Northeast Airlines Annual Report 1949

ANNUAL
REPORT
NORTHEAST AIRLINES
1949
a----'~,/,,&Alf-
- -
,.'11/l I AIRLINES?
NORTHEAST AIRLINES
INC.
'Board of 'Directors
JACQUELINE COCHRAN
New York, N. Y.
JAMES F. FITZGERALD
Boston, Mass.
GEORGE E. GARDNER
Boston, Mass.
GEORGE E. GARDNER.
A. A. LANE
HAMIL TON HEARD
R. H. HERRNSTEIN
HENRY E. FOLEY
FOLEY, HOAG AND ELIOT
LYBRAND, Ross BRos. & MONTGOMERY
OLD COLONY TRUST COMPANY.
PAUL F. COLLINS, Chairman
EUGENE L. VIDAL
New York, N. Y.
Officers
GRENVILLE L. HANCOCK
Boston, Mass.
RADU lRIMESCU
New York, N. Y.
ALBERT C. MCMENIMEN
Boston, Mass.
THE FIRST NATION AL BANK OF BOSTON
President
Vice President
Treasurer and Ass't to the President
. Assistant Treasurer
Clerk of Corporation
General Legal Counsel
Auditors
Transfer Agent
Registrar
General Offices, LOGAN AIRPORT, BOSTON 28, MASS.
* N01RTHEAST AIR-LINES, INC.
The President's Report to
The Stockholders and Employees
I. GENERAL
*
There is submitted herewith Northeast Airlines' Balance Sheet as of December 31, 1949 and Profit and
Loss Statement for the year 1949 certified by the Company's auditors, Lybrand, Ross Bros. & Montgomery.
A tabulation of comparative statistics is also submitted.
You will note from this report that your Company's business in 1949 followed a trend which had become
apparent at the end of 1948 and which was indicated in the Annual Report for that year. The Company
shared in the airline industry's return to normalcy after the disappointing post-war period. The industry
in general again resumed its growth which had existed through 1946 and established new records for passen,
ger and cargo traffic in 1949. More stable operating conditions returned, permitting greater efficiency and
improved earnings. As a result, your Company, participating in these more favorable conditions, increased
its revenue over 1948 by 18.6% while expenses increased only 12.1 % so that a small operating profit of
$65,235* was established as compared with an operating loss of $224,530 in the previous year-this in
spite of the poor experience in December which was shared by the whole airline industry.
II. REVIEW OF 1949
Financial
The principal changes in the Balance Sheet this year are in the Property and Equipment and long,
term debt items. On May 16, the Company received an initial advance of $1,579,000 from the Reconstruc-
tion Finance Corporation to aid in paying for the Convair equipment program. On June 21, the first twelve
principal installments of $32,000 each were repaid, followed by six and one-quarter installments on July 14.
This reduced the principal owed to $995,000 and also interest costs were reduced substantially. No princi,
pal installment is now due until May 16, 1951.
On the December 31, 1948 Balance Sheet, there was an amount shown of $320,000 representing the
final note due Atlas Corporation for financing the construction of the Company's Hangar at Logan Airport.
This was later reduced to $316,000 and the Atlas Corporation agreed to convert the note inito common
stock of Northeast Airlines. Approval of this conversion was obtained on July 7 at a special meeting of
the Stockholders and on July 28 conversion was effected in to 109,913 shares of common stock at the
then current market price of 2 per share.
On the asset side of the Balance Sheet, the Reconstruction Finance Corporation loan is more than offset
by the increase in Property and Equipment resulting from the Company's acquisition of five new Convair
aircraft which are evaluated at the cost obtained under a purchase contract for an amount substantially
less than the current replacement cost.
Pursuant to the order of the Civil Aeronautics Board, dated March 18, 1949, the Company received
in 1949 mail revenue of approximately $374,000 retroactively for previous years. Of this amount, some
$238,000 has been applied, on a revenue mile basis, to 1948 and the balance, $136,000, to 1947. The order
* After downward revision of net depreciation expense as indicated in footnote F to accompanying Financial Statements.
* NO1
RTHEAST AIRLINES, INC. *
also fixed a temporary mail rate of 45 per airplane mile calculated on a daily mileage basis of 13,000 miles
after January 1, 1949.
The Company's non-mail operating revenue also increased in 1949. Such revenue amounted to
$4,228,065 in 1949, as compared with $3,374,488 in 1948.
As mentioned above, the Company established an operating profit of -$65,235 for the year and a net
profit of $25,523. In the Company's opinion, no provision for Federal Income taxes on this amount is
deemed necessary . . After the first quarter, an operating profit was shown for every month through
October, and losses were experienced in November and December.
In December, the Board of Directors, with the approval of the Reconstruction Finance Corporation,
declared a dividend of 50 per share on the preferred stock of the Company, paya9le December 29, 1949 to
Stockholders of record December 23. This was in payment of thei two accumulations of 25 each due on
April 1 and July 1, 1948, and left five quarterly dividends in arrears, which have now increased to seven
quarterly dividends in arrears. There is a provision that if at any time eight quarterly dividends on the
convertible preferred stock shall be in arrears, the holders thereof, voting separately as a class, shall be
entitled to elect a majority of the Board of Directors at any meeting or meetings of Stockholders for the
election of Directors until all dividends accrued on the convertible pref erred stock until its next dividend
day shall have been paid. Therefore, it seemed expedient to retain voting control in the hands of the common
stockholders.
Operations
During 1949 the Company provided the most dependable service in its history with 9 3. 5 4 % of scheduled
mileage completed, as compared with the previous high of 87.86 % experienced in 1948. Contributory
factors were excellent weather for New England and the installation of additional navigational aids. The
Instrument Landing System at New Bedford was placed in operation during September, and Type H
homing stations were installed by the Company at Lawrence and Lewiston
Contrary to the practice of many of the airlines, your Company has not offered a coach service to the
traveling public. In the opinion of the management, the distances involved in Northeast's territory are
too short to stimulate traffic at the inconvenient hours required by the Civil Aeronautics Board for coach
service. Furthermore, the high cost of serving the short-haul territory does not justify the sharp reduction
in fares that is part of the coach service proposal.
However, excursion rates were offered over several segments where load factors have been historically
low in an attempt to stimulate traffic.
It will be noted from the Table of Comparative Statistics at the end of this report that, although the
load factor for the system as a whole remained approximately the same as during 1948, nevertheless sub-
stantial increases were shown in passengers carried and passenger revenue as a result of increased mileage.
Flight Equipment
The Company began the year operating flying equipment consisting of three DC-4 four-engine Douglas
Skymasters of 60 seats each, seven 24-seat DC-3's and one 29-seat DC-3. Conversion of the latter during the
middle of the year provided a uniform DC-3 fleet, all with 24 seats. On April 24, three of the Company's
new, fast 40-passenger Convair-liners were placed in service and the remaining two on May 27th. These
five Convairs have found immediate public acceptance and have permitted your Company to compete in
the Boston-New York market with equipment comparable to that of its competitiors.
A lease arrangement was negotiated with Capital Airlines for two of the DC,4 aircraft for two months
during the Fall on what appeared to have been satisfactory terms to Northeast. In December, National
Airlines leased the same two aircraft on substantially the same terms and are still operating them. In
* N O R T H E A S T A I R L I N E S , I N C . *
addition, Capital Airlines has leased the third plane during the Spring season. All three of the planes
will be returned to Northeast Airlines by June 1st and will be placed in scheduled service to help carry the
heavy traffic through the summer months.
Northeast Airlines experienced the first serious accident in its history on August 11 during the landing
of an aircraft at Portland, Maine, but fortunately no passenger or crew member was injured. The
aircraft was completely rnvered by insurance and a replacement Convair was purchased and placed in service
during the Labor Day weekend.
Management Changes
At the annual stockholders meeting held on June 20th, Mr. Hamilton Heard, who joined the Company
on December 10, 1948 as Assistant to the President, was elected Treasurer of the Company.
Safety Record
The Company continued in 1949 to maintain its perfect safety record of no passenger injury since the
commencement of operations in 19 3 3.
Routes and SerYices
There were no changes in the Company's route structure during the year, although on November 1, 1949
service to Millinocket, Maine, which had been suspended in 1942, was reinstated. The Board also author,
ized a one-year extension of the suspension of service between Bangor, Maine and Moncton, New Brunswick.
Regulatory Proceedings
On February 21, 1949 the Civil Aeronautics Board amended its earlier order instituting a compre,
hensive survey .of Northeast Airlines' routes and the relationship of those routes to the over-all domestic
air transportation problem. This procedure is still pending but hearings have not to this point been held.
The Company, as well as other domestic air carriers, has participated throughout the hearings con,
ducted by the Board in its investigation of National Airlines, Inc., and the Company has taken the position
that the consolidation of that carrier's routes between New York and Miami and between Miami and Havana
with this Company's routes would be in the public interest. This proceeding also is still pending.
The Board has extended to October 23, 1950 the date by which Atlas Corporation is directed to dispose
by sale or otherwise of its holdings of the Company's stock in excess of 3 % of the outstanding shares of each
class.
During the hearings on the Additional Service in 'N,ew England States case in 1949, your Company
took the position that, being the regional air carrier, it would perform such New England services as
the Board should deem appropriate. The Company also petitioned the Board to abandon service which
had not been inaugurated at Islip and Riverhead on Long Island. In .its . recent decision on this case, the
Board granted the abandonment of Islip and Riverhead; certificated Northeast Airlines to serve Laconia,
Whitefield, North Conway and Berlin, New Hampshire, and Bar Harbor, Maine during the summer month~.
Thei airpo1'1ts at Whitefield and North Conway are presently unsuitable for operations, but current indica,
tions are that conditions will justify service this summer to Laconia, Berlin, Bar Harbor, and New London.
The Board also granted the Company's application to include Concord, and Manchester, New H ampshire,
a.:: intermediate points on Segment 1 as well as on Segment 3 of route 27, thereby autho.rizing the Company
to provide direct service between southern New Hampshire and New York.
* NORTHEAST AIRLINES, INC. *
III OUTLOOK FOR 1950
In last year's report your management stated that it looked to the future with confidence. During
the past year this confidence was to some extent confirmed as your company achieved a small operating profit.
More stable operating conditions, permitting greater efficiency and improved earnings, returned to
the airline industry in general, and your company participated in the bendits. Nevertheless, your com-
pany was also faced with the problems and related costs normally incident to the inauguration of opera-
tions with a new type of aircraft. Your management has been encouraged, however, by the immediate
public acecptance of your company's introduction of Convair aircraft as well as its continued recognition
and support of the essential transportation services furnished by your company.
Your management is continuing to make every effort to obtain greater efficiency and dependa:bility
in operations while reducing expenses to a minimum.
During the coming summer, your Company, together with the other airlines serving Boston, expects
to move into the new Terminal Building at Logan International Airport which will provide greater comfort
and convenience to our customers in the future. Furthermore, plans are under way for much faster ground
transportation beitween LaGuardia Airport (as well as the other New York Port Authority Airports) and
New York City, by the erection of two new bus and airline Terminal Buildings adjacent to the tunnels
which will feed into new super highways.
The demand for air transportation to the numerous summer resorts in the New England area has
increased steadily. Your Company -
has always been conscious of its responsibility as the New England
regional air carrier and is making every effort to plan its schedules and operations so as to provide the
finest possible summer service this year. To this end, as much advance maintenance and overhaul work has
been accomplished as possible to insure the minimum amount of time for such work during the heavy season.
Although the airline industry has ordinarily presented a uni~ed front whenever confronted with attacks
from the outside, there has been developing recently a serious difference between the large airlines and their
smaller competitors over the question of separation of mail pay from that portion which has been characterized
as "'subsidy payments.,, The railroad industry is, of course, in favor of such separation in the hope that
public opinion can persuade Congress to reduce Governmental support to the industry through the medium
of mail pay. It is regrettable, therefore, that the large airlines, believing they are immune from a reduction
in mail pay because of their low cents-per-mile payments, are on the side of the railroads.
The majority of the airlines, therefore, including Northeast, have been attempting as a unit to correct
the erroneous impression on the minds of the public regarding the so-called "'subsidy.,, These airlines
heartily endorse legislation which provides for a complete, thorough and objective study to determine whether
or not segregation is feasible and how, if it may be accomplished at all, it may be done equitably. However,
it is our considered opinion that mail pay was provided for under the Civil Aeronautics Act of 1938 as a
vehicle to get the air transportation, system of the United States established, and that the so-called subsidy
that the airlines were to receive over and above the service rendered for carrying the mail was for the
purpose of establishing an airline system that would have in being a pool of aircraft, personnel and know-
how avaliable for the national defense. The reason for the Congress adopting this method was because
of the sincere belief that this was the cheapest method by which to provide a necessary defense facility.
I wish to express appreciation on behalf of the management for the splendid efforts and loyalty of our
employees in establishing 1949 as a year of profitable operation, and I also wish to thank our stockholders
for their continued support.
For the Board of Directors
GEORGE E. GARDNER,
President.
DISTRIBUTION OF THE 1949 NEA DOLLAR
THE REVENUE DOLLAR
~
PASSNGER
REVENUE
68.87c
2.52c
1.61c
/
PROFIT
0,43c.
THE EXPENSE DOLLAR
SALARIES 8.
WAGES 43.82c
/
INSURANCE
3 .35c
GAS & OIL
,,,,,,,. II.I5c
DEPRECIATION
.-- 13.74c
PARTS 8.
MATERIALS 6.66c
"RE.NTALS
TAXES 4 .81c
2 .I4c
CURRENT ASSETS:
Cash in banks
Receivables :
Airlines and agents
United States Post Office Department
Other receivables
Total receivables
Miscellaneous supplies (at average cost)
Total current assets
PROPERTY AND EQUIPMENT, AT COST:
ASSETS
Flight equipment, of which approximately $3,980,000 was pledged at
December 31, 1949 against long-term debt (note B)
Hangar and service building on leased land .
Flight equipment spare parts
Ground and shop equipment .
Improvements to rented properties
Construction in progress
Non operating property
Less allowance for depreciation and amortization
Total property and equipment
Deposits on purchase of flight equipment .
Receivable under stock purchase contract due on or before May 24, 1951 (note C)
Unexpired insurance
Other prepaid expenses and deferred charges
NORTHEAST AIRLINES, INC.
'Balance Sheets
A!!, at December 31, 1949 and 1948
1949 1948
$1,189,511 $ 998,669
172,514 122,486
154,147 223,791
83,026 77,741
409,687 424,018
80,960 56,312
1,680,158 1,478,999
4,284,902 2,285,070
649,058 658,686
620,797 475,432
492,546 426,613
84,926 113,892
17,071 26,465
35,781 8,225
6,185,081 3,994,383
2,858,341 2,132,011
1
3,326,740 1,862,372
!
153,900
26,875 31,875
170,872 28,819
89,198 29,520
$5,293,843 $3,585,485
LIABILITIES
CURRENT LIABILITIES: 1949
Accounts payable- vendors and others (including in 1949 $1200,000 balance
on aircraft purchases) . $498,010
Accrued salaries and wages .
Taxes withheld and other payroll deductions, not yet remitted
Accrued social security and other taxes .
Unearned transportation revenue_ .
Total current liabilities .
Long-term debt:
4 % note payable to Reconstruction Finance Corporation (note B)
4 % note payable to Atlas Corporation .
Reserve for self-insurance (workmen's compensation)
Reserve for aircraft overhaul (note D)
Stock purchase contract (see contra) .
Contingencies (note G) .
CAPITAL
CONVERTIBLE PREFERRED STOCK of no par value (note E):
Authorized 8 5 ,000 shares
Issued and outstanding:
1949, 80,019 shares; 1948, 80,312 shares
COMMON STOCK, par value $1.00 per share:
Authorized 2,000,000 shares (note C)
Issued and outstanding-fully paid:
1949, 631,321 shares; 1948, 519,624 shares.
Issued under stock purchase contract-part paid:
51,964
19,299
20,853
36,450
626,576
995,000
16,270
117,444
26,875'
1,600,380
631,321
10,000 shares at 50 cents per share paid thereon ( unpaid balance under
contract, $26,875' shown above) 5,000
CAPITAL SURPLUS, per accompanying statement
DEFICIT since July 1, 1940, per accompanying statement
Total capital
1,724,269
(449,292)
. 3,511,678
$5,293,843
The accompanying notes are an integral part of the above balance sheets
1948
$ 174,864
52,208
11,901
19,930
30,685'
289,588
320,000
29,030
82,420
31,875
1,606,240
519,624
1,515,227
(808,519)
2,832,572
$3,585' ,485
* N
ORTHEAST' AIRLINES, INC.
Statements of Profit and Loss
For the Year Ended December 31, 1949
For the Year Ended December 31, 1948 Restated as Explained in Note A
OPERA TING REVENUE:
Passengers .
Air mail ( note A)
Express, freight and excess baggage
Other, net .
Total operating revenue
OPERATING EXPENSES:
Conducting transportation
Maintenance and repairs (note D)
Provision for depreciation and amortization (note F)
Traffic and advertising .
General and administrative
Taxes other than income taxes
Total operating expenses
Operating profit (loss) .
DEDUCTIONS:
Interest expense
Net loss from sales and retirements of property and equipment
Other charges, net
Total deductions
Net profit (loss) for year (note A)
1949
. $3,992,450
1,565,437
146,186
89,429
5,793,502
2,526,048
1,226,473
796,735
723,689
330,956
124,366
5,728,267
65,235
36,525
2,632
555
39,712
$ 25,523
*
1948
Restated
$3,241,912
1,510,208
120,020
12,556
4,884,696
2,122,676
1,319,008
579,370
610,144
367,488
110,540
5,109,226
(224,530)
29,665
37,418
1,827
68,910
($ 293,440)
The accompanying notes are an integral part of the above statements of profit and loss.
* NORTHEAST AIRL.INE.S, INC.
Statement of Deficit Since July 1, 1940
For the Year Ended December 31, 1949
(See note A)
BALANCE at beginning of year as previously reported .
RETROACTIVE INCREASE in air mail revenue received in 1949 under
order of the Civil Aeronautics Board dated March 18, 1949,
applicable, on a revenue mile basis, to the years ended Decem,
ber 31
1947
1948 .
NET profit for the year
ACCUMULATED loss since July 1, 1940 .
DIVIDEND paid in cash on convertible preferred stock-50c per
share
BALANCE at end of year
$135,904
237,810
Statement of Capital Surplus
For the Year Ended December 31, 1949
BALANCE at beginning of year .
EXCESS of long,term debt ($316,000) payable to Atlas Corpora,
tion over par value plus issue expenses of 109,913 shares of
common stock issued in full payment thereof .
ExcEss of amount paid in on 293 shares of convertible preferred
stock surrendered for conversion over par value of 1,783
shares of common stock issued in exchange therefor .
BALANCE at end of year
$373,714
25,523
*
$808,519
399,237
409,282
40,010
$449,292
$1,515,227
204,966
4,076
$1,724,269
* NORTHEAST AIRLINES, INC. *
Notes to Financial Statements
A-EFFECT OF RETROACTIVE INCREASE IN AIR MAIL REVENUE:
During 1949 the company received retroactive increase in air mail revenue with respect to the 20-month
period from May 1, 1947 to December 31, 1948, under order of Civil Aeronautics Board dated March 18,
1949, aggregating $373,714 as set forth in the accompanying statement of deficit. For purposes
of comparison, air mail revenue in the accompanying 1948 statement of profit and loss has been restated
to include the portion of this additional revenue applicable to that year. Air mail revenue included
in the accompanying financial statements is subject to such increase or decrease as may result from
order of Civil Aeronautics Board fixing final mail rates for the period subsequent to April 30, 1947.
B--NOTE PAYABLE TO RECONSTRUCTION FINANCE CORPORATION AND PROPERTY PLEDGED:
The unpaid principal balance on note to Reconstruction Finance Corporation at December 31, 1949 was
$995,000, payable in monthly instalments aggregating $248,000 in 1951, $384,000 in 1952 and $363,000
in 1953, with provision for accelerated principal payments contingent on earnings as defined for 1950
and subsequent years. The note is secured by instruments of mortgage on the company's flight equip-
ment aggregating, at cost, approximately $3,980,000. The loan agreement contains various provisions
which restrict company action. Among the restrictions is a provision that, without prior approval of said
agency, dividends shall not be declared on the stock of the company until said loan has been paid in full.
The mortgage on the company's hangar and service building, the leases of the site thereof and all fixtures
attached to and constituting part of the real estate was discharged in 1949 when the note to Atlas
Corporation was paid by issuance of common stock.
C-CoMMON STOCK RESERVED FOR SALE To EMPLOYEES AND OFFICERS:
On November 24, 1947 stockholders voted to reserve 100,000 shares of authorized and unissued com-
mon stock for sale to full time employees, including officers, at a price, payable in instalments, not
less than the market value thereof on the date of purchase contract. As at December 31, 1949, no
such sales had been made other than the 10,000 shares sold to the president of the company under
contract dated November 24, 1947 at the then market price of $31,875.
D-RESERVE FOR AIRCRAFT OVERHAUL:
The company charges certain major periodic overhaul costs against a reserve provided by charges to
maintenance expense. Provisions for aircraft overhaul reserve charged to maintenance expense amounted
to $65,787 in 1949 and $80,411 in 1948. The costs of aircraft overhaul charged against the reserve
were $30,763 in 1949 and $30,644 in 1948.
E-CONVERTIBLE PREFERRED STOCK ISSUED IN 1948:
Cumulative dividends on convertible preferred stock are in arrears $120,029 at December 31, 1949.
All or any part of the convertible preferred stock may be called for redemption at any time at $22.00
per share plus dividends accrued thereon to the redemption date. In case of any liquidation, whether
voluntary or involuntary, the convertible preferred stock shall be entitled to receive $20.00 per share
plus dividends accrued thereon to the day of payment.
Under the provisions of the convertible preferred stock, the company shall not declare any dividend or
redeem or retire any shares of stock or make any distribution to stockholders if immediately there-
after the net worth of the company would be less than $20.00 for each share of convertible preferred
stock immediately thereafter outstanding.
* NO1
RTHEAST AIRLINE,S, INC. *
Notes to Financial Statements (Continued)
As at December 31, 1949, the conversion rate of the convertible preferred stock, which was adjusted in
July, 1949 in accordance with the provisions thereof, is 5' shares of common stock for each share of
convertible preferred stock surrended for conversion.
F-DEPRECIATION OF FLIGHT EQUIPMENT:
During the first nine months of the year, depreciation rates on DC-3 flight equipment and flight equip-
ment spare parts were based on the supposition that this equipment would be fully depreciated on
December 31, 1949. It became obvious, however, that these aircraft would continue in operation beyond
that date and cornsequently on October 1, 1949 the depreciation rates were revised to a basis of an
estimated service life extended to December. 31, 19 5' 1. There was no reduction in depreciation
charged out during the first three quarters of the year, but for the last three months the new schedule
resulted in depreciatron expense of approximately $77,000 less than the amount which would have been
charged on the old basis.
G-C ONTINGENCIES:
The company's federal income tax returns for years subsequent to 1945' are subject to examination. The
management believes that any liability for federal income and Massachusetts corporation excise taxes
which may result from such ex:amination should not be material in amount.
The Civil Aeronautics Board has directed investigation of the routes and operations of the company,
including a comprehensive survey through public hearings of whether the public interest would be
furthered by merger, by sale of routes or properties or by agreements with other air carriers.
AUDITORS' REPORT
NORTHEAST AIRLINES, INC.,
Boston, Massachusetts.
We have examined the balance sheet of Northeast Airlines, Inc. as at December 31,
1949 and the related statements of profit and loss, of deficit and of capital surplus
for the year then ended. Our examination was made in accordance with generally
accepted auditing standards, and accordingly included such tests of the accounting
records and such other auditing procedures as we considered necessary in the circum,
stances.
In our opinion, the accompanying :financial statements present fairly the :financial
position of Northeast Airlines, Inc. at December 31, 1949, and the results of its
operations for the year then ended, in conformity with generally accepted accounting
principles applied, except as to changes in depreciation rates described in note F, on
a basis consistent with that of the preceding year.
Boston, Massachusetts
March 31, 195'0
LYBRAND, Ross BRos. & MONTGOMERY
,
COMPARATIVE STATISTICS
1942 1943 1944 1945 1946 1947 1948 1949
Revenue Miles Flown .......... 750,278 727,713 1,023,737 2,287,366 4,177,375 3,947,030 3,386,881 4,021,226
Completion of Scheduled
Miles .................................. 79.45% 79.10% 83.87% 83.61 % 82.46% 83.81 % 87.86% 93.54%
Passenger Reven1Ue .............. $309,875 $533,963 $742,978 $1,945,444 $4,256,115 $3,468,913 $3,241,912 $3,992,450
Revenue Passengers Carried 26,446 36,263 53,766 175,608 417,095 325,172 272,292 324,963
Revenue Passenger Miles .... 5,383,171 9,090,063 12,848,222 38,939,107 83,848,737 62,143,281 5'2,091,160 61,957,458
System Load Factor .............. 35.94% 59.52 % 59.14% 74.47% 65.76% 51.24% 48.02% 48.36%
Passenger Revenue Per
Plane Mile ........................ $.4129 .7338 .7420 .8505 1.0189 .8789 .9572 .9928
Revenue Per Passenger Mile $.0576 .0587 .0578 .0500 .0507 .0558 .0622 .0644
f1:t. the Friendly Yankee Fleet
NEW YORK BOSTON NEW ENGLAND
MONTREAL

ANNtS ..
A"lUCM. .
VINE.YA
NORTHEAST AIRLINES
11The Yankee Fleetu
GENERAL OFFICES: LOGAN AIRPORT
BOSTON 28, MASSACHUSETTS