Tower Air was formed by Tower Travel tour operator on August 13, 1982. The airline first bought space on Metro International Airways however, when Flying Tiger Airlines passenger division ended operations, Tower elected to apply for its own certificate. In the beginning, the airline flew many charters as well as freight and the company won many contracts from the U.S. Deptartment of Defense and the UN to transport troops to their peacekeeping missions all over the world. By 1996 the airline's finances deteriorated. By the start of 2000 the airline began to furlough employess and return leased airplanes to reduce expenses. Unfortunately, Tower had to file for Chapter 11 bankruptcy on February 29, 2000 and filed for Chapter 7 bankruptcy on December 20, 2000.