Family Airlines was a failed LCC venture that offered ultra low-cost domestic services from Las Vegas McCarran International Airport. The concept of a family-friendly low cost carrier was initially proposed in early 1990s, responding to demand for cheaper air services in the US market. In 1993, the FAA stated it would not process Family Airlines' application and it's founders, Barry Michaels and Holly Michaels, were sued for fraudulently offering unregistered stock for the airline. The proposed venture resurfaced in 2008, as an application for Family Airlines was submitted to the DOT again. The application was rejected for a second time by the US DOT, citing "[Family Airlines] has to date failed sufficiently to meet its burden of demonstrating its fitness."
Following the failure of Family Airlines, a new ULCC venture, Avatar Airlines, was introduced in 2010. Currently the start-up is seeking DOT and FAA approval, and launched a crowdfunding programme.
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