National Ceases Operations

National Airlines announced that it will cease operations, effective November 6, 2002.  The cessation of operations was necessitated after the carrier was unable to complete a previously announced agreement to the satisfaction of its senior management, Board of Directors, aircraft lessors and other key creditors.

Customers with tickets on National Airlines that were purchased with MasterCard or VISA credit cards may apply for a refund through their credit card company.  Customers using other credit cards must inquire at their respective credit card companies about refunds.  Customers holding tickets for future National Airlines’ flights should be able to fly on other carriers based on those respective carriers’ acceptance program as outlined by Section 145 of the Aviation and Transportation Security Act.  Use of National Airlines tickets on other carriers may affect customers’ refund requests with their respective credit card companies.  Refunds for tickets from National Airlines will not be available.

Michael J. Conway, president and CEO, said, “This is a very sad day for the 1,500 employees of National Airlines, the City of Las Vegas and Southern Nevada, as well as the traveling public who now have one less choice to meet their travel needs.”  He added, “We exhausted every possible viable alternative in seeking funding to maintain our ability to fly and serve hundreds of thousands of people each month.  Unfortunately, we could not obtain the support necessary and were forced to make the very difficult decision to cease operations.

“We were very close to completing a successful reorganization on a few different occasions, only to have additional obstacles confront us at the last minute.  We were able to meet all these challenges successfully, until now.

“I truly hope that other carriers pick up the service vacuum and still maintain the low fare competition that National brought into every city we served.”


“Despite our unfortunate decision to cease operations, I am very proud of what we were able to accomplish at National Airlines, and extend my heartfelt thanks to all of National’s employees, who responded so admirably to every new challenge.

“I would also like to thank the more than 7 million passengers that have flown on National over the past three years,” Conway concluded.