Trying to find an old children's educational movie (scene, action, puppet)

[swizzle123]

I am having the hardest time trying to remember the name of a movie I used to watch as a kid. I watched this movie in the early nineties but may have been made in the 80's. What I remember is the movie used puppets and live action actors. The plot from what I remember was that the puppet professor (scientist) was kidnapped by a live action bad guy who was a gangster and I remember the bad guy couldn't read. At some point in the movie or possibly throughout the whole movie the bad guy is in jail behind bars and wearing a black and white striped prison outfit but I believe I remember him wearing a suit as well. The professor (scientist) was friends with two puppet kids a boy and a girl who know how to read but not very well and must try to find the professor (scientist) by learning to read in different situations. One scene I remember is of the boy puppet in a boat with a live action fisherman who is fishing for words and keeps pulling out different things like verbs and adjectives and such on little fish shapes. Another scene is of ( believe) the boy puppet again and he is in an airplane ( a red biplane i believe) and he eventually ends up going upside down in the plane and falls out with his parachute on. For the life of me I can't remember this movie' title nor can i remember who made it. I would really appreciate any help that anyone can give me. If I remember anything else I will post it here as well.