 It was the middle of the Great Depression and the airline was struggling financially . There were too many airlines in Anchorage at the time , and not enough demand to support them . In the next few years the airline performed many mergers and acquisitions that produced changes in the name and saw business expand throughout Alaska . The first of these mergers was in 1934 , when McGee sold his namesake airline for US $ 50 @,@ 000 to Star Air Service , an airline also located in Anchorage . This allowed McGee to enter the mining industry . With a fleet of fifteen aircraft , Star Air Service was a dominant airline in Alaska . But Star continued to struggle financially because of high maintenance costs for its wooden planes . 
