m PIEDmomroft
VOL. VII, NO. 2
APACE WITH THE PACEMAKER
APRIL, 1964
‘iM
6 =
1. Passenger $14>,849,601
2. Public service revenue 5,576,431
3. Aircraft and service sales 6,902,889
4. Cargo 1,006,841
5. Adjustments to expenses of prior years 74,813
6. Charter and other 563,460
Total 28,974,0^
51.3^
19.2
23.8
3.5
.3
1.9
100.0^
It's Another Year Of Profit,
Says Latest Annual Report
Hot Springs Station Staff Named,
Waugh JHeads Group As Manager
Robert K. Waugh has been
named Manager, and H. Lyle
Cox Chief Agent, of the new
Piedmont station at Hot Springs.
Waugh joined Piedmont in
1955 as an Agent in his home
town of Huntington, and has ser
ved in that location ever since.
In 1960 he was promoted to Chief
Agent, the post he held prior to
his present appointment.
He attended public
schools in Hunting-
i|ton, and later Mar-
ishall University, also
||in that city. In Aug-
lust, 1951 he entered
Ithe U.S. Marine Corps
I and was discharged
h August, 1954 as a
Waugh cQj-poj-al. Before join
ing Piedmont he worked as an
appliance salesman for Western
Auto stores.
Waugh is married to the form
er Jo Ann Dobbins of Hunting
ton. They and their son, Robert
Michael, aged four, plan to make
their home in the Hot Springs
area.
Second-in-command in the Hot
Springs station will be H. Lyle
Cox, who has been serving as
Lead Agent at Greensboro-High
Point.
Cox was born in Sparta, N. C.
He attended public schools there,
and in 1956 took a business ad
ministration course at Virginia
Southern Business College.
In October, 1948, he entered
the U. S. Air Force, serving as an
aircraft inspector and flight
engineer. He was discharged in
1952 with the rank of sergeant.
Cox came to Piedmont in 1957 as
an Operations Agent at Greens
boro-High Point, and was sub
sequently promoted to Lead
Agent.
Cox is married to the former
Nancy Phipps of Piney Creek,
N. C. They have two children—
Teresa Ann, aged eight, and
Gregory, aged six.
Other members of the Hot
Springs station staff are Agents
W. O. Radford, transferred from
Newport News, H. A. Robinson
from Shenandoah, and L. R. Bal-
ser from Washington.
At press time the station was
scheduled to open April 20, with
air service to begin April 26.
CAB Sends Review
Of Recent Actions,
Helicopter Case
The Civil Aeronautics Board
has released a review of its ac
tions involving trunkline sus
pensions or deletions at points
served by local service carriers
for the period January'1, 1949
through December 31, 1963.
This is the third such review
released by the CAB. The first
review covered the period Jan
uary 1, 1956, and the second re
view covered the period up to
April 30, 1961.
The actions of the Board with
regard to trunkline points in-
elude suspension of certificate
authority, deletion of certificate
authority, transfer of authority
and non-renewal of a temporary
authorization.
The review contains a list of
those points where some or all
trunkline service has ceased
without replacement by a local
service carrier;
Highlights of the report are:
Trunkline service has ceased
at 193 individual points which
local service carriers are au
thorized to serve.
Of the total of 243 trunkline
authorizations involved during
the 15-year period, approximate
ly one-half of the Board’s actions
were taken during the past three
years.
Approximately one-half of 116
denials of trunkhne suspensions
were granted in later proceed
ings before the Board.
There were 25 points where au
thority was granted to one local
(Continued on Page Six)
Piedmont Aviation, Inc., has
earned a profit every year since
1949, and last year was no excep
tion.
The latest annual report, dis
tributed to stockholders March
24, showed 1963 to be the 14th
consecutive year of profit for
Piedmont, with a 17.7 percent in
crease in the total volume of bus
iness.
Taken together, the net con
solidated earnings for Piedmont’s
three divisions were $645,312 af
ter taxes, or 44 cents per share
of outstanding common stock.
Total revenues for 1963 were
$28,974,035, up $4,358,706 over the
previous year.
In reporting to the stockhold
ers, President T. H. Davis point
ed out that though 1962 brought
net earnings of $1,160,084, a ma
jor portion of that figure repre
sented non-recurring gains from
the sale of DC-3 aircraft. On the
other hand, this same source ac
counted for only $37,193 of the
1963 earnings. This means that,
excluding the DC-3 sale, the 1963
net income was $53,669 greater
than the income for 1962.
The earnings picture for last
year was broken down as fol
lows;
The Airline Division accounted
for $508,639 of the net earnings.
Passenger boardings accounted
for $14,849,601, or 51 per cent of
the total revenues. Air cargo was
up 12.10 per cent over the pre
vious year.
OTHER INCOME
Other revenues were derived
from sale of parts and materials
in the General Aviation Division,
and from maintenance service to
private, corporate, airline, and
military aircraft.
Sales of new and used aircraft
by the General Aviation Division
and the Central Piedmont Aero
Division amounted to $2,975,068,
an 88.38 per cent increase over
1962. Other revenues came from
charter sales, flight training, and
lease and rental of aircraft.
Another part of the company’s
income came from payment by
the Federal Government for pro
viding air service to smaller
cities and towns not producing
enough traffic to pay the cost of
providing the service.
This public service revenue re
presented 19 per cent of Pied
mont’s revenue, a figure consid-
standing performance and loyal
devotion to duty.”
During 1963, 899,359 passen
gers flew Piedmont’s 6,000-mile
route system. The boardings goal
for 1964 is a million passengers.
Davis closed his report to the
stockholders by looking forward
to the next year and predicting;
a
1. Employee wages and benefits
2. Rents, supplies and services
3. Fuel and oil for aircraft
4. Materials and outside repairs for maintenance
of equipment
5. Cost of aircraft and service sales :
6. Depreciation and amortization
7. Taxes
8. Interest and other
9. Retained earnings
Total
$11,249,374
38.8^
3,809,843
13.2
2,357,666
8.1
2,338,291
8.1
5,491,285
19.0
1,538,903
5.3
1,028,376
3.5
514,985
1.8
645,312
2.2
28,974,035
100.0
erably below the industry aver
age of 29 per cent.
LOYAL EMPLOYEES
In the annual report Davis
also paid tribute to Piedmont’s
1729 employees, who, he said'
“...have continued such out-
“Based on encouraging trends
during recent months and the
general anticipation of an im
proved economic environment,
we believe the coming year will
be another successful one for
your company.”
Special Report Details Aircraft Needs
Of Local Service Lines In 1970's
A modern 20-passenger, twin-
engine aircraft will give the 13
local service carriers in the Unit
ed States the most favorable
operating results in meeting
short-haul requirements for the
increasing volume of passenger
traffic forecast for the 1970’s.
This aircraft could have a mar
ket potential in the U. S. local
service carrier industry alone of
303 to 482 units by 1975.
These and related conclusions
have been delivered to the Feder
al Aviation Agency in an interim
report by the Systems Analysis
and Research Corporation (SA
RC), Washington, D. C. as part
of an economic analysis of the
short-haul transport.
A number of meetings have
been scheduled by the FAA to
take place in which representa
tives of the Association of Local
Transport Airlines (ALTA), SA
RC, airframe manufacturers,
FAA and other groups will dis
cuss the interim report and other
aspects of the short-haul trans
port program.
A final report, due in October,
will deal with all potential mar
kets for the aircraft, including
those represented by U. S. and
foreign airlines, general aviation
and military aviation.
The study was made to deter
mine the optimum size aircraft
to serve low density local service
markets—w h i c h represent the
bulk of the local passenger mar
ket. This objective assumed the
higher density markets would be
served by a 40-passenger aircraft
or larger.
FAA is promoting the develop
ment of a safe, reliable and eco
nomical short-haul transport as a
replacement for the aged DC-3.
To activate the program, the
Agency issued a Request for Pro
posals (RFP) in December, 1963,
inviting U. S. airframe manufac
turers to bid on contracts for de
signing such an aircraft. The
RFP stated that FAA planned to
pick three manufacturers to pro
duce detailed design specifica
tions under contracts of $100,000
each.
REA Express Offers
Chance At Contest
To Sales Personnel
Sales and operations person
nel will soon have a chance to
enter a contest sponsored by
REA Express.
First prize offered in the air
express “sweepstakes” is a one-
week, all-expense vacation for
two to one of eight major U. S.
cities.
Other prizes include seven
three-day weekend trips, ten mo
vie cameras and projectors, and
20 charcoal grills.
The contest is open to 38 sched
uled airlines. E n t r a n t s must
answer six multiple-choice ques
tions about air express. Entry
blanks will be distributed to
Piedmont employees in April.
Estimates for the 1975 passen
ger traffic market indicate that
62 percent of total local service
traffic will be in the light den
sity areas of the nation. SARC
states these passengers will be
most economically served by air
craft of less than 40-passenger
capacity.