2 Piedmont around the industry •••Gallup survey conducted by the Air TYansport Association showed that a record number of Americans flew during the past year. About 48 million adults or 28% of total adult population flew. In 1984, 46 million adults or 27% flew. Seventy percent of adults have flown in their lifetime; 72% of men and 68% of women have flown. Half of the trips taken were for business and the other for pleasure/personal reasons. Those who flew during the past year averaged 3.2 round trips each. •••T\vo of the industry's biggest and busiest will be getting even bigger and busier in the near future. United Airlines—the country’s largest — in early November placed the largest single aircraft order in aviation history with Boeing, the nation’s largest commercial aircraft manufacturer The $3.1 billion order is for up to 116 new aircraft, mostly the popular 737-300. Six aircraft will be long-range 747-200B jumbo Jets, for use on UA’s new Pacific routes recently purchased from Pan Am. Deliveries should take place between Nov. 1986 and Dec. 1990. Boeing has received orders for 341 planes so far this year compared to 169 in 1984. •••Not only are aircraft orders on the increase—agencies that sell the tickets to fill them are on the rise too. Over the past year there has been a 9.1% increase in accredited travel agencies. •••But selling tickets is not the only way airlines make money. AA says the main way it financed its 18% growth in 1985 (based on ASM’s) and its projected 13% growth in '86 is by selling services like the use of its Sabre computer reservations system, data processing, telemarketing and ground-handling operations for other airlines. PI handles ground operations and freight for 69 different carriers at 37 locations, provides maintenance services for a number of other airlines, and also sells contract time to eight carriers and FAA flight inspectors on its four state-of- the-art simulators for flight crew training. UA owns a rental car company, and a hotel chain. •••According to the ATA, over 130 airlines (including commuters) have come and gone since deregulation. As with many businesses, one key to survival is starting with an extensive capital base and preparing for losses in the first few years of oper ation. New upstart Presidential Airlines is a case in point. For its first operating quarter the carrier reported a $3 million net loss. The company’s vice president of finance said an initial operating loss was expected and the amount was even encouraging, •••Further evidence of fortunes needed by new airlines is PRIDE AIR. Formed by a group of former Continental pilots last year and headquartered in MSY, PRIDE sus pended service and furloughed employees late Nov. 15 because $30 million in anticipated funds from unnamed investors did not materialize. ••‘Here’s the latest news from a newcomer that so far has made it big—People Express’s operating profit climbed 91.5% for the third quarter of 1985. Of the 24 carriers reporting profits for the third quarter, PE came in ninth. By next year PE should be classified as a major—even without the Frontier merger The carrier’s operating revenue for just the first nine months of 1985 was $707.3 million. PE also moved service from California’s Oakland airport to nearby SFO and began a special introductory one-way fare of $99 between SFO and Brussels, Belgium. • • •Tt'ansportation Secretary Elizabeth Dole promised to add 1.000 air traffic con trollers nationwide over the next two years to aid what many view as shortage of crucial positions. •••Soon PI won’t be the only major with a major hub in Ohio. DL plans to build 12 new gates at the CVG airport and bring an additional 75 to 100 daily flights to the city by fall 1987. •••Airlines hired 841 flight attendants in October, bringing total hired for year to date to 11,354—2'/2 times the number for same period in 1983, •••Marketing agreements among airhnes are even extending to the international scene. United Airlines has four foreign carriers as marketing partners including Alitalia, Lufthansa, SAS and, most recently. Air France. The new agreement with Air France means Joint advertising, enhancing automation features between both carrier’s reservations systems and coordinating schedules with UA at its seven U.S. gateways—ORD, JFK, LAX, lAH. lAD, Anchorage and MIA. UA already gives fre quent flier credit to passengers transferring from Air France. SAS began advanced seat selection with UA in November with more foreign carriers being added to the service in the near future. around Piedmont On January 15, our fleet will num ber 129. We will have 63 737-200s, 10 737-300S, 20 F28-1000s, two F28- 4000s, and 34 727-200s. A third F28- 4000 is scheduled for delivery in February, and in March, another 737- 300 will join the fleet. Piedmont will move into a new cargo building near the new terminal building at CHS on January 1. The new facilities will give us our own cargo operations, « « « Construction has been completed at CLE on a new baggage services office. We plan to have our own facilities for complete operations at this station in the near future. * * * Renovation on our catering facilities at MIA will be completed this month giving us 9,000 square feet for our own catering needs. Construction is underway for a new area underneath the concourse for crews, maintenance, and additional operations space. Com pletion is set for early 1986. ♦ ♦ « At MCO, the concourse shared by Piedmont, Continental, and Republic is being expanded from 60 to 85 feet wide. When the work is completed late next year we will have five exclu sive gates. A holdroom will be located on ground level for use by our commuters. * * * We will relocate at DFW from Termi nal 2E to Tbrminal 2W by January 1987. Our facilities will be similar in the new location. * « « At West Palm Beach (PBl) we will have our own ticket counter and sup port facilities. We will share a hold room with Midway, At Pensacola (PNS) we’re in the process of renovat ing the existing airport facilities for the January 15 startup, ♦ « * Over the Thanksgiving holiday weekend. Piedmont set new records for passengers boarded and load fac tor for a given day. On Wednesday, November 27, we boarded 78.482 passengers, breaking the previous record day set last July 7 of 71.698, The new record held for three days until Sunday, December 1. when we boarded 87.952 passengers. On Sunday, we also had a record load factor breaking the previous record set November 30. 1980, In addition, we carried record loads on Thanksgiving Day and the follow ing Friday and Saturday. On Thurs day. November 28. we carried 59,681 passengers compared to 31.735 on the same day in 1984, On November 29, 35,098 passengers flew Piedmont compared to 25,032 on the Friday fol lowing Thanksgiving in 1984. On November 30, we boarded 73,450 pas sengers. a third more than the 44,652 carried the same day the previous year. Much of the increase can be attrib uted to the special Thanksgiving fares offered on these days. The no-show rate was also down 4.5 points over the same period of 1984. On January 15 number of departures: 1,025 miles flown daily: 369,304 ASMs (available seat miles): 46,112,421 number of aircraft in fleet: 129 number of block hours flown daily: 1,157 average aircraft hop: 360.3 miles Piedmont will add two new destina tions and 27 more flights in Florida on the January 15 schedule. We will begin service at both Pensacola (PNS) and West Palm Beach (PBl) with three nonstop, round-trip flights daily to MCO. The station manager at PNS will be Leonard Smith, a 28-year veteran with Piedmont. His most recent posi tion with the Company has been as cargo manager-BWl. Tbm Maynard has been named station manager at PBl. He Joined Piedmont in 1973 and most recently was customer service manager-CRW. In addition to the flights to PNS and PBl. MCO will add three round-trip flights daily to both TLH and FLL. With these flights, departures will total 25 at MCO. MlA’s departures will increase to 30 daily with new round trips to both TPA and CLT. Other sta tions with double figures include JAX at 22, TPA at 20, and FLL at 12. On January 15, we will have a total of 139 departures from 12 Florida destinations. Of these departures, 96 are within the state. Piedmont people Patty Clay and Carolyn Bryant, both agents at DCA. are the most recent recipients of the TOPS (Tbtal Outstanding Passenger Service) Award. A woman traveling with her three children (ages six years, two years, and four months) became ill. When she was taken to the hospital, Clay and Bryant offered to go along and take care of the children. At the hospital. Clay cared for the infant while Bryant took the other two children to the cafeteria. At first, it was not known whether the woman’s husband would be able to get to DCA from CMI. When he finally arrived late that evening. Clay offered to keep the infant in her home for the night. The next morning, both women stayed with the children and their mother throughout the day at the hospital. One of the physicians was so impressed that he contacted the news media, and a brief editorial praising both these women appeared in the newspaper. THEyEAROF CHAOENGES. Traffic Statistics November passengers boarded 1,463,437 -1-14,9% revenue passenger miles (RPMs) 643.3 million -1-16,4% available seat miles (ASMs) 1.3 billion -fl9.2% load factor 50,89% -1.24 points First 11 months pasengers boarded 16,304,418 -1-25.7% revenue passenger miles (RPMs) 7,4 billion -1-30.5% available seat miles (ASMs) 13.2 billion -1-23.1% load factor 55,51% -t-3.14 points Cargo Statistics (ton miles) November U.S. Mail 1,728,634 -11.5% Air Freight 1.649,035 -H 6.9% Air Express 50.465 -t-10.9% TOTAL 3,428,134 - 3.3% First 11 months U.S. Mail 17,425,967 - 6.9% Air Freight 18,835,635 -1-19.0% Air Express 619,614 -^25.9% TOTAL 36,881,216 -)- 5.3%