History
The airline was established by Continental and other regional shareholders in the former U.S. Trust Territory and started operations on May 16, 1968 as Air Micronesia, hence the nickname and callsign "Air Mike". Service was started with a Boeing 727-100, number 475, which was nicknamed "Ju-Ju," and a Douglas DC-6. It also operated two Grumman SA-16/ HU-16 Albatross amphibians to fly from Chuuk (Truk) to Pohnpei (Ponape), until an airfield could be built that could accommodate the 727. The 727's underside was coated with teflon, due to it having to operate on coral runways. Additionally, the plane had to carry spare parts and a mechanic, as well as open-water survival gear and (beginning in 1975) onboard doppler radar, then a rarity.
William H. Stewart of the Saipan Tribune stated that the airline's foundation "in particular" "was probably the single most important factor in the future development of what were once remote and isolated islands in the Pacific." Stewart added that the jets "distorted the traveler's impression of time and distance and brought the islands closer to major market areas in Asia." The airline had a virtual monopoly in the Micronesia region. In the 1970s, each district that the airline flew to had an entirely Micronesian employee base, with the exception of Saipan, which housed the airline's headquarters. William H. Stewart of the Saipan Tribune said the airline "was the only travel link many had with the world beyond the horizon."
In the early 1980s the airline started service from Guam to Japan. As Continental's share and roles in Air Mike changed, the airline's name became "Continental Air Micronesia." Eventually, Continental owned 100% of Air Mike, which provided the only scheduled service directly between Guam and any point in the 50 United States (namely, to/from Honolulu, Hawaii).
Before being headquartered in Guam, Continental Micronesia was headquartered in Saipan, Northern Mariana Islands. As time passed, the airline's Saipan traffic decreased due to the breakup of the Trust Territory of the Pacific Islands, which was subdivided into smaller political units. Because of the breakup, fewer people needed to travel to Saipan, which was the capital of the trust territory.
Read more about this topic: Continental Micronesia
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