inB PiEamoniTOH VOL. VII, NO. 8 APACE WITH THE PACEMAKER NOVEMBER, 1964 Company Marks Mileposts 100,000 Boarded During Month of October October was a record-breaking month for Piedmont Aviation, Inc. The Airlines surpassed the 100,000 goal it set for itself. This was the first time the Company has boarded 100,000 passengers in a single month. The previous record was 96,121. set in August of this year. Final figures for passenger boardings this October were .100,- 824 as compared to 88,190 board ed the same month last year. Passenger miles this October were 22,005,638 as compared to 18,330,565 for the same period last year. October also brought a record day for the Airlines. A new high of 4170 passengers were boarded on Friday, October 23. Cargo Sales High Reports received in October concerning September cargo sales were also good. During September, the Airlines carried 419,700 pounds of air mail, an in crease of 29% over September, 1963. September was the second best month in the Company’s history for Air Express. 446,700 pounds of express were flown, representing an increase of 15% over last year. The air freight figure of 715,- 846 pounds carried was the high est in history, increasing 42% over September of last year. To tal cargo sales for the year are 19% over the sales for the first nine months of last year. Mr. Bob Reed, Director—Cargo Services, attributes these gains to a greater reliance on air cargo service. An increasing number of large aircraft, some all-cargo. Plan Pays Benefits The daughter of a Piedmont employee recently went through an extended period of illness. Two separate hospital bills alone amounted to $4269.00. Of this amount, under the Group Health Plan, the Hospital Savings As sociation paid $3982.00. In ad dition they paid $694 for profes sional services making a total of $4622.00 in benefits. In another case, a Piedmont mechanic received serious injur ies, later resulting in death, from an automobile accident. He left two dependents who would have had to bear his extensive medi cal expenses. But Hospital Sav ings paid all of the $2757 hos pital bill plus $280 for profes sional servies. The above cases illustrate the help Blue Cross-Blue Shield af fords when drastic medical bills arise. Few people can afford to pay the two to four thousand dollar expenses incurred when serious illness strikes. But Hos pital Savings Plan enables Pied mont employees to be prepared for such emergencies with a minimum monthly payment. It also offers benefits when minor illnesses threaten to deplete fam ily budgets. Over the past year. Piedmont employees have re ceived payments in amounts of from $3.00 to S350.00 to $1,000.00 to $4,000.00. Hospital Savings, which incor porates both the Blue Cross Hos pitalization prepayment plan and the Blue Shield Surgical-Medical prepayment plan, is a non-profit organization whose purpose is to help people meet costs of hos pitalization and medical care. The key is in the word prepay ment. Theoretically, the plan en ables one to painlessly save a small amount each month to ward the possibility of a major medical bill. Of course, some do not use all the money they put into the plan and others need substantially more. But the small premium forfeited should you not need it is worth the security of knowing that in an emer gency a large proportion of your medical bills are already settled. And Blue Cross-Blue Shield is accepted all over the world. Rates run from as little as $3.20 a month for minimum in dividual coverage to $14.96 a month for complete family cov erage. These rates reflect a slight increase over rates for previous years. Reports from the Hospital Savings Association indicate that Piedmont employ ees, while paying annual pre miums of $158,076, are receiving benefits of about $171,090. The imbal^mce is largely a reflection of increases in hospital charges, but necessitates increasing pre miums to coincide with benefits paid. The basic plan includes full payment for ward costs, and up to $8.00 a day for a semi-private or private room. In addition, the Association will pay for drugs, such services as X-rays, physical therapy and special tests, as well as a given amount toward sur gical fees. For a slightly higher premium, coverage may be extended to meet additional medical costs and extra expenses involved in long-term illnesses and dread diseases. The extra benefits in clude such items as post-hospital care, nursing care, radiation therapy, and special appliances which may be needed. WHAT IP A MEMBER SHOULD LEAVE THE COM PANY? The subscriber is auto matically transferred to a direct- paying basis with the rates ad justed to those of an individual, WHAT IF A FAMILY GROWS WHILE UNDER THE FAMILY PLAN? New babies are auto matically included at birth on a family contract. HOW ARE BENEFITS PAID? This is one of the big advan tages of Blue Cross-Blue Shield. The subscriber merely presents his I.D. card upon admission to any hospital. The Hospital Sav ings Association remits payment directly to the hospital. The sub scriber does not have to file a claim form. He pays no deposit on admission and is billed only for the amount not covered un der his policy. are now operating into our area. Cargo reaching major points is transferred to Piedmont for de livery to smaller cities. Pied mont is also carrying cargo from the smaller cities to major con necting points for shipment all over the country. Earnings Show 91% Increase In his nine-months’ statement to the stockholders and em ployees, President T. H. Davis reported that, for the three months period ending September 30, unaudited net earnings of all divisions of the Company after taxes were $345,523 as compared to $244,412 during the same pe riod a year ago. Nine months earnings were $895,267, or 6I0 per share for the same period a year ago. Directors Declare First Cash Dividend In Company History In the light of increased earn ings, Piedmont’s Board of Direc tors on October 21 declared a cash dividend of 10c per share of common stock, payable No vember 25, 1964, to stockholders of record on November 5, 1964. Although two 10% dividends have previously been declared — one in 1961 and one in 1963 — this is the first cash dividend to be declared by the Company. It is also the first cash dividend to be declared by any publicly- owned local service airline in the United States. Commenting on the dividend declaration, President T. H. Da vis said: “On behalf of the Board of Di rectors, I congratulate our 1765 employees whose performance has made possible this divi dend, and we are happy to be able to pay a cash return to our 4300 stockholder^ whose invest ment has made possible these jobs and services we provide the public. It is contemplated that dividends will henceforth be con sidered on a semi-annual basis when operating results justify.” ASSOCIATION HONORS AIRLINES The Virginia Rehabilitation As sociation has presented Pied mont Airlines with a citation in recognition "tor an outstanding spirit of constructive concern" for disabled citizens. Mr. Thad- deus Gaber made the presenta tion at the association's annual conference in Richmond. Mr. E. A. Martinez accepted the cita tion in behalf of Piedmont Air lines. The Shenandoah Airport was given special recognition. Be cause of its proximity to the Woodrow Wilson Rehabilitation Center, the airport is called upon to transport a great many physically disabled persons. The award is in appreciation of “co-operation and courtesy" displayed with regard to special orobiems encountered with car rying handicapped persons. Ment Award Mr. M. F. Fare, Vice-President—Finance and Secretary, proudly hangs a Merit Award for the outstanding 1963 Annual Report of Piedmont Aviation, Inc. Selections for the Merit Awards, presented by Financial World, were made from some 5000 entries on the basis of content, design, and typography. The annual report awards program was in augurated by the weekly investment and business publication in 1941 and was designed to improve the image of business management to the American public. This is the third Merit Award presented to Pied mont. The first two were awarded in 1956 and 1963, respectively. CAB Grants Authority The Civil Aeronautics Board has accepted Piedmont’s pro posed exemption to operate an early morning flight from At lanta to Charlotte, last week. The exemption gives Piedmont the authority to fly directly from Atlanta to Charlotte and then on to Greensboro-High Point-Win- ston-Salem, thereby improving airmail service into the Pied mont area. Piedmont requested the authority at the instigation of postal officials. Until now, al though other airlines have held the authority to operate the same route, no flight leaves At lanta at a time which would pro vide efficient airmail service. Mail from many major cities convenes in Atlanta between the hours of 12;30 and 3:30 a.m. In order to be delivered the same day, it must reach Charlotte and Greensboro-High Point-Winston- Salem by 6:15 a.m. Piedmont’s flight, which will depart Atlanta at around 4:00 a.m., will thus fa cilitate same-day delivery of such mail. Although the flight is primar ily for the carriage of mail, it will also accommodate passen gers and freight. It is believed that the large number of jets which arrive at Atlanta in the hours of midnight to 3:30 a.m. will provide sufficient passenger and freight traffic to support the service. In addition to providing need ed postal service, the early morn ing flight will enable Piedmont to perform a valuable experi ment in operating a late night- early morning service, and will permit greater utilization of its equipment. It is expected that the results of this experiment will provide valuable informa tion to Piedmont as well as to the Board. Granting of the authority un der an exemption means that a Board hearing is not required and the CAB decision may be considered final. The exemp tion is on a one year experi mental basis and is effective immediately. However, a period of time will be required to ad just schedules and adapt pres ent station situations to the new hours. The flight is expected to begin operation sometime before the first of the year. Piper Holds Meeting In Hollywood, Florida Piper Aircraft Corp. held its annual international convention October 12 through 15 at the Dip lomat Hotel in Hollywood, Fla. The meeting, attended by sales men and general managers from all over the world, is held an nually to discuss new develop ments within the Piper Corpora tion, as well as to discuss sales innovations. At the 1964 meeting, the Cen tral Piedmont Aero division of Piedmont Aviation, Inc., won awards in three of four possible categories: the Quota Buster (Piedmont went 21% over its quota), the Million Dollar Club, and the Parts and Accessories Award. Piedmont personnel who attended, included Floyd E. Pond, Ned Guthrie, Jack Nemer- off, L. P. Wrenn, C. W. Gough, and President T. H. Davis, from INT.