It was founded by Daryl Smith, Lynn Mulhall and George Percy in 1975 after acquiring Air West's Powell River operations.

Charters were operated utilizing a combination of Cessna, de Havilland Beaver, de Havilland Otter, Piper Aztec and Piper Navajo aircraft.

In 1981, the airline was awarded the right to operate the Vancouver-Powell River route, and for this purchased a Convair 440.

In 1987, Powell Air and Air BC's Port Hardy operations merged to form Pacific Coastal Airlines.

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