Firm Taking Reservations, but Agency Plans to Lift License : FAA and Golden West in Dispute

The federal government and a would-be airline operator in Los Angeles are at loggerheads over whether Golden West Airlines, a bankrupt carrier that was once California’s largest commuter airline, will resume operation.

The Federal Aviation Administration notified Los Angeles-based Golden West and its owner, Kevin Von Feldt, three weeks ago that it intends to revoke the operating license of the defunct air carrier. The FAA said it took the action in part because Golden West has not operated since filing for bankruptcy in April, 1983.

Golden West filed an objection with the FAA one week later, however, and began advertising in Colorado, Texas and Utah for nonstop flights from five mainland cities to Honolulu starting in mid-March.

Von Feldt said Golden West has since suspended the advertising voluntarily until the carrier can “work things out” with the FAA and the California attorney general’s office, which has stepped in to ensure that Golden West does not accept cash on advance ticket orders before having the authority to fly.

“We’re not taking cash, only reservations and credit cards until we can untangle this bureaucratic mess,” Von Feldt said.

It will be several weeks before Golden West knows the outcome of its discussion with federal and state officials, but Von Feldt said he is already certain of demand for the carrier’s services: With only two weeks of advertising, Golden West’s flights are booked completely through June 15.

“I’m just glad the flights are filled,” he said. “I’m not out to take (customers’) money before we know what’s happening.”

Von Feldt said that Golden West plans to offer one flight a week to Honolulu from Houston, St. Louis, Denver, Salt Lake City and Kansas City by leasing a Boeing 747 and hiring a company to fly and maintain the jet. The FAA must approve that arrangement before it will allow Golden West to keep its operating certificate.

In April, 1983, Golden West filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code, and one year later the company went into liquidation. Ten days ago, Hawaiian Pacific Airlines Inc., a Los Angeles based carrier owned by Von Feldt, completed the purchase of Golden West’s stock in a non-cash transaction, Von Feldt said. He said he had no connection with Golden West before its bankruptcy.

A year ago, federal aviation officials ordered Hawaiian Pacific Airlines to refund about $800,000 collected in advance ticket sales for flights to Honolulu when the airline failed to get approval to fly. It still does not have approval.