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Providing coverage of Alaska and northern Canada's oil and gas industry
March 2004

Vol. 9, No. 12 Week of March 21, 2004

PETROLEUM DIRECTORY: Northern Air Cargo: Five decades of providing teamwork that delivers

Full service transportation logistics provider earns customer’s trust and loyalty — one shipment at a time

Susan Braund

Petroleum Directory Contributing Writer

Some folks can see the future — some psychically, others in a more business-visionary kind of way, based on economic trends and gut feelings. In 1956 when Bobby Sholton and Maurice Carlson took a look into Alaska’s future, they saw that air cargo could become big business.

Relying on their assessment of Alaska’s growth potential, the duo formed a partnership and established Northern Air Cargo, a charter air freight service with two C-82 Flying Boxcars, former military workhorses capable of hauling large amounts of cargo and operating on gravel airstrips. The boxcars started delivering oversized cargo like generators and vehicles to remote DEW Line (Distant Early Warning) sites and freight to miners and rural communities on a charter basis.

Since its inception, the company has stayed close to its customer base, monitoring changes in the marketplace and responding to customer needs. Throughout the company’s history, NAC has maintained high standards for safe, timely service and superior aviation performance. In 1969, when it became evident that the carrying capacity of the boxcars wasn’t sufficient for some jobs, NAC acquired its first DC-6, with a large cargo capacity and capabilities well suited for rural Alaska. Over the next 25 years the company acquired 14 more of the rugged aircraft.

“Since the company began, NAC’s dedication to customer service has formed the basis for our solve-any-challenge approach to business and led to many innovations in the air cargo industry,” says Vice President of Cargo Stephanie Holthaus. “Our business has grown with the state and with the evolving needs of our very diverse customer base. Northern Air Cargo continues to address changes to the aviation industry and markets with new ideas for handling and moving cargo.”

Northern Air Cargo entered the jet age in 1991, according to company history, when it acquired its first 727-100 freighter to meet the needs of a growing economy. Two more added in 1998 have a capacity of 40,000 pounds and are equipped with hush and gravel kits that allow them to operate at noise sensitive airports and land on gravel runways.

Family business

Serving the aviation needs or rural Alaska for almost 50 years, NAC is the state’s largest all-cargo carrier, moving more than 80 million pounds of cargo annually on scheduled flights to 20 of Alaska’s busiest airports, but it hasn’t outgrown its family owned-and-operated roots.

Members of the Sholton family active in the company include CEO and Chairman Rita Sholton, daughter Mary Sholton, president of Northern Air Fuel, and son Paul Sholton, director of safety and corporate counsel.

Cargo VP Holthaus has grown with the business, starting in customer service, and later serving as stations manager — managing contract agents in the Bush — cargo sales director and finally VP of cargo, in charge of business development, sales, ground operations and NAC Link. “I love the airline business,” she says. “There are new challenges every day, which keeps it interesting. Working with a team of Alaskan aviation professionals in makes NAC a wonderful place to be.”

Expanded services

NAC-Pac — NAC’s guaranteed express package service ensures that your replacement parts, hazardous materials or important documents will be on the company’s next scheduled flight or your money back! Deliver your package to NAC no later than 30 minutes prior to the scheduled flight.

Consolidation — 72-hour consolidation service allows you to maximize the weight of your shipments using many different vendors, to a single destination.

Charter and flagstop — All NAC aircraft are available for charter and flagstop service. Boeing 727-100 jets, the ATR 42 or DC-6s can fly your freight to any community with suitable runway conditions. For cargo transportation needs that do not require a full aircraft load, flagstop service to over 40 rural Alaska destinations is an option.

NACLINK — This wholly owned subsidiary, NAC’s freight forwarding service, specializes in handling domestic and international shipments. For cargo connections to clients and vendors anywhere in the world, try NACLINK.

Northern Air Fuel — Provides the bulk tanker DC-6s with fuel to the North Slope and throughout Alaska.

A slew of news

Northern Air Cargo, always looking to the future, has a lot of news to share with Petroleum News readers: new aircraft, new daily schedules and a new maintenance certificate.

Fleet — “The company’s commitment to finding new ways for our customers to optimize and simplify their complex supply chains means growing with customer demands and meeting challenges by changing our fleet and services as the market evolves,” says Holthaus.

NAC has added a new type or aircraft to its fleet — an ATR-42, a turboprop aircraft with a large cargo door. The craft is efficient, has a smaller payload than the DC-6, making it better for smaller, denser freight. Later this year NAC also plans to acquire two ATR-72s, which have a payload in between the ATR 42 and the DC-6.

“The DC-6 has been ideal for the Bush for nearly 50 years, perfect, but they are aging,” reports Holthaus. “Also, the market has changed ... ATRs give us the opportunity to provide increased frequency to the communities we serve. We are upgrading our fleet to further enhance the services offered by Northern Air Cargo. After careful consideration and market analysis we chose the ATR aircraft for performance capability, capacity and efficiency. Our intent is to take advantage of the unmatched economics of the ATR 42 and 72 bulk freighter models. We’re excited about these aircraft!”

New daily service — Since October NAC has been providing regular daily service to Seattle, Sitka, Ketchikan and Juneau, flying mail and freight, including fish, to and from Southeast Alaska.

Safety — NAC received a Medallion Foundation Safety Award 2003, with no accidents or incidents for a 12-month period. The company is a staunch supporter of the foundation’s efforts to improve aviation safety in Alaska.

New opportunities — NAC is becoming an FAA approved 145 Repair Station, enabling the company to provide maintenance to a variety of carriers. “We know aircraft maintenance and our maintenance group is known in the industry for professionalism and high safety standards,” says Holthaus. “It’s an easy fit — a natural extension of what we are already doing.”

According to Holthaus, the leadership of President and COO William “ Dix” Fowler has been a positive influence for the company. “He has been here for two and a half years. His experience in the oilfield and construction industries has brought a wealth of new knowledge to the company. He’s been instrumental in all the exciting things that are going on ... he’s leading us in new directions.”

Northern Air Cargo has been providing air cargo and charter/lease services in Alaska and throughout the United States for nearly 50 years. Services include a full array of surface and air transportation logistics from an overnight letter to the largest projects anywhere in the world.

Northern Air Cargo is your one-stop shipping company — finding solutions to any shipping need, big or small, local or international, pickup or delivery.

Editor’s note: Susan Braund owns Firestar Media Services in Anchorage, Alaska.






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