The original Ketchikan Air Service, Inc. was founded in July 1943 as a partnership between lifelong resident Stanley A. Oaksmith, Jr. (6/25/13 - 11/30/92) and Ben Smith, that also included pilot Howard Beymer and later Mart Hansen. Initially started with just one plane and two employees, Ketchikan Air Service acquired the Munter Aircraft Charter Service/Ellis Air Transport hangar that had been impressed by the U.S. Navy during WWII, when it was deemed as government surplus in 1943. Stan Oaksmith, Sr. constructed a new additional company hangar next to Ketchikan City Float at 509 Water Street. Their first aircraft was a 2-place Aeronca S-65C Chief seaplane (NC31774), purchased from Prosper Ganty. On May 17, 1944, it was flipped by a wind gust while taxiing, was subsequently sold to partners Lloyd and Simpson, and later became Simpson Air Service's first aircraft.

By late 1945, Ketchikan Air Service owned four birds: two 5-place 1936 Cabin Waco Biplanes, a Standard ZQC6 (NC15724; Serial No. 4399) and a YKS-6 (NC16245; Serial No. 4460), plus a pair of 2-place trainers, a 1941 Aeronca S-65CA (NC36535) and a 1940 Taylorcraft BC65 (NC27553). The YKS-6 was sold in 1946 to Alaska Island Airways in Petersburg. In August 1947, with eight employees and six planes, Ketchikan Air Service bought its second Taylorcraft BC65 to add to its fleet of training aircraft, along with a factory new Republic Seabee. Ketchikan Air Service became a franchised Seabee dealer, and a third hangar was added. On May 14, 1949, Ketchikan Air Service purchased a Grumman G-44 Widgeon amphibian (NC58837; Serial No. 1337), from Clackamas Logging Co. in Portland, Oregon. Ketchikan Air Service also provided its booking office and docks as the Ketchikan terminal for Totem Air Service's weekly PBY flights from Seattle to Southeast Alaska stops in 1947-1950.

Many of the First City's aviators got their flight training with Ketchikan Air Service, including a young Kenneth Eichner, who was the fourth Ketchikan resident to secure a private pilot license from Ketchikan Air Service in July 1945. Eichner trained under Ketchikan Air Service's Cliff Hogue, and was approved by their own Civil Aviation Authority examiner Howard Beymer. On February 22, 1945, local business owner Gladys Rowe became the first woman to fly solo in Ketchikan. On November 16, 1945, Ketchikan Air Service received Civil Aviation Authority approval from inspector Burleigh Putnam to offer students ground school, flight instruction, written exams, and check flights for issuance of private pilot licenses. Beymer left in September 1945, and Ketchikan Air Service pilots Joe Niemic and Bernard "Swede" Blanchard were added as designated Certified Flight Instructors. It was during this time that Martin Hanson received his commercial pilot license to fly for the company. During the 1940s, Hanson owned the Arctic Bar and Rainbow Taxi, which he sold to become a pilot and business partner in Ketchikan Air Service with his brother-in-law- Stan Oaksmith.

On June 11, 1953, Ketchikan Air Service's Widgeon, piloted by Del Freimuth, was flipped while making a wheels down water landing at Mirror Lake. Del was Ketchikan's chief of police and was moonlighting as a commercial pilot. The Grumman was repaired and flown back to town, but the mishap was the final straw in convincing Stan Oaksmith to make the tough decision to close down Ketchikan Air Service that fall. The company profits had been marginal while struggling to avoid economic setbacks and flying under a cloud of stiff competition from Ellis Air Lines and other outfits. On March 2, 1956, the Widgeon was sold to Kodiak Airways. There is no connection whatsoever with Ketchikan Air Service (1943-1953) and the later local airline that operated under the same name.

Aircraft:
Cabin Waco, Republic RC-3 Seabee, Grumman G-44 Widgeon, Aeronca Chief and Taylorcraft.

Pilots:
Howard Beymer, Cliff Hogue, Joe Niemec, Bernard "Swede" Blanchard, Mart Hansen, Guy Townsend, Del Freimuth, and Charlie Barnes, among others.