If N56V is the only airplane to
perpetually wear Piedmont’s
colors, it will be worthy of the
honor. Our Potomac Pace
maker DC-3 is currently out
shining, if not overshadowing,
the Redstone rocket display,
in background, at the Museum
of Life and Science in Durham,
North Carolina. With the ex
terior paint now restored, only
interior finishing touches are
needed for completion of the
project this fall.
Vol. XXX, No. 4
Our financial picture looks good
The summary of the Company’s financial
results for the second quarter and first half
of 1979 included some astourrding percentage
increase figures. Net income in the second quar
ter was up 281.8 per cent. For the first half of
the year, net income rose 201.9 pqr cent over the
same period last year. The actual numbers are
easier to understand and are equally exciting.
Piedmont Aviation, Inc. reported second-
The Company’s Board of Directors declared
a cash dividend of six cents per share on the
common stock of Piedmont Aviation, Inc. at
their regular quarterly meeting in July.
Payable August 31, L979 to stockholders of
record on August 14, 1979, this is the eighth
consecutive quarterly dividend paid by the Com
pany. Historically, it is Piedmont’s 23rd cash
Since 1964, when Piedmont’s directors de
clared the first cash dividend on the Company’s
common stock, more than $4 million has been
paid to shareholders in cash dividends. From
1964 through June, 1979, checks totaling
$4,106,751 have been sent to Piedmont stock
In addition to these cash dividends, there
have been four 10 per cent stock dividends: in
1961, 1963, 1969 and 1973.
A recent profile of Piedmont’s stockholders
shows the Company’s owners live in each of the
United States except Idaho and Utah and in
several foreign countries. At the end of June,
1979, there were 7,302 stockholders and a total
of 3,010,440 shares outstanding. This includes
Continued on page two
quarter earnings of $8,950,000, or $2.90 per
share. This compares with second-quarter 1978
earnings of $2,344,000, or 87 cents per share.
Gross revenues rose 44 per cent from $66.1
million in the second quarter of last year to
$95.2 million this year. Costs and expenses were
$81.8 million for the April-through-June period
this year, up 31.8 per cent from $62.1 million in
the comparable period of 1978.
During the first half of 1979, the Company
had net income of $5,368,000, as compared to
$1,778,000 in the same period last year.
The Company’s gross revenues for the first
half of this year were up 28 per cent to $160.4
million from $125 million during the same
months of 1978.
Costs and expenses rose 24.5 per cent for
the January-through-June period this year to
$152 million. For the same period of 1978, costs
and expenses totalled $122 million.
The Airline Division earned $11,544,554 be
fore taxes for the second quarter of 1979. The
General Aviation Group and other operations
had pre-tax earnings of $1,824,158 in the April-
through-June period. For the same period of
1978, the Airline Division posted a pre-tax
profit of $3,486,186. Other operations earned
$555,895 before taxes.
In announcing the record results, Senior
Vice President T. W. Morton said, “We attri
bute the vast improvement in our earnings
primarily to a 47 per cent increase in passenger
miles flown. A strike by a major airline during
April and May and the automotive gasoline
problems obviously contributed to this growth.
However, service over several new routes
and increased flights have brought about most
of the growth. It now appears that 1979 will be
the most successful year in our history.”
The July traff'ic results indicate a continua
tion of the strong growth trends seen during
the flrst half of this year. Available seat miles
for the month showed a 28.03 per cent increase,
to 290,111,336 this year from 226,588,464 in
Revenue passenger miles were up a whop
ping 36.98 per cent in July, from 134,885,281
last year to 184,768,045 this year.
The passenger load factor was 63.69 per
cent for July this year as compared to 59.53
per cent in the same month of 1978.
Passenger boardings rose 22.69 per cent, to
521,194 for July, 1979 from 424,820 in the com
parable month last year.
With the July announcement by the Com
pany’s Board of Directors of an order for two
more Boeing 737s to be delivered this year,
Piedmont’s fleet list started changing again. For
the next several months, you should check the
date on any list of the Company’s airplanes.
The list will probably change from the tim^
it’s compiled to the time it’s circulated.
Here is a prediction, if not a promise, of
the makeup of Piedmont’s fleet for the
remainder of 1979. As of mid-August, the Com
pany had received two of its six 737s due this
year, for a current total of 26 737s. By December
31, 1979, there will be 30 737s in our fleet. One
will be delivered in each of the last four months
of the year. The number of 727s is six and is
not expected to change before year’s end. On
August 15, 1979, we will deliver YS-11 aircraft
268 to Pinehurst, meaning that until September
Continued on page two
October schedules expanded overnight
Piedmont responded in record time to an
announcement by United Air Lines that they
would withdraw all flights from Atlanta on
October 28 this year.
It was the morning of July 18 when we
received word of United’s plans. An immediate
marathon meeting of senior management,
scheduling and marketing personnel produced
new Piedmont schedules to replace and improve
much of United’s service between Atlanta and
points of Piedmont’s system.
Early the following morning, July 19, Presi
dent T. H. Davis was in Washington for a joint
press conference with West Virginia’s Senator
Robert C. Byrd. They released Piedmont’s
newly-finalized schedules to substantially in
crease the Company’s West Virginia service
when United suspends on October 28, 1979.
On that date. Piedmont will add three non
stop, round-trip flights and one one-stop, round-
trip flight between Charleston, West Virginia
and Atlanta to replace the two round trips
United is cancelling.
For New York service, Piedmont will insti
tute a daily, round-trip, nonstop flight between
Charleston, West Virginia and New York’s
Newark International Airport, replacing
United’s one-stop flight to New York.
A daily nonstop, round-trip flight between
Chicago and Charleston, West Virginia will also
be added on October 28.
In making the announcement from the
Washington offices of Senator Robert C. Byrd,
Davis said, “Piedmont has a vital interest in
Charleston’s air transportation. We are de
lighted to be able to add these new flights and
believe the community will support our efforts
to meet its air service needs.”
There was more news to come.
On Monday morning, July 23, Senior Vice
President W. R. Howard held a press conference
in Norfolk, Virginia. He announced that, “Ef
fective October 1, 1979, Piedmont will provide
seven nonstop, round-trip flights between Nor
folk and New York. We will also double the
number of flights between Norfolk and Atlanta
to four nonstop, round trips. In addition, we’re
adding new nonstop, round-trip service between
Norfolk and Charleston, South Carolina on
Howard said, “United Air Lines’ decision to
discontinue its flights to Atlanta increased
Piedmont’s determination to further improve air
service for the Norfolk area.”
All of the new October flights will be operat
ed with our Boeing jet equipment.