Banker Agrees to Acquire Air 21

The San Diego investment banker who bought the Pacific Southwest Airlines name last year has agreed to acquire the rights to troubled Air 21, a low-fare regional airline based in Fresno. The agreement with David Walsh, who resurrected the PSA name in 1995 but operates no flights, is expected to be completed within a few days. Air 21, which confirmed the deal, said Walsh will become president of the airline, succeeding Mark Morro, who has resigned. Morro will serve as a consultant to the company. Air 21, which began service a year ago today, has three planes, 180 employees and flew 250,000 passengers in its first year of service. Annual revenue was $12 million. In the last week, Air 21 has had financial disputes with Delta Air Lines, which provides ground service for the airline. An agreement allowing passengers to make direct connections to Reno Air flights was suspended Monday. Air 21 shares rose 25 cents to close at 81 cents on the OTC Bulletin Board.