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A N N U A L R-E P O RT
ortheast Airlines
BOARD OF DIRECTORS
Paul F. Collins, Chairman, Winchester, Mass.
Jacqueline Cochran, New York, N. Y.
James F. Fitzgerald, Boston, Mass.
George E. Gardner, Boston, Mass.
Grenville L. Hancock,* Boston, Mass.
Radu lrimescu, New York, N. Y.
Albert C. McMenimen, Boston, Mass.
Eugene L. Vidal, Darien, Conn.
*Deceased
George E. Gardner
President
Robert L. Turner
Vice President
Traffic and Sales
OFFICERS
A. A. Lane
Vice President
Operations
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D. W. H. MacKinnon
Vice President
Engineering & Maintenance
Gerard E. Reed
Henry E. Foley
. Ass'+ Treasurer
. Clerk of Corporation
Foley, Hoag and Eliot .
Lybrand, Ross Bros. & Montgomery
Old Colony Trust Company . .
The First National Bank of Boston .
General Legal Counsel
. Auditors
. Transfer Agent
Registrar
General Offices, Logan Airport, Boston 28, Mass.
Hamilton Heard
Treasurer and Ass't
to the President
ANNUAL REPORT FOR 1955
. ~ortheast Airlines
INC.
THE PRESIDENT'S REPORT
TO THE STOCKHOLDERS AND EMPLOYEES
I. GENERAL
There is submitted herewith Northeast Airlines' Balance Sheet as of December 31, 1955, and Profit
and Loss Statement for the year 1955, certified by the Company's auditors, Lybrand, Ross Bros. &
Montgomery. Comparisons with the previous year and a table of comparative statistics are also submitted.
These statements reflect an operating profit of $148,387, compared with $169,924 in 1954. A capital
gain of $377,217 before taxes made your Company's net profit after taxes for the year $379,937 as
against $138,112 for the previous year. The decrease of $21,537 in operating profit, while. disappointing,
must be considered in the light of a reduction of over a quarter of a million dollars in Federal Subsidy.
This reduction results from a mail pay formula whereby, with increased load factors' and mileages,
the government's contribution is reduced each year, but under which your Company is not given ade-
quate protection against rising cost.
We are pleased to report several all-time highs in Northeast's history. Revenue Passengers carried
totaled 582,000 (ll.3o/o above 1954) and Revenue Passenger Miles exceeded 116,000,000. Gross Revenues
of $3,479,000 in the quarter ended September 30 were the highest for any three months' period in our
history. This quarter marked the first summer sea on in which the $1,000,000 Gross Revenue mark was
surpassed in each month, and the first million dollar eptember ever achieved by your Company.
We were unable to negotiate the lease of large aircraft during our summer peak period, so the
Available Seat Miles that we were able to offer the public increased only 5.5o/a in 1955. The Passenger
Load Factor increased from 55.91 o/o in 1954 to 59.22% in 1955, a very favorable index of the demand
for our services.
II. REVIEW OF 1955
In spite of the initial cash payment of $500,000 from current working funds, on our purchase
contract of ten Douglas DC-6B's, your Company's working capital position remained strong with the
ratio of 2.19:1. This compares to the latest available industry ratio of 1.54:1.
The Balance Sheet contains advance payments of over $1,200,000 to Douglas Aircraft Company, Inc.
for the DC-6B's. As explained later in this report, the only liability on the Balance Sheet against this
purchase is the $300,000 hank loan.
While the Balance Sheet indicates 20,369 shares of preferred stock outstanding on December 31,
1955, all but 369 shares were converted to common stock on February 8, 1956. Consequently, the
Directors decided to call the latter small balance as of March 12, 1956. It is anticipated that the
majority of the remaining shares, in view of the present market price of the common, will be con-
verted to common stock. The book value of the common stock at the end of 1955 amounted to $5.10
per share. The pro forma book value per share, giving effect to the anticipated full conversion of the
preferred on March 12, would have been $5.25.
It should he noted that the net worth of the Company by December 31, 1955 has increased to over
$5,000,000. At the end of the year, there were 1,748 common stockholders and 21 preferred.
Federal and State taxes, including fuel, payroll and income levies, charged against earnings amounted
to $421,000 in 1955. We also collected $820,000 in transportation taxes for the Federal government.
The accompanying charts show the percentage distribution of the Company's revenues and expen es.
NORTHEAST'S REVENUE AND EXPENSE DOLLAR
FISCAL YEAR 1955
WHERE IT
CAME FROM
Passenger & Excess
Baggage 76.30%
Federal Subsidy 15.13
Mail, Express & Freight 4.15
Other (including Flight
Equip. Sale Profits) 4.42
100.00%
WHERE IT WENT
Employee Salaries and
Related Costs 47.74%
Depreciation &
Obsolescence of
Property & Equip. 7.49
Gas & Oil for Airplanes 9.92
Materials used
in Maintenance
of Equipment 4.21
Taxes - Payroll & Other 4.03
Rentals & Landing Fees l.95
Advertising & Publicity 3.16
Utilities 2.75
Other Operating Costs 13.13
Net Profit 3.62
100.00%
%Z9'E
During 1955, your Company flew 4.3 % more plane miles than in 1954, producing 5.5% more seat
miles. With this increase in capacity we were able to increase the Passenger Miles by 11.7%.
The increased complexity of air traffic control during the past year has pointed up the necessity
for a revision of our airborne communications equipment. The total cost of this conversion will result
in about $100,000 additional capital expenditures on our present fleet.
The 1955 summer season afforded your Company the first full season's use of Company sponsored
high intensity approach light installation at Nantucket. The benefits derived from this installation
were considered very encouraging and may lead the way for additional use at other locations.
On March 14, 1955, your Company signed a contract with Douglas Aircraft Company, Inc. to purchase
the 10 DC-6B aircraft previously mentioned. Delivery of the first of these aircraft is scheduled for
January, 1957.
In March 1955, a DC-3 aircraft was purchased for $50,000 from Pan American-Grace Airways, Inc.
In June, another DC-3 was leased from Pan American-Grace Airways and one from United Air
Lines, Inc. to augment the fleet during the summer season. Both aircraft were returned to their owners
at the end of September.
In October, as we entered our slack season, a DC-3 was leased to Piedmont Aviation, Inc. for four
months, and the term was later extended to April 1, 1956.
On November 10, your Company sold a Convair 240 to Mohawk Airlines for $516,000, the resulting
gain therefrom appearing separately in the financial statement.
Your Company's present fleet consists of six Convair 240 and twelve DC-3 aircraft.
On January 2, 1956, your Company was deeply saddened by the untimely death of Grenville L.
Hancock, a member of the Board of Directors since 1947. Mr. Hancock was a long-time advocate and
champion of the aviation industry and, in particular, of Northeast Airlines. During his years of
service, he contributed immeasurable guidance and direction for your management. It is as a result
of the forethought and vision of men like Mr. Hancock that your Company has been able to grow
as it has.
It was with this thought in mind that your Board of Directors authorized the following expression:
"The Board of Directors of Northeast Airlines wishes to express its sorrow upon the death
of Grenville L. Hancock who had served faithfully as a Director since 194 7. His early aviation
training as a pilot in World War I, his college years at Massachusetts Institute of Technology,
and his many years of experience in the investment business combined to equip him to an
extraordinary degree to give wise counsel in guiding the policies of your Company. All of
these attributes were enriched by a genial, kindly manner and a constant willingness to give
of his time and energy. The benefit of his knowledge will be sorely missed and the sense of
personal loss will be keenly felt by each of your directors and all who knew him."
Summer service was authorized and inaugurated to Newport, Vermont, on June 15. During the
twelve weeks, we were able to carry 874 passengers to and from this, our newest addition to New
England resort areas served by air.
In an effort to combat our intense seasonal
problem, our winter promotion program was con-
tinued in 1955. Your Company was the first sched-
uled airline to operate a flight just for skiers. This
flight was named the "Ski Rocket" and operated
on weekends from New York to Barre-Montpelier,
serving the Stowe and Mad River Glen winter sports
areas. Northeast was also the first airline to employ
a Ski Stewardess whose activities were devoted ex-
clusively to selling air travel to skiers visiting New
England and Laurentian ski country.
An example of the results obtained from the
foregoing efforts was displayed in February 1955 at
Lebanon, New Hampshire, where in one day more
passengers were boarded than were hoarded during
the entire month of February 1954.
TO TN IPTY
ALLIX NII
Your Company received $118,491 ervice mail pay during the year from the Post Office Department
for the carriage of United States mail, compared with $108,147 in 1954. The mail ton miles flown
decreased from 145,769 in 1954 to 140,853 in 1955. The increase in pay, despite thi decline in tonnage,
wa cau d in part by the fact that the o-called multielement formula for the carriage of mail
described in our la t year's report wa made final by the Civil Aeronautics Board in 1955. The new
formula for the paym nt of mail pay was retroactive to May 1, 1954. Service mail pay, which is paid
hy the Po t Office Department, i distinct from uh idy whi h i paid by the Civil A ronautic Board.
On December 31, 1955, there were 962 em-
ployees on the payroll of the Company, com-
pared with 946 at the end of 1954. The peak
employment figure was 1,158 and the minimum
figure was 929, thus producing an average of
1,016 employees. Indicative of this problem is
the fact that 400 employees were hired and 384
terminated during the year. These statistics, how-
ever, do not fairly present the impact of one of
Northeast's most serious problems: that is, sea-
sonal fluctuations in its operations. For example,
we carried 28,710 passengers in February and
80,611 passengers in July.
As your Company becomes older, the experi-
ence level of personnel increases and forms a nucleus around which the organization may be expanded.
As of the end of the year, four employees had received their twenty-year pins and 297 had completed
over ten years' service with the Company.
Total wages and salaries paid during 1955 amounted to $4,950,000.
The value of securities and cash held by the trustee for the Northeast Airlines Retirement Plan
now exceeds $500,000.
On September 30, your Company signed a stand-by credit agreement with The Chase Manhattan
Bank of New York, Manufacturers Trust Company of New York, The First National Bank of Boston,
The National Shawmut Bank of Boston and The Second Bank-State Street Trust Company of Boston
for $11,000,000 to finance the purchase of the ten Douglas DC-6B aircraft, which was previously
mentioned. Under the terms of the agreement the Company is required, among other things, to maintain
in its capital structure, including subordinated indebtedness, equity at least equal to the aggregate
bank loan outstanding. Interest on the loans is 4 per cent per annum, and the stand-by charge on the
unused credit is of 1 per cent per annum.
At December 31, 1955, we had borrowed $700,000 on this credit agreement and had paid back
$400,000 from the proceeds of the Convair sale, leaving a net outstanding loan of $300,000. On March 1,
1956, another $1,670,000 was borrowed to complete the payment of 25 per cent of the cost of the DC-6B's.
,,,
QUEBEC \
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NEW YORK - FLORIDA PROCEEDING I
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1 Hearings on the applications of your
Company and certain other air carriers
for certification between New York and
Florida were held for approximately three
and one-half months last summer before
Assistant Chief Examiner Thomas L. Wrenn of the
Civil Aeronautics Board in Washington, D. C.
Your Company participated actively in these hear-
ings and filed extensive exhibits in support of its
position. Briefs to the Examiner have been sub-
mitted and his Initial Decision is expected shortly.
A final decision by the Civil Aeronautics Board is
expected later this year.
Your Company was pleased and encouraged
by the position taken by counsel for the Board's
Bureau of Air Operations in his brief to the Ex-
aminer. Bureau Counsel, who has the responsi-
bility of recommending to the Examiner and to
the Board what the Bureau of Air Operations
believes to he in the public interest, has recom-
mended that there he a third air carrier certificated
on this heavily traveled route and that this third
carrier he Northeast.
He also refuted claims of Eastern and National
to the effect that further competition on the New
York-Florida route would he disastrous for them,
WASHING TON e"
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HESTER
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OR.D NANTUCKET
_ / MARTHA'S VINEY ARD
LONDON
Northeast Airli,res
____ PRESENT ROUTES
-------- PROPOSED ROUTES
and further concluded that Pan American's certification would destroy the balanced competition which
the Board has recently achieved in its New York-Balboa decision, where interchange services between
northeastern United States and Central and South American points were author-
ized. He also stated that Pan American, different from Northeast, has many other
opportunities to achieve self-sufficiency.
Ill. OUTLOOK FOR 1956
On January 23, 1956, the Company was fortunate to have Mr. Laurence F. Whittemore return to
a place on the Board of Directors. Mr. Whittemore is a pioneer in the field of aviation and, in particular,
of Northeast Airlines. It was his original survey on the need for air service in New England which led
to the founding of your Company in 1933. He served as Vice President of Northeast from its inception
until the railroads were forced to sell their interest in 1943.
Since that time, Mr. Whittemore, a native of New Hampshire, has further distinguished himself
in the transportation industry by serving as President of the New York, New Haven and Hartford
Railroad, and also as Assistant to the President of the Boston & Maine and Maine Central Railroads.
He has gained national recognition by service as President of the Federal Reserve Bank of Boston,
President of the New England Council and also as a member, by Presidential appointment, of the
International Development Advisory Board. In a more local sphere, he is currently Chairman of the
Board of Directors of The Brown Company of Berlin, New Hampshire, a leader in the field of pulp
and paper manufacturing.
The management of your Company has continued its search for solutions to its uneconomic route
structure, for only the financial support of the Federal government has permitted New England a
reasonable amount of air service.
Inherently, our load factors are adversely affected by such things as the tapering routes and by
the predominant one-way flow of week-end traffic during the summer season. The average length of
our passenger trip is the lowest experienced by any of the trunk line air carriers, but our problems
in securing each passenger are at least equal to those of such other airlines. In addition, our average
airplane trip is shorter than that of any of these carriers, which tends to make our maintenance and
operating costs disproportionately high for each mile of flight.
Another troublesome and unresolved economic characteristic is the tremendous fluctuation of
demand between seasons. If we owned sufficient equipment and employed enough trained personnel
to take care of the peak summer traffic, we would have excess airplanes and lose many of our trained
employees during the slack season. On the other hand, if we reduced our fleet to a winter operational
level, we would be unable to take care of our summer commuters.
We believe that the obvious solution will be found in the extension of our route from New York
to Florida.
The granting of this extension would free Northeast from dependence upon subsidy. The traffic
demands of Florida in the winter and New England in the summer would complement each other
perfectly. Certification of Northeast would also afford valuable additional competitive service between
major New England points on the one hand, and Florida points on the other hand and, additionally,
valuable new one-carrier service from virtually all of New England to Washington and Florida.
We are hopeful that the Civil Aeronautics Board will look favorably upon our petition.
It is well recognized by your management that the mere granting of a route extension will not
by itself create a subsidy-free, profitable corporation. Personnel will be more than doubled. The Com-
pany's capital, including long term debt, of over $5,000,000 must be expanded nearly five times.
The problems are challenging.
Nevertheless, your management feels that the inspiration of a favorable decision by the Civil
Aeronautics Board will so encourage all personnel that the planning and the execution of an expanded
program can be smoothly carried out to the benefit of our stockholders, our employees, the travelling
public and all the communities which we will serve.
To all of these I would like to express our gratitude for their continued .loyalty and support
during the past year.
For the Board of Directors
GEORGE E. GARDNER, President
~ortheast Airlines,
INC.
Current assets:
Cash
Receivables:
U.S. Government
Airline traffic .
Other
Prepaid insurance and other expenses
Miscellaneous supplies ( at average cost)
TOTAL CURRENT ASSETS .
P roperty and equipment, at cost:
Flight equipment and related spare parts (note B)
Hangar and service building on leased land
Ground and shop equipment .
Improvements to rented properties
Warehouse and land
Construction in progress and nonoperating property
Less allowances for depreciation and amortization
Property and equipment less allowances .
Advance payments and costs on purchase of flight equipment (note C)
Investments in airlines service organizations .
Special funds for uninsured losses (workmen's compensation) and other
deposits .
Receivable under stock purchase contract (note D) .
Deferred charges:
Route extension and development
Other .
1955
$1,238,789
557,968
553,946
126,452
151,319
81,013
2,709,487
5,298,532
702,963
677,100
168,263
83,657
41,840
6,972,355
4,323,375
2,648,980
1,227,358
29,930
66,352
26,875
139,774
22,851
$6,871,607
BALANCE SHEET
As of December 31, 1955 and 1954
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1954
$1,420,059
512,136
462,656
110,872
51,448
108,781
2,665,952
5,449,125
664,599
655,797
206.,040
83,657
25,319
7,084,537
3,876,953
3,207,584
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29,680 I
56,461
26,875
59,347
8,398
$6,054,297
Current liabilities:
Accounts payable - general
Airline traffic accounts payable
Collections and withholdings as agent
Accrued salaries and wages .
Accrued federal income tax
Accrued social security and other taxes
Other accrued liabilities .
Unearned transportation revenue
Dividend payable on preferred stock
TOTAL CURRENT LIABILITIES .
4o/o notes payable under bank credit agreement (note B)
Reserve for uninsured losses (workmen's compensation)
Reserve for aircraft overhaul ( note E)
Stock purchase contract (see contra) .
CAPITAL
Convertible preferred stock of no par value (note F) :
Authorized 85,000 shares
Issued and outstanding, excluding 36 shares in treasury:
1955, 20,369 shares; 1954, 43,344 shares
Common stock, par value $1 per share:
Authorized 2,000,000 shares (note D)
Issued and outstanding - fully paid:
1955, 905,804 shares; 1954, 828,268 shares
Issued under stock purchase contract - part paid:
10,000 shares at 50 cents per share paid thereon (unpaid balance
under contract, $26,875 shown above)
Capital surplus, per accompanying statement .
Earned surplus since July 1, 1940, per accompanying statement (note B)
TOTAL CAPITAL .
The accompanying notes are an integral part of the above balance heet
1955 1954
$ 212,735 $ 195,462
256,967 229,456
149,523 126,043
238,682 222,682
128,500 73,000
26,625 22,582
38,600 69,307
183,326 140,053
5,092 10,836
1,240,050 1,089,421
300,000
65,876 57,760
148,121 143,375
26,875 26,875
407,380 866,880
905,804 828,268
5,000 5,000
2,642,060 2,260,097
1,130,441 776,621
5,090,685 4,736,866
$6,871,607 $6,054,297
STATEMENT OF PROFIT AND LOSS
For the Years Ended December 31, 1955 and 1954
Operating revenues:
Passengers .
Air mail (including amounts designated as federal subsidy)
Express, freight and excess baggage
Other, net .
TOTAL OPERATING REVENUES
Operating expenses:
Conducting transportation
Maintenance and repairs (note E)
Provision for depreciation and amortization
Traffic, sales and advertising
General and administrative .
Taxes other than income taxes
TOTAL OPERATING EXPENSES
OPERATING PROFIT
Nonoperating income:
Gain on sale of aircraft
Credit from insurance settlement on aircraft
Miscellaneous charges, net
PROFIT BEFORE FEDERAL INCOME TAX
Provision for federal income tax .
NET PROFIT FOR YEAR
1955
. $ 7,938,798
1,703,761
373,664
104,077
10,120,300
4,719,511
1,969,622
784,534
1,437,913
763,943
296,390
9,971,913
148,387
377,217
(20,774)
504,830
124,893
$ 379,937
1954
$7,118,264
1,946,748
323,726
62,466
9,451,204
4,371,794
1,929,689
618,782
1,362,463
728,345
270,207
9,281,280
169,924
38,914
(6,350)
202,488
64,376
$ 138,112
The accompanying notes are an integral part of the above statement of profit and loss.
~ortheast A
irlines,
INC.
Balance at beginning of year
Net profit for year .
US SINCE JULY
For the Year Ended December 31, 1955
Cash dividends declared on convertible preferred stock - $1.00 per share
Balance at end of year ( note B)
E T OF CAPITA
For the Year Ended December 31, 1955
Balance at beginning of year .
Excess of amount paid in on 22,975 shares of convertible preferred stock surrendered for con-
version over par value of 77,5361/2 shares of common stock issued in exchange therefor
$ 776,621
379,937
1,156,558
26,117
$1,130,441
$2,260,097
381,963
Balance at end of year .
. $2,642,060
A. Uniform System of Accounts:
The accompanying financial statements are prepared generally in accordance with the Uniform
System of Accounts for Air Carriers prescribed by federal authorities.
B. Bank Credit Agreement:
Notes payable to banks under a credit agreement dated September 30, 1955 are secured by a
mortgage on the company's flight equipment and related spare parts. Under terms of this agree-
ment $10,300,000 additional credit is available to the company, subject to certain conditions, with
commitment fee of of 1 % per annum payable on unused balances. Loans bear 4% interest and
are payable in quarterly instalments beginning March 31, 1958 and ending not later than December
31, 1962 (the last instalment on the loan outstanding at December 31, 1955 is payable March 31,
1960) . Proceeds of loans can be used only for the purchase of aircraft and spare parts referred to
in note. C. Interest and commitment fee incurred to the date the new equipment is placed in
service will be capitalized as part of the cost of the equipment.
Among other provisions the credit agreement restricts the amount of cash dividends which may
be paid on the company's common stock to a portion of the net income accrued subsequent to
December 31, 1954. Under that restriction not more than $153,000 of earned surplus at December
31, 1955 was available for the payment of common dividends.
C. Commitment for Purchase of Flight Equipment:
In March 1955, the company agreed to purchase ten Douglas Model DC-6B aircraft at a cost of
approximately $11,550,000 and in addition to purchase spare parts therefor. At December 31, 1955
advance payments of $1,218,000 have been made on these aircraft. Based on the estimated delivery
schedule an additional $1,670,000 is payable in 1956 and the balance in 1957.
D. Employee Stock Option and Stock Purchase Plans:
In 1954, the company established a stock option plan for key employees under which 100,000
shares of authorized and unissued common stock have been reserved for granting of options at a
price per share not less than 85 % of the fair market value on the dates such options are granted.
As at December 31, 1955, options to purchase 25,000 shares of common stock at a price of $3.6125
per share have been granted under this plan. These options are exercisable until August 20, 1956.
In addition to the foregoing plan the stockholders in 1947 reserved 100,000 shares of authorized
and unissued common stock for sale to employees at a price, payable in instalments, not less than
fair market value thereof at the date of purchase contract. As at December 31, 1955, no such sales
had been made other than 10,000 shares sold under contract to the president of the company in
194 7 at the then market price of $31,875. The balance of $26,875 receivable on this contract be-
comes due on or before May 24, 1957.
E. 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 $52,977 in 1955 and $58,517 in 1954. The costs of aircraft overhaul charged against
the reserve were $48,231 in 1955 and $8,721 in 1954.
F. Convertible Preferred Stock:
The convertible preferred stock has been called for redemption on March 12, 1956 at $22 per
share plus dividends accrued thereon to the redemption date. Each share of preferred stock is
convertible into 21/s shares of common stock until March 5, 1956.
G. Retirement Plan:
Payments to the trustee under the company's noncontributory retirement plan for employees aggre-
gating $167,146 for 1955 (including approximately $43,500 on account of past service) have been
charged to general and administrative expense. If the unfunded past service cost of the plan had
been paid in lump sum as of December 31, 1955 approximately $360,000 additional would have
been required.
Effective May 1, 1955 the company agreed to contribute to a supplemental contributory retirement
plan for pilots. Payments to the trustees under this agreement aggregating $24,377 for 1955 have
been charged to general and administrative expense.
H. Contingencies:
The company has joined with nine other airlines in an agreement with Triborough Bridge &
Tunnel Authority. Under this agreement the company guarantees its proportional share in case
of any default under a long-term lease of a Manhattan terminal building by the Authority to a
corporation organized by the several airlines. The company also has entered into a long-term sub-
lease for a portion of the space in the building.
LYBRAND, Ross BRos. & MONTGOMERY
NORTHEAST AIRLINES, INC.
BOSTON, MASSACHUSETTS
80 FEDERAL STREET
BOSTON 10
We have examined the balance sheet of Northeast Airlines, Inc. as at Decem-
ber 31, 1955 and the related statements of profit and loss, of earned surplus 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 circumstances.
In our opinion, the accompanying statements present fairly the financial position
of Northeast Airlines, Inc. at December 31, 1955 and the results of its operations for
the year then ended, in conformity with generally accepted accounting principles
applied on a basis consistent with that of the preceding year.
Lybrand, Ross Bro . & Montgomery
Boston, Massachusetts
February 27, 1956
DATA FROM MOODYS DEC. 31
CASH
MARKETABLE SECURITIES
RECEIVABLES
INVENTORIES
OTHER ASSETS
NET PROPERTY
IN THOUSANDS OF DOLLARS
Groupings determined by
CAB Accounting Procedures
3,252
3,554
5,294
1~53
4,729
NORTHEAST AIRLINES, INC.
6,872
6,257
4,938
4,850
1,638
DAT A FROM MOO DYS DEC. 31
NOTES PAY ABLE CURRENT
ACCOUNTS PAY ABLE
TAX AND OTHER ACCRUALS
LONG TERM INDEBTEDNESS
RESERVES
SURPLUS
CAPITAL STOCK
IN THOUSANDS OF DOLLARS
Groupings determined by
CAB Accounting Procedures
3,252
1,847
1947
5,294
184
1950
ties and Ca
NORTHEAST AIRLINES, INC.
1951 1952
$6,872
6,257
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1953 1955
From Manhattan's
"Grand Canyon" it's an
easy hour by Northeast
to Boston ... cradle of
culture, scene of ~he
annual Arts Festival with
exhibits June 9th to
24th. And just 84 min-
utes flight time from his-
toric Boston is Montreal,
a happy blend of old
and new worlds, Gate-
way to all Canada and
the second largest
French speaking city in
the world.
Just north of Montreal lie the majestic
Laurentia ns, North America's own
Switzerland, a magic white-blanketed
playground for the world's winter
sports enthusiasts.
--
In whatever direction one travels through New
England, there is an unexcelled variety of recrea-
tional attractions, industrial activity, historic and
cultural interests. Winter and summer are competing
seasons in New England for sports and vacation-
minded people. From the mountains of Maine, New
Hampshire, Vermont and Canada's Laurentians . . .
through valleys and rolling countrysides of Mas achu-
setts, Connecticut and Rhode Island, to its miles of
varied coastline, New England combines every con-
ceivable attraction for vacationers who fly ortheast
from Boston, New York and Montreal ... and from
its strategically located airports throughout the six
New England states.
At every turn, from the smallest hamlet to the
most populated cities, there are constant reminders of
New England as the place where American history
began. Only dependable year 'round Northeast sched-
ules could so closely knit all of these areas and their
abundant interests.
... the swift, blue skyway
to and through all NEW ENGLAND
Travel-wise people, vacation or business-
bound throughout this compact, busy corner
of the U. S. A., depend upon Northeast for
swift, comfortable, convenient year 'round
transportation. Its vast network of highways
in the sky bring ever closer together New Eng-
land's world-famous resort areas, industrial,
educational, medical and business centers.
This thriving area becomes, through North-
east service, an easy destination or take-off
for world-wide travel with convenient con-
nections at New York, Montreal and Bo ton.
The scenic charm of
Connecticut goes hand
in hand with its other
vacation attractions
from the Connecticut
River Valley down to
Long Island Sound .

Sailing, fishing and all
water sports are pop-
u I a r along Rhode
Island's extensive and
irregular coastline.
Miles and miles of sandy beaches are characteristic of
Massachusetts from the north shore all the way around Cape
Cod and The Islands.
Hampshire's mountains provide the perfect setting for
seats of learning as Dartmouth College in Hanover.
Comparative Statistics
1946-1955
1955 1954 1953 1952 1951 1950 1949 1948 1947 1946
Revenue Miles
Flown 6,590,634 6,316,944 5,689,854 4,729,487 4,743,281 4,235,126 4,021,226 3,386,881 3,947,030 4,177,375
Completion of
Scheduled Miles 92.53% 90.86% 90.28% 91.46% 92.94% 92.58% 93.54% 87.86% 83.81% 82.46%
Passenger
Revenue $7,938,798 $7,118,264 $6,227,406 $5,570,124 $5,535,763 $4,440,034 $3,992,450 $3,241,912 $3,468,913 $4,256,115
Revenue Passengers
Carried 582,478 523,489 463,712 427,685 454,738 372,497 324,963 272,292 325,172 417,095
Revenue
Passenger Miles 116,450,932 104,226,881 91,398,933 83,675,411 87,507,199 70,468,046 61,957,458 52,091,160 62,143,281 83,848,737
System
Load Factor 59.22% 55.91% 55.32% 58.04% 60.91% 51.82% 48.36% 48.02% 51.24% 65.76%
Passenger Revenue
Per
Revenue Mile Flown $1.2046 $1.1269 $1.0945 $1.1777 $1.1671 $1.0484 $.9928 $.9572 $.8789 $1.0189
Revenue Per
Passenger Mile $.0682 $.0683 $.0681 $.0666 $.0633 $.0630 $.0644 $.0622 $.0558 $.0507
~ortheast Airlines
See More, Eajoy More of
tlorfheast i, lh<.- fa.;L, comfortohlr. rda,ing "O) to &ec mocr, enjo~ mon of
thi compact, hwJ and beautiful t-h.~tate area. \\'inlt'r and .. ummc.~r rt.-.orl ...
int1u ... trial. Jm ... inc ... -. and educational ccntr.-.... the homt~ lOttn uf ~our foll-_ .. anti
frirrnls .. all are '"ithin ('8 .. ~ reach on i-\\ift. ronHnient '\or-thra .. t M0
l11duh ...
For plta..,un or hu .. int ...... n, on. rrl) on '\orthca ... t \irli.Ju. ... ronm.rtin~ at '\1,\ York.
130,1011 a111I \lontrral to all 1h, \\Oriti be~ond!
Wrhlw1tEl_,.la,Mtl(...,_,. .......... ,_,.,
,.,.._o,;,,..u,.w..,J.,,.,~JIW'\'f("'-
L.,.., ... ,,.., .... ~ , ...... 21,Mon.
N orthcast is forever con c10u of its place in the
service and advancement of New England interest . This is no
small responsibility which Northea t as umes with the full vigor
of every promotional possibility, including such nationwide
efforts as thi full page, full color advertisement in HOLIDAY.
Printed in U.S. A,