Annual~ 
YEAR ENDED DEC. 31, 1942 
NORTHEAST AIRLINES 
 HARRY A. CARSON, St. Albans, Vt. 
PAUL F. COLLINS, Winchester, Mass. 
GEORGE F. GLACY, Boston, Mass. 
DAVID H. HOWIE, Boston, Mass. 
s. J. SOLOMON, Silver Spring) Md. 
ROBERT s. SWAIN, Boston, Mass. 
EUGENE L. VIDAL, Washington, D. C. 
LAURENCE F. WHITTEMORE, Pembroke, N. H. 
President, s. J. SOLOMON 
Vice President, LAURENCE F. WHITTEMORE 
Vice President, DAVID H. HOWIE 
Vice President and Treasurer, ROBERT s. SWAIN 
Vice President, MILTON H. ANDERSON 
Clerk of Corporation, ROBERT F. BRADFORD 
General O /fices 
Transfer Agent 
* 
COMMONWEALTH AIRPORT, BOSTON, MASS. 
OLD COLONY TRUST COMPANY, BOSTON, MASS. 
 To the Stockholders BOSTON, MASS., JULY 1, 1943 
of Northea~t Airlines, Inc.: 
By action of the Directors, the fiscal year of our Company has been changed 
to close on December 31 .and there is submitted herewith the balance sheet of 
our company as at December 31, 1942 together with a statement of profit and 
loss for the twelve months ended December 31, 1942. These are as audited by 
Messrs. Lybrand, Ross Bros. & Montgomery and their certificate also is 
included. 
Operations for the year ended December 31, 1942 resulted in a net profit 
of $77,097.30 after provision for Federal Income Taxes. In addition, there 
was a non-recurring profit of $105,899.02 arising from the sale of certain 
aircraft, engines, equipment, and parts. All extension and development costs 
were written off during the year. In addition, there was written off the un- 
amortized balance at December 31, 1941 in the Property and Equipment 
Acquisition Adjustment Account and a Contingency Reserve of $20,000 was . 
established. At December 31, 1942 Surplus totalled $43,393.12 as compared 
with $18,646.66 on June 30, 1942. 
In January 1943 the Company filed a petition with the Civil Aeronautics 
Board requesting a prompt hearing on all New York-Boston applications. As 
a result of that petition the Civil Aeronautics Board has set such a headng for 
September 7, 1943. 
Our company has taken recognition of the tremendous post war future of 
the air transport industry and has made its plans to participate by applying 
to the Civil Aeronautics Board on_ March 16, 1943 for authorization to operate 
over various routings between Boston, Mass.; London, England; Glasgow, 
Scotland; Paris, France; Reykjavik, Iceland; Oslo, Norway; Stockholm, 
Sweden; Copenhagen, Denmark; Prague, Czechoslovakia; Leningrad, Russia; 
and terminating at Moscow, Russia. 
On April 8, 1943 it made further application to the Civil Aeronautics 
Board for a Certificate of Convenience and Necessity to provide express and 
mail service by helicopter to more than 400 cities and towns in New England 
and southern New York and indicated that the application would be amended 
to include passenger service when development of the helicopter makes such 
service practical. 
The largest part of your company's activities is devoted to the war effort 
artd will, of course, continue to be for the duration of the war. The Company 
is operating both in foreign and domestic service for the Air Transport 
Command. 
s. J. SOLOMON 
 NORTHEAST AIRLINES, INC. 
Current assets: 
Cash in banks (note A) . 
Receivables, billed or accrued: 
Airlines and agents . 
United States Post Office Department (note A) 
United States Army Air Force- under operational 
contracts (notes A and B), less $15,000.00 re- 
serve for adjustments . 
Pilots' training school tuition under government 
contracts (note A) 
Other receivables, less reserves 
Total receivables 
Inventories ( at average cost or less) : 
Aviation fuels and oil and returnable containers . 
Replacement parts and supplies . 
Training school flight kits 
Total inventories 
Total current assets 
Property and equipment: 
Improvements to real estate not owned 
Flight equipment- passenger, mail and express 
service 
Ground and shop equipment 
Training school flight and ground equipment . 
Less reserves for depreciation and amortization . 
Property and equipment less reserves 
Deposit in escrow under lease agreements 
Prepaid expenses and deferred charges: 
Prepaid insurance . 
Prepaid rentals 
Shop orders in process . 
Other deferred charges and prepayments. 
Total prepaid expenses and deferred charges . 
$ 37,290.78 
78,550.32 
759,052.08 
290,498.92 
63,268.81 
4,278.04 
69,358.18 
6,646.51 
33,287.76 
243,855.60 
78,110.14 
130,121.06 
485,374.56 
91,193.66 
19,584.16 
13,031.34 
3,249.86 
3,396.90 
NORTHEAST AIRLINU, INC. 
BALANCE SHEET DECEMBER 31, 1942 
$ 272,473.80 
1,228,660.91 
80,282.73 
1,581,417.44 
1 
394,180.90 
1 
j 
50,000.00 
39,262.26 
$2,064,860.60 
Current liabilities: 
Notes payable 'to bank under loan agreement (note A) 
Accounts payable: 
Vendors 
Airlines 
Total accounts payable . 
Accrued taxes: 
Federal normal tax and surtax 
Other federal and state taxes 
Other current liabilities . 
Total current liabilities 
Deferred income and liability , . 
Reserve for contingencies . 
CAPITAL 
Common stock, par value $1.00 per share, authorized 
$324,148.29 
29,446.88 
31,250.00 
15,834.47 
500,000 shares, issued and outstanding 300,000 shares 300,000.00 
Premium on common stock ( excess over par value of 
proceeds of stock issued in 1941, less expenses of issue) 447,357.76 
Surplus earned since July 1, 1940 43,393.12 
NOTES: 
$850,000.00 
353,595.17 
47,084.47 
1,311.69 
1,251,991.33 
2,118.39 
20,000.00 
790,750.88 
$2,064,860.60 
A - Receivables under all government contracts at December 31, 1942 (except that with the United States Post Office 
Department) have been assigned as security for notes payable to bank under loan agreement. Cash in the amount of 
$2,078.95, and $61,189.29 of the total receivable from Post Office Department were pledged at December 31, 1942 as security 
for the loan. The loan agreement provides, among other things, that the company shall not declare or pay dividends on its 
capital stock without consent of the bank and shall not permit its net working capital to be at any time less than 
$100,000. 
B - The amount receivable and operating revenue under operational contract with the United States Army Air Force are 
subject to possible adjustments which may result from governmental audit of costs chargeable under the contract or 
from renegotiation of the contract price under the War Profits Control Act approved April 28, 1942, as amended by the 
Revenue Act of 1942. 
C - At July l, 1941 the company began to amortize the then $66,293.73 balance in property and equipment acquisition 
adjustment account by ratable charges to income over a period of ten years. As indicated in the accompanying statement 
of profit and loss and earned surplus, the unamortized balance of this account at December 31, 1941 has been charged 
to surplus and no deduction for amortization thereof has been made in determining net income for the year ended 
December 31, 1942. 
 NORTHEAST AIRLINES, INC. 
!Ttalenuil o/ ~wfit and~ and &altned !Tu11filu4 
FOR YEAR ENDED DECEMBER 31, 1942 
Operating revenue: 
Passengers . . . . . . . . . 
Air mail . . . . . . . . . 
Training school tuition . 
Operations under Army Air Force contracts (balance 
sheet note B) . . . . 
Other . . . . . . . . . 
Total operating revenue . 
Operating expenses: 
Conducting transportation and flying operations . . 
Maintenance and repairs . . . . . . . . 
Provisions for depreciation and amortization 
Traffic and advertising 
General and administrative . . 
Taxes other than income taxes . 
Total operating expenses . 
Net operating income 
Deductions from income: 
Extension and development costs charged off . 
Interest expense . . . 
Other deductions . . . . . . . 
Profit before federal income taxes 
Provision for federal income taxes  . 
Net profit for year . . . . 
Add net gains from sales of flight and other equipment . 
Deduct: 
Provision for contingencies . . . . . . . . . 
Unamortized balance at December 31, 1941 in prop- 
erty and equipment acquisition adjustment account 
charged to surplus (balance sheet note C) 
Deficit in earned surplus at beginning of year . . . 
$309,875.46 
356,589.89 
477,257.48 
931,112.74 
47,430.28 
1,297,256.87 
322,618.16 
88,312.93 
60,810.78 
177,210.65 
40,632.75 
17,568.95 
7,636.19 
1,871.27 
20,000.00 
62,979.03 
56,624.17 
$2,122,265.85 
1,986,842.14 
135,423.71 
27,076.41 
108,347.30 
31,250.00 
77,097.30 
105,899.02 
182,996.32 
139,603.20 
Earned surplus at end of year ( refer to balance sheet notes) . $ 43,393.12 
 Since the days of the China Trade 
Yankees deliver the goods! 
The picturesque schooner has been replaced by 
the sleek, speedy transport plane, but otherwise 
the story is the same: through storms and fogs, 
along charted or uncharted routes, Yankees 
deliver the goods! 
If anything, . today's tale is more stirring. 
Northeast Airlines, in the service of the Air 
Transport Command, was one of the first to 
fly any ocean in cargo service. Its men com- 
pressed months of adventure into hours and 
NORTHEAST 
minutes. They flew over lonely stretches of 
ocean, they braved sleet and fog, they pio 
neered invisible roadways of the air to deliver 
the goods for Uncle Sam. 
While one branch of Northeast Airlines 
operations serves Uncle Sam, our regular 
commercial service carries civilians and milit- 
ary men along established routes from Boston 
to the North. Yes, today as always the Yankees 
are delivering the goods! 
AIRLINES