NOTES FROM THE CHALLENGER PROSPECTUS
Dated August 4, 1948

Claude Neon, Inc. a New York corporation, bought controlling interest in January, 1947 for $120,000 via purchases from
George J. Forbes, Fred M. Manning, and Fred O. Rice.  These three, plus Charles W. Hirsig II who died in an aircraft
crash January 15, 1945, were the founders of Summit Airways which became Challenger Airlines February 2, 1947.

Summit Airways limited its activities to flight instruction, buying and selling airplanes, and non-scheduled air carrier 
services from its founding on December 31, 1941 until it became Challengers Airlines.

The Civil Aeronautics Board issued an air carrier operating certificate to Summit on March 28, 1946.  Service as
Challenger Airlines started on May 3, 1947 between Billings - Denver - Salt Lake City with intermediate stops operating
Air Mail route #74.

Presidents of the Corporation were Charles W. Hirsig II from December 31, 1941 til his death on January 15, 1945.
George J. Forbes was President from then until January, 1947 when George W. Snyder, Jr. took over.  Snyder was
President until Donald A. Duff was hired in August, 1948. He had 17 years airlines experience with Northeast, Pennsylvania
Central and Continental Airlines.   He remained President until the merger which formed Frontier
Airlines where he became a Vice President.

Challenger bought their first two aircraft, DC3s, from Capital Airlines on February 8, 1947 with a down payment of
$25,000 for NC65135 and NC65385.

On August 4, 1948 the system route totalled 1613 miles serving 16 cities in Utah, Colorado, Wyoming, and Montana.
Operating 22 passenger DC3s, the carrier received $.60 per mail for mail compensation.  Freight and express were negligible
so it needed $.30 - $.35 per mile passenger revenue to break even. That translated into 30% load factors for passengers
on flights.  Highest load factor in this period was 28%.

Challenger carried 256 passengers their first month of operation - May, 1947.

By August, 1948, the carrier was sharing expenses with Monarch Airlines for general traffic and sales departments.  Monarch
had been doing the mechanical and communications work for Challenger at Salt Lake City since April 11, 1948 and all 
employees there had been laid off.  The two carriers were also sharing maintenance and repair facilities at Denver
by August, 1948.  There were 100 employees as of April 30, 1948.