HUI 
CORPORATE PROFILE 
Hughes Air Corp. 
1978 
In 1978 . . . 
Hughes Airwest is 
 Making 30 per cent fare discounts available in all U.S. 
markets; 
 Offering- a new Business Coachfour rows of four- 
abreast seating on all DC-9sstarting in October. 
 Installing enclosed overhead storage compartments for 
carry-on baggage on all DC-9-30S, replacing open hat 
racks; 
 Boosting the range and payload capabilities of its fleet 
through an innovative program of upgrading engines on 
DC-9-30S and increasing fuel capacity on 727-200s; 
 Adding five DC-9-30S and one Boeing 727-200 by years 
end; 
 Pending final government approval, beginning nonstop 
flights linking Los Angeles with Calgary and Edmonton and 
starting new service to Mexico City and to Milwaukee and 
Des Moinesits first new U.S. destinations since 1968. 
1977 in Review 
Record-setting traffic boosted the airlines revenues at a 
faster rate than any other U.S. carriers. It resulted in the 
sixth consecutive profitable year. 
Cperating revenues totaled nearly $254 million, up 25.7 
per cent from 1976. Year-end net profit was a record $9.4 
million compared with $3.6 million the previous year. 1977 
also was the first time there was an operating profit in 
every month. 
Passengers neared five million and the miles they flew 
(21.3 per cent farther than in 1976) fell short of the fastest 
rate of growth in the U.S. by only two tenths of a percent- 
age point. 
Air freight ton miles grew 18.8 per centfaster than any 
other U.S. airlines. 
More than 135,000 charter passengers were boarded (53 
per cent more) and they were flown more than twice as far. 
Its on-time arrival performance was among the top three 
in the U.S. and the best of all 19 carriers in the fourth 
quarter. 
New service linking Crange County and Burbank with 
Denver was inaugurated under an interchange agreement 
with Frontier Airlinesthe first between two regional car- 
riers. Ten cities received new nonstop service: Sookane-Los 
Angeles, Salt Lake City-Burbank, San Francisco-Pasco, 
Cakland-Phoenix and San Diego-Tucson. 
The sixth Mexico resort destinationCabo San Lucas 
was added through the new airport at San Jose del Cabo. 
Boeing 727s were introduced to scheduled service on 
routes linking Alberta with U.S. cities. 
The company added five DC-9-30s to its fleet. 
Boeing Advanced 727-200s 
Geographic Scope 
Hughes Airwest serves 55 cities in the western U.S., Mex- 
ico and Canada. This is the only three-nation route struc- 
ture operated by a U.S. regional airline. 
It flies to 47 cities in nine western states (Arizona, Cali- 
fornia, Colorado, Idaho, Montana, Nevada, Oregon, Utah 
and Washington), or more cities within this territory than 
are served by all other airlines combined. 
In Mexico, it provides the only U.S. flag carrier service 
to six citiesmore than any other U.S. airline. 
In Canada, it was the first U.S. flag carrier to serve Ed- 
monton and the first U.S. regional airline to fly across the 
border. Service was to Calgary. 
The north-south span of its systembetween Edmonton 
and Guadalajara, Mexicois about 2,500 miles. If extended 
in an east-west direction, it would connect San Francisco 
and New York. The airline flies to inland areas as far east 
as Great Falls, Mont.; Denver, Colo.; and Phoenix, Ariz. 
The airlines U.S. service region contains most of the 
countrys pleasure destinationsnational parks, monuments 
and recreational areas; winter ski centers; summer sun 
destinations; and nearly every Pacific Coast beach resort. 
Hughes Airwest also flies to most of the largest and fast- 
est growing metropolitan centers within this area. 
 
Major 
Facilities 
The People 
Who Make 
It Work 
Sundance 
Fleet 
San Francisco International Airport (mailing address) 
San Francisco, California 94128 
(Area Code 415) 573-4000; TELEX 34-9431 
Hughes Airwest industry code: RW 
INTERNATIONAL HEADQUARTERS 
Its at 3125 Clearview Way at Hillsdale Boulevard in San Mateo 
midway between San Francisco and San Jose. 
This is the home and operational nerve center for the only sched- 
uled airline based in the San Francisco Bay Area. 
Around-the-clock flight operations in the western portion of the 
North American continent are directed from this facility. It also 
houses one of the industrys most modern reservation centers. 
Hughes Airwest also is the only airline with a flight attendant 
training school in the Bay Area. 
MAINTENANCE CENTER 
Its at Sky Harbor International Airport in Phoenixthe only such 
maintenance and engineering facility in Arizona. 
Here, work on the airlines fleet is done by 550 skilled super- 
visors, technicians, engineers, avionics and instrument specialists, 
supply clerks and support staff. 
Expansion of this 152,200-square-foot facility is beginning this 
year and is expected to be completed in late 1979, at a cost of 
about $8 million. More than 116,500 square feet will be addeda 
76 per cent increase. Hangars will be able to handle aircraft as 
large as a DC-10 or L-1011. 
The Phoenix base is certificated by the Federal Aviation Adminis- 
tration to perform repair and service for other airlines on Boeing 
727s, DC-9s and F-27s. 
The airline has reached beyond the confines of its own operation 
by completing contract work on small executive aircraft and 
maintenance, technical assistance and training for many foreign 
countries. 
A work force of nearly 4,600 is employed throughout the system. 
It is led by a management team comprised of a board of directors, 
officers and 515 management personnel. 
More than 600 pilots and 800 flight attendants are based in San 
Francisco, Las Vegas, Seattle and Phoenix. 
Some 450 telephone sales agents are in Phoenix, Los Angeles, 
Seattle and at the airlines International Headquarters. 
Six labor unions represent segments of the work force. They are: 
Air Line Pilots Association (ALPA); Association of Flight Attendants 
(AFA); Air Line Employees Association (ALEAstations, reserva- 
tions and clerical personnel); Aircraft Mechanics Fraternal Associ- 
ation (AMFAtechnicians and cleaners); International Association 
of Machinists and Aerospace Workers (lAMAWsupply clerks); and 
Transport Workers Union (TWUflight dispatchers). 
A total of 46 aircraft perform nearly 900 arrivals and departures 
a day. The fleet consists of*: 
 Four Boeing Advanced 727-200 trijets (155 passengers) 
 Twenty-eight DC-9-30 jets (103 passengers) 
 Ten DC-9-10 and DC-9-15 jets (75 passengers) 
 Four F-27 propjets (40 passengers) 
These numbers reflect the active fleet status as of June 1, 1978. 
These are changing due to aircraft sales, deliveries or leasing. (As 
of June 1, three DC-9-30S and four 727-200s were on order.) 
Published by the Public Relations Department, Hughes Airwest 
international Airport, San Francisco, California 94128 
Future Among its many route applications pending govern- 
Expansion mem appeal are: 
 Nonstop routes within the airlines system linking 
Calgary and Edmonton with Los Angeles and San 
Francisco; Los Angeles and San Francisco with Reno; 
Oakland with Seattle and Portland; Sacramento with 
Seattle and Phoenix; Fresno with Portland; and San 
Francisco with Las Vegas. 
 Authority to five more resort destinations in Mex- 
icoMexico City, Acapulco, Manzanillo, Loreto and 
Zihuatanejo. 
 Routes expanding the existing system in several 
route cases to Dallas/Ft. Worth, Houston, San Anto- 
nio, Minneapolis/St. Paul, Milwaukee, Des Moines, 
Denver, Albuquerque, Nashville, Louisville, Cincinnati, 
Dayton, Columbus, Indianapolis, St. Louis, Anchorage 
and Vancouver. 
Based on scheduled and charter boardings in 1977, they are: 
Las Vegas  722,784 
Phoenix  461,816 
Los Angeles  408,446 
San Francisco  332,291 
Seattle - 323,748 
Orange County (Santa Ana)  285,100 
Salt Lake City-210,943 
Reno - 191,572 
Spokane  166,897 
Portland  138,866 
Boardings at these 10 cities represent 65 per cent of the airlines 
systemwide total. 
They are in 20 major cities it flies to in the U.S., Mexico and 
Canada  Boise, Burbank, Calgary, Edmonton, Guadalajara, Las 
Vegas, Los Angeles, Oakland, Ontario, Phoenix, Portland, Reno, 
Salt Lake City, San Diego, San Francisco, San Jose, Santa Ana, 
Seattle, Spokane and Tucson. 
City ticket offices are in 14 cities: Anaheim (Disneyland), Ed- 
monton. Las Vegas, Reno, Salt Lake City, San Francisco, Seattle, 
Sun Valley (seasonal), Guadalajara, Guaymas, La Paz, Mazatlan, 
Puerto Vallarta and Cabo San Lucas. 
Sales personnel also are in Tokyo; Hong Kong; Sydney; Rio de 
Janeiro; San Jose, Costa Rica; London; Frankfurt; Geneva; New 
York City; Milwaukee; Honolulu; and Mexico Citycities to which the 
airline does not operate scheduled flights. 
This multi-nation sales effort is supported by the most advanced 
computerized communications systems in the transportation indus- 
try. They are called SITA (for Societe Internationale de Telecommu- 
nications Aeronautiques) and ARINC (for Aeronautical Radio, Inc.). 
Through these two organizations, Hughes Airwest can instantly 
communicate and exchange passenger reservation information with 
more than 300 airlines around the world. 
The assets of Air West, Inc. were purchased in April, 1970 by 
Hughes Air Corp., which operates the airline as Hughes Airwest. 
The predecessor carrier was formed in 1968 by the merger of 
three pioneer airlines in the West: Pacific Air Lines (based in San 
Francisco), Bonanza Air Lines (Phoenix) and West Coast Airlines 
(Seattle). 
Pacific began scheduled passenger service as Southwest Airways 
in 1946 and became Pacific Air Lines 10 years later. Bonanza 
started as a flight school and charter service at Las Vegas in June, 
1945 and operated its first scheduled flights in August, 1946. West 
Coast started service in March, 1946; in August, 1952, it purchased 
Empire Air Lines, a feeder carrier that was established in April, 1944 
under the name Zimmerly Air Transport, later Zimmerly Airlines. 
Hughes Air Corp. is a privately held company with the majority 
of its stock owned by Summa Corporation, headquartered in Las 
Vegas, Nevada. Summa is a diversified firm with interests in hotels, 
helicopter manufacturing, real estate and other fields. It was wholly 
owned by Howard Hughes, industrialist and aviation pioneer, who 
died April 6, 1976. 
Hughes Airwest is one of only a few airlines in the world that is 
providing technological, managerial and training assistance as well 
as consulting services to overseas air transportation companies. 
It currently maintains contracts with airlines in Nepal, Mauritania, 
Saudi Arabia and Argentina. 
It has completed contracts with airlines in Burma, Japan, Liberia 
and Ghana. 
These countries use Hughes Airwests skills to help them develop 
air transportation systems tailored to their particular  and varied  
needs. 
The airline has 60 of its experienced employes and their families 
assigned to its programs overseas. 
Top 10 
Cities 
Sales 
Offices 
A Brief 
Look Back 
Overseas 
Business 
Programs 
 
The Major 
Expenses 
The largest in 1977 was for salaries$86.7 million, 
or 18 per cent more than the $73.7 million payroll 
in 1976. 
The bulk of the companys payroll burden is in 
four cities where most management personnel and 
pilots and flight attendants are based. Salaries in 
each city were: Phoenix, $26.6 million; San Fran- 
cisco, $18.4 million; Las Vegas, $13.6 million; and 
Seattle, $10.7 million. 
The second highest and most rapidly increasing 
expense was for aircraft fuel. In 1977, it jumped 36 
per cent to $46.3 million from $34 million. 
Property and other taxes, plus licenses, increased 
33 per cent to $10.8 million from $8.1 million. 
Landing costs, fees levied by airports, rose 23 per 
cent to $5.8 million from $4.7 million. 
The cost of facility rentals and other related ser- 
vices jumped 19 per cent to $5.7 million from $4.8 
million. 
All these dollars were paid to various municipal, 
state and federal agencies in the nine western 
states, Canada and Mexico. 
Financial Results 
(Add 000) 
1977 
1976 
1975 
1974 
1973 
1972  
1971  
1970 
Operating revenues 
$253,986 
$202,162 
$169,493 
$159,914 
$130,107 
$96,701 
$96,231 
$85,204 
Operating expenses 
238,041 
195,489 
166,729 
147,545 
123,823 
94,176 
98,001 
92,245 
Operating earnings (loss) 
15,945 
6,673 
2,764 
12,369 
6,284 
2,525 
(1,770) 
(7,041) 
Non-operating earnings (loss) 
(3,696) 
(1,629) 
(336) 
(2,324) 
(1,437) 
(615) 
(1,548) 
(5,049) 
Net earnings (loss) before taxes 
12,249 
5,044 
2,428 
10,045 
4,847 
1,910 
(3,318) 
(12,090) 
Provision for taxes 
2,845 
1,400 
725 
2,100 
180 
 
 
(13) 
Net earnings (loss) 
9,404 
3,644 
1,703 
7,945 
4,667 
1,910 
(3,318) 
(12,077) 
Performance 
1977 
1976 
1975 
1974 
1973 
1972S 
1971 
1970 
Revenue passenger miles 
2,036,763t 
1,654,730 
1,496,983 
1,443,426 
1,259,908 
891,373 
881,890 
892,611 
Available seat miles 
3,758,455t 
3,108,909 
2,840,686 
2,600,620 
2,456,863 
1,875,100 
1,919,294 
1,985,701 
Load factor (per cent seats filled) 
54.2 
53.2 
52.7 
55.5t 
51.3 
47.5 
45.9 
45.0 
Average density . 
(passengers per mile) 
51 .Of 
47.2 
45.9 
47.1 
41.2 
38.8 
34.3 
31.5 
Passenger boardings 
4,850,674t 
4,038,811 
3,700,519 
3,662,179 
3,365,910 
2,557,975 
2,731,127 
2,898,258 
Yield (revenue per 
passenger mile in cents) 
10.95t 
10.77 
10.17 
9.54 
8.62 
8.64 
8.77 
7.87 
Average passenger trip miles 
420t 
410 
405 
394 
374 
348 
323 
308 
Average passenger fare 
45.97t 
44.12 
41.12 
37.58 
32.27 
30.11 
28.31 
24.24 
Cargo boarded (tons) 
20,8751 
18,875 
17,941 
18,054 
17,799 
14,750 
19,140 
19,014 
Cargo ton miles 
10,2141 
8,879 
8,464 
8,308 
7,811 
6,012 
6,952 
6,057 
Block hourstotal 
133,719t 
121,383 
115,162 
113,799 
123,932 
94,720 
109,452 
123,725 
Aircraft hourstotal 
109,6911 
99,990 
95,167 
93,380 
103,201 
79,070 
91,109 
102,556 
Revenue departures performed 
148,895 
139,769 
137,574 
143,517 
157,664 
124,348 
146,570 
163,7711 
Revenue block hours 
132,1591 
119,185 
113,370 
111,630 
121,225 
92,222 
107,208 
121,114 
Revenue aircraft hours (airborne) 
108,349t 
98,049 
93,599 
91,699 
100,836 
76,850 
89,136 
100,273 
Revenue ton miles 
213,878t 
174,334 
158,149 
152,675 
133,737 
95,106 
95,125 
94,917 
Available ton miles 
469,3581 
386,756 
352,733 
321,681 
300,630 
229,777 
237,625 
248,485 
Revenue aircraft miles flown 
39,929t 
35,046 
32,594 
30,624 
30,614 
22,989 
25,695 
28,313 
Scheduled aircraft miles 
39,996t 
35,153 
32,736 
30,952 
30,864 
23,104 
25,959 
28,739 
Scheduled aircraft miles completed 
39,689t 
34,749 
32,308 
30,307 
30,371 
22,908 
25,602 
28,195 
Completion percentage 
, 99.2t 
98.9 
98.7 
97.9 
98.4 
99.2t 
98.6 
98.1 
On-time % (within 15 minutes) 
80.1 
84.8 
84.2 
77.1 
83.7 
84.7 
85.4t 
85.2 
*Adcl 000. 
tAII-time annual record. Printed in U.S.A. 
^Results affected by severely restricted service during a four-month labor dispute that ended in mid-April, 1972. 5/78