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I think $1500 sounds fair.

There's clearly a bit of aging present in the watch. Some Rolex collectors do look down on the Air-King as being a somehow lesser Rolex than all the other models. (Personally, I never understood that mind-set.) Also, this watch is from when Rolex was still Rolex. Before the 1980s when the brand was taken far up to the stratosphere, and basically transformed itself into something completely different than what it was. Still the same name, still making the same models. But nowhere even remotely what it used to stand for.

For all of the above, I believe $1500 is a fair price for that vintage Air-King. Not a great price, or even a good one. But fair.
 
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