the onset of World War II, Star Air Lines reached its operational zenith with a fleet of 15 aircraft equipped with radio communication systems servicing the Kuskokwim and Yukon deltas extending southward to Bristol Bay, positioning it as Alaska’s foremost airline. Nonetheless, persistent financial constraints hindered the acquisition of newer equipment.

The 1940 hearings conducted by the Civil Aeronautics Board (CAB) intensified federal oversight over Alaskan aviation, significantly altering the industry landscape. Both Star Air Lines and Woodley Airways petitioned for authorization to operate an Alaska-Seattle route. Although the CAB favored Star Air Lines in March 1941, President Franklin D. Roosevelt exercised his veto power against the approval. Additionally, Pan American Airways briefly operated a flying boat service connecting Seattle, Ketchikan, and Juneau in 1940; this service was discontinued with the outbreak of World War II.

Consolidation and acquisition

In 1942, Art Woodley, founder of Woodley Airways, aimed to acquire Star Air Lines, which was burdened with approximately $80,000 in debt. To circumvent competitive conflicts, he engaged attorney Homer Robinson as an intermediary. However, Robinson facilitated the purchase by Raymond W. Marshall, a prosperous international scrap dealer, who assumed ownership.

Under Marshall’s direction, the airline expanded through strategic acquisitions: Mirow Air Service (operating Nome-Fairbanks routes) and Lavery Air Service (serving Fairbanks–Anchorage) were each purchased in May 1942 for $60,000; Pollack Flying Service (covering Fairbanks-Kuskokwim routes) was acquired in December 1942 for $125,000. Subsequently, the company was rebranded as Alaska Star Airlines.

Mirow Air Service was originally established by Hans Mirow, who initiated scheduled flights between Nome and Anchorage before his passing during a search operation; following his death, his widow sold the business to Star Air Lines. Lavery Air Service was founded by Fairbanks native William L. "Bill" Lavery in 1935 and introduced the first regular Fairbanks-Anchorage service. Pollack Flying Service was founded by Frank Pollack in 1933; after its acquisition by Alaska Star Airlines, Pollack took on the role of Fairbanks operations manager.

Formation of Alaska Airlines

Art Woodley received counsel to rename Woodley Airways in order to be viewed as a legitimate competitor for new routes by CAB officials. Although his lawyer submitted documents to change the company’s name to Alaska Airlines, the required $15 fee was not paid. Concurrently, Alaska Star Airlines officially adopted the Alaska Airlines name on September 16, 1943, and completed incorporation under this title on May 2, 1944.

Subsequently, Woodley Airways underwent a rebranding to Pacific Northern Airways (PNA) in 1945, followed by another change to Pacific Northern Airlines in 1947.

Livery and logos

The initial Star Air Service aircraft, a Fleet 7 biplane, bore a three-line identifier accompanied by a barnstar emblem representing the North Star, symbolizing the company’s Arctic heritage. The founders had initially contemplated naming the airline North Star Airlines but ultimately selected Star Air Service.

The following plane, a Curtiss Robin, showcased the word "STAR" prominently, with "AIR SERVICE INC." and "ANCHORAGE ALASKA" positioned beneath it, notably lacking the barnstar emblem.

Between 1937 and 1942, Bellanca aircraft were painted orange and featured a two-tone barnstar bordered in black. After being sold and renamed Alaska Star Airlines, the logo incorporated the North Star above a partial globe motif.

Routes and destinations

In 1942, the CAB issued temporary route certificates to Star Air Service covering flights from Anchorage to McGrath, Pilot Point, Seward, Fairbanks, and Seldovia; from McGrath to Bethel and Ruby; as well as all locations east of the Yukon River, south of latitude 64°N, and west of Prince William Sound. The acquisition of Mirow Air Service expanded their network to include Nome-Fairbanks routes.

It was only in 1951, operating as Alaska Airlines, that the company secured certification for service connecting Anchorage-Fairbanks-Seattle-Portland.

Pilots

The bush pilots of the 1930s were instrumental in establishing air transportation across Alaska. Flying single-engine planes throughout the Territory without access to weather forecasts, navigation tools, radios, or dependable maps—and with limited landing strips—they undertook considerable hazards that significantly advanced community connectivity in Alaska.

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.

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