m PIED mo mm
Happy
New
Year!
VOL. X, NO. 11-12
ms — CELEBRATING OUR TWENTIETH ANNIVERSARY — 1968
NOVEMBER/DECEMBER, 19S8
Third Quarter
Report To
Stockholders
Total revenues for the first nine
months of the year were up 18%
over the same period in 1967 to a
record high of $43,355,816. Total
operating expenses and other costs,
hovi'cver, were up 19% to $43,553,-
124. Our net profit was only $76,642
kas compared to $1,225,390 last year.
It must be recognized, however,
that $1,063,900 of last year’s nine
months profit resulted from a non
recurring gain on the sale of flight
equipment whereas only $34,525
was available from that source
this year.
Revenues — Costs Up
Third quarter revenues were up
32% to $16,105,857, while costs and
operating expenses were up 27%.
The net profit after tax credits and
special items was $152,902 this year
as compared to $433,074 during the
third quarter of last year. Here
again, however, we had a $645,945
special item gain last year but only
$48,302 this year. Accordingly, net
earnings without taking into ac
count the gain on the sale of flight
equipment were $104,600 this year
as compared to a loss of $212,871
during the third quarter of last
year — a substantial improvement.
Major Deterrents
The major deterrents to reason
able earnings have been inflation
ary cost increases and high interest
and depreciation expenses resulting
from our new equipment program.
To add to the difficulty during the
third quarter, we and most of the
airlines operating in the east were
subjected to extreme air traffic
delays. This situation has been
extremely costly to Piedmont in
additional flying and maintenance
expense, as well as interrupted trip
expense paid to passengers and the
loss of revenue resulting from
missed connections and passengers
who were forced to use other trans
portation services.
Passenger and cargo traffic has
continued to increase at a very
encouraging rate. Third quarter
passenger miles were up 23% and
cargo ton miles up 27% over the
same period in 1967.
THE FIRST SNOW of the season came early this year,
especially to the Southern part of Piedmontland. Even
before Thanksgiving Winston-Salem found itself cov
ered by winter's initial white blanket. A local news
photographer filtered the flakes through his camera's
lens to record this view of the maintenance ramp.
General Aviation Division Announces Expansion
Into Helicopter Operations; Available January 1st
Piedmont’s General Aviation Di
vision is expanding to include heli
copter services.
Early in December the Company
accepted delivery of a five-place
Bell “JetRanger.” Plans are to use
it for charter and special assign
ment contract services.
A former Marine Lt. Col. James
H. Rinehart has been named Man
ager—Helicopter Operations.
A native Texan, Rinehart com
pleted 26 years of flying with the
Marines before retiring this fall.
He holds the Distinguished Flying
Cross, five air medals, a Presiden
tial Unit Citation, Navy Unit Com
mendation plus theater and cam
paign medals for World War II,
Korea and Viet Nam. He is a grad
uate of the University of Maryland.
Rinehart and his wife, the former
Evolyn Dyer of San Marcos, Texas,
have four daughters. They moved
to Clemmons, N. C., outside of
Winston-Salem, from Jacksonville,
N. C.
The Bell 206A JetRanger is used
primarily as a business and/or
utility helicopter. The basic configu
ration includes a five place interior,
night lights, dynamic flapping re
straints, door locks and fire extin
guishers. The basic configuration
weight is 1425 pounds, with an
F.A.A. normal gross weight of 3000
pounds.
The engine, an Allison 250-C18,
has a take-off horsepower of 317.
The average range under normal
conditions is about 300 miles. Cer
tification and registration of Pied
mont’s helicopter is expected to be
completed by the latter part of De
cember. It should be available for
charter immediately thereafter.
i
Six Additional
Boeing 737's
Are Ordered
Piedmont has exercised its option
for six more Boeing 737 jetliners,
thereby doubling the Company’s
fleet of pure jet aircraft.
President Davis made the an
nouncement just three months
after the initial order of six Boe
ing 737’s had been phased into
scheduled operations.
The purchase price of the six
additional jet transports, along
with spare parts, ground support
equipment, and personnel training,
total over $25 million.
The first of the new jets, the
company’s seventh 737, will be de
livered in March, 1969, with the
remaining five to follow in April,
May, June, October and November
next year. The planes will be phas
ed into scheduled operation im
mediately upon delivery. A total
of twelve Piedmont 737’s should
be in service for Piedmont passen
gers by late fall of 1969.
The six additional 737’s will be
the same as the initial jets except
for advanced engine thrust re-
versers. Otherwise, the 737’s will
be similarly configured for 90
passengers, including a five-place
lounge area, forward and rear
airstairs and an auxiliary power
unit for starting the aircraft en
gines, and providing electrical
power, heating and air condition
ing of the aircraft while in flight
or on the ground.
JAMES H. RINEHART
fl:
nfl
Hearing Held On
Chicago Entry Case
The hearing on the Piedmont-
Chicago Entry Case was held in
Washington early in December.
Robert W. Kadlec, Director of
esearch, and William W. Burt,
e Company’s counsel for CAB
affairs, represented Piedmont at
the three day hearing.
The Company is proposing non
stop jet service from Norfolk,
Richmond, Charleston and Hunt
ington to O’Hare Airport in Chi
cago, as well as single-plane serv
ice from Newport News, Lynch
burg, Roanoke, Tri-Cities, Green-
ville-Spartanburg and Asheville.
Predictions are that the new
flights would lead to a $600,000 cut
in subsidy during the first year of
operation.
The proposed service would
serve 340,000 passengers in 1969,
including 110,000 in markets now
lacking single-plane service to
Chicago.
Purchasing Promotes Holland and Johnson
Vice President — Purchasing W.
W. Barber, has announced the pro
motion of two men in his depart
ment.
A. Henry Holland has been nam
ed Purchasing Agent and David
C. Johnson has been promoted
to Assistant Purchasing Agent.
Holland, who is a native of Win
ston-Salem, attended the Univer
sity of North Carolina at Chapel
Hill and served with the U. S.
Navy prior to joining Piedmont in
1948. He worked as a clerk and a
buyer before becoming Assistant
Purchasing Agent in 1962.
Mrs. Holland is the former Ann
Weatherman of Winston-Salem.
They have one daughter and live
at 1311 Berwick Road in the Twin
City.
Johnson, who is from Elkin,
North Carolina, attended Wake
Forest University and was with the
U. S. Army before he came to
HENRY HOLLAND
Piedmont in 1957. Prior to this
promotion he was a buyer for the
Company.
Johnson is married to the former
DAVID C. JOHNSON
Arlene Smith of Elkin. They have
two children. The Johnsons live at
114 Granada Court i n Winston-
Salem.
Board Issues
Show-Cause Order
In TYS-SDF Case
The Civil Aeronautics Board has
issued a show cause order indicat
ing tentative approval of the ex-
tention of Piedmont’s Segment 5
beyond the present terminal point
Knoxville to London-Corbin and the
new terminal point Louisville. In
cluded in the authority would be
non-stop authorization between
Knoxville and Louisville.
Objections must be filed by Jan
uary 8th.
As no objections were filed to
the initial request for this authority
it is hoped and anticipated that
there will be none to this show
cause order.
^
President T. H. Davis has been
elected to the Board of Directors of
the Air Transport Association. Vice
President—Finance T. W. Morton
has been elected second vice presi
dent of the ATA’s Airlines Finance
and Accounting Conference.
* * *
The student body of the Piedmont
Aerospace Institute now stands at
126. There were 18 graduates for
the exercises held November 11th.
A new class of 20 started the next
day.
For the first time in Piedmont’s
history more than two million pas
sengers have been carried in a sin
gle calendar year. The two mil
lionth revenue passenger of 1968
was boarded on Wednesday, De
cember 11th.