Mid Pacific Air was started as a commuter airline and began operations onf March 15, 1981. The company entred the freight business in January 1985. In February the airline expanded east to Nevada, California and Arizona as well as an investment in a commuter start up in Fort Worth Air proved disastrous and Mid Pacific reported a loss of $10 million. The company was sold in January 1986 to KOA holdings and on January 19, 1988, the airline filed for bankruptcy and ceased passenger operations. Later that year, it moved its base to Lafayette, Indiana and changed its name to Phoenix Airlines. The company ceased operation in 1995.