Air Tindi was established by two families, Alex Arychuk and his wife Sheila, and his brother Peter Arychuk and his wife Teri. It began operations on 1 November 1988, with four float/ski aircraft. In 1990, it purchased its first De Havilland Canada DHC-6 Twin Otter with the help of the Rae-Edzo Development Corporation, allowing the airline to expand and provide more services to the growing mining exploration industry. In 1991, Air Tindi merged with Latham Island Airways and acquired a further four aircraft in the process. By mid-1992, Air Tindi was operating four Twin Otters on floats. In 1993, its first large aircraft was purchased, a DHC 4 Caribou for re-supply work with the mining industry. A DHC Dash 7 was acquired in 1996.