In 1936, a Lockheed Vega (NC47M) was purchased by Sheldon "Shell" Simmons from Irving Airways. Alaska Air Transport inc. was formed in Juneau. The Vega was added to an existing fleet of one Stinson SM2A and a Bellanca Skyrocket. Simmons named the Vega "Nugget". In 1939 Shell Simmons merged his Alaska Air Transport with Marine Airways and Alaska Coastal Airlines was formed.
In 1941, Alaska Coastal purchased another Vega (NC49M). The fleet colors consisted of a Blue fuselage with yellow stripes. Yellow on top of the wings and tail. Yellow would show up good in the timber, and the blue would show up in the snow in case of a crash.
In February 1945, Alaska Coastal Airlines was the first airline in Alaska to fly the Grumman Goose with an eight month jump on Ellis Air Lines in Ketchikan.
They operated a fleet of eight "Gooses" rivaling Ellis Air Lines.
On April 1, 1962 Alaska Coastal and Ellis Airlines merged and combined fleets and grew to seventeen "Gooses", four PBYs and other smaller planes.
In 1968 they were bought out by Alaska Airlines.
