North Central Airlines Annual Report 1967

north central airlines
GENERAL OFFICES: 6201 Thirty -Fourth Avenue South, Minneapolis, Minnesota
BOARD OF DIRECTORS Hal N. Carr* Chairman
D. E. Crooker
MANAGEMENT
Hal N. Carr .. .. ... . ...... . Chairman of the Board and President
Bernard Sweet . . . . . . . . . . . . . . . . . ..... Executive Vice President
John P. Dow .. ... . ....... . ........ Vice President and Secretary
L. J. Keely ........ Vice President-Maintenance and Engineering
D. F. May ........... . ..... .. ...... Vice President and Treasurer
STOCK TRANSFER AGENTS
G. F. DeCoursin*
Chan Gurney
Samuel H. Maslon *
A. James Mueller
Jay Phillips
Morton 8. Phillips
Joseph E. Rapkin
H. P. Skoglund
Kenneth B. Willett
Robert G. Zeller
*Executive Committee
David E. Moran ................ Vice President-Traffic and Sales
T. M. Needham . .... . .. . ..... Vice President-Ground Operations
Arthur E. Schwandt .... . . . . Vice President-Industrial Relations
G. F. Wallis . ................... Vice President-Flight Operations
G. J. Miller... ....... ... ....... . .... . Assistant Secretary
Charlotte G. Westberg ..... . .Assistant Secretary
Northwestern National Bank of Minneapolis; Minneapolis, Minnesota
Irving Trust Company; New York, New York
To our stockholders, employees, and friends:
North Central Airlines has just celebrated its 20th Anniversary of scheduled airline
service with the greatest passenger and cargo traffic in its history, highest earn-
ings, and a perfect safety record. From modest beginnings in 1948 with three nine-
passenger planes serving 19 cities, the airline now operates a fleet of 52 aircraft,
including 100-passenger DC-9 fan jets, and provides service to 90 cities.
This tremendous progress has only been possible by the devoted efforts of the
company's personnel and the loyal support of its stockholders and passengers. It
is with great pride that we submit this summary of North Central's achievements
in 1967.
The company had record revenues of $42,850,000, which were $3,238,000 ahead
of 1966. Net earnings reached a new high of $1,520,000 including gains from the
sale of flight equipment of $924,000. Cash flow from earnings, depreciation, and
deferred taxes was $5,392,000.
Some 2,347,000 passengers flew the Route of the Northliners during 1967-14
per cent over 1966. Besides this new yearly record, monthly and daily passenger
marks were set. Cargo also gained substantially when 56,670,000 pounds of air
freight, express, and mail were flown. While carrying this record traffic and intro-
ducing two new types of jet aircraft, North Central achieved an outstanding oper-
ating performance with 98.5 per cent of its 19,109,000 scheduled miles completed.
Highlight of the year was North Central's entry into the jet age. On April 1, the
first Convair 580 prop-jets joined the Northliner fleet, and DC-9 fan jet service
started in September. By the end of 1967, eight Convair 580's and three DC-9's
were in scheduled operation. North Central will have an all jet-powered fleet late
in 1968. The 10 DC-9's ordered by the company will be operating by July. Five
more of the fan jets are on option.
During 1967, the company completed a $62-million financing of its flight equip-
ment program with a group of banks and insurance companies. No equity financing
was required, and the favorable terms of the agreement indicated North Central's
strong financial position.
Construction began last summer on the airline's new $15-million headquarters
at the Minneapolis-St. Paul International Airport. The main operations base will be
finished by December 1968; and the general office building, the following March.
The company received two major route awards in 1967. New service was inau-
gurated to Toronto and Kansas City, and nonstop flights between Sioux Falls and
Minneapolis/St. Paul were added. North Central's extensive route development
program includes applications to the Civi I Aeronautics Board for 9,800 more miles,
which would add 13 new cities and six states to the airline's system.
Management looks forward to increased traffic and revenues in 1968, together
with a reduction in unit operating costs, as the efficiencies of more jet aircraft are
realized. North Central enters its 21st year with confidence in the future and the
assurance that 1968 will be another record year.
Sincerely,
-{;yd/~
HAL N. CARR
Chairman of the Board and President
March 5, 1968
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ANNUAL
REPORT
1967
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$35
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F INANCIAL
REVIEW
REVENUES
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'67
Revenues in 1967 reached an all-
time high of $42,850,477 for North
Central Airlines. The 8 per cent
increase over the previous year
amounted to $3,237,806, one of the
largest gains in the company's 20-
year history.
With operating expenses for 1967
of $41,961,948, of which $2,626,251
were depreciation charges, the com-
pany realized oper.ating income of
$888,529. Net income, including
$924,316 from the sale of aircraft,
totaled $1,520,124, a record high for
North Central. Earnings per share
were $.17 in 1967.
The growth in earnings during the
past several years has been a very
significant factor in the company's
ability to complete a $62-million
financing for its flight equipment
program. This re-equipment plan
involves the purchase of ten Douglas
DC-9 fan jets, the conversion of the
airline's Convairs to 580 prop-jets,
and spare parts for both aircraft
which will give North Central an all
jet-powered fleet by the end of 1968.
The financing agreement covers the
sale of notes to a group of banks and
insurance companies, including
some refunding of existing debt.
No equity financing was required.
The balance of the funds for the
aircraft purchases and conversions
will be provided by cash flow. Dur-
ing 1967, internal cash generated
from earnings, depreciation, and
deferred taxes amounted to
$5,391,727.
With the successful introduction
of jet-powered aircraft into its oper-
ation and the completion of the fi-
nancing of the jets on favorable
terms, North Central begins its third
decade of service to the traveling
public in the best financial condition
in its history.
TRAFFIC
GROWTH
In 1967, North Central established new
yearly, monthly, and daily traffic records.
The airline carried 2,347,371 passen-
gers last year, the greatest number in its
20-year history and a 14 percent increase
over the high of 2,056,209 in 1966. The
company flew 384,669,138 passenger
miles- 30,036,161 ahead of the previous
year.
In addition, North Central also set a
monthly record in August when 239,281
passengers were enplaned and a single-
day mark on December 22, with 10,021
passengers. This is particularly impres-
sive when compared with the 11,398 pas-
sengers carried by North Central in 1948,
its first year of operation.
Much of the traffic increase is attrib-
uted to the addition of the Convair 580
prop-jet and DC-9 fan jet aircraft, intro-
duced in 1967, which offer greater carry-
ing capacity and speed.
During the year, to further stimulate
traffic and provide wider passenger ap-
peal, the airline offered new youth fares
and the "Discover America" reduced
rate. Already in effect were the family
plan, military reduced fares, and "Visit
USA" rates.
To provide additional service to the
traveling public in peak traffic periods,
North Central operated 861 "extra sec-
tions" of regular flights. These carried
14,248 passengers, and 139,976 miles
were flown. Also supplementing the
scheduled operation were 235 charters
and 154 scenic flights, which added
another 207,859 miles. North Central's
12,652 charter passengers traveled to
25 states and three Canadian provinces.
Some 5,292 persons took scenic flights
aboard company aircraft.
Substantial gains in cargo were also
achieved by the company in 1967 as a
record 56,670,189 pounds of air freight,
express, and mail were carried.
Total cargo ton miles flown were
5,157,765. Air freight ton miles reached
2,901,586-12 per cent ahead of 1966,
and mail increased 11 per cent during
1967, with 1,147,537 ton miles flown.
While carrying a record number of pas-
sengers in 1967 and the largest volume
of cargo in the airline's history, North
Central maintained its perfect 20-year
safety record. Since inaugurating ser-
vice in 1948, the company has flown over
16 million passengers, 2,657,000,000
passenger miles without a single fatality
or injury to passengers or crew members.
OPERATING
PERFORMANCE
North Central achieved an outstanding
record ofoperating performance in 1967,
which ranked among the highest in the
industry, with 98.5 per cent of its
19,109,452 scheduled miles flown.
This completion factor was attained
while the airline handled the largest pas-
senger and cargo traffic in its 20-year
history, began service with two new types
of jet-powered aircraft, and battled un-
usually severe and prolonged winter
weather.
The company's extensive jet training
program, developed by the Flight Opera-
tions, Ground Operations, and Mainte-
nance and Engineering Departments,
made the transition to new equipment
an efficient one. This advance planning
helped the airline maintain its record of
excellent performance.
Continuous and exacting maintenance
was the major reason for the high per-
formance. In 1967, only 135 of North
Central's 205,745 actual departures
were cancelled for mechanical ir-regulari-
ties, or less than one-tenth of one per
cent; and just one per cent of the depar-
tures were delayed for mechanicals.
Again this year, the company's winter-
ization program, "Operation Cold Front",
assured that personnel were properly
trained and all ground equipment ready
for winter. Operational techniques were
reviewed so performance would continue
to be significant despite the sub-zero
conditions which exist over much of the
system. In fact, representatives from
Lufthansa-German Airlines and All Nip-
pon Airways of Japan visited the airline's
headquarters in Minneapolis/St. Paul
and studied winter operating procedures.
The company's impressive perfor-
mance record is a tribute to a 11 North
Central personnel and their dedication
to the task of keeping the Northliners
flying.
In 1967, North Central set new yearly,
monthly, and daily passenger records.
The Douglas OC-9 Series 30 fan jet joins the Northliner fleet.
JET PROGRAM
The highlight of North Central's 20th year was its entry
into the jet age.
This major equipment change was even more signif-
icant since two types of jet-powered aircraft-the Con-
vair 580 and Douglas DC-9-were introduced in a five-
month period. The transition was accomplished
smoothly, efficiently, and safely by the conscientious
efforts of all North Central personnel, with thorough
advance planning and concentrated training programs.
The airline's "New Look" program was inaugurated
April 1 when two Convair 580 prop-jets started flying
the Route of the North liners. Six more 580's were added
in 1967. During the year, 82 per cent of North Central's
cities received prop-jet flights. By the end of 1968, all
Convairs in scheduled service will be jet-powered.
On September 8, the first two 100-passenger DC-9 fan
jets entered service, bringing pure jet flights to many
cities on North Central's system, and a third joined the
fleet in October. With the introduction of the DC-9's,
North Central substantially increased its available seats
and cargo capacity which produced additional traffic in
1967. At the same time, jet operating efficiencies re-
duced unit costs.
The fourth and fifth jets were delivered during Janu-
ary 1968 and are scheduled for service in February and
March. All 10 of the DC-9's ordered by the company will
be operating in July. Five more jets are on option.
The airline will have a jet-powered fleet of DC-9's and
Convair 580's for 1969.
The company's jet program includes converting its 33 Convair
440 aircraft to Allison -powered 580 prop-jets. In 1967, the
first Convair 580's joined the North Central fleet and were
introduced into scheduled service on April 1.
The Convair prop-jet has two turbine engines of 3,750
horsepower each, flies 100 miles an hour faster than the 440,
and reaches a comfortable cruising altitude in a shorter time.
The extensive cabin remodeling of the 580's was accom-
plished by North Central's own maintenance people. New
interiors were completed to match the DC-9 fan jet, featuring
alternating blue and gold seats, beige-colored walls and ceil -
ing, with patterned blue and gold carpeting. The exteriors
were painted in the jet "New Look" design of the DC-9. In
addition, company personnel installed the latest solid state
communications and navigational equipment in each air-
craft, along with a complete automatic pilot system.
The eight Convair 580's which were added in 1967 estab-
lished a high performance record during the year and enabled
North Central to offer increased service over its system.
D
July 28 was a memorable day for the airline as its first
Douglas DC-9 fan jet taxied up to the hangar ramp of the main
operations base at Minneapolis/St. Paul. The DC-9's arrival
marked the beginning of a new era in North Central's history.
Powered by two Pratt & Whitney fan-jet engines, each pro-
ducing 14,000 pounds of thrust, the DC-9 climbs to 10,000
feet in four minutes and has a cruising speed of 560 miles
an hour. The sleek, 100-passenger aircraft introduced jet-age
speed and comfort to North liner passengers.
On September 8, the firsttwo DC-9 Series 30 fan jets entered
scheduled operation. The third jet was added in October.
North Central's new jet program was introduced in April 1967
with the Convair 580 prop-jet.
North Central's "New Look" was apparent when the fan
jets appeared at airports on its system. In addition to the
distinctive high-level T-tail and rear-mounted engines, the
DC-9 has the airline's corporate aqua, blue, and gold color
design. All first-class service is provided, with two stew-
ardesses in attendance. The spacious cabin features "big
jet" roominess, with unexcelled lighting, window view, and
climate control.
Passenger response to the quick and quiet DC-9 fan jet has
been enthusiastic. Also, the aircraft has demonstrated ex-
cellent traffic-generating capabilities during its first four
months of operation in 1967, as 21 cities on North Central's
system received pure jet service.
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IMPROVED SERVICES
With the inauguration of new Convair 580 prop-jet and
DC-9 fan jet equipment, North Central substantially in-
creased its service to the traveling and shipping public
during 1967. Passengers on the Route of the Northliners
experienced the improved benefits of jet air travel as these
new aircraft joined the company's fleet.
Some 840,964,760 seat miles were flown this year-14
per cent over 1966, while available ton miles jumped to
90,066,176 for a 23 per cent gain.
On April 1, two Convair 580's entered scheduled opera-
tions. Jet-prop service was begun to 22 cities, and pas-
senger reaction was very favorable. Since then , 580 prop-
jets have been added at the rate of about one a month,
with eight in operation by the end of 1967. Some 71 cities
received Convair 580 service during the year.
North Central's first two 100-passenger DC-9's brought
pure jet service to 17 communities in the Midwest on
September 8. The planes are flown on the company's high
density, long-haul routes, and all first-class service is pro-
vided . A third DC-9 went into operation on October 29,
with four more cities receiving jet service. The public's
response to the new aircraft has been overwhelming.
North Central achieved a "first" for the regional carriers
serving Chicago's O'Hare I nternationa I Airport when it
opened new second-level boarding facilities there in April.
The five new gate and holding areas provide enlarged
facilities to accommodate the growing number of North -
liner passengers at O'Hare. Each of the five areas is also
equipped with a passenger "speedway" for use with North
Central 's DC-9 jets. The covered ramp extends from the
gate to the aircraft and protects passengers from the
weather as they enter and leave the jets.
Introduced this year to complement North Central's jet
" New Look" were colorful, high fashion ensembles for its
stewardesses. The basic uniform and pillbox hat feature
the company's corporate color of aqua. A new gold, classic
raincoat completes the outfit. Also added to the stewardess
attire is a gold wrap-around serving smock.
During 1967, in-flight services were tailored to fit the
new jet operation, and include a greater variety of foods
and beverages. Cocktail service was added on all DC-9 fan
jets and selected Convair flights. In the summer months,
complimentary beer was served on other Convair trips.
A new terminal building was finished in 1967 at the
airport serving Saginaw/ Bay City/ Midland, Michigan.
Remodeling of airport accommodations was accomplished
at Rapid City and Watertown, South Dakota; International
Falls, Bemidji , and Brainerd, Minnesota; and Stevens
Point, Wis_
consin. In addition, approval was granted to
begin work on the new Central Wisconsin Regional Airport
near Mosinee, Wisconsin, which will serve the combined
communities of Wausau, Marshfield, Stevens Point, and
Wisconsin Rapids.
During the year, over 22,000 personal sales calls were
made on North Central customers by the company's Traffic
and Sales representatives. In addition, more than 200
speeches and group tours were given to further promote
North Central to the traveling and shipping public. A spe-
cial five-day "sales blitz" was conducted in both Detroit
and Toronto to announce North Central's new nonstop
service between these metropolitan centers. In Kansas
City and selected cities in the Dakotas, asimilar sales cam-
paign heralded the new Kansas City route on December 1.
In March 1967, the company installed a closed-circuit
television system at the Minneapolis-St . Paul International
Airport to provide its passengers and employees with up-
to-the-minute flight information. North Central was the
first airline in the Twin Cities to offer this service. Four
television screens, conveniently located in the gate areas
and passenger service counters, display the latest flight
arrival and departure times and gate assignments. The
airline also operates TV-monitors for its passengers at
Chicago, Milwaukee, Detroit, and Green Bay terminals.
Construction of North Central's new $15-million general
office and main operations base at the Minneapolis-
St. Paul Airport began in July. The airline's phenomenal
growth in past years and its projected future requirements
necessitated the new headquarters facilities. The complex
will have over 470,000 square feet of floor space and is
designed for expansion. With the new DC-9 fan jets now in
operation, and more scheduled for delivery in 1968, the
main base project has taken priority over all other con-
struction at the site. The schedule calls for completion of
the base by December 1968 and the two-story general
office building by the following March.
In 1968, the company will move ahead in the jet age with
improved equipment and facilities, providing the finest
type of regional airline service.
Left, top to bottom:
North Central's jet "New Look"
Kansas City service inaugurated
New terminal serving Saginaw/ Bay City/ Midland
Right, top to bottom :
TV-monitor shows flight information
Spacious DC-9 interior features corporate colors
First DC-9 charter flight
ROUTE
DEVELOPMENT
The inauguration of new service to
Toronto and Kansas City highlighted
North Central's route development
program in 1967.
The Civi I Aeronautics Board granted
the company nonstop authority to op-
erate between Detroit and Toronto,
and service was begun on August 1.
The Kansas City award marked the
airline's first entry into Missouri, and
new nonstop flights between Sioux
City, Iowa, and Kansas City started
December 1. At the same time, the
company offered new nonstops be-
tween Sioux Falls, South Dakota, and
the Twin Cities. This service was au-
thorized when the Board selected
North Central to replace Braniff In-
ternational at Sioux City and Sioux
Falls.
Other changes in operating flexibil-
ity granted by the C.A. B. were one-
stop instead of two-stop service from
the Twin Cities to Madison, and two
rather than four-stops to Chicago.
North Centra I exercised the two-stop
authority on the Twin Cities-Chicago
route in 1967, and one-stop service to
Madison has been scheduled for Feb-
ruary 1, 1968.
One of the most significant devel-
opments during the year was the
shortened hearing procedure pro-
posed by the C.A.B. on regional airline
nonstop applications. Under the
Board's rule modification, nonstop
authority is possible between any
points already served by the carrier,
and the Board approved and estab-
lished the new procedur.e in January
1968. This will result in' expeditious
handling of North Central's requests
for nonstop service.
In 1967, the C.A.B. instituted an in-
vestigation into the need for increased
long-hau I service to the Twin Cities
and Milwaukee. In this case, North
Central has applied for new nonstop
routes from Minneapolis/St. Paul and
Milwaukee to New York/Newark,
Washington/Baltimore, Boston, and
Philadelphia.
The company's extensive route de-
velopment program includes applica-
tions for 9,798 additional miles which
would bring North liner service to 13
new cities, six more states, and one
Canadian province.
Presently, North Central serves 90
cities in 11 Midwest states and Can-
ada over a 7,000-mile route system.
NORTH CENTRAL IS CURRENTLY
INVOLVED IN THE FOLLOWING
ROUTE PROCEEDINGS:
North Central will benefit by the shortened
hearing procedure before the Civil Aeron au-
tics Board under the Board 's recently pro-
posed rule modification . The change affects
the region a I airlines' applications fo r non-
stop authority between any two points on
their systems . With the new provision, North
Central could apply to operate nonstop
flights between cities it now serves, such as
Milwaukee-Detroit, Minneapolis/ St. Paul -
Chicago or Milwaukee, Twin Cities-Omaha,
and Chicago-Detroit. Also, these proceed-
ings would probably be concluded in as
short a time as 90 days, instead of the two
years or more typical of route cases.
In January 1968, the Board issued its or-
der approving and establishing this nonstop
procedural authority. This pol icy will not
only strengthen the position of the nation 's
regional carriers but also mean increased
and improved service for the passenger.
T
The C.A.B. has ordered an investigation into
airline service for the Twin Cities and Mil-
waukee. North Central has several appl ica-
tions on file to provide improved service to
these cities. Included are proposals to oper-
ate nonstop between Minneapolis/ St. Paul
and New York/ Newark and between M ilwau -
kee and New York/ Newark. These two mar-
kets are among the largest in the country
without competitive nonstop service. If
awarded to North Central , the route would
add 1,028 miles to the airline's system.
Also filed in the long-haul investigation
are company applications from the Twin
Cities and Milwaukee to Washington / Balti-
more, Boston, and Philadelphia for a total
of 2,913 additional route miles. A definite
need exists for increased nonstop flights in
these markets. In most cases, the routes are
now being operated without competition.
With these long-haul routes from the Twin
Cities and Milwaukee, single-plane service
to the East would then be possible fo r many
cities on North Central's system .
The C.A.B .'s expedited investigation into in-
creased service between Denver and Min-
n ea po Ii s / St . Paul is in progress . North
Centra I has requested nonstop authority to
serve the 694-mile route, which is a monop-
oly market. The hearing has been scheduled
for February 20, 1968.
ITV AND
In the route realignment case of another
regional airline, North Central has proposed
nonstop service from Milwaukee to bot h
Kansas City and Omaha , for a total of 8 65
new miles. The hearing has been completed,
and the company is awaiting the initial de-
cision of the C.A.B. Examiner.
In June 1967, the company filed an applica-
tion to provide service between Milwaukee
and Cincinnati and Columbus, Ohio. This
segment would add 450 miles to North Cen-
tral's system. Presently, no single-plane or
nonstop flights operate between Milwaukee
and Cincinnati or Columbus.
No action has been taken by the C.A.B. on
North Central's 1966 application for a 316-
mile route between Cleveland and Balti-
more, via Pittsburgh. The addition of two
new major terminals would improve the
Eastern portion of the company's system.
An expedited hearing has been held on
North Central's application for service be-
tween Sioux Falls and Chicago with an inter-
mediate stop at Rochester, Minnesota.
North Central has also filed to extend this
segment to Pierre and replace Western Air
Lines on the Pierre-Sioux Falls portion. This
new route of 669 miles would permit direct
air travel from the Dakotas to Rochester and
Chicago by providing single-plane service to
five cities in North and South Dakota and
single-carrier service to 10 more cities.
Rochester would then be added to North
Central's system. The decision of the Board's
Examiner, issued January 29, 1968, recom -
mended the company be awarded this route.
In 1967, the C.A.B. instituted an extensive
investigation into the need for increased ser-
vice to Omaha, and North Central filed for
nonstop authority from Omaha to Chicago,
the Twin Cities, and Denver. As the company
had previously applied for nonstop routes
from Omaha to Kansas City and to St. Louis,
all five routes were consolidated into the
Service to Omaha Case. The investigation is
now in progress . If granted, the routes would
add 1,691 milestothecompany'ssystem .
North Central has an application on file to
operate direct flights between Rapid City
and Omaha. Although both cities are now
served by the company, the airline does not
have nonstop authority.
North Central has applied to the C.A.B. for
nonstop service to Winnipeg, Canada, from
Minot, North Dakota, and Duluth, Minneso-
ta/Superior, Wisconsin. The application was
filed under terms of the 1966 Bilateral Air
Transport Agreement between the United
States and Canada. The new nonstops would
provide the first direct, single-carrier service
between Winnipeg and 40 cities in eight
states on North Central's system. Winnipeg
would be the airline's fourth Canadian city,
and the routes would add 534 miles.
In 1967, the C.A. B. continued its program
to strengthen the regional airlines by trans-
ferring segments and cities from the trunk
carriers to the regionals. North Central re-
filed its application for a new 229-mile
segment between Saginaw/Bay City/Midland,
Michigan, and Chicago via Muskegon, Mich-
igan. Also, the company requested that
United Air Lines be suspended at Flint,
Saginaw/Bay City/Midland, Lansing, and
Muskegon. If the Board acts favorably on this
application, North Central will offer improved
replacement service.
MANAGEMENT
DEVELOPMENT
At its Apri I meeting, North Centra l's
Board of Directors elected Bernard
Sweet to the position of Executive Vice
President. Sweet, who joined North
Central in 1948, was formerly Vice
President-Finance and is now in charge
of the day-to-day operation of the air-
line.
During 1967, the company continued
its program of developing, within the
organization, managerial personnel
qualified to meet the airline's future
growth demands. In line with this plan,
two North Central department heads
were made Vice Presidents by the
Board of Directors in September. David
E. Moran was elected Vice President-
Traffic and Sales, and Daniel F. May
was named a Vice President, in addi-
tion to his position of Treasurer. At the
same time, John P. Dow, Manager of
Properties and Secretary, was promot-
ed to Vice President and Secretary.
In the Flight Operations Department,
a new section of Flight Training was
established during 1967. The manager
supervises the company's entire flight
training program, which was tremen-
dously expanded with the introduction
of Convair 580 prop-jet and DC-9 fan
jet aircraft to the fleet.
R.H. Bendio, North Central Vice
President, retired in September 1967
following 15 years of service with the
airline as head of the Maintenance and
Engineering Department and the com-
pany's Bolivian project.
TOWARD
THE FUTURE
North Central looks forward to an all
jet-powered fleet, new route awards,
and substantially increased service to
the traveling public as it enters its 21st
year of operation.
The airline's aggressive route devel-
opment program, which was consider-
ably expanded during 1967, includes
applications for 9,800 additional miles
and service to 13 new cities and six
more states. The company expects to
receive favorable decisions on some
Ground-breaking ceremonies for North Central's
new $15-million headquarters complex.
of these in 1968. Of particular signifi-
cance to North Central and the other
regiona I carriers was a decision by the
Civil Aeronautics Board which estab-
lished a shortened hearing procedure
on applications for nonstop service be-
tween cities on the airlines' existing
systems. With the increased operating
authority on present routes and awards
of long-hau I new routes, more efficient
use can be made of North Central's
new jet equipment.
Substantial progress will be made in
the coming year on the construction of
the airline's new $15-million headquar-
ters complex at the Minneapolis-St.
Paul International Airport. The main
operations base is scheduled for com-
pletion on December 1, 1968, so that
maintenance and engineering person-
nel can begin their move before severe
weather arrives. The general office sec-
tion of the facility will be finished the
following March.
Construction is on schedule.
In 1968, the full impact of the advan-
tages of a "jet airline" will be realized,
as greater operating efficiencies and
capacity are possible. Improved and
increased passenger and cargo service
can then be provided, resulting in rec-
ord revenues for the company. North
Central begins its third decade of prog-
ress with an even brighter outlook for
the future.
9
PRESENT ROUTES
PROPOSED ROUTES
MINOT
WINNIPEG
PORT ARTHUR
FT. WILLIAM
ACUTE CF THE ND R T H LIN ER S
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north central airlines.inc. r~~
~
ASSETS
CURRENT ASSETS
Cash
Accounts receivable
United States Government (Notes 1 and 4) .
Traffic
Other .
Flight equipment parts, at average cost (less deterioration
reserves of $473,493 and $408,577
Maintenance and operating supplies .
Prepaid expenses and sundry deposits .
Total current assets
OPERATING PROPERTY AND EQUIPMENT-at cost
Flight equipment (Notes 2 and 3) . .
Ground equipment
Hangar buildings and i~provements to leased property
Furniture and office equipment .
Less accumulated depreciation .
Advance payments on flight equipment (Note 3) .
DEFERRED CHARGES
Unamortized development and preoperating costs .
Unamortized discount and expense on debt
Rentals and other .
The accompanying notes are an integral part of this statement.
1967 1966
$ 2,805,304 $ 1,479,809
2,282,556 1,174,220
3,361,710 2,888 ,877
832,918 418,210
6,477,184 4 ,481 ,307
1,539,505 1,213,486
433,710 308,532
1,838,491 977,152
13,094,194 8 ,460,286
r
38,975,904 18,970,282
4,530,332 2,587,820
991,421 2, 590,410
484,294 1,040,482
44,981,951 25,188,994
9 ,857,492 9,732,414
35,124,459 15,456,580
6,454,617 8,483,793
41,579,076 23,940,373
1,666,093 218,139
176,475 104,275
277,947 222,572
2,120,515 544,986
$56,793,785 $32,945,645
Comparative Balance Sheet-December 31, 1967 and 1966
LIABILITIES
CURRENT LIABILITIES
Short-term borrowing .
Current maturities of long-term debt (Note 2)
Accounts payable .
Tickets outstanding
Taxes withheld or collected as agents
Income taxes (Notes 4 and 5) .
Accrued liabilities
Salaries and wages .
Payroll and property taxes
Other .
Total current liabilities .
LONG-TERM DEBT (Note 2) .
DEFERRED FEDERAL INCOME TAXES (Notes 4 and 5)
STOCKHOLDERS' EQUITY
Common stock-authorized, 10,000,000 shares of $.20 par value;
issued and outstanding, 8,775,513 and 8,755,513 shares respectively
(Notes 2 and 7) .
Paid -in capital (Note 7) .
Retained earnings (Note 2).
COMMITMENTS (Notes 3, 6, and 8) ..
1967 1966
$ 475,000 $ 400,000
600,565 2,497,153
6,069,137 4,784,136
178,797 232,018
435,794 309,321
(73,683)
1,134,387 928,054
163,873 160,177
909,343 622,942
9,966,896 9,860,118
37,726,617 16,811,773
1,245,352
1,755,103 1,751,103
467,489 410,447
2,222,592 2,161 ,550
5,632,328 4,112,204
7,854,920 6,273,754
$56,793,785 $32,945,645
13
14
~ ----
north central airlines.inc.
OPERATING REVENUES
Passenger ...
Freight and express . . . . . . .
Mail . . . . .. ... .
Public service revenue (Note 1) .
Non-scheduled transport service
Other . . . ...... .
Total operating revenues
OPERATING EXPENSES
Flying operations . . .
Maintenance
Passenger service .
Aircraft and traffic servicing
Promotion and sales . . ..
General and administrative .
Depreciation and amortization
Total operating expenses
Operating profit .
0TH ER EXPENSE (INCOME)
Interest expense (less capitalized interest for advances on flight
equipment and pre-operating costs of $840,223 in 1967
and $267,000 in 1966) ....
Other (Net) .
Total other expense
Income before income taxes
INCOME TAXES (Notes 4 and 5) .....
Current .
Deferred .
Investment credits (including amounts carried
back to prior years) .
Net income before gain on disposition of aircraft
GAi N ON DISPOSITION OF Al RCRAFT NET OF TAXES (Note 5)
NET INCOME . . . . ....... .
The accompanying notes are an integral part of this statement
Comparative
Statement of
Income
Years ended
December 31, 1967 and 1966
$33,482,371
2,648,883
781,501
5,249,563
327,224
360,935
$
42,850,477
11,061,431
8,750,455
2,325,151
11,294,923
3,871,818
2,031,919
2,626,251
41,961,948
888,529
680,134
(51,403)
628,731
259,798
134,000
(470,010)
595,808
924,316
1,520,124
1966
$30,261,479
2,215,862
743,075
5,767,888
432,842
191,525
$
39,612,671
9,868,343
8,112,192
2,130,920
9,790,463
3,304,216
1,836,944
2,253,361
37,296,439
2,316,232
485,671
(20,697)
464,974
1,851,258
887,855
(167,208)
1,130,611
24,000
1,154,611
TS RETAINED EARNINGS AND PAID-IN CAPITAL
Years ended December 31, 1967 and 1966
RETAINED EARNINGS
Retained earnings-beginning of year (Note 2) .
Net income for the year. . . . . . . . . .
Retained earn in gs-end of year (Note 2)
PAID-IN CAPITAL
Paid-in capital-beginning of year ... . .. . .... . .
Excess of proceeds over par value of common stock issued
upon conversion of debentures (Note 2) . . . . . . . . .
Excess of proceeds over par value of common stock issued
under option (Note 7) . . .
Paid-in capital-end of year . . ... .. . . ..... .
The accompanying notes are an integral part of this statement
$
$
$
1967 1966
4,112,204 $ 2,957,593
1,520,124 1,154,611
5,632,328 $ 4,112,204
410,447 $ 295,246
86,680
57,042 28,521
467,489 410,447
1. PUBLIC SERVICE REVENUE-Publi c service revenue rece ived from the Federal Government is subject
to review by the Ci vil Aero nautics Board. Settlement has been made through 1964. Provision has been
made for all known adjustments for subsequent years.
2. LONG-TERM DEBT- Lon g term debt of $38,327,182, inc ludin g current maturiti es of $600,565 con -
sists of th e followin g:
Amount
$26,000,000(a)
7,867,806(b)
2 ,207,870(b)
850,706(b)
637,800
763,000(c)
Terms
Due in quarterly installments
from January 1969 through
April 1973; interest at
percent above prime rate
Due in 1968; interest at 6%
Du e in 1968; inter est at 6 %
Du e in 1968
Various
5% co nvertible subordinated
d ebentures due in 1978
Purpose
Retire existing bank loans
Conversion of Convair aircraft
Deposit on DC -9 aircraft
Various Equipment
Various Equipment
General
(a) Th e l oa n agreement with certai n banks and insurance companies provides for an additional
$36,000,000 of fin anc in g in 1968 for the purchase of aircraft described in Note 3 and to replace present
short-term finan c in g. This additional fin anci ng has an interest rate of 7% and will be payable in quarterly
in sta llm ents from July 1973 through October 1978. The total $62 ,000,000 loan is collateralized by sub-
sta nti ally all fli ght eq uipment own ed or to be owned by the company. Two equipment manufacturers are
partially guaranteei n g these loans. Among other things, the loan agreement contains certain restrictions
on the payment of dividends, capita l expenditures, and additional borrowings and requirements regard
ing working ca pital and net worth .
(b) To be r efi nanced in 1968 from the proceeds of lon g-term finan c ing referred to in (a) above.
(c) Convertibl e into co mmon shar es at $8.00 a share to 1971 and $10.00 a share thereafter to maturity.
Subi ect to redemption by the co mpany at any tim e prior to maturity.
3 . COMMITMENTS-Th e Company h as purchase co mmitm ents of approximately $38,000,000 for seven
Douglas DC -9 aircraft for d elivery in 1968 and for th e co nversion of seventeen Convair 440 aircraft to
A lli son 580 turbo-prop co nfiguration. Th ese commitments are cover ed und er the Company's long-term
n ote agreem ents. Th e Compa ny h as arran ged to finance up to six additional 580 turbo-prop conversions
through leases.
Th e Compan y will occupy n ew office and operational facilities now und er co nstruction at the Minneapo-
li s-St. Pau l Metropolitan Airport late in 1968 and early 1969 und er a 30 year lease with annual rental of
approximate ly $1,100,000. Oth er m ajor lease commitm ents are:
Facility
Chicago, Milwaukee, Detroit and Minneapolis-St. Paul
terminals (i nc ludin g landing fees)
Data Process in g Equipm ent and Ai rc raft
Annual Rent
$1,325,000
800,000
$2,125,000
Lease Terms
Various
Up to 10 Years
4 . INVESTMENT TAX CREDIT-The Company follows th e immediate flow-through method of accounting
for income taxes. Th e investm ent tax credit for 1967 o f $1 ,5 15,000 h as been used in part to eliminate
any Federal income tax provision for 196 7 throu gh applications to deferred ta xes and a ca rryba c k to years
1964 through 1966. Th e unused investment tax cr edit available for future years is $837,000.
5. INCOME TAXES- Th e Company's use of different methods of reportin g deprec iation and ce rtain de-
ferred expenses for book and income tax purposes r esulted in a tax receivabl e of $1,547,000 due to net
operati ng loss and investm ent cr edit ca rrybac k. Deferred Federal and state income taxes of $1,245,352
m ay become payable in future yea rs when exp enses fo r tax purposes are less th an for f inancia l reportin g
purposes.
6. VACATION PAY-The company records vacation pay as a p eri od cha rge. The unrecord ed obligation at
December 31, 1967 approxi m ated $400,000, net of inco m e tax cr edi ts.
7. STOCK OPTIONS-A total of 250,000 sh ares of unissu ed co mmon shares were r eserved for officers and
key emp loyees under a qua lified pl an. Options for 220 ,000 sha res w ere granted in 1965 at $3.05208
and for 5,000 sha res in 1967 at $6.80769.
Options were exerc ised on 20,000 shares in 1967 and 10,000 sha r es in prior years. Th e excess of pro
ceeds over the par value o f common stock amou ntin g to $57,042 was credited to paid -in capital. Options
for 190,000 shares ex pire in 1970 and for 5,000 shares in 1972.
8 . PENSION PLANS-The co mpany has non -contributin g p ension plan s covering s ubstan1ially all of its
employees. The total expense for this yea r was $818.747 as compared with $920,000 for 1966. Current
year expense includ es interest on past service cost which is not being funded . Current year exp ense was
red uced $108,000, n et of taxes, du e to a c hange in actuaria l interest assumption s and adjustments of
prior year's overaccrua l.
SUMMA
OPERA Tl NG REVENUES
r-
1967
---,
1966
Passenger . $33,482,371 $30,261,479
Public Service Revenue 5,249,563 5,767,888
Other 4,118,543 3,583,304
TOTAL . $42,850,477 $39,612,671
OPERATING EXPENSES
Direct Expenses . $19,811,886 $17,980,535
Indirect Expenses 19,523,811 17,062,543
Depreciation and Amortization 2,626,251 2,253,361
TOTAL . $41,961,948 $37,296,439
Operating Profit . 888,529 2,316,232
Non-operating Income and
(Expenses), Net (628,731) (464,974)
Earnings Before Taxes $ 259,798 $ 1,851,258
Income Taxes ..... (336,010) 720,647
Net Earnings Before Gain on
Disposition of Aircraft. $ 595,808 $ 1,130,611
Gain on Disposition of Aircraft,
Less Income Taxes 924,316 24,000
Net Earnings $ 1,520,124 $ 1,154,611
AUDITOR'S OPINION
ALEXANDER GRANT & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
Stockholders and Directors
North Central Airlines, Inc.
We have examined the balance sheet of
NORTH CENTRAL AIRLINES, INC. (a
Wisconsin corporation) as of December
31, 1967 and the related statements of
income, retained earnings and paid in
capital for the year then ended. Our ex-
amination 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. We
made a similar examination for the pre-
ceding year.
In our opinion, the accompanying bal -
ance sheet and statements of income,
retained earnings and paid-in capital
present fairly the financial position of
North Central Airlines, Inc. at December
31, 1967 and the results of its opera-
tions for the year then ended, in confor-
mity with generally accepted accounting
principles applied on a basis consistent
with that of the preceding year.
Alexander Grant & Company
Milwaukee, Wisconsin
February 9, 1968
1965 1964 1963
$23,720,203 $20,002,281 $18,064,524
7,199,418 7,274,370 7,644,080
2,971,410 2,438,126 2,168,100
$33,891,031 $29,714,777 $27,876,704
$15,356,876 $13,666,142 $13,076,180
13,970,237 12,303,601 11,812,690
1,997,488 1,712,800 1,541,857
$31,324,601 $27,682,543 $26,430,727
2,566,430 2,032,234 1,445,977
(442,894) (348,305) ~ 8,423)
$ 2,123,536 $ 1,683,929 $ 1,017,554
1,006,520 873,304 514,497
$ 1,117,016 $ 810,625 $ 503,057
21,736 33,939 18,656
$ 1,138,752 $ 844,564 $ 521,713
15
16
Five years of record progress for
north central
PASSENGERS CARGO SEAT MILES
MILLIONS MILLIONS CPOUNOSJ MILLIONS
1.9 45
1.8
1.7 40
1.6
35
1.5
1.4
30
1.3
25-
1963 '64 '65 '66 '67 1963 '64
Y A IC RDWTH PATT A
During the last five years, North Central has consistently
achieved new highs in passengers, cargo, and seat miles.
With 2,347,371 passengers carried in 1967, the gain over
1966 was 14 per cent, or 291,162 more than the previous
year. The passenger increase for the last five years was
1,223,978-a jump of 109 per cent. Passenger records have
been set by the airline every year since scheduled opera-
tions began in 1948.
Air cargo, which includes mail, freight, and express, also
increased in 1967 when the company carried 56,670,189
pounds of cargo - up 124 per cent compared with five
years ago.
700
650
600
550
500 -
450-
'65 '66 '67 1963 '64 '65 '66 '67
The phase-out of DC-3 and Convair 440 aircraft and their
replacement by larger, faster Convair 580 prop-jets and
DC-9 fan jets have made possible greatly increased pas-
senger and cargo traffic.
The company's available seat miles have risen 80 per
cent in this five-year period, while the 840,964,760 seat
miles in 1967 were 14 per cent over 1966. This achievement
is of major importance in North Central's efforts to provide
improved service to the traveling public.
With the transition to jet-powered equipment completed
in 1968, North Central can look forward to even greater
progress in the next five years.
SAFETY AWARDS
AND
SPECIAL CITATIONS
North Central Airlines has maintained a per-
fect safety record during its 20 years of
scheduled operation. In addition to carrying
its greatest passenger and cargo traffic and
introducing two new types of jet aircraft in
1967, the company received several safety
awards and special citations.
The National Safety Council once again
cited the airline for having no fatal accidents
during the previous year. In addition, the
Michigan Aeronautics and Space Associa-
tion presented its 1967 Aerospace Award to
the company "for outstanding achievement
in flight safety".
The Air Force Association Citation of Avia-
tion Service was awarded to North Central,
"for services to Minnesota airline passen-
gers during the summer of 1966 by provid-
ing extra trips and schedules to the traveling
public with additional crews and equipment
in the interest of public service as a Minne-
sota air carrier. This was above and beyond
norm a I operational requirements".
For encouraging its personnel to partici-
pate in Military Reserve activities, recognition
was also given to North Central. President
Hal Carr accepted the Air Force's Special
Award Citation for Outstanding Support of
the Air Reserve Forces, presented in behalf
of Secretary of the Air Force Harold Brown,
and a Certificate of Appreciation from Min-
nesota's Department of Military Affairs, given
by Governor Harold Levander, for "patriotic
services" to the Minnesota National Guard.
An "Award of Appreciation" from the Me-
nominee Ambassadors of Michigan was re-
ceived by the company in 1967 for its airline
service to the Menominee area.
A "Citation of Merit" for distinction in the
field of shareholder and financial communi-
cations was awarded to the airline by the
National Security Traders Association of
New York.
As North Central completes its 20th Anni-
versary Year in 1968, the company and its
personnel are proudest of the safety record
which has been attained. Since inaugurating
scheduled service on February 24, 1948, the
airline has carried 16,081,957 passengers
and flown 2,657,037,378 passenger miles
without a single fatality or injury to passen-
gers or crew members.
This outstanding achievement dramati-
cally emphasizes the dedication of the com-
pany's employees to performing their daily
work efficiently and their conscientious ef-
forts to assure passenger safety and comfort.
North Central again received a National Safety Council Award as the airline
extended its perfect safety record to 20 years. Other special
citations were also presented to the company in 1967.
\.ttl. ,., 'f , ....... ,u ,
18
JET TRAINING PROGRAM
Long before the arrival of North Central's first Convair 580 prop-
jet and Douglas DC-9 fan jet, the company launched its intensive
training program for the efficient transition to jet-powered aircraft.
Over 96,000 manhours have been devoted to the airline's jet
training program. This dramatic figure represents the energetic
efforts of North Central's personnel to make the company's entry
into the jet age a safe and successful one.
The project was principally for Maintenance and Engineering,
Flight Operations, and Ground Operations people . The first stage
included jet familiarization training of management, supervisory,
and instructor personnel on the DC-9 at Douglas Aircraft Company
in California and at Allison's Indianapolis Service School, for the
Convair 580. Also, to gain from the experience of airlines already
operating these two types of jet-powered aircraft, key employees
took the complete ground school, simulator, and flight training
made available by these carriers.
With this nucleus of jet-qualified personnel, the three operating
departments developed their own specialized programs which
consisted of classroom and on-the-job instruction at the company's
Training Center, its Chicago, Detroit, and Twin Cities maintenance
bases, and all the stations.
Much of the overall planning of the curriculum, instruction, and
manual writing was under the direction of the airline's expanded
Technical Training Department. The preparation of manuals alone
represented over 10,000 man hours of work by the three operating
departments.
The Training Center at Minneapolis/St. Paul became the head -
quarters for the classroom phase of the company's program, and
the most modern training equipment was acquired. Of major im-
portance are the $50,000 DC-9 and Conva ir 580 cockpit procedures
trainers used to teach pilots procedures for operating the aircraft.
In addition, the Transdyne navigational trainer permits instrument
flight procedures to be demonstrated for both aircraft.
A versatile new piece of equipment is the $55,000 DC-9 cabin
mock-up. This duplicates sections of the jet cabin-including the
entrance doorway, windows, two complete rows of seats, and the
buffet-so that passenger in-flight service features can be demon-
strated to stewardesses.
To allow the simulated operation of the aircraft's electrical,
hydraulic, and pneumatic systems, three electronically-powered
training boards were purchased. These $10,000 units reproduce
aircraft conditions that could be encountered in flight or on the
ground, and are used by both maintenance and flight personnel.
Another training device is the set of eight "panel boards" which
illustrate the detailed mechanical operation of the DC-9's major
systems and sub-systems.
Concentrated instruction took place at the Training Center in
1967. Classrooms were used all day, and frequently at night and
on weekends for the hundreds of North Central people from over
the system who came to the Twin Cities for jet training sessions.
With the arrival of North Central's first Convair 580 prop-jets
and DC-9's, intensive instruction was again scheduled around the
clock on both types of aircraft.
The in-flight training phase of the program began for pilots and
stewardesses. At the same time, flight dispatchers took their route
familiarization trips. On the ground, maintenance people received
actual experience in ramp and taxi procedures with the new air-
craft at their Chicago, Detroit, and Minneapolis/St. Paul bases and
on-the-job maintenance training.
Classroom sessions for Ground Operations personnel were then
conducted at all stations. When the training flights were made
with the new jet-powered aircraft, station people examined the
planes and secured their practical training in ground operational
procedures. Over 5,000 man hours were spent on this department's
orientation.
The entire jet training program for Flight Operations and Main-
tenance and Engineering personnel has already consumed over
81,000 manhours.
In addition, three special meetings have been held to acquaint
the company's sales staff, passenger service managers, and sta-
tion managers with the cargo and passenger capabilities of the
Convair 580 and DC-9. This indoctrination program provided tech-
nical data on the aircraft and emphasized the improved quality
of North Central's service with the new jets.
The airline's comprehensive training program has played a vital
role in the major transition of North Central from piston to jet
operations. In 1968, as more jet equipment arrives, refresher and
recurrent instruction will be given, as well as initial orientation.
North Central's high operating performance record testifies to the
success of its jet training program.
Transdyne navigational trainer permits demonstration
of instrument flight procedures.
Intensive classroom instruction was conducted for pilots
and mechanics at the company's Training Center.
Mechanics received on-the-job training at North Central's maintenance bases.
On-the-job training
for ground operations
personnel took place
at stations across the
system when the new
jet aircraft made
familiarization trips
prior to starting
scheduled service.
c=:= ~

DC-9 cabin mock-up duplicates sections
of jet interior for stewardess training. 19
ADVERTISING
AND PROMOTION
ADVERTISING
The company's advertising theme for 1967,
"Take a new look at North Central", was de-
signed to promote the airline's entry into the
jet age through newspapers, magazines,
radio, television , and billboards.
The campaign presented the company's
extensive equipment modernization program
and featured the Convair 580 prop-jet and
DC-9 fan jet. The public was encouraged to
"Travel the Jet-Smooth Skyways of North
Central".
Advertisements and commercials de-
scribed the benefits of speed and comfort
which the jets are bringing and emphasized,
"We're flying a new kind of plane now, and
NOATM CWN'Ts:tAL
NEMILODK
we've added a bright new spirit to match" .
Prior to the inauguration of Convair 580
service, newspaper ads announced, " New
Jet Power Comes to North Central" in cities
which were to receive the 580's.
The major advertising effort in 1967 cen -
tered on the DC-9. Full-page newspaper ads
launched an intensive campaign at each city
receiving the jets. A series of smaller ads,
radio commercials, and billboards carried
the "Take a new look at North Central" theme
and repeatedly reminded the traveling pub-
lic of the new jet service.
To pub I icize the company's route awards
in 1967, advertisements ran in Sioux City
with full-page ads and billboards in Kansas
City about the new service to Sioux City and
the Dakotas. In addition, billboards and
newspapers announced the coming nonstop
flights between Sioux Falls and the Twin
Cities. The new Detroit-Toronto route also
received concentrated attention in news-
papers, radio, and billboards.
Magazine advertising was used extensively
in 1967 to project the "jet airline" image of
Newest ~ bird to Sioux City
~ and the Dakotas
North Central. A distinctive four-color, four-
page advertisement to dramatize the intro-
duction of the DC-9 was created. It ran in
two national trade pub I ications and was also
used as a separate brochure for promotional
purposes. Full-page black and white ads ap-
peared in other magazines.
The "New Look" advertising campaign of
1967 contributed greatly to the enthusiastic
acceptance by the travel ing public of North
Central's jet service .
PROMOTION
Special promotional activities in 1967 ac-
quainted the traveling public with North
Central's new jet service.
At key cities over the system, public rela -
tions flights introduced the Convair 580
prop-jet and DC-9 fan jet to civic officials,
business leaders, and representatives of
news media. Souvenir kits, with photographs
and informative material about the aircraft,
were distributed. The airline received en-
thusiastic response from its passengers on
the flights and excellent news coverage.
Two special color-editions of the company
publication, "The Northliner", were pro-
duced about the Convair 580 and DC-9 to
highlight the benefits which the two jet-
powered aircraft are bringing to North Cen-
tral passengers.
In the last week of March, 20 pre-inaugural
flights promoted the new Convair 580 prop-
jet. Some 16 similar trips in August an-
nounced the coming DC-9 fan jets, and more
preview flights operated prior to the add i-
t ion of the third DC-9 in October.
Of major importance to North Central in
1967 was the inauguration of new service to
Toronto in August and Kansas City in Decem-
ber. Following the inaugural flights, special
ceremonies and receptions were held. Gov-
ernment officials and members of the busi-
ness community from cities on the routes
participated in welcoming North Central to
these new metropolitan centers.
To promote the company's overall activi-
ties and the jet "New Look", 65 special news
releases and 181 seen ic flights pub I icized
the North Central story in 1967.
Take a new look
at North Central!
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north central airlines.inc.
6201 THIRTY-FOURTH AVENUE SOUTH
MINNEAPOLIS, MINNESOTA 55450