Boeing Advanced 727-200 
CORPORATE 
PROFILE 
Hughes Air Corp. Spring 1979 
1978 in Review 
Geographic Scope 
Flights were inaugurated to Milwaukee, Des Moines, Denver and 
Houstons close-in Hobby Airport. These were the first new U.S. cities 
to be added to the Hughes Airwest system in 10 years. 
The airline began nonstop service from San Francisco and Los An- 
geles to Alberta. It started 14 other new nonstop routes in December, 
most of them the first result of the Airline Deregulation Act of 1978. 
Nearly six million passengers established all-time records in every 
traffic category. Passenger and cargo boardings and miles flown were up 
more than 20 percent. The company reported its seventh consecutive 
profit. 
Two classes of service were offered for the first time with the addition 
of Business Coacha partitioned front-end section with four-abreast 
seating on all DC-9s. Installation of enclosed overhead storage compart- 
ments and new decor throughout DC-9-30s was begun. 
Fleet range and payload capabilities were boosted through an inno- 
vative program of upgrading engines on DC-9-30s and increasing fuel 
capacity on 727-200s. 
Five DC-9-30S and one Boeing Advanced 727-200 were added to the 
Hughes Airwest fleet. 
Greatly simplified 30 per- 
In 1979 ... cent fare discounts were in- 
Hughes Airwest is . . . troduced in ail U.S. markets. 
 Boosting interstate service link- airlines on-time aver- 
ing California metropolitan satellite ^ge in major markets was one 
airports-Oakland, San Jose, Bur- of the best and frequently led 
bank, Ontario and Santa Ana/Orange entire industry. 
County with cities throughout its 
system. 
 Begining nonstop flights linking 
Denver-Salt Lake City, Phoenix-Sac- 
ramento, Phoenix-Reno and Spokane- 
Reno and increasing the number of 
seats between Seattle and Phoenix 
fivefold. 
 Taking delivery on four more 
Boeing Advanced 727-200s and add- 
ing Business Coach service to all 727 
trijets in service. 
 Offering a Business Coach fare 
of only a flat $10 more than regular 
coach on almost all U.S. routes, re- 
gardless of distance, and continuing 
its Yes for Less 30 percent coach 
discounts in all U.S. markets. 
Hughes Airwest serves 48 cities in the 
U.S., Mexico and Canada. 
It flies to 41 cities in 12 states (Arizona, 
California, Colorado, Idaho, Iowa, Mon- 
tana, Nevada, Oregon, Texas, Utah, Wash- 
ington and Wisconsin), including more 
cities west of the Rocky Mountains than 
any other airline. 
It serves five resorts in Mexico and the 
two largest cities in Alberta, Canada. 
If the north-south span of its system 
Edmonton to Manzanillowere extended 
in an east-west direction, it would con- 
nect San Francisco and New York. 
The airlines service region contains 
most of the countrys pleasure destina- 
tionsnational parks, monuments and 
recreational areas; winter ski centers; 
summer and winter sun destinations; and 
Pacific Coast beach resorts. 
Hughes Airwest also flies to most of the 
largest and fastest growing metropolitan 
centers. 
 
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 33-1493 
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 airline. 
Around-the-clock flight operations are directed from this facility. 
It also houses one of the industrys most modern reservation centers. 
Hughes Airwest 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 600 skilled super- 
visors, technicians, engineers, avionics and instrument specialists, 
supply clerks and support staff. 
Expansion of this 152,000-square-foot facility began this year and 
is expected to be completed by mid-1980 at a cost of nearly $10 
million. More than 116,500 square feet will be addeda 76 percent 
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 Admin- 
istration 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 mainte- 
nance, technical assistance and training for many foreign countries. 
A work force of more than 5,000 is employed throughout the 
system. It is led by a management team comprised of a board of 
directors, officers and 500 management personnel. 
Nearly 700 pilots and 900 flight attendants are based in San 
Francisco, Las Vegas, Seattle and Phoenix. 
Some 600 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- 
tiens and clerical personnel): Aircraft Mechanics Fraternal Associa- 
tion (AMFAtechnicians and cleaners); International Association 
of Machinists and Aerospace Workers (lAMAWsupply clerks): and 
Transport Workers Union (TWUflight dispatchers). 
A total of 48 aircraft perform nearly 800 arrivals and departures 
a day. The fleet consists of*: 
 Six Boeing Advanced 727-200 trijets (155 passengers) 
 Thirty-one DC-9-30 jets (96 passengers) 
 Ten DC-9-10 and DC-9-15 jets (71 passengers) 
 One F-27 propjet (40 passengers) 
These numbers reflect the active fleet status as of March 15, 
1979. These are changing due to aircraft sales, deliveries or leas- 
ing. (As of March 15, six 727-200s were on order.) 
Published by the Public Relations Department, Hughes Airwest 
International Airport, San Francisco, California 94128 
REDOING/I 
CABO SAN LUCAS 
SAN JOSE DEL CABO' 
PUERTO VAUARTA 
Top 
12 Cities 
Based on boardings 
in 1978, they are: 
Las Vegas861,121 
Phoenix544,529 
Los Angeles448,613 
Seattle404,826 
San Francisco378,523 
Santa Ana321,584 
Salt Lake City-272,550 
Spokane230,330 
Tucson194,990 
Burbank189,978 
Reno-187,946 
Portland-180,512 
These represented 70 
percent of the system- 
wide total. 
They are in 23 major cities it flies toBoise, Burbank, 
Calgary, Denver, Des Moines, Edmonton, Houston, Las 
Vegas, Los Angeles, Milwaukee, Oakland, Ontario, Phoe- 
nix, Portland, Reno, Salt Lake City, San Diego, San Fran- 
cisco, San Jose, Santa Ana, Seattle, Spokane and Tucson. 
City ticket offices are in 13 cities: Anaheim (Disney- 
land), Calgary, Edmonton, Las Vegas, Reno, Salt Lake 
City, San Francisco, Seattle, Sun Valley (seasonal). La 
Paz, Mazatlan, Puerto Vallarte and Cabo San Lucas. 
Sales personnel also are in Mexico City; Tokyo; Hong 
Kong; Sydney; Rio de Janeiro; San Jose, Costa Rica; Lon- 
don; Frankfurt; Zurich; New York City and Honolulucities 
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 industry. They are called SITA (for Socit 
Internationale de Telecommunications Aeronautiques) 
and ARINC (for Aeronautical Radio, Inc.). 
Through these two organizations, Hughes Airwest can 
instantly communicate and exchange passenger reserva- 
tion information with more than 300 airlines worldwide. 
MANZANILLO# 
Sales 
Offices 
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 Air- 
ways 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 Mauritania' Saudi 
Arabia, Argentina, The Philippines and Ivory Coast. 
These countries use Hughes Airwests skills to help them develop 
air transportation systems tailored to their particularand varied 
needs. 
It has completed contracts in Burma, Japan, Nepal, Iran, Liberia 
and Ghana. 
The airline has 40 experienced employees and their families as- 
signed to its programs overseas. 
International 
Route System 
A Brief 
Look Back 
Overseas 
Business 
Programs 
 
Financial Results 
(In thousands, add 000) 
1978 
1977 
1976 
1975 
1974 
1973 
1972  
1971  
1970 
Operating revenues 
$313,152 
$253,986 
$202,162 
$169,493 
$159,914 
$130,107 
$96,701 
$96,231 
$85,204 
Operating expenses 
300,881 
238,041 
195,489 
166,729 
147,545 
123,823 
94,176 
98,001 
92,245 
Operating earnings (loss) 
12,271 
15,945 
6,673 
2,764 
12,369 
6,284 
2,525 
(1,770) 
(7,041) 
Non-operating earnings (loss) 
(4,936) 
(3,696) 
(1,629) 
(336) 
(2,324) 
(1,437) 
(615) 
(1,548) 
(5,049) 
Net earnings (loss) before taxes 7,335 
12,249 
5,044 
2,428 
10,045 
4,847 
1,910 
(3,318) 
(12,090) 
Provision for taxes 
2,000 
2,845 
1,400 
725 
2,100 
180 
 
 
(13) 
Net earnings (loss) 
5,335 
9,404 
3,644 
1,703 
7,945 
4,667 
1,910 
(3,318) 
(12,077) 
Performance 
1978 
1977 
1976 
1975 
1974 
1973 
1972  
1971  
1970 
Revenue passenger miles 
2,484,628t 
2,036,763 
1,654,730 
1,496,983 
1,443,426 
1,259,908 
891,373 
881,890 
892,611 
Available seat miles 
4,183,6401 
3,758,455 
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) 
59.41 
54.2 
53.2 
52.7 
55.5 
51.3 
47.5 
45.9 
45.0 
Average density 
(passengers per mile) 
56.21 
51.0 
47.2 
45.9 
47.1 
41.2 
38.8 
34.3 
31.5 
Passenger boardings 
5,845,4291 
4,850,674 
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) 
11.021 
10.95 
10.77 
10.17 
9.54 
8.62 
8.64 
8.77 
7.87 
Average passenger trip miles 
4251 
420 
410 
405 
394 
374 
348 
323 
308 
Average passenger fare 
46.861 
45.97 
44.12 
41.12 
37.58 
32.27 
30.11 
28.31 
24.24 
Cargo boarded (tons) 
28,8021 
20,875 
18,875 
17,941 
18,054 
17,799 
14,750 
19,140 
19,014 
Cargo ton miles 
12,3231 
10,214 
8,879 
8,464 
8,308 
7,811 
6,012 
6,952 
6,057 
Block hourstotal 
147,7261 
133,719 
121,383 
115,162 
113,799 
123,932 
94,720 
109,452 
123,725 
Aircraft hourstotal 
121,3571 
109,691 
99,990 
95,167 
93,380 
103,201 
79,070 
91,109 
102,556 
Revenue departures performed 
156,707 
148,895 
139,769 
137,574 
143,517 
157,664 
124,348 
146,570 
163,7711 
Revenue block hours 
145,0101 
132,159 
119,185 
113,370 
111,630 
121,225 
92,222 
107,208 
121,114 
Revenue aircraft hours (airborne) 
119,0391 
108,349 
98,049 
93,599 
91,699 
100,836 
76,850 
89,136 
100,273 
Revenue ton miles 
260,7851 
213,878 
174,334 
158,149 
152,675 
133,737 
95,106 
95,125 
94,917 
Available ton miles 
526,7761 
469,358 
386,756 
352,733 
321,681 
300,630 
229,777 
237,625 
248,485 
Revenue aircraft miles flown 
44,2241 
39,929 
35,046 
32,594 
30,624 
30,614 
22,989 
25,695 
28,313 
Scheduled aircraft miles 
44,5511 
39,996 
35,153 
32,736 
30,952 
30,864 
23,104 
25,959 
28,739 
Scheduled aircraft miles complte 
44,0241 
39,689 
34,749 
32,308 
30,307 
30,371 
22,908 
25,602 
28,195 
Completion percentage 
98.8 
99.21 
98.9 
98.7 
97.9 
98.4 
99.2t 
98.6 
98.1 
On-time % (within 15 minutes) 
79.0 
80.1 
84.8 
84.2 
77.1 
83.7 
84.7 
85.4t 
85.2 
The 
Major 
Expenses 
The largest and most rap- 
idly increasing in 1978 was 
for salaries$108 million, or 
25 percent more than the 
$86.7 million payroll in 1977. 
The bulk of the companys 
payroll burden is in four 
cities where most manage- 
ment personnel and pilots 
and flight attendants are 
based. Salaries in each city 
were: Phoenix, $31 million; 
San Francisco, $23.1 million; 
Las Vegas, $16.5 million; and 
Seattle, $13.3 million. In the 
Los Angeles area, where 
Hughes Airwest serves four 
airports and has its regional 
headquarters, payroll totaled 
$6.9 million. 
The second highest ex- 
pense was for aircraft fuel. 
In 1978, js jumped 22 percent 
to $56.3 million from $46.3 
million. 
Property and other taxes, 
plus licenses, increased 9 
percent to $11.8 million from 
$10.8 million. 
Landing costs, fees levied 
by airports, rose 7 percent to 
$6.2 million from $5.8 million. 
The cost of facility rentals 
and other related services 
jumped 11 percent to $6.3 
million from $5.7 million. 
*Add 000. 
i Ail-time annual record. 
^Results affected by severely restricted service during a four-month labor dispute that ended in mid-April, 1972. 
Printed in U.S.A. 
3/79