When the aircraft was determined to be missing, search efforts commenced, but because of the heavy snowstorms in the Tahoe area, efforts were severely limited on the first day. Two small boats searched along a stretch of the lake's shore, but by nightfall, the searchers had found no trace of the missing aircraft. Experienced ski rescue crews and mountaineers waited for a break in the weather before they could join the search. By dawn the next morning, the weather had cleared enough to permit a large-scale search.
Air Force Lt. Col. Alexander Sherry headed the operation, involving more than fifty planes and hundreds of people. At 7:36 a.m., an Air Force helicopter spotted the wreckage of the aircraft on the ridge. A second helicopter landed at the site and confirmed that the wreckage was from the missing flight. It also confirmed that there were no survivors. Looters had already been to the site and stolen cash and jewelry from the crash victims.
Douglas County Sheriff's deputies led a group of off-road vehicles to the crash scene and left two deputies there overnight to guard the wreckage. A bulldozer cleared a road to the site along an old logging track to make it easier for rescuers and investigators to reach it.
Civil Aeronautics Board (CAB) investigators arrived at the scene of the crash and began to sift through the wreckage of the aircraft for clues as to why it crashed. Most of the wreckage they found was shattered into tiny pieces, with only a few recognizable parts. Portions of the four engines had burned, and there was evidence that a small area of the crash site had burned for four or five hours. The impact site was so close to the top of the ridge that the wheel from the aircraft's
nose gear was found on the other side of the mountain. Rescuers estimated that because of the rugged terrain and the deep snow, it would take several days or possibly even months until after the spring thaw before all the victims could be recovered. The first seven were brought to a makeshift morgue in the
CVIC Hall in
Minden, Nevada, on March3, two days after the crash, where technicians from the
Federal Bureau of Investigation began the process of identification. An additional 43 victims were brought the next day, with officials hurrying to recover bodies before an incoming snowstorm buried them in the snow, making them even harder to locate. The Air Force flew in a helicopter to help shuttle the bodies down from the ridge. Two large
Army helicopters brought in three mobile hot air furnaces to the site to help melt away the snow. By March6, searchers had located and recovered all but two of the victims. The last two were eventually located, but by March9, officials had only been able to recover one of them before poor weather forced them to halt recovery operations. The final victim was removed from the site on March30, about a month after the crash. Douglas County district attorney John Chrislaw reported that Paradise Airlines refused to pay the $300 () per victim mortuary expenses of handling the remains, leaving the victims' relatives to bear the cost. Paradise Airlines president Herman Jones denied the report, saying that the expenses would be paid by the airline's insurance company.
Airline grounded After cancelling flights immediately after the crash, Paradise Airlines resumed flights to Lake Tahoe on the morning of March3, two days after the accident. The FAA immediately ordered an emergency suspension of all flights by the airline, which took effect at noon on March 4. The suspension order said that the airline had shown "a lack of ability and qualifications to conduct a safe intrastate common carrier passenger operation". The agency said that the airline could appeal the suspension, but that in the meantime, it could not conduct flights until a decision was made on the appeal. FAA Regional Director Joseph Tippets said the agency was being so strict with the airline because Flight 901A had been dispatched on its fatal flight at a time when the weather conditions at the destination airport would not have permitted a safe landing. He said that the same day, the airline had also allowed its other aircraft to take off from Tahoe Valley Airport when the local weather conditions prohibited it. Both planes had been flying in conditions where icing would have been likely, but neither of them were equipped with wing
de-icing equipment. Instead, the front edges of the wings of the two aircraft had simply been painted black, which made it look like they had de-icing equipment installed. Company president Herman Jones told reporters that he was puzzled by the FAA's action, saying that to his knowledge, the agency had found no problems with the company's operation or its paperwork. In the days following the suspension, he added that he believed that the FAA's "over-restrictive rules" about flying in adverse weather conditions were to blame for the accident. According to him, the aircraft was only three or four miles from the Tahoe Airport by the time the Tahoe Airport agent told them that the weather report stated that there was only a ceiling. Jones said the pilots may have already had the airport in sight, but instead of landing safely, the pilot probably decided to fly over to
Reno in order to avoid being cited by the FAA for landing in violation of the airport weather minimums. At the outset of the appeal hearing before the FAA, Paradise Airlines tried to argue that the agency had no jurisdiction over the company because it was an intrastate airline that normally operated only within state boundaries. The company was unsuccessful making that argument. Once testimony commenced, attention was first focused on the company dispatcher who had approved the flight despite the poor weather conditions. At 25 years old, he was very inexperienced and had been employed by the company for only one month. He was not very fluent with the English language, and in response to questioning by the FAA, was unable to provide explanations of crucial weather terms that appeared in that day's forecast. He testified that he had used his own judgment and predicted that weather conditions at Tahoe Airport would be safe enough for the flight to land by the time it arrived. However, when he was given several examples of different weather conditions during the hearing, he was unable to accurately describe how those weather conditions could affect flight safety. Later in the hearing, FAA investigators revealed that Raymond Rickard, the Tahoe Valley operations manager for Paradise Airlines, had made changes to notes made by the airport's official weather observer on the morning of the flight. Rickard testified that he had written a
minus sign in front of a certain meteorological symbol on the report, which changed its meaning from "broken cloud ceiling" to "thin, broken clouds". He said, "I knew [the observer] would not let us dispatch an airplane under the conditions he'd written, so I just inserted the minus sign." He said he did this because he had heard the observer tell another pilot that it was all right to take off, so he thought that the observer had just made a mistake on the report. However, the observer testified that he was positive that he had seen weather conditions well below minimum operating conditions that morning. Another FAA investigator testified that Paradise Airlines had violated civil air regulations several times in the three months before the accident, mostly involving weather conditions. On April 6, the company lost its appeal of the FAA order grounding the company's aircraft. Paradise Airlines president Herman Jones called the hearings "a great miscarriage of justice" and vowed to keep the company's planes flying, with or without an
air operator's certificate. FAA representatives countered that if the company attempted to fly without a certificate, the
United States Marshals Service would seize the aircraft involved. After the ruling, the airline shut down. ==Aircraft==