There has been no more eventful
year in the proud history of Pied
mont than 1981. As we have
accumulated records in building
thisjine company, we always
knew that they were being made
to be broken. But I doubt if the most
optimistic among us would have
guessed so many would fall in a
single year
We have carried more pas
sengers more milesfor more
revenue, and at a greater profit,
than ever before. There are more
people in the Piedmont family
than ever before, and most of you
were selectedfrom among many
applicants. You have stood the test
of Piedmont's great challenges.
At a time when many airlines
and general aviation companies
are retrenching and facing a
future of doubt, all of us at Pied
mont can look to 1982 with confi
dence. and hope. Those hopes will
come true if each of us remains
dedicated to working harder and
smarter than our competitors.
Make no mistake about it, many of
those competitors will be working
for the very survival of their liveli
hoods in the year ahead. They will
have great motivation.
But they will not have the 41
years of pride and on-going suc
cess we have built at Piedmont.
On behalf of your Board of Direc
tors, your officers, and your stock
holders, I wish you the happiest
of holidays!
DFW
d
f
PI and NW agree on stock purchase
Norfolk and Western Railway will
become the largest holder of Pied
mont stock when the company
purchases 1.2 million additional
shares from Piedmont as a result
of the agreement announced on
December 11.
The stock will be issued directly
to NW by Piedmont at a price of
$32.00 per share. When added to
earlier market purchases totaling
650,000 shares, the acquisition
brings NWs ownership to approxi
mately 20.1 percent of Piedmont’s
outstanding shares. At the time the
agreement was reached the stock
was selling at approximately $28.00
per share on the open market.
"We are very pleased with the
agreement we have made with NW'
said Chairman T.H. Davis.
“This investment by a company
of the stature and integrity of NW is
a compliment to Piedmont and its
management and employees."
The agreement provides that NW
will not acquire any additional
stock for a period of at least 5 years,
at which time NW will have the
same rights to buy Piedmont stock
as any other prospective purchaser
Additionally, Piedmont will have
representation on NWs Board of
Directors and NWwill have repre
sentation on Piedmont’s board.
“Selling our stock in this manner
eliminates the immediate necessity
of the public sale of securities at
current high interest rates and
substantial underwriting costs,’’
Davis said.
“It provides us with $38 million
interest free which will be used
to finance aircraft scheduled for
delivery during the next two years
as well as other major capital
expenditures.”
Our stockholders number about
8,000. Piedmont’s officers and
directors as a group are the second
December 1981
volume 32. number 6
largest shareholder with 7.5 per
cent of the stock.
“NW is one of the most successful
and highly-regarded railroads in
the world," Davis said.
"They have exceptional manage
ment. We have for years enjoyed a
very close working relationship
with them, having supplied corpo
rate aircraft services since they
first began operating their own air
craft. In addition, of course, we get a
very substantial amount of airline
business from them. We believe
this agreement will result in veiy
substantia] benefits to our com
pany, our employees, and our
stockholders."
Davis added that there would be
no changes of any kind in corporate
policies or personnel complement
due to the stock sale.
Our challenge: to set pace
in industry productivity
News aboul 1‘lcdiiu.ni l h« Up And ( ..mine Airlini
So far, 1981 has been the best
year in Piedmont's history. In vir
tually every category, the airline
has set new records. Where is
Piedmont heading in 1982? What
are the airline's major challenges?
In thefollowing interview. Presi
dent Bill Howard takes a look at
Piedmont's rapid growth this year
and reflects on what challenges
are ahead in 1982.
Q. What do you view as Piedmont's
primary challenges in 1982?
A. First, what Piedmont has been
doing has worked. We certainly don’t
want to stray far from the formulas
that have been making us the in
dustry’s most successful airline. At
the same time, we are changing; the
environment around us is chang
ing. We must be flexible enough to
accommodate those changes. Many
major airlines are thoroughly re
vamping their approach to busi
ness. They are going to all-coach
configurations. They are placing a
great emphasis on employee produc
tivity. In sum, what they are doing
now is largely what Piedmont has
continued on p. 4