World Airways History:
Ed Daly and the Beginning...

Edward Daly was born to the family of an Irish Chicago fireman on Nov. 20, 1922. Young Daly's family had scraped through most of the hard times of the Great Depression when, in 1937, Daly's father died. At the age of 15, Daly was forced to fend for himself. One activity Daly engaged in to get by during the prewar era was boxing. He showed promise in this field, earning 'Golden Glove' status. He would use these skills more than once in his later career.

After the Japanese attacked Pearl Harbor, Daly was drafted and served the entire war in the Pacific theater, later serving at Saipan and Tinian.

Boeing 314 Clipper

After the war, Daly worked as a passenger agent at Chicago-Midway airport, booking passengers for all the non-scheduled airlines popping up after the war. During this period, Daly married June Chandler, a stewardess with Pan Am. With her knowledge of the airlines, she served as his partner and advisor.

World Airways was formed on March 29, 1948, by Benjamin Pepper with a fleet of three surviving Boeing 314 Clippers.

The airline continued to struggle, and was sold to the Beroviche Steamship Company which acquired a Curtiss C-46 Commando from the War Assets Administration that was used on the San Juan route. An additional C-46 was purchased for spare parts.

This was the airline that Daly bought in 1950 by borrowing $50,000 (also assuming $250,000 in debt). He went about improving World's fleet, leasing a Douglas DC-4 from Braniff in 1951. In the same year, World received the first of what would be many government contracts.

Daly sought long haul government contracts with little success but he did keep his aircraft busy. On October 23, 1956, the Hungarian Revolution began, with some 180,000 refugees fleeing into neighboring countries, mainly Austria. World received a contract to fly trans-Atlantic refugee flights to Vienna.
Ed Daly leased a Douglas DC-4 in 1951.This type was the mainstay of the fleet until 1960.

Ed Daly leased a Douglas DC-4 in 1951.This type was the mainstay of the fleet until 1960. World Airways photo.

World's two DC-4s flew a total of 14 crossings, with Daly personally visiting the refugee camps in what would foreshadow World's humanitarian missions in Vietnam and other areas.

Just after the Hungarian airlift ended, World received a Military Air Transport Service (MATS) contract to provide daily inter-island service between Tokyo, Okinawa, Taiwan, and Manila in support of US troops in the western Pacific.

Legitimacy And Reward
In 1959, the Civil Aeronautics Board (CAB) issued World Airways a Supplemental Air Carrier certificate, which gave authority to operate domestic non-scheduled services for five years.

World received a contract to carry military personnel and equipment on trans-continental routes. A succession of contracts and new aircraft followed quickly thereafter. World expanded from a pair of DC-4s at the beginning of 1960 to a fleet of eight DC-6A's, four Lockheed Super Constellations and three Lockheed 1649A Starliners by the summer of 1962.

Daly decided to take World public - selling 19.5 percent of his stock in an initial public offering that raised $22.9 million. By the late 60s, World had a fleet of six newly acquired Boeing 727-100s, five 707-373Cs, and had broken ground on the $11 million Air Center and International Headquarters at Oakland International Airport.
On June 30, 1966, Ed Daly reserved delivery positions for three Boeing model 2707 supersonic jetliners. This artist's rendering shows the 2707 in World Airways colors.

On June 30, 1966, Ed Daly reserved delivery positions for three Boeing model 2707 supersonic jetliners. This artist's rendering shows the 2707 in World Airways colors. (Western Aerospace Museum photo.)

World Airways In Vietnam
More so than any other airline, World played a major role in the United States' involvement in the Vietnam conflict.

During most of the war, World - along with most other airlines, provided airlift for military personnel and materiel across the Pacific. But in July 1968, World started Rest and Rehabilitation (R and R) flights for battle weary troops from Vietnam to Japan and Australia. In addition, World was responsible for delivery of Stars and Stripes, the military newspaper, to Vietnam from Japan where it was printed.

In December 1970, in association with the United Service Organization (U.S.O.), World offered a "Homecoming Fare" to servicemen and women in Vietnam and other Pacific bases. For $350, military personnel got a round trip flight from Saigon to Oakland. The service ended in December 1971.

Daly often made trips to Vietnam to help spread Christmas cheer to those in Saigon. Daly would personally deliver traditional Christmas items like trees, hams, and turkeys.

The early 1970s were a very profitable time for World. The military airlift to Vietnam was the airline's main business. In March 1971, World bought three Douglas DC-8-63CF convertible freighters and would add three more in 1973.

While World continued to operate its contract flights in support of Vietnam, Daly was troubled by the human suffering of the Vietnamese people. Between Feb. 15 and 26, 1975, World flew supply flights from Tan San Nhut air base in Vietnam to the beleaguered Cambodian capital of Phnom Phen with two DC-8s - averaging six round trips a day.

The relief flights were a test of both the aircraft's and its crew's mettle. Because of rocket attacks around the airport, the DC-8s would descend at 4,500 feet per minute to the war torn airfield. The airlift flights also had to fit in with Cambodian Air Force F-5 fighters that were given priority.

By March 29, 1975, the North Vietnamese were closing on South Vietnam's second biggest city of Da Nang. Daly brought two 727s to Saigon to make 20 evacuation flights from Da Nang under government charter. After only three flights had been made, the US Embassy canceled the contract due to the deteriorating situation.

Daly, the humanitarian, ignored official advice and, on March 29, 1975, flew the two 727s to Da Nang in hopes of rescuing women and children. When the first plane landed, with Daly aboard, thousands of people rushed the plane and clambered aboard anywhere they could. Daly stood at the ventral airstairs using his Golden Glove hands and the butt of a pistol to knock off the soldiers trying to climb aboard the already overloaded plane. With the runway full of people racing toward the airplane, the flight's captain, Ken Healy, took off from a parallel taxiway of about 5,000 feet in length. Despite being hit by a grenade, several bullet holes, and striking a pole on take-off, the aircraft made the usual 40 minute flight in just over two hours. When the aircraft landed at Saigon the crew figured out that they had carried somewhere between 330 and 338 "passengers" - including about 60 in the cargo compartments and eight in the landing gear wells.

Despite the success of the "Last Flight From Da Nang" and the worldwide media exposure, Daly was depressed that of the hundreds of souls aboard, only eleven women and children were among them.

DC-10-30CF Off-loading cargo at Oakland International. (Ed Davies photo).

When Daly left Vietnam as the North Vietnamese closed on Saigon, he had double pneumonia, a broken hand, an infected left eye, and other ailments. But even with all this, Daly flew back to the U.S. with 218 Vietnamese refugees - including 57 orphans whom he took personal responsibility for. The U.S. Department of Immigration and Naturalization was none too pleased with the orphan airlift and attempted to fine World $218,000 for violating immigration rules. No fine was levied as public outcry in Daly's favor changed the government's mind.

After Vietnam And Airline Deregulation
On October 24, 1978, the Airline Deregulation Act was passed. This legislation would free the airline industry from the shackles of CAB regulation.

As early as 1967, Daly had wanted the opportunity to fly scheduled routes but was hamstrung by government regulations. Now with deregulation he would finally get his wish.

In anticipation of scheduled service, World ordered an additional 747 (the first had entered service in 1973) and ordered six McDonnell Douglas DC-10-30s. But Daly's Irish luck was about to change.

Scheduled Service And Troubles
On April 11, 1979, World Airways started scheduled service between Los Angeles and Oakland on the West Coast to Newark and Baltimore on the East Coast. Less than six weeks later, all DC-10's would be grounded by the FAA Administrator after the crash of an American DC-10 in Chicago on May 25. This curtailed World's new service greatly. Daly took another hit when, just after the flights resumed - his pilots, flight attendants, and mechanics went out on strike from August to December.

Boeing 747-272C was World's first 747 and first of the type to go into service with a charter airline. (Thomas Livesey via Andy Abshier photo).

Even after the crews came back to work, World faced new unfettered price competition from some of the very airlines that had opposed deregulation. This cutthroat discounting had a damaging effect on World's finances, resulting in a loss of $28 million in 1980. In 1981, World inaugurated service from Baltimore to London and Frankfurt. But the same fare discounting that put Freddie Laker out of business also hurt World - resulting in losses of $20 million in 1981 and $58 million in 1982. Although an improving economy helped ease the losses in 1983, it was still evident that World was a ship taking on water.

On January 21, 1984, Edward Joseph Daly died at the age of 61. Daly's death created a leadership vacuum at World. The airline went through a succession of CEO's during the mid-1980's. This lack of direction did not help matters regarding the company's financial performance as losses were recorded for 1984 and 1985.

The Turnaround
The leadership vacuum ceased to exist when, in 1986, T. Coleman Andrews III, former advisor to President Gerald Ford, became president and CEO of the floundering airline. Andrews and his management team immediately went about raising $100 million to replenish the airline's empty coffers. With capital in place, World announced that it would abandon the scheduled routes that had resulted in cumulative losses of over $200 million by the late 1980's.

The DC-10 began operations with World Airways in 1978.

The turnaround plan called for World to concentrate on its traditional business of military, cargo, and contract flying for other airlines. Additionally, Andrews moved the airline's headquarters, located in Oakland for 30 years, to Washington-Dulles. World also took this opportunity to rationalize its aircraft mix. The 747's and 727's were sold off or returned to their lessors, leaving the DC-10 as the sole type in the fleet.

World Today
In the 1990's, World Airways concentrated on contract flying, cargo, and military flying. Since its inception, World Airways has been engaged in wet leasing its aircraft. With the rapid expansion of air operations worldwide, coupled with fluctuations in market demand, many commercial carriers have sought to augment their fleets by outsourcing their needs.

The list of airlines that World has operated wet-leases for includes: Cathay Pacific, Virgin Atlantic, Air France, British Airways, Malaysian and Philippine Airlines. In addition, World has flown cargo under contract to United Parcel Service, Burlington, China Airlines among others.

World also flies contract charters for tour companies to destinations such as London, Paris, and Sao Paulo. Another area of business that World was and is very successful in, is the annual Muslim pilgrimage to Saudi Arabia. These Hadj flights started in 1973 and have continued every year since. World has carried pilgrims from more Muslim countries to the Islamic Holy Land than any other airline in the world. World has provided this service on behalf of Garuda Indonesia, Malaysia Airlines, and others.

During the Persian Gulf War, World Airways and other airlines, as members of the Civilian Reserve Air Fleet (CRAF), were called upon to augment the military air cargo and passenger fleet deployment of men, women and equipment to that theater of operations.

MD-11

World introduced its first MD-11 in March 1993. Today, World operates 15 wide-body aircraft, eight MD-11's and seven DC10-30's.

Legends abound about the founding fathers of the airline industry. One often repeated legend about World Airways founder Ed Daly is that after a particularly great run of luck at a poker table, he took his $50,000 in winnings and bought World Airways. Although, while this story is not rooted in fact, Ed Daly took a big gamble when he purchased this fledgling airline over fifty years ago.

World Airways over the years has traversed uncharted waters - at times riding high on smooth seas - while other times taking on water in stormy weather. World has earned the reputation as a leader in the charter airline industry. Today, World Airways faces new challenges but with an advanced technology fleet and a team of dedicated professionals. She is ready to meet those challenges - and in the spirit of Ed Daly - with pizazz!

"World's Colorful Past" is based in part on an article by Jeff S. Johnson in the Sep./Oct. 1994 issue of Airliners.

Reproduced here with the kind permission of World Airlines.

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