Tower Air was co-founded, majority owned, and managed by Morris K. Nachtomi, an
Israeli citizen who had emigrated to the
United States. After a 30-year career with
El Al, Nachtomi joined a wholesaler and tour package operator
Tower Travel Corporation in 1981. Tower Travel Corporation was founded by Zev Melamid and his wife Estelle in the 1970s to promote discount travel to Israel. Tower Travel Corporation is credited with developing the wholesale charter market between New York and
Tel Aviv.
Tower Air was formed on August 13, 1982 by Zev Melamid, Mordechi Gill, Morris Nachtomi, and Sam Fondlier as equal shareholders. The airline was formed to replace the lift Tower Travel Corporation lost when
Flying Tiger Line via a subsidiary, Metro International Airlines, decided to end scheduled and charter commercial passenger service (although military airlift cargo flights operated by Flying Tiger continued) and the three
Boeing 747s configured for passenger flights were traded to
Pan Am in exchange for all-cargo 747 freighter aircraft.
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