BONANZA 
AIR LINES, INC 
 
 
BOARD OF DIRECTORS 
Edmund Converse 
President and Chairman of the Board of 
Directors. He has served as director and 
chief executive of Bonanza since the 
company was incorporated. 
Frank W. Beer 
Became a director of Bonanza Air Lines in 
February of 1951. He is the senior member of 
the law firm of Beer and Kalyna; director of 
Peoples State Bank, Mineola, Kansas; 
director of KOOL and KOLD radio, CBS 
affiliates; director of F. A. Gillespie and Sons 
Company, Tulsa, Oklahoma; director of 
Adams Hotel Company, Phoenix, Arizona. 
George L. Vargas 
One of the original incorporators of Bonanza, 
Mr. Vargas has served as a director since 
June of 1952. He is a senior partner in the law 
firm of Vargas, Dillon, Bartlett & Dixon; also a 
director of Johnson Service Co. of Milwaukee; 
director of Valley Bank of Nevada in Reno. 
Roger Converse 
Became a director of Bonanza Air Lines in 
May of 1955. He is a director of Island Farms, 
Inc. and Cave des Roys. His other interests 
include investments, public relations, and 
real estate. 
Chester M. Glass, Jr. 
Became a director of Bonanza Air Lines in 
January of 1959. Mr. Glass is associated with 
Homblower & Weeks-Hemphill Noyes. He has 
been active in the investment banking 
business for 36 years. 
William D. Pabst 
Elected to the Bonanza Board of Directors 
in March of 1959. He is executive vice 
president and general manager of 
San Francisco-Oakland Television, Inc.; 
also president and director, St. Claire 
Finance Corporation. 
G. Robert Henry 
Elected to the Bonanza Board of Directors 
in March of 1959. He has been Executive 
Vice President of Bonanza since 1953 
and associated with Bonanza top 
management since 1949. 
James D. Moyle 
Elected to the Bonanza Board of Directors 
in February of 1960. A Salt Lake City 
industrialist, Mr. Moyle is president and 
director, Superior Oil Company of Utah; 
president and director. Silver Lake Company; 
vice president and director. Ideal National 
Insurance Company, Industrial Uranium 
Company and Empire Capital Corporation. 
Robert O. Reynolds 
Became a director of Bonanza Air Lines in 
May of 1962. He is president of Golden West 
Broadcasters and Golden West Baseball Co., 
owners of the California Angels baseball 
team; also president of Board of Trustees, the 
Webb School of California. He is a member 
of the advisory board of the Guaranty Bank; 
and vice president and director, Los Angeles 
Rams and Gene Autry Hotel Co. 
COMPANY OFFICERS 
EDMUND CONVERSE, President 
G. ROBERT HENRY 
Executive Vice President 
MYRON W. REYNOLDS 
Vice President, Operations 
ROBERT J. SHERER 
Vice President, Finance 
LARRY DECKER 
Vice President, Traffic 
and Sales 
JOHN D. LINDSAY 
Vice President, 
Advertising and 
Publicity 
DONALD R. NEILSON 
Vice President, Research 
and Development 
and Assistant Secretary 
ARTHUR M. TAYLOR 
Vice President, Legal and Secretary FINANCIAL AND OPERATING HIGHLIGHTS / Calendar Years J965-I96J 
NOLAND H. RYAN 
Vice President 
1965 
1964 
1963 
1962 
1961 
Community Affairs 
Total operating revenue' 
. . $14,514,911 
$14,085,367 
$12,762,543 
$10,945,839 
$ 9,282,366 
Earnings before taxes' 
. . $ 884,903 
$ 1,280,166 
$ 1,695,269 
$ 1,222,980 
$ 914,054 
JOHN R. Mackenzie 
Net earnings' 
. . $ 842,903 
$ 677,166 
$ 874,129 
$ 711,144 
$ 422,054 
Vice President 
Governmental Affairs 
Net earnings per share ' - 
. . $ .75 
$ .65 
$ .96 
$ .78 
$ .47 
Average outstanding shares 
. . 1,127,715 
1,037,708 
913,859 
911,480 
894,405 
FRANK R. CHABOT, Treasurer 
Gross annual payroll 
. . $ 6,114,226 
$ 5,541,456 
$ 4,682,436 
$ 4,024,365 
$ 3,575,430 
Revenue passenger miles per employee . . . 
. . 210,583 
214,777 
215,719 
190,014 
156,369 
THOMAS J. VAN BOGART 
Available seat miles flown 
. . 308,812,000 
292,480,000 
241,284,000 
206,849,000 
166,821,000 
Controller and Assistant Secretary 
Revenue passenger miles flown 
. . 170,151,000 
160,653,000 
139,139,000 
108,688,000 
79,748,000 
WILLIAM C. BURT 
Passenger load factor 
. . 55.1% 
54.9% 
57.7% 
52.5% 
47.8% 
Assistant Secretary 
'Reflects adjustments related to retroactive subsidy determinations. - 
Based on average outstanding shares of stock. 
RICHARD A. ROGERS 
Vice President, Industrial Relations 
A welcome cake for Bonanza was presented to President Edmund Converse at a luncheon in Phoenix following the groundbreaking ceremony at the 
site of the new headquarters base, shown above. Phoenix Mayor Milton Graham extended the welcome of the City of Phoenix to its newly-acquired 
resident industry. 
 
3 
TO 
OUR 
STOCKHOLDERS 
On December 21, 1965 I was pleased to accept from Mr. 
Donald Douglas, Jr. a gold key to Bonanzas first Douglas 
DC-9 fan/jet in a ceremony held at the Douglas Aircraft 
Company in Long Beach, California. The occasion rep- 
resented a major transition in your companys jet mod- 
ernization program and marked the beginning of a new 
service capability. 
Our second DC-9 was delivered in January 1966. 
Scheduled service commenced on March 1, 1966 in the 
companys relatively long-haul, high density markets, 
namely between Las Vegas and Los Angeles, Las Vegas 
and Phoenix, Las Vegas and Reno, and Phoenix and 
Salt Lake City. 
In conjunction with the commencement of scheduled 
service, and in order to introduce our new equipment to 
the public, an extensive advertising and promotional 
program has been undertaken, designed to exploit fully 
all of the advantages of this most modern, up-to-date 
aircraft. In addition, the DC-9 has been displayed at each 
of the cities to be served in the early stages of the pro- 
gram. Public response to the aircraft has been most grat- 
ifying and encouraging. It is estimated that in excess 
of 24,000 persons, representing a cross section of the trav- 
eling public on your companys system, viewed the DC-9 
on display. 
The true significance of the DC-9 in this companys 
future is, I think, made more graphic when viewed in 
relation to the results obtained in the past, following a 
firm policy to provide the most suitable and most effi- 
cient equipment available in the conduct of our 
operations. 
Per Cent 
1958 
1965 
Increase 
Type of Equipment 
DC-3 
F-27A 
Number 
10 
14 
40% 
Revenue Miles 
4,013,292 
7,720,324 
92 
Available Seat Miles 
92,307,000 
308,812,000 
235 
Revenue Passenger Miles ... 
41,944,000 
170,151,000 
306 
Revenue Passengers 
180,770 
668,568 
270 
Passenger Revenue 
$2,707,905 
$10,782,264 
298 
Average Passenger Load .... 
10.5 
22.0 
110 
1966 traffic results will 
not reflect 
a full year 
of DC-9 
service. However, present analysis, based upon the 
companys existing routes and operations, indicates that 
results for the year 1967, the first full calendar year of 
operations incorporating pure jet equipment, should be 
most gratifying. It is expected that during 1967 available 
seat miles will increase 42% to 439,560,000 from the 
308,812,000 recorded in 1965. Correspondingly, per seat 
mile total operating cost on a system basis is expected to 
decrease approximately 12% from 4.335</ to 3.S2S4. Rev- 
enue passenger miles are expected to increase 40% in 
1967 from the 1965 level, even with the assumption of 
only a slight increase in route miles served. These pro- 
jected results should produce a substantial increase in 
the companys commercial revenues. 
Commercial revenue of $11,348,354 for 1965 reflected 
a 5.3% increase over the $10,773,627 experienced in 1964. 
Operating expenses of $13,414,268 in 1965 represent a 
6.8% increase over the $12,560,321 in 1964. This result is 
somewhat less satisfactory than was anticipated, and is 
primarily due to equipment disadvantages in the com- 
panys Los Angeles-Las Vegas market and to some 
extent due to the higher labor costs experienced as a 
result of contract negotiations completed in 1965. 
Manpower increases were necessary in several areas 
in order to support the new equipment and services, and 
these added costs are also reflected in most areas of the 
companys operations. 
Public acceptance and indeed demand for fast and 
efficient jet equipment in many markets presently served 
by your company have made it apparent for some time 
that additional DC-9 equipment will be needed over the 
next two years in order to accommodate the projected 
additional service requirements. In order to insure the 
availability of the needed aircraft the company has 
decided to acquire three additional DC-9s for delivery 
in 1967 and 1968. Because of the economic benefits 
involved, the company has commenced negotiations to 
acquire these aircraft on a long-term lease arrangement 
which will not require additional financing. 
1965 was not only highlighted by the all-important 
delivery of the first DC-9 but also marked the commence- 
ment of the companys move to its new administrative 
and maintenance facilities at Sky Harbor Airport, 
Phoenix, Arizona. The companys new facilities are near- 
ing completion and it is expected that a complete move 
will be accomplished by June of 1966. Approximately 
300 employees, comprising the companys maintenance 
and service personnel, have made the move to date. All 
flight and maintenance operations are now being directed 
from the Phoenix plant. 
In closing I think it most appropriate to point out 
that the operating experience of this company, when 
viewed in its proper perspective, reflects a remarkable 
advancement. 
Sincerely, 
PRESIDENT AND CHAIRMAN OF 
THE BOARD OF DIRECTORS 
 
TWO DECADES 
OF PROGRESS 
. BONANZA 
In 1965 this company reached its 20th year of airline 
operations. During that time the airline industry and the 
technology supporting it have made almost inconceiv- 
able strides forward. 
Last year we reported to you that the coming of the 
DC-9 to Bonanza Air Lines constituted an event which 
might be termed as a new cornerstone in your companys 
future. We further expressed a dedication to the prin- 
ciple that the great advantages brought about by the 
growth of air transportation and the fast, modern equip- 
ment now available must be extended to an increasingly 
broader base of our national populace. To that end this 
company filed a comprehensive program with the Civil 
Aeronautics Board, which we call a subsidy elimination 
program. It is designed to extend the greatest possible 
air transportation benefits to the greatest number of 
people within the area we serve and to make possible 
this companys emergence as a self-sufficient enterprise. 
The delivery of the DC-9 and the commencement of 
service over your companys system were events which 
brought this major goal into view. 
In 1945 this company was possessed of one eight- 
passenger Cessna aircraft, with which operations were 
commenced. During the next 15 years operations were 
carried on with a fleet of DC-3 aircraft, the backbone of 
the entire aviation industry for many years, and in 1960 
we accomplished a conversion from a maximum fleet 
of ten DC-3s to an all F-27A aircraft fleet to become the 
nations first all jet-powered airline. 
Supplemented and strengthened by the Civil Aero- 
nautics Board in its award of new routes and improved 
operating authority over existing ones, our service capa- 
bilities were also greatly expanded through these 20 
years. As a result, the subsidy which your company has 
received over the years in order to continue operations 
has become less and less of a factor in the companys 
overall program. 
In the five short years since 1960, through develop- 
ments in aviation technology and our own advance 
planning, we have progressed to a fleet consisting of 12 
F-27A jetprop aircraft and three DC-9s. By 1968 the 
DC-9 fleet will be increased to six. So long as the F-27A 
jetprop is the most suitable aircraft available for the 
companys short-hop, low density routes it will continue 
to be used in these markets and will continue to provide 
a high quality, very modern type of air service. When a 
more economically suitable aircraft becomes available 
for these markets, be it pure jet or some other advanced 
form of flight equipment, we will again provide this fur- 
ther advancement in public service. To this end new 
4 
A prime objective was to give the interior oj the 
DC-9 a service personality, a look and feel 
suggestive of the colorful, friendly and exciting 
areas it serves. 
where, in other markets authorized to be served by your 
company, we will continue to build and expand our pub- 
lie functions and services with DC-9 fan/jet equipment, a 
completely new and modern airliner that equates with 
the finest anywhere in the world. And we will continue 
our endeavors to provide our type of short-haul markets 
with a quality of personalized, responsible and respon- 
sive public service that is unmatched anywhere in 
markets of this type. 
It is clear that efficient equipment and strong route 
authority can provide the key to economic self-suffi- 
ciency in the air transportation industry. The equipment 
suitable to the job is now on hand. Moreover, and equally 
important, there are now increasing signs that the Civil 
Aeronautics Board has adopted a new national air trans- 
portation policy that will permit such carriers as Bonanza 
a reasonable opportunity to attain such self-sufficiency. 
Bonanza can and does, with its subsidy elimination pro- 
gram, meet the criteria that the CAB has established 
for obtaining such an opportunity. Therefore, Bonanza 
now fully expects to obtain that opportunity and to 
achieve that ultimate objective. 
In these circumstances your company should soon 
move forward into an era of greatly expanded public 
service, peak operating efficiencies and optimum eco- 
nomic strength. 
 
TRAFFIC 
AND 
SALES 
Developing existing markets and penetrating new ones 
requires a continuing effort and is not necessarily related 
to any 12-month period. 
Over the past several years new concepts have been 
developed in the search for new and better ways to tell 
the BonanzaLand story and to reach as many people 
with that story as possible. The BonanzaLand program 
with its world wide exposure is in its third year and has 
proved most successful. The Visit USA program, organ- 
ized and directed by your company, represented an 
industry-wide effort to acquaint the traveling public with 
local service benefits. These programs, as well as those 
efforts confined to the companys system, will now serve 
as a reservoir from which the most effective results can 
be hoped for in fully developing the companys pure jet 
service opportunities. 
During 1965 the entire sales staff busied itself with 
the challenges and opportunities presented by this new 
service capability. Shorter flight time, improved comfort 
and convenience, better scheduling became a reality. In 
addition, two new markets became available in 1965. 
New service between Las Vegas and Santa Ana com- 
menced April 1, the result of a Civil Aeronautics Board 
award, and increased total sales possibilities by provid- 
ing the traveler with three southern California areas as 
co-terminals, Los Angeles, Ontario/Riverside and Santa 
Ana the southern California megalopolis! 
Additionally, the newly awarded nonstop authority 
between Las Vegas and Grand Canyon has opened up a 
sizeable and largely untapped sales potential. It allows 
for the combining in a single package three major world 
tourist attractions located in the U. S. Pacific Southwest, 
namely Disneyland, Las Vegas and Grand Canyon, a 
convenience to the traveler which heretofore has not 
been available. 
Extensive sales promotion efforts were made during 
1965 in preparation for the inauguration of DC-9 service. 
Included among these efforts were public display of the 
aircraft and courtesy flights to personally acquaint travel 
agencies and the general public with the benefits of this 
newest and most modern jet airliner. Favorable response 
to the new jet was immediate. 
As part of the companywide effort with respect to the 
jet transition, in-flight services as well as passenger han- 
dling techniques and reservations procedures are now 
geared to the new jet service. 
Reno 
Las Vegas 
Lake Tahoe 
Show Sheet 
HIGHLIGHT EXCURSION 
-GRano 
canyon 
So what's so much fun about March 1st 
 
7 
ADVERTISING 
AND 
PUBLICITY 
During 1965 a concentration of advertising and publicity 
attention was directed upon each of the new or improved 
services .scheduled on the companys system. 
Foremost among those was the Santa Ana (Orange 
County)-Las Vegas new service, where several waves of 
publicity and advertising effort were applied for almost 
a year after the initial pre-inaugural activity in order 
to reach a maximum penetration of the market in both 
terminal areas. 
More than 24,000 people came to see when two DC-9s were flown 
into Reno, Las Vegas, Salt Lake Ctiy and Phoenix on successive 
weekends and put on public display. 
Special emphasis was also placed on the improved 
service being operated on the Salt Lake City-Phoenix 
route; and on the Phoenix-Santa Ana segment where 
still greater traffic stimulation is desired. 
The period of equipment disparity which the com- 
pany experienced in the Los Angeles-Las Vegas market 
became in one sense an opportunity to emphasize the 
quality and versatility of the service offered at the three 
other air terminals of the Greater Los Angeles area. 
In the third and concluding year of group and televi- 
sion showings of the BonanzaLand, U. S. A. film 
throughout the nation, an ever larger total audience 
and acceptance was evident than in previous years. 
Color films on the DC-9 are now available and being 
used wherever possible. 
The preparation of an advertising and publicity pro- 
gram designed to effectively introduce and integrate 
the Douglas DC-9 fan/jet into the companys operations 
occupied a large portion of this departments time. The 
first part of the informational and promotional progi'am 
was directed to travel agents, airline reservations and 
sales personnel, industry and business traffic managers 
and travel affiliates. Following this, the consumer cam- 
paign was put into effect. 
In addition, development of programs for the newly 
awarded Las Vegas-Grand Canyon authority, for adver- 
tising and publicizing the F-27A services and for attract- 
ing passengers from the adjacent areas of Ogden, Provo, 
Lake Tahoe, Tucson, and other areas, received close 
attention. 
In an effort to bring maximum capability and effective 
strategy to bear upon the companys marketing oppor- 
tunities, a new advertising agency, MacManus, John & 
Adams, was appointed late in 1965. A fast start on the 
work and a thorough grasp of the companys business 
enabled them to carry out full responsibilities without 
delay. 
'll 
They're here! 
Mas y mas agentes 
de viajes en todo 
el mundo recomiendan 
BonanzaLand, u.s.a., 
y Bonanza Air Lines 
BONANZA AIR LINES 
The DC-9 introduction campaign was launched with a huge contest 
for employees of all the nations airlines. First prize, a car for a year 
provided to Bonanza by Hertz. 
 
8 
ROUTE 
The route map shown below describes 
the companys present route structure 
ENT including the new Las Vegas-Grand Canyon 
nonstop segment. 
The companys subsidy elimination program 
proposals as filed with the Civil Aeronautics 
Board are indicated. Those segments 
currently provided with and proposed 
for DC-9 service are also shown. 
SALT LAKE CITY, 
RENO-LAKE TAHOE 
Nevada 
California 
LAS VEGAS 
GRAND 
CANYON 
KINGMAN 
APPLE VALLEY 
LOS   
ANGELES 
ONTARIO 
^RIVERSIDE 
PALM SPRINGS 
BLYTHE 
EL CENTRO 
YUMA 
Utah 
CEDAR CITY 
PAGE 
Arizona 
SANTA ANA 
PHOENIX 
SAN DIEGO 
TUCSON 
DOUGLAS-BISBEE 
DC-9 FAN/JET F-27A JET/PROP 
Present System 
Proposed Subsidy 
Elimination Program 
Proceeding in Progress 
to 
DENVER 
to 
EL PASO 
 
RESEARCH 
AND 
DEVELOPMENT 
Route applications filed in 1964 requesting Las Vegas- 
Grand Canyon nonstop authority and Santa Ana/ 
Laguna Beach-Las Vegas nonstop authority were both 
granted by the Civil Aeronautics Board during 1965. 
These awards have provided important new markets 
which can now be developed to their fullest potential. 
The Board also permanently certificated the companys 
Las Vegas-Los Angeles route which had been served by 
the company under a temporary certificate since 1957. 
Except for the Santa Ana/Laguna Beach-Las Vegas 
nonstop authority (a two year exemption) all of the 
companys routes are now permanently certificated. 
Culmination of years of painstaking research and analysis is exem- 
plified in this birds-eye view of the first DC-9 fleet arrivals. Four 
more are yet to come. 
The order and delivery of Douglas DC-9 equipment 
concluded this departments initial jet equipment analy- 
sis program. Constant analysis of operating results and 
of equipment in relation to the companys overall route 
development program will continue. 
The company currently has before the Civil Aeronau- 
tics Board an application for Change in Service Pattern 
which would, if granted, authorize nonstop operations in 
the high traffic density Los Angeles-Phoenix market and 
add considerably to the overall strength of the company. 
In addition to filling an important service requirement 
benefitting many thousands of passengers, it would per- 
mit a substantial reduction in the companys subsidy 
requirement with no undue economic impact on any 
other carrier. 
The subsidy elimination program, previously reported 
to stockholders, was finalized for presentation during 
1965 and filed with the Civil Aeronautics Board. The 
program is designed to eliminate this companys depend- 
ence on federal subsidy in its operations through route 
strengthening proposals and with the addition of some 
new route authority. No hearing date with respect to 
these applications has been set as of this date. 
Additionally during 1965 the research and develop- 
ment department participated in numerous activities 
involving proceedings before the Civil Aeronautics 
Board, both with respect to this companys proposals 
and with respect to proposals of others in which this 
company had an interest. 
Grand Canyon, now directly connected to Las Vegas and Los Angeles 
as well as Phoenix and Salt Lake City, is now available to many 
new millions of vacationers. 
 
10 
Myron W. Reynolds, vice president-operations, at the controls 
in the DC-9 cockpit at Phoenix upon delivery of the first DC-9. 
OPERATIONS 
ACTIVITIES 
The DC-9 program moved into high gear during 1965 
as the first Douglas aircraft was rolled out and flown on 
schedule. The Douglas Company advised that the first 
two deliveries of Bonanzas DC-9 would be expedited 
and offered to us in December 1965 and January 1966, 
and this offer was accepted by Bonanza. The earlier 
deliveries meant that all other aspects of the program 
provisioning, training, maintenance facilities, tooling 
also had to be moved forward. Nevertheless, we believed 
it could be done, and operations activity became very 
intense in this area. 
The lack of necessary approvals and related sanctions 
for expansion of the companys existing headquarters 
and maintenance facilities at Las Vegas, required that 
the company design a new facility in Phoenix, Arizona, 
capable of handling ourDC-9, which was then six months 
from first delivery. The operations department was 
given the re.sponsibility of working with the City of 
Phoenix and its architects and engineers in order to 
design an appropriate maintenance, operations and 
administration building for the company. Work began 
only hours after the decision to move was made. Ground 
was broken for the new building on September 14, 1965, 
and sufficient shop and maintenance space was complete 
in time to begin moving people to Phoenix in December. 
The first phase of the move (operations, maintenance 
and supply) was completed late in January and the 
building continues to progress toward a final completion 
date in June. 
 
First order of business in Flight Operations  pilot training in the 
cockpit of the DC-9 flight procedures simulator, under the watchful 
eyes of Bonanza training teams. 
Twenty-five pilots were trained for the March 1 DC-9 
schedules. All twenty-five received ATR type ratings 
in the DC-9, in line with the companys policy to provide 
maximum training to all flight personnel. 
The company purchased two instrument trainersone 
for F-27 and one for DC-9, and a cockpit procedures 
trainer was purchased for the DC-9 program. These 
trainers permit pilots to become familiar with the flight 
director system and cockpit layout prior to getting in 
the aircraft. Through the use of these training aids con- 
siderable sums of money are saved in the initial training 
and also in recurrent training over the years. Training 
facilities were provided in a leased location at Phoenix 
pending completion of the companys new plant. 
A further improvement in the companys F-27A main- 
tenance was achieved in 1965 when the U. S. Federal 
Aviation Agency approved the elimination of costly 
16,000 hour major airframe overhauls on the companys 
F-27A fleet. The new program designed to provide con- 
tinuous maintenance in lieu of major overhaul will 
result in a savings of up to $25,000 per aircraft per over- 
haul period. Additionally, the program will require each 
aircraft to be idle for a maximum of five hours per 
check, occurring every 300 airframe hours as compared 
to the 60 days needed for major overhaul. The result 
better maintenance, better utilization of each aircraft 
and substantial cost savings. 
A captivating aircraft. Employees and the public alike demonstrate 
an eagerness to inspect it. 
 
CORPORATE 
AFFAIRS 
On August 2, at the American Stock Exchange and at the Pacific 
Coast Stock Exchange, company officers were on hand to witness the 
commencing of trading on Bonanza stock. 
Negotiations during 1965 resulted in Bonanza acquiring 
a modern maintenance and administrative facility at 
Phoenix, Arizona. The new plant, costing approximately 
three million dollars, is being constructed by the City of 
Phoenix and made available to the company under a 
28-year lease. The facility is ideally suited for the com- 
panys operations and will accommodate the companys 
present and known future needs. Adequate provision 
has been made for appropriate expansion as required. 
The companys Qualified Stock Option Plan was regis- 
tered with the Securities and Exchange Commission in 
accordance with the stockholders approval granted at 
the last stockholders annual meeting. 
Corporate activities during the year also included the 
listing of the companys $1 par value common stock on 
the American Stock Exchange and the Pacific Coast 
Stock Exchange, after seven years of trading in the over- 
the-counter market. Trading commenced on August 2, 
1965. 
Of the $3,200,000 of 514% convertible subordinated 
debentures due May 1, 1979, sold in connection with the 
companys public offering in 1964, $448,100 of deben- 
tures have been converted to date, representing an 
additional 40,329 shares of the companys common stock 
outstanding. 
During the performance of a Federal Aviation Agency 
pilot training contract one of the companys aircraft was 
damaged beyond repair during 1965. The terms of the 
contract provided for the U. S. government to assume 
risk of loss. A claim was filed with the FAA for the 
value of the aircraft and was initially denied by the 
Agency. The company has filed within the Agency an 
appeal to the denial and intends to vigorously pursue 
all of its legal remedies in order to recover the full value 
of the aircraft. Legal counsel for the company is of the 
opinion that the claim has substantial merit and that 
the company will ultimately prevail with respect to 
this claim. 
Family attendance and interest was high at employee meetings held 
with Phoenix leaders to discuss schools, housing, living conditions 
and economic matters. 
INDUSTRIAL 
RELATIONS 
The company experienced a 10% increase in complement 
during 1965, growing from 740 to 814 employees. The 
increase was due largely to the companys increased 
service requirements and was also related to additional 
requirements resulting from the acquisition and placing 
in service of pure jet equipment. 
Extensive training programs relating to the DC-9 were 
developed and carried out during the year. These 
included training in all departments, including ground 
and flight personnel. 
In connection with the companys relocation to its new 
facilities in Phoenix, Arizona, procedures were estab- 
lished designed to accomplish the relocation with a 
minimum of inconvenience and to insure against any 
interruption in the companys day-to-day operations. To 
date 300 of the 400 employees of the company to be relo- 
cated have accomplished an orderly move to Phoenix, 
and the remaining 100 employees, including the execu- 
five and administrative staffs, are expected to relocate 
during the month of June. The company will retain 85 
employees at Las Vegas, comprised mainly of stations, 
reservations and maintenance personnel. 
In the area of training, approximately 40 hostesses 
were recruited and trained during the year with extra 
emphasis being placed on customer service, an area 
where continued improvement is always sought. 
Twenty-eight classes were conducted throughout the 
system for the companys passenger service agents which 
was the first attempt by this company to undertake a 
field training program. It was so successful that it will 
become a permanent part of the companys projected 
overall training programs. 
Bonanza has continued to maintain its high standard 
of job recruitment, seeking the finest caliber personnel 
in all areas from administrative to technical; and in 
order to maintain these standards the company periodi- 
cally reviews and adjusts non-union salaries to maintain 
a level consistent with industry levels for comparable 
positions. 
New contract negotiations were completed during the 
year with the Airline Pilots Association covering the 
companys 104 pilots, the Bonanza Air Lines Agents 
Association representing 276 personnel, the International 
Brotherhood of TeamstersAirline Division represent- 
ing 184 personnel, and the Airline Dispatchers Associa- 
tion representing 8 personnel. 
The companys payroll for the year, representing an 
average of 808 employees, was $6,114,000 or a 12% 
increase over 1964. 
Early attention was given to the important task of assisting personnel 
in relocating in Phoenix. Valuable help was received from Arizona 
officials and businessmen. 
 
FINANCIAL 
RESULTS 
Three principal factors affected earnings before taxes 
for 1965. 
The first of these was the modest increase of only 
5.3% in passenger revenue which was well below the 
increase realized in prior years. Revenue increase from 
passengers was less than expected due to the introduc- 
tion of pure jet aircraft in the Los Angeles-Las Vegas 
turn-around market by another airline during the year 
which materially restricted the companys participation 
in the market. The company reduced the number of 
flights which it offered in the market concurrently with 
the commencement of the competitive jet service 
because of its equipment disadvantage. The introduc- 
tion of the companys DC-9 fan/jet into service on March 
1, 1966 has once again placed it in a fully competitive 
position. 
A computer system is currently being installed as part of an infor- 
mation system utilizing advanced management techniques. 
4 
The second factor affecting earnings before taxes was 
a reduction of $145,183 in federal subsidy below the 
level received in 1964. This reduction was due to the 
establishment of a revised Class Subsidy Rate formula 
for the local service airlines in the latter half of 1964 
which contained a downward adjustment in rate for 
the airlines having longer average flight stage. The 
company has the longest average flight stage of the 13 
local service airlines and therefore sustained the great- 
est decline in subsidy stemming from this adjustment. 
A revised Class Subsidy Rate is in process of being 
developed to be effective from January 1, 1966 and, 
although the final rate is yet to be announced, prelim- 
inary information indicates that the company will sus- 
tain no further reduction and may receive a modest 
increase in rate. The rate under consideration is, how- 
ever, expected to remain in effect for an interim six 
month period until a new formula is developed. This 
formula is intended to relate subsidy payments more 
directly to service rendered to those communities that, 
in their present state of development, are unable to gen- 
erate sufficient traffic and revenues to sustain air service. 
The amount of subsidy which the company may receive 
under a formula designed in this manner cannot pres- 
ently be determined. 
Finally, operating expenses of the company increased 
6.8% due to higher wage, material and facility costs. 
Contracts negotiated in line with industiy wage trends 
during 1965 with three employee groups comprising the 
numerical majority of the companys employees (pilots, 
mechanics and station agents) accounted for a sizeable 
portion of the increase in wage costs. An increase in 
staffing in the more dense traffic centers and in other 
operational and administrative departments due to 
increased traffic and the increase in servicing of aircraft, 
which customarily is required as flight time accumulates, 
contributed to increased wage costs. Some increase in 
staffing also occurred as necessitated in the training, pro- 
visioning and preparation for the introduction of the 
DC-9 fan/jets as well as the physical relocation of the 
companys headquarters and maintenance base to Phoe- 
nix, Arizona. Although the company endeavored to 
defer all identifiable costs connected with these projects 
to future operations which will benefit therefrom, it is 
extremely difficult to relate all changes in staffing and 
increases in other costs with projects not directly con- 
tributing to current revenue-generating services. 
Earnings before taxes for 1965 were $884,903 on total 
revenues of $14,514,911 as compared with 1964 earnings 
before taxes of $1,280,166 on total revenues of $14,085,367. 
Provision for taxes for 1965 was substantially lower at 
$42,000, down from the 1964 amount of $603,000, due to 
investment tax credits of $371,376 recorded from the 
purchase of an F-27A prop/jet, a DC-9 fan/jet and other 
equipment and parts. In the 1964 period, investment 
tax credits recorded fiom the purchase of equipment 
amounted to $47,748. The unusually large amount re- 
corded in 1965 resulted in the application of credits 
against 1965 tax of $75,306 and $296,070 carried back for 
refund of prior years taxes paid. Additionally the 
reduction of 2% in the Federal corporation income tax 
rate for 1965 accounted for a portion of the lesser tax 
provision for 1965. 
Net earnings for 1965 were $842,903 equivalent to 154 
per share as compared to $677,166 for 1964 or 65^, with 
both years per share amount computed on the average 
number of shares of common stock outstanding during 
the respective years. The higher figure for 1965 reflected 
the benefit of the larger amount of investment tax cred- 
its recorded. Delivery of the second DC-9 fan/jet in 
 
January 1966 and the third DC-9 scheduled for June 1966 
plus other equipment and parts will afford the company 
investment tax credits for 1966 to the full extent allow- 
able against federal income tax with a probable carry- 
forward of credits to 1967 and 1968. Since only a minor 
unused investment tax credit allowance is remaining for 
refund of 1964 income taxes paid, the 1966 net earnings 
can be affected to only a small extent from carry-back 
effect as compared with 1965 in which sizeable carry- 
back of the credits to prior years was available. 
Near the close of 1965 the company found it necessary 
to refund a portion of its term debt to enlarge the credit 
from $1,453,033 to $3,000,000 of which $2,500,000 has been 
drawn down to date. The increase in borrowing was 
principally occasioned by the loss of an F-27A in a train- 
ing accident for which the company has a claim pending 
with the Federal Aviation Agency that has not been 
settled. In the refunding and enlargement of the credit 
the company pledged the proceeds to be received from 
the sale of two F-27A aircraft. Subsequently the com- 
pany negotiated the sale of the aircraft for a net amount 
of $1,700,000, which proceeds will be applied to prepay- 
ment of the loan when received. 
The company has drawn a total of $4,600,000 from the 
loan of $6,500,000 arranged for the DC-9 fan/jets and 
applied the funds to settlement on the purchase of the 
two aircraft and spare engines delivered. The balance 
of the loan is intended to be drawn upon delivery of the 
third DC-9 and spare engine and used in payment for 
the equipment. 
The headquarters and maintenance facilities being 
constructed at Sky Harbor Airport by the City of 
Phoenix for the company will materially increase rental 
costs. However, the agreement provides for the rentals 
for the first five years of the 28 year period to be based 
on a reduced rental payment in order to afford the 
company a period in which to amortize moving and 
relocation costs. The rental for the balance of the term 
will be based on full amortization of the cost of the 
facility. Although such rentals will be substantially 
more than those previously incurred for the facilities 
at Las Vegas that had become inadequate to meet the 
companys needs, it is expected that the efficiency that 
can be gained in many areas of the operational and 
administrative functions of the company will partially 
offset the increased rental cost. 
Commitment, subject to necessaiy bank and govern- 
ment approvals, for the purchase of a fourth Series 10 
DC-9 fan/jet and two Series 30 DC-9 fan/jets has been 
made with Douglas Aircraft Company with the inten- 
tion that such aircraft will be purchased by a Trust 
formed by banks who will lease the aircraft to the com- 
pany over a 13 year term. The investment tax credits 
flowing from the purchase of the aircraft are intended 
to be taken by the Trust, thereby making lease terms 
available to the company on more favorable terms than 
any other method of financing that may otherwise be 
obtainable. No other financing requirement is contem- 
plated in connection with the three additional aircraft. 
Summary of Source and Disposition of 
Funds for 1965 
Source of funds: 
Net earnings $ 842,903 
Depreciation and overhaul amortization 1,533,039 
Amortization of deferred charges 55,458 
Deferred taxes 165,000 
Proceeds from sale of capital stock 2,089 
Increase in long-term debt 1,827,189 
Decrease in working capital 926,418 
Total $5,352,096 
Disposition of funds: 
Investment in propexty and equipment . . . $5,819,149 
Deposits on equipment purchase contracts (751,989) 
Deferred preoperating and other costs . . 284,936 
Total $5,352,096 
OPERATING AND FINANCIAL STATISTICS 
Calendar Years 
1965 
1964 
1963 
1962 
1961 
Trafflc and Capacity 
 
 
 
 
 
System route miles operated as of last day of period . 
2,106 
2,106 
2,106 
2,135 
2,153 
Total aircraft miles flown in revenue service .... 
7,729,660 
7,618,013 
6,354,940 
5,445,869 
4,397,396 
Scheduled aircraft miles flown 
7,720,324 
7,599,716 
6,349,638 
5,443,441 
4,390,038 
Percent of scheduled aircraft miles flown 
98.5% 
99.2% 
99.3% 
99.0% 
99.2% 
Revenue passengers carried 
668,568 
620,497 
536,377 
425,475 
316,040 
Revenue passenger miles flown (000) 
170,151 
160,653 
139,139 
108,688 
79,748 
Available seat miles flown (000) 
308,812 
292,480 
241,284 
206,849 
166,821 
Passenger load factor 
55.1% 
54.9% 
57.7% 
52.5% 
47.8% 
Available ton-miles flown (000) 
30,881 
28,673 
23,494 
20,188 
16,243 
Revenue ton-miles flown (000) 
16,885 
16,014 
13,818 
10,785 
7,948 
Overall load factor 
54.7% 
55.9% 
58.8% 
53.4% 
48.9% 
Average number of employees 
808 
748 
645 
572 
510 
Revenue passenger miles per employee 
210,583 
214,777 
215,719 
189,682 
156,369 
Financial 
Total operating revenue (000) 
? 14,515 
? 14,085 
$ 12,763 
5 10,946 
$ 9,282 
Passenger revenue (000) 
10,782 
10,244 
9,156 
7,441 
5,698 
Total commercial revenue (OOO)-'^ 
11,348 
10,773 
9,565 
7,810 
5,968 
Public service revenue (subsidy) (000)' 
3,167 
3,312 
3,198 
3,136 
3,315 
Total operating expense (000) 
13,414 
12,560 
10,750 
9,426 
8,075 
Total operating expense per revenue ton-mile of traffic 
0.794 
0.784 
0.778 
0.874 
1.016 
Public service revenue required to provide operating 
break-even need: (Total (000) ) 
2,066 
1,787 
1,185 
1,616 
2,107 
Per available ton-mile flown 
0.067 
0.062 
0.050 
0.080 
0.130 
Per revenue ton-mile of traffic 
0.122 
0.112 
0.086 
0.150 
0.265 
Break-even need as percent of commercial revenue . 
18% 
17% 
12% 
21% 
35% 
Commercial revenue as percent of operating expenses 
85% 
86% 
89% 
83% 
74% 
Net earnings' - 
$ 842,903 
8 677,166 
$ 874,129 
? 711,144 
8 422,054 
' Reflects adj ustment related to retroactive subsidy determinations. 
-Adjusted for 1963 and 1962 investment tax credits reported as special item in 1964. 
'Operating revenue less public service revenue. 
 
16 
IBM 
t 
If ^ ^ ^ 
n ^ ^ ^ ^ ^ 
ASSETS 
1965 
1964 
Current Assets: 
Cash 
Receivables: 
United States Government Departments (note 8) . . . . 
Traffic, net 
Other 
$ 1,220,761 
1,525,289 
281,951 
226,007 
2,382,057 
451,354 
297,872 
108,769 
Less allowance for doubtful accounts 
2,033,247 
10,000 
857,995 
12,000 
Net receivables 
2,023,247 
845,995 
Federal income taxes refundable (note 3) 
Spare parts, service materials and supplies, at average cost . 
Prepaid expenses 
173,678 
711,596 
115,002 
549,592 
64,946 
Total current assets 
4,244,284 
3,842,590 
Properties and equipment, at cost (note 1) : 
Flight equipment 
Ground equipment 
Buildings and improvements on leased property 
Other property and equipment 
Construction in progress 
16,775,647 
1,027,046 
724,394 
31,527 
248,886 
11,689,058 
977,731 
698,189 
3,305 
169,559 
Less allowance for depreciation and amortization 
18,807,500 
5,839,285 
13,537,842 
4,855,737 
Net properties and equipment 
12,968,215 
8,682,105 
Deposits on equipment purchase contracts (note 6) 
Unamortized development and preoperating costs 
Deferred loan costs and other assets 
1,667,826 
360,045 
250,028 
2,419,815 
142,272 
245,736 
$19,490,398 
15,332,518 
See accompanying notes to financial statements. 
 
17 
BONANZA 
AIR LINES, INC. 
BALANCE 
SHEET 
December 31,1965 with 
comparative figures for 1964 
Peat, Marwick, Mitchell & Go. 
CERTIFIED PUBLIC ACCOUNTANTS 
The Board of Directors, Bonanza Air Lines, Inc.: 
We have examined the balance sheet of Bonanza Air Lines, Inc. as of December 
31, 1965 and the related statements of earnings, retained earnings and additional 
paid-in capital for the year then ended. Our examination was made in accordance 
with generally accepted auditing standards, and accordingly, included such tests 
of the accounting records and such other auditing procedures as we considered 
necessary in the circumstances. 
In our opinion, subject to the final determination of the claim described in 
Note 8 to financial statements, the accompanying balance sheet and statements 
of earnings, retained earnings and additional paid-in capital present fairly the 
financial position of Bonanza Air Lines, Inc. at December 31, 1965 and the results 
of its operations for the year then ended, in conformity with generally accepted 
accounting principles applied on a basis consistent with that of the preceding year. 
Los Angeles, California PEAT, MARWICK, MITCHELL & CO. 
March 12,1966 
LIABILITIES AND STOCKHOLDERS EQUITY 1965 1964 
Current liabilities: 
Current maturities of notes payable $ 1,419,778 592,565 
Accounts payable 1,076,415 560,749 
Amounts collected for others 165,693 138,754 
Accrued salaries and wages 458,818 349,547 
Other accrued liabilities 207,413 176,874 
Unused transportation 72,542 70,380 
Federal income taxes (note 3)  183,678 
Total current liabilities 3,400,659 2,072,547 
Notes payable to banks, less current maturities (note 1) . . . 4,929,092 3,101,903 
514% convertible subordinated debentures (note 2) 3,069,400 3,200,000 
Deferred federal income taxes (note 3) 344,000 179,000 
Commitments and contingent liabilities (note 6) 
Stockholders equity: 
Common stock $1.00 par value per share. 
Authorized 3,000,000 shares: issued 
1,139,754 and 1,127,605 shares, respectively (notes 2 and 5) . 1,139,754 1,127,605 
Additional paid-in capital 2,935,926 2,822,799 
Retained earnings (note 1) 3,671,567 2,828,664 
Total stockholders equity 7,747,247 6,779,068 
$19,490,398 15,332,518 
See accompanying notes to financial statements. 
 
STATEMENT 
OF EARNINGS 
Year ended December 31,1965 
with comparative figures for 1964 
1965 
1964 
Operating revenues: 
Passenger and excess baggage 
Mail, express and freight 
Charter and incidental 
Public service (subsidy) 
. $10,887,534 
357,992 
102,828 
3,166,557 
10,345,445 
338,883 
89,299 
3,311,740 
14,514,911 
14,085,367 
Operating expenses: 
Flying operations 
Maintenance 
Passenger service 
Aircraft and traffic servicing 
Promotion and sales 
General and administrative 
Depreciation and amortization 
Amortization of development 
and preoperating costs 
3,193,826 
2,560,719 
634,501 
2,840,125 
1,757,809 
1,240,016 
1,145,306 
41,966 
3,037,464 
2,391,942 
625,309 
2,556,436 
1,683,060 
1,137,576 
1,076,229 
52,305 
13,414,268 
12,560,321 
Earnings from operations 
Non-operating revenue (expense): 
Interest (note 7) 
Other, net 
1,100,643 
(212,254) 
( 3,486) 
1,525,046 
(262,515) 
17,635 
Earnings before taxes on income . . . 
Provision for taxes on income (note 3) . . 
884,903 
42,000 
1,280,166 
603,000 
Net earnings 
842,903 
677,166 
Special items: 
Prior years investment credits 
223,024 
( 29,235) 
Adjustment of prior years subsidy . . . 
Net earnings and special items .... 
. $ 842,903 
870,955 
See accompanying notes to financial statements. 
Statement of Retained Earnings 
and Additional Paid-in Capital 
Year ended December 31,1965 
Retained 
Earnings 
Additional 
Paid-in 
Capital 
Amount at beginning of year 
$ 2,828,664 
2,822,799 
Net earnings 
842,903 
Excess of proceeds over par value of 
11,754 shares of common stock issued upon 
conversion of debentures 
111,433 
Excess of proceeds over par value of 395 shares 
of common stock issued under options (note 5) 
1,694 
Amount at end of year 
$ 3,671,567 
2,935,926 
See accompanying notes to financial statements. 
 
BONANZA AIR LINES, INC. Notes to Financial Statements 
December 31,1965 
NOTE 1. Notes Payable to Banks. 
The notes payable to banks as of December 31, 1965 are summarized as follows: 
Payments 
(Including Interest) 
Final 
Maturity 
Outstanding 
Dec. 31,1965 
51 / 2 % note payable 
1968 
$1,421,394 
6% note payable 
1970 
627,476 
6% note payable 
5^/4% notes payable: 
1970 
2,000,000 
Series A 
1970 
391,000 
Series B 
Less current maturities 
1975 
1,909,000 
6,348,870 
1,419,778 
$4,929,092 
The notes are secured by chattel mortgages on one DC-9 and fourteen F-27A aircraft. 
In connection with the loan agreements relating to two of the above notes, the company has agreed, among other things, to 
maintain certain minimum working capital and stockholders equity (net worth) requirements. Under the most restrictive 
provision of these agreements $3,164,878 of retained earnings as of December 31, 1965 was restricted as to the payment of 
cash dividends. 
The company is required to offer to prepay the 514% Series B notes in an amount equal to 15% of the annual net earnings up 
to $1,000,000 plus 25% of the net earnings in excess of $1,000,000; accordingly a prepayment of $126,435 will be offered to the note- 
holders during the coming year. 
NOTE 2. 5%% Convertible Subordinated Debentures. 
The debentures, which mature May 1, 1979, are subordinated 
to the bank loans and are convertible into shares of common 
stock of the company at the initial conversion price of $11-1/9 
per share. The conversion price increases to $12-1/2 per share 
on May 1, 1968 and to $14-2/7 per share on May 1, 1972. The 
trust indenture relating to the debentures provides for a 
sinking fund payment'of $160,000 annually beginning May 1, 
1969 and for the payment of interest semiannually. 
The indenture further provides for certain restrictions on 
the payment of cash dividends which, as of December 31, 
1965, were less restrictive than the provisions of the agree- 
ments relating to the bank loans described in Note 1. 
NOTE 3. Income Taxes. 
The companys Federal income tax returns for 1963 and sub- 
sequent years are subject to review by the United States 
Treasury Department. 
Differences in the treatment of certain expenses result in 
substantial variations between net earnings as reflected in 
the companys financial statements and as reported in its 
income tax returns. These differences are primarily in con- 
nection with aircraft preoperational costs which were ex- 
pensed for tax purposes in the year in which incurred, 
although such costs are being amortized on the books, and 
the use of accelerated depreciation methods for tax purposes. 
The 1965 provision for income taxes is summarized as 
follows: 
Current taxes $248,376 
Deferred taxes 165,000 
413,376 
Less investment credits (including 
amounts carried back to prior years) .... 371,376 
Provision for income taxes $ 42,000 
The company records investment credits as a reduction of 
Federal income taxes in the year in which such credits are 
realized. 
NOTE 4. Retirement Plans. 
The company has contributory retirement plans for all eligi- 
ble employees, which are implemented by trust funds. The 
plans are cancellable by the company. The cost of these plans 
charged to operating expense in 1965 totalled $337,682 for 
both current and past services. As of December 31, 1965, the 
remaining portion of the originally computed past service 
liability amounted to $107,788, which management contem- 
plates fully funding during the next two years. 
NOTE 5. Options to Purchase Common Stock. 
On May 17, 1965 the shareholders approved a qualified stock 
option plan for officers and key employees of the company. 
The plan provides that options may be granted to purchase 
55,810 shares of the companys common stock at not less than 
100% of the fair market value on the date of grant. The 
options are exercisable in equal instalments over a period of 
five years. No options have been granted under this plan. 
As of December 31, 1965, certain officers and employees 
held options to purchase 16,885 shares under the companys 
restricted stock option plan. The options were exercisable 
through May 20, 1968 at prices ranging from $3.38 to $6.65 
per share and represented total option prices aggregating 
$85,373. 
NOTE 6. Commitments and Contingent Liabilities. 
At December 31. 1965, the company had on order two addi- 
tional DC-9 aircraft and related spare engines scheduled for 
delivery in January and June 1966. Such purchases represent 
commitments of approximately $5,106,000 in excess of related 
deposits. The company can borrow an additional $5,200,000 
from a group of banks under existing loan agreements to 
finance these purchases. 
As of December 31, 1965, the company was contingently 
liable for claims and lawsuits in which it is or may be a 
defendant; however, management and its counsel believe the 
ultimate liability, if any, will not materially affect the finan- 
cial position of the company at December 31, 1965, or the 
results of its operations for the year then ended. 
During the year the company agreed to move its general 
offices and principal maintenance facilities to Phoenix, Ari- 
zona. In connection therewith, the company has entered into 
a lease agreement requiring payments not to exceed $168,000 
annually for the first five years and not to exceed $264,000 
annually during the remaining twenty-three years of the 
lease. 
The estimated minimum annual rentals under other long- 
term leases, the majority of which expire prior to 1990, were 
approximately $100,000 at December 31, 1965. 
NOTE 7. Capitalized interest. 
Interest expense included in the statement of earnings for 
1965 does not include $186,900 which was capitalized as air- 
craft acquisition costs. 
NOTE 8. Claim against the Federal Aviation Agency. 
In April 1965, one of the companys F-27A aircraft was dam- 
aged beyond repair during the performance of its contract 
for ground and flight training for inspectors of the Federal 
Aviation Agency. The company filed a claim with said agency 
in the amount of $1,052,126; however, the claim was denied in 
October 1965. In December 1965, the company filed a notice of 
appeal with the Federal Aviation Agency, which is presently 
still pending. Management and legal counsel believe that the 
company will ultimately recover the value of the destroyed 
aircraft, and accordingly the claim is included as a receivable 
in the accom panying balance sheet as of December 31, 1965. 
ANNUAL MEETING 
The Annual Meeting of Stockholders of Bonanza Air Lines, 
Inc., is held on the third Monday of May in each year. This 
year the Annual Meeting will be held at 10:00 A.M. on May 
16,1966, in the company offices, 3737 Bonanza Way, Sky Harbor 
Airport, Phoenix, Arizona. 
The record date for the determination of stockholders enti- 
tied to receive notice and to vote at the meeting and any 
adjournment thereof has been fixed by the Board of Directors 
as of the close of business on April 8, 1966. 
Stockholders are cordially invited to attend the meeting or 
send in their proxies. 
 
TRANSFER AGENTS: 
First National Bank of Nevada, Las Vegas, Nevada 
Bankers Trust Company, New York, New York 
REGISTRARS: 
Bank of Nevada, Las Vegas, Nevada 
First National City Bank, New York, New York 
CORPORATE OFFICES: 
Bonanza Air Lines, Inc., McCarran Field 
P. O. Box 391, Las Vegas, Nevada 
BONANZA AIR LINES, INC.