Karl stands to lose his air transport business if he does not settle his debts. In Sandby's Folly, his competitor Sandby gives him 48 hours to pay up after which he will buy over Karl's business. Karl is, meanwhile too proud to get any kind of help from a woman and turns down Kate's offer.

An American attempting to fly from Alaska to Washington in a hot air balloon runs into trouble in a storm and is forced down near Ritter's Cove.

Karl regains his pilot's licence but still needs Kates help with the company. His younger brother arrives from Germany for a visit bringing his wife and kids.