2 ^ Piedmont around Piedmont On November 1, our fleet will num ber 125. We will have 63 737-200s, eight 737-300S, 34 727-200s, and 20 F28-1000S. TWo more 737-300s and two F28-4000S are scheduled for delivery this year. A new terminal project is underway at GRR which will give us additional gates and support area when com pleted in 1987. RIC will have a new terminal build ing and concourse by mid-1987, and new building projects are in the works at ROA and ILM. Piedmont will serve 74 airports (99 cities) in 26 states and the District of Columbia on November 1. Henson, the Piedmont Regional Airline, will serve 26 airports (40 cities) in eight states. With the addition of Britt Air ways and Jetstream International Airlines, the Piedmont Commuter System will cover 26 airports (31 cities) in seven states. On November 1 number of departures: 974 miles flown daily: 350,501 ASMs (available seat miles): 42,895,653 number of aircraft in fleet: 125 number of block hours flown daily: 1,088 average aircraft hop: 359.9 miles At CAE we now have four check-in positions and additional support area. A new cargo building will open at CHS in November, replacing the tem porary trailer added last year for these services. At CLT, the old terminal building will be demolished this month and a new building constructed on the site which will house our cargo and catering services. Site preparation will begin late this year for the new Concourse A with completion set for late 1986. Concourse A will house American, Delta, Eastern, People Express, United and others. Piedmont will have three new Presidential Suites by next spring. The Facilities Department is now designing suites for LGA and EWR, and DCA, which already has a suite, will get a new, larger one next year. When these Presidential Suites are completed, we will have 12 on our system. The new $6 million addition to our GSO maintenance facility will be ready for business November 15. The 127,000-square foot addition will house the engine build-up shop and the wheel and brake shop as well as a stock room and offices. Our new 737-300 simulator, deliv ered in August, has been approved by the FAA for visual status or Phase I use. Phase II certification is expected by early next year. Several new terminal buildings at airports we serve are under construc tion. At BDL, we will move to new facilities in the South Terminal when they are completed next spring. This will give us two loading bridges and full facilities to handle our complete operation. At FAY, the concourse and opera tions areas of the terminal are being expanded. When the project is com pleted at the end of 1986, we will have two loading bridges along with facili ties for our passenger services areas. The Piedmonitor has received a silver award in competition sponsored by the North Carolina chapter of the International Association of Business Communicators (lABC). Piedmont will be featured Novem ber 6 on “Stateline,” a news program which airs on all public television sta tions throughout North Carolina. The show begins at 7:30 p.m. Traffic Stats September passengers boarded revenue passenger miles (RPMs) available seat miles (ASMs) load factor 1,325,915 588.6 million 1.2 billion 47.53% -f 19.9% -1-25.5% h-23.3% + .82 points First Nine Months passengers boarded revenue passenger miles available seat miles load factor 13,295,431 6.0 billion 10.7 billion 56.57% -1-27.2% + 32.5% + 23.2% -(-3.94 points Cargo Stats (ton miles) September U.S. Mail Air Freight Air Express TOTAL 1,566,034 1,684,111 48,428 3,298,573 - 11.5% + 11.2% + 2.1% - 0.9% First Nine Months U.S. Mail Air Freight Air Express TOTAL 13,879,811 15,235,644 503,308 29,618,763 - 6.4% + 21.4% + 24.7% + 6.6% around the industry • * ‘Remember when the terms hub and spoke only referred to the wheel? Accord ing to airline industry experts, the words will remain active for years to come in airline circles. First Boston, the same bank that is financing Pi's Empire purchase, reported that airline hub development is most likely to occur in north-south routes or in the "last frontier" for U.S. airline routes — the West. The report identified BWI, CVG, & CLT as the only primarily north-south hubs in operation. It went on to say that hubs of the future may become multi directional and agreed with points made by a Piedmont speaker at a recent meeting of the American Assn. of Airport Executives. Staff Vice President-Public Affairs Don McGuire predicted that the hub of the future would most likely be on a smaller scale with continued feeder arrangements with commuters to fill in service gaps to smaller markets. •‘•Like to try and guess which airports will be hubs next? The same First Boston report pointed out six major factors that guide airline hub selection: 1) geographic location: 2) potential market size: 3) competitive environment: 4) potential flow of market traffic: 5) facility availability: and 6) operating conditions — i.e. weather and air traffic control problems. • • ’Underscoring the fact that it costs to be competitive in today's airline market — Drexe! Burnham Lambert analysts say commercial jet transport sales should total almost $13 billion this year — up about $3.5 billion from 1984. They also predict that by 1988 sales should rise to around $18 billion. •••If you could see above the clouds every day last year guess which kind of jet would have been the most frequent flier? According to AVIATION DAILY the Boeing 727-200 accounted for 35% of total block hours flown. Number two in usage was the DC-9-30 with 12% of all block hours. Neither of the aircraft is still in produc tion. Planes you'd have been least likely to see — 747SP and L-1011 aircraft had the least amount of block hours flown. The same study calculated fuel misers and guz zlers. The 757-200 and MD-80 aircraft came in as the most fuel efficient and the 727-100 and the 747SP were the least. • • * Fierce competition is the name of the game in a deregulated environment. Af ter its first full month of operation in DFW, People Express carried close to 15,000 passengers. AA has 60% of the market share at DFW and plans to keep it that way. The carrier reacted with strategy learned from similar entry of PE into their EWR- ORD market. AA is offering super saver one-way fare of $59 to all three New York airports while PE's fare is $99 peak and $69 off peak flying only to EWR. In other aggressive moves to counter low-fare carriers entering its markets. AA reduced its already discounted easy saver fares by 20 to 30% to match or undercut fares in 10 markets where it competes with Braniff, and is also offering the same fares (with restrictions) advertised by newcomer Continental West on its Seattle- San Jose routes. • • •Known for being successfully established in its own market, USAir is having some of its routes invaded by new upstart Presidential Airways. USAir not only matched the fares but lifted all restrictions on the discount seats and began offer ing the tickets two weeks before Presidential even began operating. Examples of fares: from BWI to BDL or BOS $39 off-peak. $75 peak and BWI to IND $49 off peak, $79 peak. Directors of Presidential say they're used to fare wars: President Harold Pareti and Senior Vice President Geoffrey Crowley both came from PE. ••♦With constant operation and almost constant growth, another constant in the aviation business is the ongoing inspection of airline maintenance procedures by the FAA. After beginning a special investigation of AA's maintenance record keeping operations in mid-June, the FAA fined AA $1.5 million in October. An agency official said the penalty was the largest such fine ever and was based on alleged violations involving maintenance monitoring, maintenance performance and quality control. • ‘ ‘Some post-labor day bargains to mention when friends ask you about good airline deals — Southwest Airlines is offering $25 one-way fares through Nov. 15 for flights throughout its system for senior citizens 65 & older. For example, Mon.-Fri. between 9 a.m. & 3 p.m. seniors can fly lAH to LAX for $50 round trip with i.d. in stead of paying regular discount fare of $218. If someone you know decides to go to Europe at the last minute, tell them Iceland- air is offering $149 one-way fare from New York to Luxembourg for passengers who make reservations on the day of travel. From BWI carrier is offering $168 same-day fare, from ORD $199 & from MCO $239. Offer good through late spring with free round-trip motorcoach service from the tiny kingdom of Luxembourg to eight cities in West Germany, three in Belgium and three in Holland. • • ‘Hurricane Gloria left her mark on the airline industry as she blew through the Atlantic coastal region. Flights were cancelled on Sept. 27 at airports from Maine to South Carolina. Service was entirely suspended during the storm at airports like LGA, EWR, BOS, & DCA. PE was the airline most affected by Gloria, cancelling 325 of 422 daily flights. EA cancelled around 289 flights on Sept. 29 & 30, AA 220, PI 188, AL 184, UA 171 and so on. Minimal if any damage to equipment and facilities was reported because airlines acted quickly to keep aircraft out of affected cities late on the 26th. Most airports were ready to resume normal operations late Friday but service was delayed be cause aircraft and crews were caught out of position. Damage was done, however, to September's already low airline traffic and revenue figures. ously ill while visiting in the area. The man was tired and understand ably upset because he had been told that his wife might not be alive when he reached the hospital. Myers took the man to the hospital and even escorted him into the Inten sive Care Unit. On her way out, she stopped back by the Information Desk and asked if it would be possible for the man to receive some help since he had trouble seeing and she was afraid he had very little money. Because of Myers’ kindness, arrange ments were promptly made for this man, making a difficult time a little easier for him. Piedmont people T.H. Davis, Piedmont’s founder and retired chairman of the board, has been named to the board of directors of The First Wachovia Corporation. * * * Gordon Bethune, senior vice president-operations, has been named to First Citizens Bank’s board of direc tors in Winston-Salem. * * * Gloria Myers, ATL-based flight at tendant, has received a TOPS (Total Outstanding Passenger Services) Award for offering special assistance to a passenger. An elderly man from Spokane, Wash ington, had traveled to Winston-Salem to see his wife who had become seri-