m piEDmonirott VOL. V, NO. 1 APACE WITH THE PACEMAKER JANUARY, 1962 Examiner Recommends New Routes Segment Five of Opened CAB Vice Chairman Robert Murphy—ALTA Meeting 1961 Evenfs Reflect Year Of Progress New routes, service, facilities, and equipment made up a busy 1961 for Piedmont. One of the most active years in company history, it was filled with events that will have a long-range ef fect on Piedmont’s future. The Civil Aeronautics Board helped start the year by grant ing Piedmont the Knoxville-Nor- folk route Segment 5 of AM-51. Two principal points added in this decision were Rocky Mount ^nd Elizabeth City. The route was a portion of the Piedmont Area Local Service Investigation but had been accorded expedited treatment by the CAB, enabling Piedmont to take over the run from Capital Airlines before the Board ruled on the larger case. Examiner’s Decision In March The Piednionitor fea tured the second major news story of 1961 which was also shaped by CAB action. The Ex aminer’s decision on the Pied mont Area Case was issued with James Keith recommending Pied mont for many new routes and liberalized operating rights. Service between Baltimore and Atlanta was recommended as well as new service through South Carolina and over to Nash ville, Tenn. Special ceremonies in Raleigh March 30 opened the new Knox- ville-Norfolk route. A luncheon and afternoon of tours enter tained dignitaries from cities along the route. Guests included North Carolina Governor Terry Sanford, members of the Council of State, state Senators, Legisla tive Representatives from com munities along the route, and U. S. Senators and members of Congress from North Carolina. ALTA Meeting July 19-21 were the dates Pied mont turned host in 1961 as members of the Association of Local Transport Airlines were greeted in Asheville by company officials. A busy conference schedule and well-planned ac tivities resulted in the session being called “ . . . one of the best-organized meetings ALTA has ever had.” CAB Vice Chair man Robert Murphy was the fea tured speaker at the conference. Two other well-known avia tion figures were Piedmont guests a month later as Marion Sadler, Vice President and Gen eral Manager of American Air lines, and Publisher Wayne Par rish spoke during the manage ment meeting at Asheville’s Grove Park Inn. “How We Can Produce and Mer^bandise Bet ter Service” was the theme of the meeting, attended by station managers, department heads, and sales personnel from all over the system. Most of the meeting was given over to comments and sugges tions from station managers and district sales managers on better ing service, with specific prob lems discussed pertaining to in dividual stations as well as gen eral ideas for a better sales and service program. New Hangar The new maintenance hangar at Roanoke was dedicated Sep tember 28, marking still another major news event for Piedmont. The dedication included ribbon- cutting ceremonies, a Piedmont- hosted luncheon, and F-27 scenic flights over the areas for open- ing-day guests. Roanoke Mayor Willis Anderson and President Davis officiated at the ribbon cutting, following which Mr. Davis invited guests into the hangar for a buffet luncheon. The year was brought to a close with the biggest news re leased by Piedmont during 1961 —the purchase of 17 Martin 404 aircraft from Trans World Air lines as replacements for the Management Meeting at Asheville DC-3’s. The announcement, made December 4, stated that the Mar tins and Piedmont’s present fleet of eight F-27’s would com prise the largest fleet of modern, pressurized aircraft in the local service transport industry. Finest Fleet In commenting on the pur chase, President Davis said, “Ac quisition of the fleet of Martin 404’s will enable Piedmont to provide the traveling public with a much superior service in pressurized, air-conditioned, ra dar equipped, modern aircraft. In addition the substantially in creased efficiency of the 404 as compared to the DC-3 will en hance our earning capacity as our traffic and route system con tinue to grow and develop over the years.” High Boarding Passenger boarding records also made news for Piedmont in 1961. In June a new all-time high for one month was set when 53,260 passengers were carried— a total topped only two months later when a new record was set with 53,916 passengers carried in August. New all-time high passenger boarding days were established and broken three separate times over the year. A new high of 2.172 passengers was set August 17; another high was set Septem ber 1 with 2,275 passengers boarded; and yet another high was established November 22 with 2,399 boardings. Finances Good The financial outlook for Pied mont Aviation, Inc. was good for 1961. The year closed with a record $375,000 in earnings, ac cording to preliminary estimates by Secretary and Assistant Treasurer M. F. Fare. This all- time high record was attained in the face of industry-wide deficits, (Continued on Page Three, ROA Hangar Dedication New Year a Challenge Says President Davis By most any measure, 1961 was a good year for our com pany. We served more passengers than ever before. We operated more plane miles and more passenger miles than ever before. We successfully and smoothly inaugurated service over a new route. The General Aviation and Central Piedmont Aero Divisions en joyed more sales of aircraft, parts and services than ever before. We performed more maintenance work for outside customers than ever before. We completed highly satisfactory arrangements for ;he pui^hdse o\ 17 mdiiin 404 aircraft and ihe sale of 14 of our DC-3's, which will result in Piedmont having one of the largest fleets of modern, pressurized, radar equipped aircraft In the local service industry. We completed a very satisfactory financing pro gram for the new aircraft and for any foreseeable expansion re quirements. And we earned a bigger profit than ever before. For your part in helping make all this possible, 1 am deeply grateful. Yes, we have a lot to be proud of and for which to be thank ful. I would be less than honest with you, however, if 1 left the impression that ''we've got it made." No indeed. We've just be gun. We must face the fact that while our achievements this past year place us in a very strong and solid position, we certainly cannot afford to rest on our laurels and be complacent. Indeed, the achievements of 1961 have brought an even bigger challenge and opportunity for 1962. First of all, I am sure you realize it is going to be no small chore to get the big increase in traffic required to fill all the seats we will have available as a result of the 404 program. Along with that, it will be a tremendous task, from a flight operations and maintenance standpoint, to smoothly integrate such a large fleet of new aircraft into our system. It is easy to see that this one undertaking alone will test the best of us in getting maximum revenue and maintaining minimum costs if it is to be successful. It will be a difficult task. Next, I believe we can anticipate the CAB decision in the Piedmont Area Case early in the new year. While the extent of this challenge is yet unknown, it is clear that if we are permitted to operate the new routes and new service that we applied for, and is so badly needed by the traveling public, it will result in (Continued on Page Four) Martin 404's Purchased

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