Family Airlines

Family Airlines was an American low-cost airline proposed in the 1990s. The airline gained press attention after it said that it would offer $249 U.S. dollar fares from Los Angeles to New York City. The airline announced that it would cater to family travelers who found traditional airlines to be too expensive. In June 1992 Myron Barry Michaels, the chief executive, said that "For the most part, we're looking at the leisure market, although there will be some business traffic, particularly on the San Francisco-Los Angeles sector." The airline announced that it would use "between three and five Boeing 747-100/200s" and that the first routing would go from Las Vegas to Los Angeles to Newark, New Jersey to Miami to Las Vegas. The airline also announced that it was negotiating lease and purchase deals with European and Asian carriers involving parked 747-200s in desert areas and one involving a former Pan Am 747-100. In an August 1992 Philadelphia Inquirer article Donald D. Groff compared Family Airlines to Peoplexpress Airlines. Family Airlines, which moved into a building in the Las Vegas Valley adjacent to McCarran International Airport in September 1992, stated that it planned to start Las Vegas to Los Angeles and Las Vegas to Newark in November 1992 and later begin services to San Francisco, Phoenix, Honolulu, Miami, and Boston. The airline also announced that it would begin service to Honolulu from Los Angeles or San Francisco for $249.

In March 1993 the Federal Aviation Administration announced that it would no longer process Family Airlines's application to begin service. In April 1993, after the United States Department of Transportation reviewed lawsuits and judgments against founder Barry Michaels, the agency asked Michaels to relinquish control of the proposed airline. On April 27 Michaels agreed to relinquish control of the airline. On June 24, 1996, the Securities and Exchange Commission filed a suit against Barry Michaels and his wife, Holly S. Michaels, for fraudulently offering unregistered stock for the airline. A federal judge in California ordered Barry and Holly Michaels to return $363,306 to the investors and pay $181,000 per person in civil penalties.