North Carolina Newspapers

    Third Quarter Report Reflects Airline Division Losses
Happiness is having General Aviation Di
visions tliat make money.
Piedmont does and that is the most grati
fying part of President Davis’ recent finan
cial report to the Company’s stockholders.
The General Aviation Divisions showed a
third quarter profit of $39,028. For the first
nine months of this year they posted a Sales
and Service Income of $6,646,159 for a nine
months profit before taxes of $162,157.
When the last quarterly statement was
issued there were indications that the airline
could expect continued profitable operations
for the remainder of the year. At that time
the airhne had just completed a profitable
second quarter and since the last six months
of the year have usually proven to be the best
traffic months, it appeared that Piedmont
^had “turned the corner.” Sadly, there has
*been a decided softening in traffic, especially
since August. At the same time the earnings
problem has been compounded by continu
ing rampant cost increases.
Consolidated gross revenues for the air
line were $21,177,140 for the third quarter
and $61,678,430 for the nine month period
this year. Increased costs and expenses re
sulted in a loss of $696,535 after tax credits
during the third quarter bringing the 1970
net consolidated loss through September to
The third quarter loss this year is consid
erably less than the $1,357,169 loss suffered
during the same period last year but these
figures are rather meaningless because of the
30-day shutdown of the airline operations
caused by the strike during July and August
of last year.
Piedmont’s recent experiences appear to
be an almost universal trend throughout the
airline industry. Though the Company is con
tinuing to register some gains, traffic is not
increasing at as rapid a rate as has been the
case for the past several years. Some carriers
have even encountered net decreases in total
traffic volume on a year to year comparison
VOL. XXI, NO. 11-12
We’ve put regional service on a new plane
New Senior VP Elected By Board
There is a new man upstairs. He
already seems quite Inappy tiiere
and those who've met him seem
to be glad he is here.
His name is Bartlett M. Shaw,
HI. The ‘ M” stands for Murdock.
His position with Piedmont, a new
ly created one, is Senior Vice
President—Administralion. He was
elected by the Company's Board of
Directors and will supervise the
departments of Finance and Ac
counting, Personnel and Industrial
Relations and Purchasing and
A native of Watertown, Massa
chusetts, Shaw comes to Piedmont
with an impressive listing of cre
dentials and experience. By no
means a newcomer to the airline
business — he was with SAS for
22 years — Shaw has held positions
of responsibility in most every area
of airline operations. With SAS
he started as a weight and balance
agent, was at one time a flight
dispatcher and also served that
company as Vice President^Per-
sonnel and Properties; Vice Presi
dent Secretary-Treasurer; Vice
President ^ Administration; and
Vice President — Marketing and
In 1969 Shaw left to become vice
president and general manager of
Marriott International. When asked
about leaving the airline industry
and then coming back to it he said,
■‘Once you leave it, you miss it.
Airline people are definitely
^ Shaw, who says he is “basically
"an optimist, tempered with degrees
of reality,” was also questioned as to why he wanted
to come back into the airline business in these days
of gloom and doom. His comments were very en
couraging as he expressed confidence that the airlines
will weather these hard times. He .said “Airlines are a
fact and a way of life, they will continue in the future
to grow and be healthy. People are the industry and we
all must put forth every effort and do everything
possible to survive and remain an outstanding example
of our country’s free enterprise system,”
Of his first impressions of Piedmont, Shaw said
“There is a close structual similarity to SAS, A pleas
ant atmosphere is immediately obvious. Departments
are for identification only, mainly the people work for
the Company,” He continued by saying that with SAS
he has raised in this type of atmosphere and that it
cannot be found with the larger carriers where there
is so much competition among people and departments.
Bartlett M. Shaw
Senior Vice President—Administration
Not only has Shaw spent exactly half of his life —
he is 44 — with the airlines, it is sort of a family affair
with him as well. His wife used to work for American
and his brother is Air India’s Cargo Sales Manager,
His father was a management consultant, though not
with the airlines.
The Shaws have four children. Their oldest son
Robert has just finished a tour of duty with the U, S,
Marines in Viet Nam and is now back in school at
Bentley College in Boston, The oldest daughter Kathy
is also in school, at LaSalle Junior College where her
main interest is in working with retarded children. She
is thinking about transferring to a college nearer
Winston-Salem when the family moves here next sum
mer, Their two other daughters, Debbie and Peggy,
are in school near their home on Oyster Bay, Long
(CoiitiJiiH'd on Three)
basis. This soft traffic situation appears to be
the result of a combination of factors, includ
ing the somewhat depressed state of the na
tional economy, the recent General Motors
strike and the most unfortunate series of air
craft hijackings.
In his letter that is part of the quarterly
report President Davis said “We and the in
dustry could perhaps have weathered this
storm, at least without severe losses, had it
not been for the continuing rapid increases
in costs. Ironically, even in the fact of sub
stantial losses by almost all airlines, the labor
unions are continuing to demand wage in
creases far in excess of any possible increase
in productivity. As a matter of fact, they are
simultaneously demanding a reduction in pro
ductivity. This irresponsible abuse of their
overwhelming and unbridled power can have
only three results; (1) layoffs creating even
more unemployment; (2) fare increases fan
ning the fires of inflation and (3) reduced ser
vice ... all to the detriment of the employ
ees, the public, the companies and the na
tional economy.
“Your Company is currently engaged in a
major effort to see to it that we return to
profitable operation as quickly as possible.
Regrettably, a part of this effort will require
reduction of service to some of the communi
ties on our system and the commensurate dis
missal of a number of our employees. As dis
tasteful as it is, we recognize that this action
is required in the long-range best interests of
all concerned and that to do otherwise would
soon create more hardship for an even
greater number of people.”
New Records Are Set
By Holiday Travelers
Piedmont is back in the record breaking
business and it is great to be there!
A new all time high of daily passenger
boardings was set November 25th, the day
before Thanksgiving when a total of 11,191
passengers flew the routes of the Pacemak
ers. The previous record of 10,725 was set
on January 4, 1970.
Happily enough, the new record didn’t
last long, only until the end of the Thanks
giving week-end. The Company had the very
best day in its history when a total of 11,398
passengers were boarded on Sunday Novem
ber 29th. This new record represents a 6.28
percent increase over the January figure.
Through November of this year Pied
mont has carried nearly two and a half mil
lion passengers and has already reached a
new annual high of more than the 2,226,037
passengers boarded last year.
This marks the third year that Piedmont
has carried more than two million passengers
and it follows by only six years the first year
that the Company boarded one million pas
sengers. That was in 1964 when the total
for the year was 1,073,054.
PI Ennployee Stock
Purchase Progress
To help you keep up with the amount you pay
for Piedmont stock every month if you're buying
it through payroll deduction the Piedmonitor
publishes this periodic report of the number of
shares purchased, average price per share and
total investment in the previous month.
Amount Invested . $5,598.00
Number of Full Shares Purchased . 933
Average Price Paid Per Share $ 6.00
Amount Invested $5,593.38
Number of Full Shares Purchased . 1,107
Average Price Paid Per Share $ 5,05

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