Chautauqua Airlines was founded in 1973 in Jamestown, N.Y. by Joel and Gloria Hall. The airline’s primary mission was to operate under a code-share agreement with Allegheny Airlines operating as Allegheny Commuter. Initial scheduled operations from Jamestown to Buffalo, N.Y. and Pittsburgh, Pa. were started with two new nine-passenger Beech 99 aircraft.
In 1984, the airline added five new 19-passenger Fairchild Metro III aircraft to its fleet. In 1986, Chautauqua Airlines was purchased by GAC. Later that year, the airline entered into an agreement with Saab Aircraft of America for the purchase of 12 30-passenger Saab 340 aircraft to replace the slower Shorts 3-30’s.
On May 8, 1994, the airline announced the renewal of its code-share agreement with USAir. The new agreement included a route realignment that required the airline to relocate the corporate headquarters to Indianapolis, Ind.