Its main operations base was Townsville Airport, with hubs at Cairns, Brisbane and Mount Isa.

In 1998, the growth of the mining industry and MacAir Airlines' fly-in fly-out operations led to the expansion of the carrier and the introduction of passenger services in North Queensland.

Passenger volumes on this route serving the mining industry saw the company introduce its ATR 42-500 into service.

On 29 January 2009, MacAir placed itself into voluntary administration; the following day major creditor Suncorp-Metway appointed Ernst & Young as receivers and the airline ceased operations.

[4] The administrator wound up the business and sold off the company's assets; however the airline only owned a single aircraft as the others were all leased, as were the ground installations.