Gem Air: Outback Operator Continued from page 11 E ach year, tens of thousands of adventurers head towards the vast expanse of Idaho’s treasured wilderness areas. As the largest roadless wilder- ness in the lower 48 states, the Frank Church Wilderness of No Return, which comprises over 2.3 million acres, is also a natural home for the largest concentration of back- country air strips in the nation, outside of Alaska. Idaho’s aviation history is replete with stories that are based in backcountry aviation. Even now, many of Idaho’s com- mercial operators continue the tradition of backcountry flying, largely to serve those adventurers. One such operator is Gem Air. Based at Salmon, Idaho’s Lemhi County Airport (SMN), Gem Air’s roots run deep into that Idaho wilder- ness. The company offers on-demand flights during the summer tourist season, transporting tourists and their gear into and around the Idaho backcountry for hunt- ing, hiking, fishing, and connections to river trips. Given its focus on the mountainous Northwestern States, Gem Air’s seasonal business runs from March to as late as November, with the bulk of flying during July and August. But, seasonal backcountry flying is only one of many diverse markets that Gem Air serves under its Part 135 authority. The company is a long-time UPS part- ner, feeding the global shipper’s jets at Salt Lake City International Airport (SLC). Gem Air also offers year- round charters in the Northwest mountain states, a marginal service under its Department of Transportation (DOT) commuter designation between Salmon and Boise (BOI), as well as local flight instruction. “Although backcountry flying—which generates about a third of our revenue—isn’t the biggest piece of our business, it really has its own culture within aviation,” explained Jo Schroeder, Gem Air’s Business Manager. “That culture and identity are ingrained in our family and our company, which is why I say backcountry is the heart and soul of our business. It’s so different from most com- mercial aviation—even other parts of our own operation.” Gem Air, today, is a thriving enterprise, but it has not always been smooth sailing. The success of the business is a tribute to Jo’s parents, who own the company: Dan Schroeder and JoAnn Wolters—respectively Director of Operations, and Chief Executive Officer. Originally established under the Salmon Air Taxi name by Mike Loening in 1955, the company has a color- ful history with links to the beginning of aviation. “Mike’s dad was Grover Loening, who managed the Wright Company factory in Dayton, Ohio, and was taught to fly by Orville Wright,” Jo pointed out. “Grover (who passed away in 1976 at age 87) became a major player in the development of aviation in his own right.” Prior to becoming today’s Gem Air, Salmon Air Taxi would pass through a succession of owners including, for a brief period, entertainment company Disney, Inc., as well as one bankruptcy. In late 1981, Dan and JoAnn, who are both pilots, learned that Salmon Air Taxi was for sale. Impressed with the company, they put their avail- able cash down as earnest money. “As the largest roadless wilderness in the lower 48 states, the Frank Church Wilderness of No Return, which comprises over 2.3 million acres, is also a natural home for the largest concentration of backcountry air strips in the nation, outside of Alaska.” 12 “The sale agreement stated, in buying the business, they would start with four working airplanes, all finances would be in order, and all debts paid,” said Jo, adding that it was further agreed that the deal would be finalized by February 1, 1982. Unfortunately, a few days before that date, a major snowstorm struck the mountain west, severely impacting highway travel from Dan and JoAnn’s home in Wyoming. When they finally arrived in Salmon on February 3, Salmon Air Taxi’s owners had filed for bankruptcy protection. “The money that my parents put down on the business had been swallowed by the bankruptcy proceedings,” said Jo. “As icing on the cake, three of the four airplanes were broken or partially dismantled, and the only work- ing airplane they had was a Cessna 185.” If this wasn’t enough, Dan and JoAnn were told that since the Salmon Aviation Business Journal | Spring 2020
