in manassas virginia. and out of that grew an air-taxi operation. where it is that colgan would contract with... with x company to fly from a to b. >> o'brien: charter kind of thing. >> charter kind of thing. >> o'brien: chuck colgan is a former air force pilot who built his charter company by first flying ibm executives between washington and the company's main plant in poughkeepsie. then, colgan got a big break when, in the late '70s, the government deregulated the airline industry. deregulation brought increased competition and lower airfares. it also brought a new operating model called the hub and spoke. the major airlines created central hubs in big cities and turned to small regionals, or commuters, to feed their networks. >> so, they created these mechanisms where, "okay, we'll buy," you know, "50-seat airplanes for you. you'll set up or expand an existing company, and we'll make it look like that it's actually our airline. you buy the ticket from us, but," you know, "you're really flying on this o