2
Piedmont
around the industry
•••Gallup survey conducted by the Air TYansport Association showed that a record
number of Americans flew during the past year. About 48 million adults or 28% of
total adult population flew. In 1984, 46 million adults or 27% flew. Seventy percent
of adults have flown in their lifetime; 72% of men and 68% of women have flown.
Half of the trips taken were for business and the other for pleasure/personal
reasons. Those who flew during the past year averaged 3.2 round trips each.
•••T\vo of the industry's biggest and busiest will be getting even bigger and busier
in the near future. United Airlines—the country’s largest — in early November
placed the largest single aircraft order in aviation history with Boeing, the nation’s
largest commercial aircraft manufacturer
The $3.1 billion order is for up to 116 new aircraft, mostly the popular 737-300.
Six aircraft will be long-range 747-200B jumbo Jets, for use on UA’s new Pacific
routes recently purchased from Pan Am. Deliveries should take place between Nov.
1986 and Dec. 1990. Boeing has received orders for 341 planes so far this year
compared to 169 in 1984.
•••Not only are aircraft orders on the increase—agencies that sell the tickets to fill
them are on the rise too. Over the past year there has been a 9.1% increase in
accredited travel agencies.
•••But selling tickets is not the only way airlines make money. AA says the main
way it financed its 18% growth in 1985 (based on ASM’s) and its projected 13%
growth in '86 is by selling services like the use of its Sabre computer reservations
system, data processing, telemarketing and ground-handling operations for other
airlines. PI handles ground operations and freight for 69 different carriers at 37
locations, provides maintenance services for a number of other airlines, and also
sells contract time to eight carriers and FAA flight inspectors on its four state-of-
the-art simulators for flight crew training. UA owns a rental car company, and a
hotel chain.
•••According to the ATA, over 130 airlines (including commuters) have come and
gone since deregulation. As with many businesses, one key to survival is starting
with an extensive capital base and preparing for losses in the first few years of oper
ation. New upstart Presidential Airlines is a case in point. For its first operating
quarter the carrier reported a $3 million net loss. The company’s vice president of
finance said an initial operating loss was expected and the amount was even
encouraging,
•••Further evidence of fortunes needed by new airlines is PRIDE AIR. Formed by a
group of former Continental pilots last year and headquartered in MSY, PRIDE sus
pended service and furloughed employees late Nov. 15 because $30 million in
anticipated funds from unnamed investors did not materialize.
••‘Here’s the latest news from a newcomer that so far has made it big—People
Express’s operating profit climbed 91.5% for the third quarter of 1985. Of the 24
carriers reporting profits for the third quarter, PE came in ninth. By next year PE
should be classified as a major—even without the Frontier merger The carrier’s
operating revenue for just the first nine months of 1985 was $707.3 million.
PE also moved service from California’s Oakland airport to nearby SFO and
began a special introductory one-way fare of $99 between SFO and Brussels,
Belgium.
• • •Tt'ansportation Secretary Elizabeth Dole promised to add 1.000 air traffic con
trollers nationwide over the next two years to aid what many view as shortage of
crucial positions.
•••Soon PI won’t be the only major with a major hub in Ohio. DL plans to build
12 new gates at the CVG airport and bring an additional 75 to 100 daily flights to
the city by fall 1987.
•••Airlines hired 841 flight attendants in October, bringing total hired for year to
date to 11,354—2'/2 times the number for same period in 1983,
•••Marketing agreements among airhnes are even extending to the international
scene. United Airlines has four foreign carriers as marketing partners including
Alitalia, Lufthansa, SAS and, most recently. Air France. The new agreement with
Air France means Joint advertising, enhancing automation features between both
carrier’s reservations systems and coordinating schedules with UA at its seven U.S.
gateways—ORD, JFK, LAX, lAH. lAD, Anchorage and MIA. UA already gives fre
quent flier credit to passengers transferring from Air France. SAS began advanced
seat selection with UA in November with more foreign carriers being added to the
service in the near future.
around Piedmont
On January 15, our fleet will num
ber 129. We will have 63 737-200s, 10
737-300S, 20 F28-1000s, two F28-
4000s, and 34 727-200s. A third F28-
4000 is scheduled for delivery in
February, and in March, another 737-
300 will join the fleet.
Piedmont will move into a new
cargo building near the new terminal
building at CHS on January 1. The
new facilities will give us our own
cargo operations,
« « «
Construction has been completed at
CLE on a new baggage services office.
We plan to have our own facilities for
complete operations at this station in
the near future.
* * *
Renovation on our catering facilities
at MIA will be completed this month
giving us 9,000 square feet for our
own catering needs. Construction is
underway for a new area underneath
the concourse for crews, maintenance,
and additional operations space. Com
pletion is set for early 1986.
♦ ♦ «
At MCO, the concourse shared by
Piedmont, Continental, and Republic
is being expanded from 60 to 85 feet
wide. When the work is completed
late next year we will have five exclu
sive gates. A holdroom will be located
on ground level for use by our
commuters.
* * *
We will relocate at DFW from Termi
nal 2E to Tbrminal 2W by January
1987. Our facilities will be similar in
the new location.
* « «
At West Palm Beach (PBl) we will
have our own ticket counter and sup
port facilities. We will share a hold
room with Midway, At Pensacola
(PNS) we’re in the process of renovat
ing the existing airport facilities for
the January 15 startup,
♦ « *
Over the Thanksgiving holiday
weekend. Piedmont set new records
for passengers boarded and load fac
tor for a given day.
On Wednesday, November 27, we
boarded 78.482 passengers, breaking
the previous record day set last July 7
of 71.698, The new record held for
three days until Sunday, December 1.
when we boarded 87.952 passengers.
On Sunday, we also had a record load
factor breaking the previous record set
November 30. 1980,
In addition, we carried record loads
on Thanksgiving Day and the follow
ing Friday and Saturday. On Thurs
day. November 28. we carried 59,681
passengers compared to 31.735 on the
same day in 1984, On November 29,
35,098 passengers flew Piedmont
compared to 25,032 on the Friday fol
lowing Thanksgiving in 1984. On
November 30, we boarded 73,450 pas
sengers. a third more than the 44,652
carried the same day the previous
year.
Much of the increase can be attrib
uted to the special Thanksgiving fares
offered on these days.
The no-show rate was also down 4.5
points over the same period of 1984.
On January 15
number of departures: 1,025
miles flown daily: 369,304
ASMs (available seat miles):
46,112,421
number of aircraft
in fleet: 129
number of block hours
flown daily: 1,157
average aircraft hop:
360.3 miles
Piedmont will add two new destina
tions and 27 more flights in Florida
on the January 15 schedule. We will
begin service at both Pensacola (PNS)
and West Palm Beach (PBl) with three
nonstop, round-trip flights daily
to MCO.
The station manager at PNS will be
Leonard Smith, a 28-year veteran
with Piedmont. His most recent posi
tion with the Company has been as
cargo manager-BWl. Tbm Maynard
has been named station manager at
PBl. He Joined Piedmont in 1973 and
most recently was customer service
manager-CRW.
In addition to the flights to PNS and
PBl. MCO will add three round-trip
flights daily to both TLH and FLL.
With these flights, departures will
total 25 at MCO. MlA’s departures will
increase to 30 daily with new round
trips to both TPA and CLT. Other sta
tions with double figures include JAX
at 22, TPA at 20, and FLL at 12.
On January 15, we will have a total
of 139 departures from 12 Florida
destinations. Of these departures, 96
are within the state.
Piedmont people
Patty Clay and Carolyn Bryant, both
agents at DCA. are the most recent
recipients of the TOPS (Tbtal
Outstanding Passenger Service)
Award.
A woman traveling with her three
children (ages six years, two years,
and four months) became ill. When
she was taken to the hospital, Clay
and Bryant offered to go along and
take care of the children. At the
hospital. Clay cared for the infant
while Bryant took the other two
children to the cafeteria.
At first, it was not known whether
the woman’s husband would be able
to get to DCA from CMI. When he
finally arrived late that evening. Clay
offered to keep the infant in her home
for the night.
The next morning, both women
stayed with the children and their
mother throughout the day at the
hospital. One of the physicians was so
impressed that he contacted the news
media, and a brief editorial praising
both these women appeared in the
newspaper.
THEyEAROF
CHAOENGES.
Traffic Statistics
November
passengers boarded
1,463,437
-1-14,9%
revenue passenger miles (RPMs)
643.3 million
-1-16,4%
available seat miles (ASMs)
1.3 billion
-fl9.2%
load factor
50,89%
-1.24 points
First 11 months
pasengers boarded
16,304,418
-1-25.7%
revenue passenger miles (RPMs)
7,4 billion
-1-30.5%
available seat miles (ASMs)
13.2 billion
-1-23.1%
load factor
55,51%
-t-3.14 points
Cargo Statistics
(ton miles)
November
U.S. Mail
1,728,634
-11.5%
Air Freight
1.649,035
-H 6.9%
Air Express
50.465
-t-10.9%
TOTAL
3,428,134
- 3.3%
First 11 months
U.S. Mail
17,425,967
- 6.9%
Air Freight
18,835,635
-1-19.0%
Air Express
619,614
-^25.9%
TOTAL
36,881,216
-)- 5.3%