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Page US002airMicro (Revised 01/21/2008)

Background: The Airline Deregulation Act took effect of December 1, 1978. The main purpose of the Act was to remove government control from commercial aviation and expose the passenger airline industry to market forces. This Act changed the face of civil aviation in the US. Air Mail would continue to be carried by Air Carriers but the old system of CAM and FAM routes would evolve into Air Mail flown by individual US airlines to both domestic and foreign destinations.

Continental Air Lines began service in 1934 as Varney Speed Lanes, named after one of its initial owners, Walter T Varney. VSL operated out of El Paso TX with flight service through Las Vegas NV, Albuquerque, Santa Fe NM to Pueblo CO. At the end of 1934 VSL was renamed Varney Air Transport and on July 1, 1937 changed its name to Continental Air Lines after new owner, Robert Six had taken a 40% ownership with Varney's co-founder, Louis Mueller. Six relocated Continental's headquarters to Stapleton Airport in Denver CO in October, 1937.

Air Micronesia was established by Continental Air Lines sharing joint ownership with Hawaii's Aloha Airlines and an association of businessmen of the Trust Territory of the Pacific Islands (Micronesia). "Air Mike" would serve the island groups in the central and western Pacific including the Marshall, Caroline and Mariana Islands initially air linking them with Hawaii in the east and Okinawa in the west.

FAM-46 was awarded to Air Micronesia (operated by Continental) and on May 16, 1968 flying a Boeing 727 and Douglas DC-6, it inaugurated flight service in Micronesia bridging flights from Honolulu HI to Naha Okinawa. As Continental's share and role in "Air Mike" increased, the airline's name became "Continental Air Micronesia" and eventually "Continental Micronesia."

CO
Boeing 727

CO(AM)-F4 830401 Nagoya Japan-Saipan Air Micronesia $15.00

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