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VOL. VI, NO. 7
APACE WITH THE PACEMAKER
JULY, 1963
Directors Vote New Pension Benefits
FINANCIAL WORLD
7^\errt:7War(i
Mh reco0fution oj the excellence oj Us i962
Annual Report io shareholders, this
certificate- is presented to
■
PIEDMONT AVIATION, INC.
elected on the basis oj content, design and
typography jrow among five thousand
entries in the twenty-third Annual Report
Survey conducted during 1953.
JUNE 26, 1963
EDITOR AND PUBLISHER
'62 Annual Report Wins Award
From Financial World Magazine
Out of 5,000 entries in Fina^
cial World’s 23rcl Annual Report
Survey, the 1962 Annual Report
of Piedmont Aviation, Inc., has
been selected as outstanding in
content, design, and typography.
A “Merit Award” has been pre
sented Piedmont by the weekly
investment and business publi
cation. In writing President
T. H. Davis of the Award, Fi
nancial World’s Editor and Pub
lisher Richard J. Anderson said:
Are Commended
“ . . . you and your associates
are to be heartily commended.
“By this achievement . . . your
report may receive still addi
tional honors this year, for it is
now to be considered by the In
dependent Board of Judges for
one of the coveted Oscar-of-In-
dustry trophies (or certificate
for second or third place). The
selections will be made this sum
mer, and winners will be noti
fied in September.”
The annual report awards pro
gram was inaugurated in 1941
and was designed to improve
the image of business manage
ment to the American public.
Oscar Trophies
At a special awards banquet,
this year to be held October 30
at the New York Hilton Hotel in
Rockefeller Center, the “Oscar”
trophies will be presented.
A gold Oscar is given for the
one annual report judged “Best
of All Industry.” Silver Oscars
are awarded for the best annual
reports in ten broad classifica
tions: consumer goods, electrical,
financial, foods and kindred
products, manufacturing, m e r-
chandising and services, metals
and minerals, transportation,
transportation equipment, and
utility services.
This is the second Merit
Award Piedmont has won from
Financial World. The first was
presented for the Annual Report
for 1956.
Piedmont
Sets Pace
Piedmont Airlines set the pace
again in 1962 among local serv
ice airlines serving the nation,
according to figures released in
the 14th Annual Local Air Serv
ice issue of Flight Magazine.
For instance in 1962, 19 cities
in the United States served by
local service airlines more than
doubled their boardings figures
over 1961. Piedmont cities in this
group were Winston-Salem, New
Bern-Jacksonville-Camp Lejuene,
and Danville.
Top 50
Listed by the magazine as
among the 50 leading cities in
1962 served exclusively by local
service airlines, in terms of origi
nating passengers, were Parkers-
burg-Marietta in 13th place, Win-
ston-Salem in 15th place, and
Lynchburg in 16th place. Also on
the list were Fayetteville and
Charlottesville.
As an indication of what may
happen when a local service air
line replaces a trunk carrier in a
community, Rocky Mount, pre
viously served by a trunk airline
and now provided service by
Piedmont, shows a 201.7 per cent
increase since the switch was
made.
More Stations
A tabulation of the number of
new stations operated by the
local service airlines at the be
ginning and end of 1962 shows
that Piedmont leads all the other
local service airlines with seven
of the 13 new stations nation
wide.
The Board of Directors, at its regular quarterly meeting held
July 17, amended the Piedmont Employee Pension Plan, improv
ing the vesting provisions of the plan. Announcement of the ac
tion of the Board was made by President T. H. Davis immediately
after the meeting adjourned.
The new vesting privilege assures the employee of a share
of the fund at retirement even though he should leave the com
pany before the normal retirement age of 65. Heretofore, none of
the amount paid by the company for his account would be avail
able for retirement if he left the company for any reason before
reaching retirement age. ^
The amendment to the Employee Pension Plan provides tor
the following vesting rights: \
Upon reaching age 40, all employees with ten (or more) years
of creditable service will immediately vest 100 per cent in
funds paid into the Retirement Fund by the Company on their
Employees reaching age 40 and having five but less than ten
years of creditable service will vest immediately to the following
extent:
Years of Vested
Creditable Percentage
Service I^eserve
5 50%
0 60%
7 70%
8 80%
9 90%
The vesting right of these persons will increase ten per cent
each year until completion of ten years of creditable service, at
which time they will vest 100 per cent in Company contributions
on their behalf. ...
Employees reaching age 40 (or those joining the company
after age 40) and having less than five years creditable service
will not vest until such time as they complete this term of serv
ice At this point they will vest to the extent of 50 per cent, and
for each year of service thereafter ten per cent more. Upon com-
pltion of ten years of creditable service with the Company, they
too will vest 100 per cent in all Company contributions on their
behalf. .
ATA's Ad Series On Air Travel Cord
Proised By Art Directors Club
FAA Storis Studies Of Noise Levels
Zoning guidelines to aid air
port planners in keeping noise
to acceptable levels at civil air
ports are being sought by the
Federal Aviation Agency under
a $261,511 research contract
awarded to the firm of Bolt, Be-
ranek and Newman, Inc. of Cam
bridge, Mass.
The firm will develop a meth
od for evaluating compatibility
of land use around an airport
with noise generated by aircraft
landings and take-offs. In a re
lated effort, reactions of people
to airplane noise and actions
taken in communities to protest
and attempt to stop it will be
studied. The contract will run
for two years.
Converting field data into lab
oratory simulation studies, the
research firm will compute
noise distribution over selected
airport communities; analyze
airport neighborhoods through
questionnaire interviews; ana
lyze community reactions to air
port noises and legal steps taken
in attempts to control it; and de
velop noise criteria for indus
trial, commercial and residential
areas customarily found near
airports. In this connection, an
inventory of and uses at a small
number of airports will be made
to provide data for checking pos
sibilities of altering land use.
The firm will also evaluate the
effects of sonic boom under con
trolled laboratory conditions.
A report summarizing these
studies and containing the essen
tial technical conclusions will be
presented to the FAA’s Systems
Research and Development Serv
ice by May 1965.
Employees In Sales
Get Crack
At Another Contest
Piedmont reservation and tick
et counter employees have still
another contest to enter, this
time with opportunities to win
either a gown or suits designed
by Italy’s top designers, or an
expense-paid weekend in Rome.
Sponsored by Alitalia Airlines,
the “achievement award” contest
will select winners on the basis
of answers to a questionnaire on
Alitalia’s operations. The ques
tionnaire may be obtained from
local Station Managers.
Participants must be perma
nent employees of Piedmont en
gaged in sales, reservations,
ticket offices, or work involving
public contact dealing directly
with passenger sales.
The Air Transport Association
has been awarded a Certificate
of Merit from the Art Directors
Club of Metropolitan Washing
ton for the ATA’s series of ads
promoting the use of the Air
Travel Card for personal credit.
The award was made at the
Club’s 14th annual exhibition
during June of the “best in art
and design produced in the
Washington area.”
Graphic Art
“The main purpose of the
show is to make the business
community aware of the power
of graphic art along with imagi
native copy in developing new
business,” said Donald McCar-
ten, President of the Art Direc
tors Club.
ATA was recognized for the
excellence of its series of ads pro
moting the use of the Air Travel
Card for personal credit. This
plan provides for a system
whereby airline credit cards may
be used for personal credit in
addition to airline travel.
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Personal Credit
There are over 9,000 hotels,
motels, car rental agencies, res
taurants, and other services that
now honor the Air Travel Cards
for personal credit.
One of the oldest credit card
systems in existence, the UATP
now has over one million card
holders around the globe whose
cards are good for transporta
tion on all the major airlines of
the world.
Deepest sympathy is ex
tended the family and friends
of David Leroy Clark, 31,
who died July 10 of cancer.
He had been ill six months.
He was employed by Pied
mont in November, 1962, as
a Jr. Mechanic in Wilming
ton, and held that position
until his death.
He is survived by his wife,
Kathleen, and their five chil
dren.
First Half Of Year Shows Record Count
According to figures recently
published, Piedmont Airlines has
carried a record-breaking 415,-
987 passengers for the first six
months of the year. The figure
is 111,976 over the 304,011 pas
senger boardings during the
same period in 1962, a 36.8 per
cent increase.
Since the start of its opera
tions 15 years ago, through June
of this year Piedmont has car
ried a total of 5,573,326 passen
gers, with expectations of break
ing the six-million passenger
mark by the end of 1963.
The company boarded its one-
millionth passenger in 1954, after
beginning operations in Febru
ary, 1948. Growth was more
rapid after that, with the two-
milhonth boarding taking place
in 1956, the three-millionth in
1959, the four-millionth in 1961,
and, just a year later, the five-
millionth in 1962.
Piedmont’s cargo figures for
similar periods have also re
flected rapid growth. According
to Director-Cargo Services, R. H.
Reed, the total cargo poundage
carried by Piedmont during the
first half of 1963 shows an in
crease of 47 per cent over the
first six rftonths of 1962.