January/February, 1979 Vol. XXX, No. 1 Tampa and Dallas to be put on map r . ««?>s «# When this picture was taken, the bags on the left were tagged tor destinations to come, and those on the right for the new cities added to Piedmont's system during 1978. The next-to-the-bottom bag, TPA, and the fourth one from the top, DFW, should be on the right now, as final authority has been granted for Piedmont to go to Tampa and Dallas/Ft. Worth. New benefit plans for retirement and insurance are offered Optional and supplemental life insurance and retirement plans are being offered to all perma nent full-time employees. All employees covered under the Company’s group term life insurance plan are eligible for the proposed new supplemental life insurance and should have received enrollment cards. These cards must be returned no later than Wednesday, February 28, 1979. If enough employees, a minimum of 66 % per cent, or about 2,600, elect to subscribe to the plan, coverage will become effective at 12:01 a.m. on March 1, 1979. The first premium deduc tion will be made from subscribers’ mid-March payroll checks. When the plan is implemented, current employees who have not enrolled by February 29th, this year, will not be allowed to enroll later without furnishing medical evidence of insurability. The premium rate for this supplemental coverage is a bargain — 29(^ per $1,000 of in surance per month. This supplemental coverage will be writ ten in the same amount as the basic coverage currently provided for you by the Company (Continued on page two) The Civil Aeronautics Board has finalized its approval of Piedmont’s requests to serve Tampa/St. Petersburg/Clearwater, Florida and Dallas/Ft. Worth, Texas. The Tampa award came January 4, 1979. The Dallas announcement followed on January 18th. In the Tampa case, the Board authorized nonstop service from three airports in the Carolinas — Greensboro/Winston-Salem/High Point and Charlotte, North Carolina, and Colum bia, South Carolina. One-stop flights between the Tampa area and Raleigh/Durham and Richmond were approved. The Company has set April 1 foj* starting the Tampa flights with the initial schedules to include nonstop service from Charlotte and one- stop service from Greensboro. Tampa will be the second Piedmont-served city in Florida. We put Miami on our map last year. The Dallas/Ft. Worth service will start April 29, 1979. The CAB order permits non stop flights to the Texas cities from Greensboro ■' Winston-Salem/High Point and Raleigh/Dur ham and one-stop flights from Richmond and Norfolk. The initial Dallas/Ft. Worth schedule will have one nonstop and one one-stop Greens boro flight and nonstop, round-trip service for Raleigh/Durham. The Dallas/Ft. Worth service will mark Piedmont’s first entry into Texas. In addition to these two January route awards. Piedmont has requested Charlotte- Dallas/Ft. Worth authority under the Board’s new automatic entry procedure. Piedmont filed for Richrnond-Chicago as the one route per year each airline is allowed to protect. Approval is expected in both of these cases, but will not be final until later in the spring. Early in February, Piedmont announced plans to offer direct daily service between Ashe ville and Miami, starting with the April 29 schedule change. The flights, which will be the only direct service in this market, will make one stop, in Columbia. We set flight efficiency record Piedmont Airlines set this country’s first official commercial aircraft efficiency record during a recent flight from Washington to Kins ton. The efficiency record measures the distance and number of passengers compared to the amount of fuel and time used in the flight. Atlanta-based Captain Richard Miller flew the YS-11 to set the first Efficiency on a Com mercial Air Route Record. The flight #909, on December 29, 1978, was sanctioned by the Na tional Aeronautic Association (NAA). It will be entered into NAA’s official book of aircraft records. Captain Miller’s record flight was scheduled for 73 minutes, block time, from Washington to Kinston. His actual air time was 63 minutes during which he used 318.5 gallons of fuel. Today’s airplanes are more efficient than earlier jets and prop-jets. This newly-establish ed record program provides an official means to measure aircraft improvement. It also pro motes efficiency and fuel conservation. To equalize participating aircraft, the effi ciency record classifies planes by weight. The record measures a flight’s efficiency with a formula using the number of passengers times the straight line distance flown, divided by the fuel consumed and the time aloft. A shorter enroute time provides a higher efficiency index number; however, the faster the plane flies, the more fuel it uses, which lowers its efficiency index. To set a record requires the best mix of pilot skill, aircraft performance and planning. Piedmont’s participation in the efficiency record program demonstrates the Company’s awareness and concern for the need to conserve energy. It is also indicative of the initiatives taken by Piedmont and the industry to improve operating efficiency. In addition to the Efficiency on a Commercial Air Route Record, as set by Captain Miller, there is an Efficiency on a Special Air Route Record. In both cases, a record may be establish ed in either direction, but not on a round trip, and the flight must be nonstop. The NAA is the oldest, independent, public service, nonprofit aviation organization in the U. S. Since 1905, it has been this country’s representative of the Federation Aeronautique Internationale. NAA sanctions and certifies all U. S. national and international aviation and space record flights. Captain R. Y. Miller points to the meter showing only 318.5 gallons of fuel were used during his record-setting efficiency flight. Year-end reports—financial, good; traffic, better The statistical story of Piedmont’s 30th an niversary year revealed record results. The Company’s Airline Division reported record traffic growth. The General Aviation Group posted the highest sales and profits in its history. A look at the Airline’s numbers shows revenue passenger miles totaled 1,434,406,769 during 1978, up 13.7 per cent over the 1,261,413,- 826 flown in 1977. There were 4,580,073 passengers carried in 1978, an increase of 9.9 per cent over the 4,167,- 954 flown in 1977. A new record day for pas senger boardings was set December 26, 1978 when 18,567 passengers were boarded. Piedmont’s passenger load factor for 1978 was 54.8 per cent compared to 51.8 per cent a year earlier. In the fourth quarter of 1978, revenue pas senger miles increased 17.6 per cent to 382,775,- 667 from 325,444,105 in the October/November/ December period of 1977. Passenger boardings for the fourth quarter were up 12.5 per cent to 1,199,656 from 1,066,- 503 in the same months a year earlier. The passenger load factor for the last three months of 1978 were 54.4 per cent as compared to 51.7 per cent for the final quarter of 1977. The Company reported earnings of $5,591,- 000, or $2.04 per share for 1978. In 197'7, Pied mont Aviation, Inc. earned $7,495,000, or $2.95 per share. Gross revenues were a record $264,158,000 in 1978, an increase of 15.9 per cent over the $227,966,000 recorded for 1977. Costs and expenses rose 17.9 per cent from $218,955,000 in 1977 to $258,139,000 in 1978. For the final quarter of 1978, gross revenues were up 7.8 per cent to $68,316,000 from $63,- 375,000 a year earlier. Piedmont Aviation’s net income for the fourth quarter of 1978 was $1,066,000. Net in come for the same period of 1977 was $1,811,000. When he announced the financial results, (Continued on page two)