Scheduled passenger service was planned to be operated with McDonnell Douglas MD-80 jetliners; however, before any orders for MD-80s were placed, operations began with a single Boeing 737-200 jet, registered N233TM and operated by parent company Casino Express. The lone aircraft was painted in the Tahoe Air livery. Tahoe Air made its first flight to Los Angeles (LAX) on June 25, 1999. On July 1, 1999, the airline started service to its second destination, San Jose, California (SJC). The carrier offered low fares in a two class cabin with inexpensive upgrades. However, by October 1999, the airline had ceased operations never having received any of the proposed MD-80 aircraft. The demise of Tahoe Air also marked the end of airline service to Lake Tahoe, which has not seen scheduled passenger air carrier flights since.