mEnT. 
 Page Two 
OFFICERS 
FRANK W. HULSE, President 
IKE F. JONES, Vice-Pres;dent 
ToM D. EvE, Vice-President, Traffic and Sales 
GEORGE F. ESTEY, Secretary-Treasurer 
CECIL A . BEASLEY, JR., Assistant Secretary 
W. B. WHITE, JR., Assistant Secretary 
F. L. McLEOD, Assistant Treasurer 
DIRECTORS 
CECIL A. BEASLEY, JR., Attorney 
Kilpatrick, Ballard & Beasley 
WASHINGTON, D. C. 
ROBERT Z. CATES, President 
Arkwright Mills 
SPARTANBURG, S. C. 
FRANK W . HULSE, President 
Southern Airways, Inc. 
BIRMINGHAM, ALA. 
BIRNEY IMES, ]R., President 
The Commercial Dispatch 
COLUMBUS, MISS. 
HENRY P. JOHNSTON, Executive Vice-President 
The Birmingham News Company 
BIRMINGHAM, ALA. 
IKE F. ]ONES, Vice-President 
Southern Airways, Inc. 
AUGUSTA, GA. 
ARTHUR M. SPIES, JR., A ssistant to the President 
Meyer Hotels 
BIRMINGHAM, ALA. 
ELTON B. STEPHENS, President 
Elton B. Stephens Associates 
BIRMINGHAM, ALA, 
ERNEST H . WOODS, President 
Liberty Motors, Inc. 
BIRMINGHAM, ALA . 
. STOCK TRANSFER AGENT 
The First National Bank of Birmingham, Birmingham, Ala. 
GENERAL OFFICES 
Municipal Airport, Birmingham, Ala. 
OPERATIONS HEADQUARTERS 
Municipal Airport, Atlanta, Ga. 
 Southern Airways, Inc., is one of America's new- 
est certificated airlines. The company provides 
daily scheduled airline service to 20 cities in 
seven Southeastern states. Our general offices 
are in Birmingham, Ala. Traffic, sales and opera- 
tions are conducted from the Municipal Airport 
in Atlanta, Ga. At present, two daily round 
trips are provided between Memphis and Char- 
lotte, and between Atlanta and Jacksonville. 
Atlanta to Columbus, Ga., receives three daily 
round trips, while Columbus, Ga.-Charleston, 
S. C., receives one daily round trip. This service 
involves almost 5,000 miles of daily scheduled 
flying. 
On January 5, 1944, we filed an application 
with the Civil Aeronautics Board for the right 
to establish a system of feeder airline routes 
throughout the South. After more than five years 
of studies, hearings, and other procedural steps, 
our award for the system presently operated be- 
came effective on February 8, 1949, when we 
were granted a Certificate of Public Convenience 
and Necessity to provide service to 23 
cities, covering 1,332 route miles. Three of 
these cities, namely Tupelo, Miss., Rock Hill and 
Orangeburg, S. C., are not presently being served 
A 
YEAR OF 
ACHIEVEMENT 
because of inadequate airport facilities. It is con- 
templated that service to Tupelo will commence 
in the fall of 1950. 
On June 10, 1949, scheduled service was 
inaugurated between Memphis and Atlanta with 
one daily round trip. On June 25 the Atlanta- 
Jacksonville segment was activated with one 
daily round trip. On July 5 service was increased 
to provide two daily round trips between Jack- 
sonville and Atlanta. On August 5 service was 
started between Atlanta and Charlotte with two 
daily round trips. The final segment, Columbus, 
Ga., to Charleston, S. C., was activated on Sep- 
tember 15. 
A pre-inaugural flight was operated over each 
segment of our system shortly before scheduled 
service began. Prominent citizens from each of 
the communities were carried on these flights, 
which received extensive press and radio pub- 
licity. 
Shortly after inauguration of service over our 
complete system, we were granted instrument 
flying authorization, which made our operations 
much more dependable. Early in January we 
were approved for the use of the Instrument 
Landing System, which has enabled us to operate 
Page Three 
 under the same weather conditions as the older 
airlines that have been serving this area for years. 
Of the 20 communities served by Southern, 
seven had never received scheduled airline serv- 
ice before. These are: Athens, Ga.; Moultrie, 
Ga. ; LaGrange, Ga.; Gadsden, Ala.; Tuscaloosa, 
Ala.; Greenwood, S. C., and Columbus, Miss. 
We are proud of the fact that we have placed 
these cities on the airline map of the world. 
Southern has applied for additional routes to 
round out local coverage of the South. It is 
hoped that we will be approved for service into 
New Orleans and other Mississippi Valley 
points during the summer of 1950. 
It is gratifying to know that in the short 
twelve months that we have operated, Southern 
Airways has become an integral part of the 
ToM D. EvE 
Vice-President, 
Traffic and Sales 
Joined Southern Airways Com- 
pany in 1941. Managed Augusta, 
Greenville, Charlotte, Atlanta 
operations. Prior to this he had 
obtained commercial pilot's rat- 
ing. In 1949, was named vice- 
president, Southern Airways. Inc., 
and was active in financing of 
new company. 
F. 1. McLEOD 
Assistant Treasurer 
Has wide experience in Airline 
accounting procedures. Formerly 
with Chicago & Southern Air 
Lines, Colonial Airlines, Con- 
solidated Aircraft, and Florida 
Airways. 
Page Four 
commun1t1es which we serve. In addition to the 
cities that have never enjoyed scheduled airline 
service before, we have opened new markets and 
new opportunities for many other cities. At least 
one new industry has been brought into the area 
by Southern Airways. 
The 215 employees working for Southern are 
all young, energetic, and specialists in their re- 
spective fields. Every one of them is anxious to 
provide you with the safest, most convenient 
and dependable service possible. 
June 20, 1950 
Respectfully yours, 
HUGH 
w. DAVIS 
0 perations Manager 
Active in aviation for 16 years. 
Associated with TWA, the Civil 
Aeronautics Adm., Colonial Air- 
lines, and Robinson Airlines, be- 
fore joining Southern Airways. 
Now has charge of all Southern 
operations. 
GEORGE F. ESTEY 
S ecretary-T n:as urer 
Has 25 years of auditing and 
accounting experience. Joined 
Southern Airways in 1945. In 
1948 he was named secretary- 
treasurer. 
 1949 
AIR 
PASSENGEHS 
June 
July 
Aug. 
Sept. 
Oct. 
Nov. 
THROUGH 
POUNDS 
AIR 
MAIL 
THROUGH 
POUNDS 
AIR 
EXPRESS 
THROUGH 
Dec. 
Jon. 
feb. 
Mar. 
Apr. 
1950 May 
1949 June 
July 
Aug. 
Sept. 
Oct. 
Nov. 
Dec. 
Jon. 
Feb. 
Mor. 
Apr. 
1950 Moy 
1949 June 
Jufy 
Aug. 
Sept. 
Oct. 
Nov. 
Dec. 
Jon. 
Feb. 
Mar. 
Apr. 
1950 Moy 
YOUR COMPANY'S PROGRESS 
CUMULATIVE TOTALS - MONTHLY FROM JUNE 1949 - MAY 1950 
0 6,250 12,500 25,000 
21737 
0 100 000 200000 300,000 400,000 
100 000 200000 300000 400000 
158 778 
181,039 
201,280 
231 819 
314,947 
 BUILDING 
THE SOUTHEAST 
INDUSTRY-The growth of Southeastern industry is one of the most 
phenomenal in the history of American business. Manufacturing plants from 
crowded eastern areas find climate and labor conditions ideally suited to 
their requirements. 
Columbus, Mississippi, for example, was selected as the location of a great 
nursery company's operations because Southern Airways service was available. 
More and more industries are choosing Southern sites with air service. 
AGRICULTURE-The once bare and eroded Southeastern cotton fields have 
now become green and verdant due to the diversification of crops. No longer 
a one-crop economy, Southern agriculture is keeping up with the growth of 
industry in the southeast. Southern Airways expedites the sale of farm produce, 
helps the farmer travel so he may broaden his markets and shop in larger 
centers. 
BUSINESS--Retail stores reduce inventories with Southern Airways service. 
Air parcel post, air express and air mail help move goods faster between 
factory and consumer. Retail stores benefit through rapid turnover and reduced 
inventory. A jeweler in Gadsden, Ala., says it saves money to have air service 
because, "I can get goods from almost anywhere in less than one day." 
FINANCE-Southern Airways carries a record volume of air mail, much of 
it money in the form of checks. Checks clear faster and the rapid exchange 
thereby expedites many business transactions. Checks, drafts, bonds, and stocks 
are taking wings and flying to work on Southern Airways. 
RECREATION-The week-end vacation has come to the Southeast. With 
Southern Airways service, hours and days are added to holidays. The farmer or 
merchant and his family in the mid-South can go to the mountains or to the 
beach in a couple of hours, and the business man can commute between vacation 
spot and office. 
 SOUTHERN AIRWAYS 
Helps Build Business In Twenty Leading Southeastern Cities 
Offering Scheduled 
Airline Service to 
More Than 2 Million 
People. 
Annual Retail Sales 
of Cities Served Are 
More Than 2 3/4 
Billion Dollars. 
~ 
I ~ 
Jouthern 
AIRWAYS 
 BIRMI GHAM 
Alabama 
Beautiful industrial city-the 
"Pittsburgh of the South." 
One of the leading manufac- 
turing, and trading centers of 
the South, with great natural 
mineral reserves. Serves as a 
wholesale market for more 
than 2 million people m a 
radius of 150 miles. 
CHARLOTTE 
orth Carolina 
"Queen City" of the Caro- 
linas, and the largest city in 
both states. Dist rib u ti on, 
manufacturing, and financial 
center of a rapidly expanding 
region. One of the 25 largest 
markets in the U. S. 360 
Charlotte manufacturers em- 
ploy more than 20,000 people. 
Page Eight 
TU CALOO A 
Alabama 
County seat; industrial, chemi- 
cal, agricultural, mining, and 
educational center. The Uni- 
versity of Alabama is one of 
the great institutions of higher 
learning in the South. 
COLUMBUS 
Mississippi 
An important center of 
trade, agriculture, and rn- 
d ustry for a large area be- 
tween Memphis and Birm- 
ingham. A true city of The 
Old South. Now has 40 di- 
versified industries. A vari- 
ety of crops, chiefly cotton, 
are grown rn Lowndes 
County. 
Page Nine 
 SOUTHERN AIRWAYS IS 
IT IS THE BUSINESS OF THE MANUFACTURER AND WHOLESALER . . . 
Southern Airways is, of course, a large purchaser of the supplies and materials 
necessary to operate an enterprise of its kind. Too, other manufacturers and 
distributors are interested in Southern as a means of rapid shipment of their 
goods, and expediting other phases of their activities. 
IT IS THE BUSINESS OF THE LOCAL BUSINESSMAN ... 
Southern employees buy locally for their own needs, and retail merchants 
benefit accordingly. Other businessmen engaged in serving the traveling public, 
such as restaurants, hotels, and cab companies, also profit from air travel. 
IT IS THE BUSINESS OF THE FARMER ... 
Farm income in the South trebled in nine years from $2.5 billion in 1940 to 
$9.6 billion in 1948. Many factors, among them mechanization, crop diversi- 
fication, and the development of rural markets through improved air transport, 
have brought about this rural prosperity, which is of course reflected in the 
town and cities of the South. 
IT IS THE BUSINESS OF THE SOUTHERN FAMILY . 
Page Ten 
The family living on the farm or in town is now only a few hours away from 
the recreational, business, and shopping centers of the South. (In fact, each 
city served by Southern is now no more than 65 hours away from any point 
in the world served by scheduled airlines.) Beaches, mountains, resort areas 
of all kinds are as close in distance as in time, and Southern families are 
making new neighbors of those living everywhere in the Southeast. 
 EVERYBODY'S BUSINESS 
IT IS THE BUSINESS OF SOUTHERN AIRWAYS EMPLOYEES ... 
Southern Airways is a Company of men and women dedicated to building their 
country and their company. Southern Airways is truly their company-50o/o of 
the pilots, ticket agents, office personnel and other employees have invested 
their savings in company stock so that modern air transportation might be 
available to Southern cities. 
 C. W. BRADFORD 
Chief Pilot 
E. A. BosTLEMAN 
Superintendent of Communications 
F. A. SHINE 
Manager of Schedule and Tariffs 
R. w. HUNT 
Manager of Traffic and Sales 
Page Twelve 
T. R. FOSTER 
Superintendent of Maintenan 
C. M. DEKLE 
Chief Dispatcher and 
Superintendent of Stations 
  ASSETS 
CURRENT ASSETS: 
Cash on Hand and in Banks ................................. $ 68,248.97 
U. S. Government Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000.00 
Accounts Receivable..:_U. S. Mail Pay . . . . . . . . . . . . . . . . . . . . . . . . . 98,101.16 
Other Accounts Receivable and Notes Receivable . . . . . . . . . . . . . . . . 50,094.69 
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,378.66 
Total Current Assets .................................. $ 580,823.48 
Additional Mail Revenue Due From U.S. Post Office Department .... $ 287,834.41 *  
Investments and Special Funds ............................... . 511.00 
Operating Property and Equipment ......... $616,074.06 
Less: Reserve for Depreciation .......... 207,729.48 408,344.58 
Prepayments and Deferred Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159,482.87 
TOTAL ASSETS ........ : ....................... $1,436,996.34 
*Represents net operating costs, extension and development expenses which are considered to be 
minimum additional amount reimbursable by the U. S. Post Office Department upon establishment of 
a permanent mail rate by the Civil Aeronautics Board. It is expected that the permanent mail rate 
will include a reasonable profit. No such profit, however, is reflected in this statement. 
LIABILITIES 
CURRENT LIABILITIES: 
Notes Payable ............................................ $ 169,467.93 
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,682.24 
Other Current and Accrued Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 94,948.91 
Total Current Liabilities ................................ $ 390,099.08 
Deferred Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,637.57 
Long Term Debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475,776.60 
CAPITAL AND NET WORTH 
Capital Stock: Common, $3.00 par value; 
Outstanding 164,223 1/ 3 shares ......................... : $ 492,700.00 
Surplus ......................... ....................... (17,216.91) 
Total Capital ......................................... $ 475,483.09 
TOTAL LIABILITIES AND CAPITAL .............. $1,436,996.34 
Page Fourteen 
 REVENUE 
Passenger ............................................... $ 208,824.49 
U. S. Mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,007,958.36 
Air Express ............................................. . 
Excess Baggage .......................................... . 
Incidental .............................................. . 
10,030.29 
1,084.04 
2,284.54 
Total Revenue ................................... $1,230,181.72 
OPERA TING EXPENSES 
Flying Operations ......................................... $ 703,558.04 
Depreciation Flight Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,895.38 
Ground Operations .................. . . . . . . . . . . . . . . . . . . . . . 230,469.09 
Indirect Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,123.30 
Passenger Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,407.92 
Traffic and Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114,276.72 
Advertising and Publicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,978.00 
General and Administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,977.17 
Ground Equipment Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,889.07 
Total Operating Expenses .......................... $1,453,574.69 
Net Operating Profit (Loss) . . . . . . . . . . . . . . . . . . . . . . . . (223,392.97) 
Non-Operating Income (Expense) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 68,940.27) 
Net Profit (Loss )-Based on Present Mail Rate . . . . . . . . . . . . . . . . . . . . . (292,333.24) 
Minimum Additional Amount" Reimbursable 
Upon Establishment of a Permanent Mail Rate . . . . . . . . . . . . . . . . 287,834.41 * 
Net Loss: After Additional Anticipated Revenue ........... . ( 4,498.83) 
* It is expected that the permanent mail rate will include a reasonable profit. No such profit, however, 
is reflected in this statement. 
Page Fifteen 
 "Your Service In The South" 
~~~~==--- 
A YEAR OF 
 TO STOCKHOLDERS, CUSTOMERS AND FRIENDS: 
Since the preparation of our first report to you, the Civil Aeronautics 
Board has approved our application for additional service in the lower 
Mississippi Valley area. This will give us a total of 2,122 route miles be- 
tween 31 cities in 8 southeastern states. The map below shows our expanded 
system, and also Tupelo, Mississippi to which service will begin shortly. 
The additional mileage will enable us to operate more economically and 
to provide better service for the entire area which we serve. 
Service to the newly approved area will be inaugurated as rapidly as 
equipment can be obtained and installations made. The company expects to 
provide two daily round-trips over all of the new routes before the end 
of 1950. 
The extension of our system reaffirms the confidence of the Civil 
Aeronautics Board in the South and in Southern Airways. 
Re