Even before being appointed president and chief financial officer of Billings-based Big Sky Airlines in March, DeLeeuw knew the community and the company because he was already working as a financial consultant to Big Sky Airlines.

He moved to Billings in May, bringing with him 30 years experience with the airline industry, having held senior positions with Atlas Air Worldwide Holdings, Vanguard Airlines, Northwest Airlines, Continental Airlines and People Express Airlines.

It might seem to be a difficult time to take the throttle of a small airline company, with high fuel prices and a recent threat in Washington, D.C., to slash funding of the federal Essential Air Service program. Also, the airline industry as a whole has certainly seen better days as some major carriers have filed bankruptcy or are close to it.

But major changes at Big Sky Airlines are seeing quick results.

"Our traffic is doing very well this summer," deLeeuw said. Big Sky Airlines was purchased by Mair Holdings of Minneapolis in late 2002. Big Sky's gross sales are just under $20 million.

"The company has had its financial struggles in the past," deLeeuw said. But, with relatively new owners, a new president and other changes, it is getting a fresh start.

DeLeeuw could have marched in and set up camp in the second-floor corner office of the company's headquarters at the Billings airport. Instead, he turned the corner office into a conference room and took the office at the top of the stairs. And he leaves the door open - it's noisier, but more visible.

"One of the things I have focused on is communications," deLeeuw said. "I am a strong believer in being open."

Previously, the company and its 220 employees relied on impersonal e-mail. He prefers to meet with pilots in person and chat with reservation agents. "I manage by walking around," he said. "It's a great way of finding out what's going on."

He has also found that employees appreciate his candid entries in the company newsletter.

"One thing I have learned over time is you gotta deal with people fairly and honestly," he said. "They'll give 110 percent every day because they know you care."

The new chief has put his approach into a new Play to Win program covering four areas: operational excellence, cost controls, pricing management and employee encouragement. The fourth point includes keeping touch with union leadership.

He also installed a merit-based compensation system for nonunion employees, which, he said, surprised some, but most like it. The hiring process has also been changed to include a hiring review board.

According to deLeeuw, the most significant event in the 27-year history of the company is the leasing of 10 modern planes, Beechcraft 1900Ds. The company is replacing eight planes, ranging in age from 12 to 15 years, with 10 of the Beechcrafts that are two to seven years old and are valued at about $3.5 million each. By June, six of the new planes had arrived, and four more were expected by October.

DeLeeuw raved about the planes' headroom, legroom, speed and quiet operation. They climb to altitude faster and give a smoother ride, he said. "The customer response has been phenomenal," he said.

The planes are getting a new color scheme and logo. Besides the fresh look, frequent passengers like to identify the planes by the individual color of the Big Sky name on the side.

The new Beechcraft 1900D has made a big difference to employees and customers, said Craig Denney, executive vice president and chief operating officer, who has been with the company since it started in business in 1978. "It's more passenger-friendly, more modern. There's more stand-up headroom in it and improved reliability and performance."

Passengers may like the new planes, but that isn't the only reason they are buying tickets. Big Sky has ditched its old fare structure for a simpler, cheaper system called Easy Fare.

Departing from the industry norm of requiring advance booking for the lowest fares, Big Sky Airlines passengers showing up at the time of the flight get the same fare as a ticket booked earlier. The removal of the early booking requirement seems to be popular. Traffic from eastern Montana towns is up 40 percent to 75 percent from last year, according to Denney.

"We are carrying more people than we did before and making more revenue than we did before," Denney said.

Last August, fares ranged from $80 to $125 to get to Billings from other Montana cities, deLeeuw said. Out of his experience in the low-fare, low-cost side of the industry, deLeeuw came up with the plan and lowered fares 40 percent.

"Literally overnight our traffic picked up," he said.

Since travel is discretionary spending for most people, deLeeuw explained, the lower fares crossed the drive-or-fly threshold for many. In February, Big Sky dropped its flights from Bismarck, N.D., to Williston, N.D., to Sidney, saying it didn't have the necessary volume of business on that run.

Reportedly, a few more than 1,000 passengers a year were boarding in Bismarck and 800 in Williston. Flights from Sidney to Billings continue, however, as part of a federal Essential Air Service contract, and business is up 100 percent in Sidney this year, according to Denney.

In a different market, Sheridan, Wyo., Big Sky is building success. The company started service there in the spring after it won an EAS contract to fly three daily round trips between Sheridan and Denver.

"We went in with an aggressive bid, a realistic bid," deLeeuw said. Traffic is strong enough, on a pace of 20,000 passengers a year, that deLeeuw is planning on adding a fourth round trip.

Big Sky also offered a fare of $25 one way plus tax from Sheridan to Billings. The route is going so well, a second flight is in the works beginning July 9. The flights are timed to allow Wyoming residents fly into Billings in the morning and return the same day at 7 p.m., making access to the Billings medical services, dining and shopping opportunities that much easier.

In August, Big Sky is going to start service to Bozeman, too. "I am excited about Bozeman," deLeeuw said. Bozeman is going to be "another keystone to the future of this company."

Plans are to add a route from Bozeman to Boise, Idaho, one for Kalispell to Calgary, Spokane to Calgary, and to add a second flight from Missoula to Boise.