Juneau-based Alaska Coastal Airlines was initially founded in May 27, 1939 as a co-partnership agreement between the rival pioneer bush pilot operations of Shell Simmons' Alaska Air Transport, Inc. and Alex Holden's Marine Airways, Inc. which started-up respectively in 1935 and 1936. The Alaska Coastal Airlines merger was completed March 2, 1942, and received its Civil Aeronautics Board operating certificate on December 5, 1942. Alaska Coastal Airlines is included in the list of Ketchikan commercial aviation companies due to the fact the company operated as a friendly competitor in a mutual agreement with Ellis Air Transport/Ellis Air Lines to share Southeast regional routes and facilities throughout their history, which eventually culminated with the April 1, 1962 Alaska Coastal Ellis Airlines Merger. Each company included twice-daily Ketchikan-Wrangell-Petersburg-Juneau flights in their schedules.

Alaska Coastal Airlines operated two Lockheed Vegas until the late 1950s, and was the first commercial flying outfit in Alaska to introduce the WWII surplus twin-engine Grumman Goose amphibious flying boat. Alaska Coastal Airlines acquired the ex-Royal Canadian Air Force Grumman G-21A Goose (N48550) to their seaplane fleet in February 1945, which went into service that June. The sturdy Goose proved to be an instant success with customers. Alaska Coastal Airlines owned a total of 10 Gooses (three as straight flying boats), reaching a peak complement of eight examples in service by 1959. Alaska Coastal Airlines boldly augmented their lift capabilities in 1949 by adding the first of three civilianized WWII Consolidated PBY Catalina amphibians (N4760C) sporting clipper bows, added water rudders, and converted to carry 24 passengers plus large cargo payloads. This prompted Ellis Air to buy their own PBY in 1959. All the PBYs were later upgraded to the 26-passenger CV28-5ACF-EMQ 'Super Catalina' configuration with more powerful Wright R-2600 engines, taller vertical tail fins, and an aft passenger boarding air-stair that eliminated the water rudders. A total of five Super Catalinas (N4760C, N2763A, N31235, N4936V, N5884V) flew around Ketchikan during the Alaska Coastal - Ellis Airlines era (1962-1968) by the time Alaska Airlines bought them out in April 1968.

Vintage period photographs taken of both large company Headquarter Seadrome docks in Juneau and Ketchikan frequently capture at least one rival Grumman Goose mixed in with the home-base fleet lineup to accommodate supplemental connecting destination links and schedules. This is the same for the Annette Island Airport and occasionally at the Juneau Airport. In April 1960, Alaska Coastal Airlines started basing a Goose in Ketchikan, along with a pilot and a mechanic. Captain Quentin DeBoer was the first pilot to be stationed in Ketchikan. By early summer that year, Alaska Coastal Airlines opened its own new waterfront office with a second booking office in the Ingersoll Hotel. The company also constructed a Super Catalina floating dock at Ketchikan City Float, conveniently located downtown for their customers. The 1960s marked the Goose and PBY heyday in the vast and rugged Southeast Alaska Panhandle region.


Aircraft:
Grumman G-21 Goose and G-44 Widgeon, Consolidated PBY and Super PBY Catalina, Republic Seabee, Lockheed Vega 5C, Bellanca Pacemaker, Cabin Waco Biplane, Travelair 6000A, Howard DGA, Fairchild 24, Cessna 180 and 195, Aeronca Chief, Piper Pacer and J-3 Cub, and a Curtiss-Wright Kingbird wheelplane.

Pilots:
Shell Simmons, Alex Holden, Ray Renshaw, Carl Bloomquist, Hunt Gruening, George Stragier, Joe Kendler, Dave Brown, John Dawson, Quentin DeBoer, John Callahan, Roland Gildersleeve, Jimmie Rhinehart, Clarence Rhode, William Stedman, Dick Frank, Stu Adams, Murrell Sasseen, Ben Milnes, Jim Sweaney, Bob File, Tom Jackson, Bob Reynolds, Paul Morf, G. J. Senatori, and Terry Jackson, among others.