Southern Airways Annual Report 1963

Southern Airways inc.
ANNUAL REPORT
1963
2
Southern Airways inc.
DIRECTORS
CECIL A. BEASLEY, JR.
Kilpatrick , Ballard & Beasley
Washington, D . C.
ALEXANDER J. BRUNINI
Brunini, Everett, Grantham & Quin
Vicksburg, Mississippi
F. BARTON HARVEY
A lex Brown & Sons
Baltimore M aryland
ALTON F . IRBY, Jr.
Jrhy-A dams-Cates Co.
Atlanta, Georgia
G . GUNBY JORDAN
The Jordan Company
Columbus, G eorgia
EXECUTIVE COMMITTEE
GRAYDON HALL
FRANK W. HULSE
OFFICERS
FRANK W. HULSE
President
M . LAMAR MUSE
Vice-President- Finance
C. H . D. TARRER
Secretary-Treasurer
GEORGE F. ATWOOD
A ssistant Vice-President-
Facilities and Properties
CECIL A. BEASLEY. JR.
A ssistant Secretary
FRANCIS D. SCHAS
Bullington-Schas & Co.
M emphis, Tennessee
W. B. WHITE, JR.
Bradley, Arant, Rose & White
Birm ingham, Alabama
EDWARD U . BENEKE
The Beneke Corporation
Columbus, Mississippi
GRAYDON HALL
Southern Airways, Inc.
Atlanta, G eorgia
FRANK W. HULSE
Southern Airways, Inc.
Birmingham, Alabama
HENRY P. JOHNSTON
EL TON B. STEPHENS
GRAYDON HALL
Vice-President- Sa/es
J. KENNETH COURTENAY
Vice-President- Administrative Services
THOMAS A . WILEY, JR.
A ssistant Vice-President- Sales
W. BAYNE GRUBB
A ssistant Vice-President-
Flight Operations
GENERAL OFFICES: Atlanta Airport. Atlanta. Georgia
COUNSEL: Bradley, A rant, Rose & White, Birmingham . A /ahama
Kilpatrick , Ballard & Beasley, Washington, D. C.
A UDlTOR: Ernst & Ernst, Atlanta, Georf?ia
HENRY P. JOHNSTON
Radio & Television Consultant
Birmingham, A labam a
R. EUGENE ORR
Knight, Orr & Company, Inc.
Jacksonville, Florida
EL TON B. STEPHENS
Ebsco Industries, Inc.
Birm ingham, A labama
GEN. RALPH H . WOOTEN
United States A ir Force-R el.
Mem phis, Tennessee
W. B. WHITE. JR.
W. S. MAGILL, JR.
V ice-President- O perations
lKE F. JONES
Vice-President
W. B. WHITE, JR.
A ssistant Secretary
GEORGE M. GROSS
A ssistant Vice-President-
Maintenance and Engineering
STOCK TRANSFER AGENT: First National Bank of Bir111ingha111 , Birmingham , Alabama
ADVERTISING COUNSEL: Harris & Weinstein Associates, Inc. , Atlanta, Georgia
STOCKHOLDERS,
CUSTOMERS
AND FRIENDS:
The year 1963 was one of outstanding achieve-
ment for your Company. We are pleased to report
that Southern's total operating revenues of $15,582,-
000 and net earnings of $328,000 were higher than in
any year since operations began in 1949. The 1963
earnings are equivalent to 88 cents per average share
outstanding and are to be compared to earnings of
$310,000 during the prior year. In October, 1963, the
Company declared a 10% stock dividend, the first
such dividend in its history.
During the year Southern carried almost 600,000
passengers, a 16% increase over 1962, and flew in ex-
cess of 112,000,000 passenger miles. Cargo tonnage
was up some 8 % over 1962 and charter revenues
showed a 36% increase over the prior year.
The fleet of modern, pressurized Martin 404 Aris-
tocrat aircraft which were first placed in service in
1961 was increased to 14 aircraft during the year.
Modernization and expansion of maintenance facilities
have increased your Company's efficiency and resulted
in even more dependable on-time service.
Modern electronic beverage dispensers were in-
stalled in the galleys of all 36 aircraft. This improved
our in-flight passenger service, and concurrently re-
duced its cost.
In the regulatory field, the principal development
was refusal by the Civil Aeronautics Board in Decem-
ber, 1963 to certificate trunkline competition in two of
Southern's principal markets, namely, between Hunts-
ville on the one hand and Memphis and Atlanta on the
other. In its opinion, the Board recognized Southern's
substantial contribution to the excellent overall service
received by Huntsville and characterized the connect-
ing service provided by the trunk carriers and Southern
as "good service from the standpoint of frequency, re-
liability, space availability and convenience."
As a result of a Civil Aeronautics Board order,
service to seven Southern cities whose traffic develop-
ment had not been responsive to the service offered,
was discontinued on November 30, 1963. While the
termination of service to these points will result in a
reduction in Public Service revenues received by South-
ern under the presently effective Class Mail Rate, the
overall quality of Southern's system should be im-
proved with resulting long-term benefits both to the
traveling public and your Company.
Southern has filed applications with the Civil Aer-
onautics Board to expand its current operating author-
ity to include several new routes. In addition to a new
segment between Memphis and Panama City via in-
termediate points, upon which Board decision is ex-
pected momentarily, Southern has pending extensive
route applications within the state of Florida to pro-
vide local service between the northern terminals of
Jacksonville and Tallahassee and the southern termi-
nals of Miami and Key West via numerous interme-
diate points throughout the peninsula.
On March 27, 1964 your company and Eastern
Air Lines announced an agreement that would transfer
Albany, Macon, Rome and Waycross, Georgia and
Gainesville and Ocala, Florida from Eastern to South-
ern subject to approval by the Civil Aeronautics Board.
Also involved is an extension of Southern's service into
Tallahassee and Tampa, Florida. Every effort will be
made to obtain early approval of this joint proposal.
In response to numerous requests, the Company
established facilities to provide executive pilot train-
ing for individual and corporate aircraft operators lo-
cated principally in the service area of Southern's sys-
tem.
George F. Estey, Secretary-Treasurer for the
Company since 1945, was retired on July 31 , 1963.
J. Murrey Atkins, a member of the Board of Di-
rectors and President of R. S. Dickson and Co., passed
away on December 2, 1963. He has served on the
board continuously since 1951 and during that period
had contributed generously and effectively to the Com-
pany.
During the year 1964, your Company will observe
its 15th anniversary. Its dynamic growth has already
earned for Southern a significant position in the econ-
omy of the entire Southeast. Southern is today in
stronger financial condition and has a better route sys-
tem than at any time in its history. Of equal impor-
tance for the future, we have an outstanding staff of
faithful, loyal and efficient employees. We are confi-
dent, therefore, that we can look forward to 1964 as a
year of continued development and progress.
Respectfully submitted,
March 27, 1964 Frank W. Hulse
3
4
Passengers carried
Cargo ton-miles
Aircraft miles flown
Commercial Revenues
Southern Airways inc.
HIGHLIGHTS
1963
Results
Operating cost per seat mile produced ........ .
599,302
1,129,823
9,581,355
$9,688,633
4.95
$ 328,210
$1,789,584
Net Income .. . .. . . .
Stockholder Equity .. .
1963 Increase
Over Prior Years
1962 1961
16% 49%
8 47
4 17
12 53
6
6 65
35 100
IN 1963 ...
Martin 404 Aristocrat service was extended to
thirteen additional cities - Birmingham, Meridian,
Gulfport/ Biloxi, Tuscaloosa, Columbus,
Miss., Albany, Moultrie/ Thomasville, Valdosta,
Jacksonville, Natchez, and Jackson, Miss.
Thirty-four of our fifty-nine cities now
receive Martin Aristocrat service. Forty-five
percent of Southern's total plane miles
and 55.8 % of available seat miles are now
flown in Martin Aristocrat aircraft.
To accommodate the expanding aircraft fleet,
and to assure the continued outstanding
maintenance record which Southern has
achieved through 15 years of perfect safety
performance, new maintenance facilities
totaling 49,000 sq. ft. were added to the
Atlanta Base. The Maintenance Department
now accomplishes over one thousand
scheduled maintenance operations each month
on DC-3's and Martin 404's in a continuous
program of maintaining an aircraft fleet
second to none in the local Service Industry.
In the Central Reservations Office in Atlanta,
the very latest type of telephone system
and related facilities ultimately capable of
handling up to 200 telephone calls
simultaneously is being installed. The Central
Reservations Office currently receives some 350
telephone calls per hour from our customers
during peak periods and sales are made at the
rate of approximately one sale for each
one and one-half telephone calls received.
The new reservations facility will be capable
of conversion to an electronic computerized
system as growth requires in future years.
Southern Airways Youth Fare has attracted thousands of young
travelers who will soon be flying Southern as business men and
women of the South.
An attractive mother and her seven children take full advantage of
Southern's Family Plan.
Military personnel stand by to take advantage of the special price
fa re and fill otherwise empty seats.
Another successful Southern Airways Charter for International Har-
vester. This group originated in Memphis and flew to Chicago and
return.
5
-
SERVICE IS THE MEASURE OF ... SOUTHERN HOSPITALITY
Southern crew prepares for take-off as they maintain their on-time performance record.
At Ticket Counters in 59 cities, the Southern customer is
greeted with alertness and courtesy.
Southern conducts a continuous program of flight pro-
ficiency for its pilots.
6
Throughout 59 busy cities of the South,
Southern Airways personnel play an active
part in bringing cargo, commerce and
passengers to these communities.
Our Weather Department keeps a watchful eye on weather activity
constantly to keep Southern Airways cities advised at all hours.
Air cargo revenue continues to climb. Even eggs are handled with
Southern Courtesy as they are shipped from Decatur, Ala. to Atlanta
for farther routing.
On Southern Airways every day business men are pleased with the warmth and
friendliness of a fresh brewed cup of coffee.
8
ASSETS
CURRENT ASSETS
Cash
U.S. Treasury bills - at cost and accrued interest . . . ...... .
Accounts receivable:
U. S. Government - for transportation and public
service - Note A .
Airline traffic and other receivables ....... .
Maintenance and other operating supplies - principally at
average cost, less allowances of $78,653 in 1963 and
$41 ,785 in 1962 for obsolescence ...
Prepaid expenses . . . . . . . . . .
-t-
TOTAL CURRENT ASSETS
INVESTMENTS AND OTHER ASSETS
PROPERTY AND EQUIPMENT - Note B
Cost:
1963
1962
Less allowances for
depreciation and
maintenance:
1963 .
1962 .
DEFERRED CHARGES
Flight
Equipment
$5,859,482
5,730,022
2,742,388
2,433,296
Unamortized route extension and development costs
Unamortized long-term debt expense
Ground
Property
and Equipment
$1,292,043
1,106,835
685,154
568,051
Southern A(rways, inc.
Dec. 31, 1963
$ 683,736
- 0 -
$ 938,087
1,077,126
$2,015,213
508,193
151,478
$3,358,620
71,982
$7,151,525
3,427,542
$3,723,983
$ 85,163
65,495
$ 150,658
$7,305,243
BALANCE SHEET
December 31 , 1963 and December 31 , 1962
-t-
Dec. 31, 1962
$ 347,932
197,143
$1,565,324
913,545
$2,478,869
427,168
150,331
$3,601,443
58,842
$6,836,857
3,001,347
I
$3,835,510
$ 134,328
74,425
$ 208,753
$7,704,548
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued expenses :
Trade accounts
Collections and withholding as agents
Salaries, wages, and vacation pay
Accrued taxes, advertising, and other expenses .
Unearned transportation revenue ...... .
Air travel plan deposits .......... .
Estimated federal and state taxes on income, less tax
anticipation notes of $198,726 in 1962 - Note D
Current maturities of long-term debt - Note B
TOTAL CURRENT LIABILITIES
LONG-TERM DEBT (exclusive of current maturities)-Note B
6% SUBORDINATED CONVERTIBLE DEBENTURES - Note C .
DEFERRED INVESTMENT CREDIT
RESERVE FOR CONTINGENCIES - Note A ..
STOCKHOLDERS' EQUITY
- Notes A, B, C, and E
Common Stock, par value $3 a share:
Authorized - 1,000,000 shares
Issued - 413,200 shares in 1963 and 315,950 shares in 1962
Paid-in surplus
Earned surplus
See Notes to Financial Statements.
Dec.31,1963 Dec. 31, 1962
$ 720,442
838,713
432,389
215,351
$2,206,895
33,345
89,355
108,531
520,000
$2,958,126
1,492,500
1,000,000
25,033
40,000
$1,239,600
148,092
401,892
$1,789,584
$7,305,243
$ 847,146
954,216
318,007
243,492
$2,362,861
39,113
71,400
215,584
461,336
$3,150,294
1,987,500
1,227,800
16,430
- 0 -
$ 947,850
58,248
316,426
$1,322,524
$7,704,548
9
10
STATEMENT OF INCOME
Years ended December 31 , 1963 and December 31, 1962
OPERATING REVENUES
Passenger and excess baggage
Mail, express, and freight ..
Public service revenue - Note A
Charter
Other operating revenues - net
TOTAL OPERA TING REVENUES
OPERATING EXPENSES
Flying operations .
Maintenance ..
Aircraft and traffic servicing
Passenger service
Promotion and sales . . . ...... .
General and administrative ......... .
Amortization and provision for depreciation
OTHER INCOME
OTHER DEDUCTIONS
Interest . . . . ...... .
Miscellaneous ... .
TOTAL OPERATING EXPENSES
OPERA TING INCOME
INCOME BEFORE TAXES ON INCOME
TAXES ON INCOME - estimated - Note D
NET INCOME
SPECIAL CHARGE
Taxes on income and other items applicable to prior years - Note D
NET INCOME LESS SPECIAL CHARGE
STATEMENT OF SURPLUS
Years ended December 31, 1963 and December 31, 1962
PAID-IN SURPLUS
Paid-in surplus at beginning of year . . . . . . . . . ......... .
Add excess of approximate market price over par value of 37,562.5 shares of
Common Stock issued as 10% stock dividend
Add excess of proceeds over par value of Common Stock issued as a result of:
Exercise of stock options
Conversion of debentures
Other
Paid-in surplus at end of year
EARNED SURPLUS
Earned sucplus at beginning of year
Add net income less special charge
Deduct:
Shares Issued
{Adjusted for
10% dividend}
1963 1962
3,312.5
62,342.5
-0-
65,655.0
10,890
19,855
-0-
30,745
Approximate market price of 37,562.5 shares of Common Stock issued as 10%
stock dividend . . . . . . . . .
Establishment of reserve for contingencies - Note A
Earned surplus at end of year
* Indicates red figures .
See Notes to Financial Statements.
Year Ended December 31
1963 1962
$ 8,622,199 $ 7,778,342
706,256 654,243
5,893,414 5,351,872
276,902 203,641
83,276 44,701
$15,582,047 $14,032,799
$ 4,418,273 $ 3,772,399
3,333,344 2,960,589
4,152,316 3,478,068
749,635 715,556
1,063,188 899,375
698,153 694,917
538,022 556,840
$14,952,931 $13,077,744
$ 629,116 $ 955,055
53,753 31,698
$ 682,869 $ 986,753
$ 205,034 $ 185,327
13,625 9,046
$ 218,659 $ 194,373
$ 464,210 $ 792,380
136,000 482,300
$ 328,210 $ 310,080
61,884 -0-
$ 266,326 $ 310,080
Year Ended December 31
1963
$ 58,248
28,172
$ 86,420
$ 5,051
56,675
54*
$ 61,672
$148,092
$316,426
266,326
$582,752
$140,860
40,000
$180,860
$401,892
1962
$ 25,687
-0-
$ 25,687
$ 13,860
18,050
651
$ 32,561
$ 58,248
$ 6,346
310,080
$316,426
$-0-
-0-
$-0-
$316,426
Southern Airways, inc.
NOTES TO
FINANCIAL STATEMENTS
December 31, 1963
Note A - The Company operates under the authority
of a "Certificate of Public Convenience and Necessity
for Local or Feeder Service" issued by the Civil Aero-
nautics Board for a period of unlimited duration. Such
certificate entitles the Company to receive mail and pub-
lic service revenues from the U. S. Government. During
the period of eighteen months ended December 31, 1960,
the Company received public service revenues under a
temporary rate which is subject to adjustment either
upward or downward upon determination by the Civil
Aeronautics Board of a final rate for that period. Since
that date the Company has received public service reve-
nues under a permanent class rate which provides for
the refunding of profits in excess of stipulated returns
on investment. Accordingly, the Company has provided
for such refunds for the years 1961 and 1962 in the
amount of $182,200, which is subject to adjustment upon
completion of audits by the Civil Aeronautics Board. The
amount of such adjustment, if any, is undeterminable at
December 31 , 1963; however, the Company established
a Reserve for Contingencies during 1963 by an appropri-
ation of earned surplus in the amount of $40,000 in
recognition of the possibility of additional refunds for
those years.
No provision has been made for refunds for 1963 as
management anticipates that none will be required.
Note B - Long-term debt at December 31 , 1963 (for
which all aircraft, engines, and related equipment are
pledged as collateral) is summarized as follows :
5 % notes payable to banks due
in quarterly installments of
$112,500 through January 1,
1965 with reduced quarterly
payments thereafter to De-
cember 15, 1967
5 % note payable to bank due
upon completion of additional
permanent financing in the
amount of $700,000
Due Within Due After
One Year One Year
$450,000
70,000
$520,000
$1 ,212,500
280,000
$1 ,492,500
On January 22, 1964 .the Company signed additional
5 % notes payable to the banks in the total amount of
$700,000 which are repayable in quarterly installments
of $17,500 through January 1, 1968, followed by four
quarterly installments of $105,000 each, with the final
installment being repayable December 15, 1968. Ac-
cordingly, the 5 % note payable in the amount of
$350,000 (exclusive of $70,000 classified as a current
liability) is included in Long-Term Debt due after one
year. The agreements relating to these notes place certain
requirements and restrictions upon, among other things,
(1) net current assets, (2) net worth, (3) redemption of
debentures, and ( 4) payments relating to capital stock,
including dividends. As of December 31 , 1963, the Com-
pany had met all of these requirements and approximately
$168,500 of earned surplus was free of such restrictions.
Note C - During 1963 the company called those 6%
subordinated convertible debentures which were con-
vertible at $4.00 per share which left outstanding the
$1 ,000,000 issue due December 1, 1975. These deben-
tures are convertible into Common Stock of the Com-
pany at prices ( adjusted for 10% stock dividend) of
$4.55 per share to January 1, 1965, $6.36 per share there-
after to January 1, 1970, and $9.09 per share thereafter
to maturity. The debentures are callable by the Com-
pany at premiums ranging from 6% downward, and are
generally fully subordinated to all existing debt and to
any future bank indebtedness which has a maturity date
of less than five years. The debentures place restrictions
upon the Company similar to those described in Note B.
Note D - During 1963 the Company reached an agree-
ment with the Internal Revenue Service on adjustments
to taxable income for the years 1948 through 1960. The
provision for income taxes as previously reported for the
years 1961 and 1962 and the provision for 1963 include
the applicable effect of these adjustments. The adjust-
ments relate principally to the lengthening of estimated
useful lives of DC-3 aircraft for income tax purposes, al-
though the Company retained the original shorter lives
for financial statement purposes. Accordingly, the de-
preciation to be claimed for income tax purposes for
subsequent years through 1967 will exceed the deprecia-
tion to be recorded in the accounts by approximately
$238,000.
Note E - Restricted options (adjusted for 10% stock
dividend) , all of which are presently exercisable, to pur-
chase Common Stock of the Company were held by
officers at December 31 , 1963: options issued in 1955 for
6,600 shares at $4.25 a share expire May 1, 1965 and
options issued in 1962 for 12,087.5 shares at $5.12 a
share to January l, 196.5 and $6.36 a share thereafter
expire January 1, 1970. During the year ended December
31, 1963 options were exercised for 3,300 shares at $4.25
a share and 12 shares at $5 .12 a share.
Note F - The cost to the Company of its employee
retirement plans amounted to $434,415 for the year ended
December 31 , 1963 and the unfunded past service lia-
bility at that date totaled approximately $800,000.
ERNST & ERNST
Board of Directors
Southern Airways, Inc.
Atlanta , Georgia
ATLANTA, GA. 30303
We have examined the qalance sheet of Southern Airways,
Inc . as of December 31 , 1963, and the r elated statements
of income and surplus for the year then ended . Our
examination was made i n accordance with generally accepted
auditing standards , and accordingly inc luded such tests of
the accounting records and such other auditing procedures as
we considered necessary in the circumstances . We made a
similar examina t ion of the financial statements for the
preceding year .
In our opinion , subjeot to the effect of any future
retroactive determination of public service revenues as
explained i n Note A to the f inancial statements , the
accompanying balance sheet and statements of income and
surplus present fairly the f inancial position of Southern
Airways , Inc . at December 31, 1963, and the results of its
operations for the year then ended, i n conformity with
generally accepted accounting principles applied on a basis
consistent with that of' the preceding year .
Atlanta , Georgia
March 16, 1964
11
121
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19 63 -t
19 62 -t
TRAFFIC
Passengers carried
Passenger miles flown (000)
Mail ton miles
Express & freight ton miles
Total Revenue ton miles
Revenue miles flown
Airports served .
FINANCIAL
Income
Commercial
Public service
Other .
Total
Expenses
Operating
Non-operating
Income taxes .
Total
Net Income or (Loss) . .
Seleated Balance Sheet Items
Net Working Capital ... . ..... .
Property & equipment (net)
Stockholder equity
Book value per share outstanding ...
1963
599,302
112,262
366,435
763,388
11,872,389
9,581,355
48
$ 9,688,633
5,893,414
53,753
15,635,800
14,952,931
218,659
136,000
15,307,590
$ 328,210
$ 400,494
3,723,983
1,789,584
$ 4.33
A FIVE YEAR REPORT OF PROGRESS
19 61
1962
518,288
95,435
364,610
683,838
10,184,178
9,172,284
55
$ 8,680,927
5,351,872
31,698
14,064,497
13,077,744
194,373
482,300
13,754,417
$ 310,080
$ 451,149
3,835,510
1,322,524
$ 3.81
-t
1980
-t
19 59
1961 1960 1959
401,711 260,760 258,180
71,300 46,765 45,583
290,091 179,054 125,109
480,904 288,707 295,662
7,603,753 4,953,317 4,793,228
8,212,646 5,669,267 4,809,191
52 45 35
$ 6,323,152 $3,964,069 $3,612,590
4,395,236 3,068,190 2,525,815
27,988 8,793 4,322
10,746,376 7,041,052 6,142,727
10,107,588 7,575,937 6,085,320
134,806 36,310 25,510
305,070 (238,847) 10,301
10,547,464 7,373,400 6,121,131
$ 198,912 $ (332,348) $ 21,596
$ 760,907 $ (504,055) $ 43,917
2,564,881 1,238,651 1,030,008
896,033 689,140 974,195
$ 2.83 $ 2.20 $ 3.51
THE 1963 REVENUE DOLLAR
Income
Passengers . . . . . . . . ...... .
Cargo shippers . . . . . . . . . . . . . . . .... .
Aircraft charter ....... . ........ . ... .
Other . . . . . . . ............... .
Public service ........... .
SOUTHERN'S INCOME DOLLAR
$ 8,622,199
706,256
276,902
137,029
9,742,386
5,893,414
$15,635,800
Expenses and Retained Earnings
Employment costs . . . . . . . . . . . . . . . . . . $ 8,6lf5,805
Aircraft fuel & oil . . . . . . . 1,583,586
Other materials & services purchased . . . 2,709,134
Taxes and insurance, excluding
employee benefits .............. . .
Rentals . . . . . . . . ......... .
Advertising and publicity ......... .
Interest and other items ........ .
Depreciation & amortization .......... .
Retained earn_
ings, after special charge ..
659,871
576,366
388,140
215,556
551,016
266,326
$15,635,800
SOUTHERN'S EXPENSE DOLLAR
4
5 5 .1 from our passengers 56.5 for employment costs, including employee benefits
-
37.7 from government subsidies 10.3 for aircraft fuel and oils

-
4.5 from shippers 17 .6 for other materials and services purchased
I
2. 7 from charter operations and other sources 7.3 for rentals, depreciation and amortization

8.3 for all other expenses
SOURCE AND APPLICATION OF FUNDS
Source of Funds
From Sale of-
Common stock . . . . . . . . . . . . . . . . . . . . . $ 14,089
86,748
350,000
Retired equipment ... . ... . ........... .
From loans by Banks ..................... .
From Operations -
Net income, after special charge . . . . . . ..
Provision for depreciation ............ .
Allowance for obsolescence
Amortization of intangibles ... .
Total Cash Flow . . ...... .
From Other Sources . . . . . . . . . . . . . . . . . .
266,326
451,990
36,868
62,158
$ 817,342
2,447
$ 1,270,626
Application of Funds
To Additional Operating Property
& Equipment ......... .
To Other Investments
To Debt Retirement -
Banks
Suppliers .
Debentures . . . . . . . . . . . . . . . . . . . . . . . .. .
To Increase in Working Capital ........... .
$ 425,118
13,140
337,500
448,836
1,155
$ 787,491
44,877
$ 1,270,626
4
1-
~
4
13
14
Memphis, cotton mecca of the South and a
key terminal point of the Southern Airways
system.
Transportation hub of the Southland, Atlanta
is the crossroad for Southern Airways service
North, East, South and West.
Typical scene of the Vieux Carre in New Or-
leans, where Southern links many cities of the
Mississippi Valley with the West.
Panama City, ideal Florida vacation spot and
another example of the diversified type of
cities served by Southern Airways.

posA
MONTGOM ERYQ
\ ..
. ...
- - - - PRESENT ROUTES
ILLE
left
Huntsville, world renown symbol of Space
leadership and a leading 'city in the Southern
Airways system.
right
The State House in Columbia. S. C. one of
Southern's newer cities of the 59 leading com-
munities we serve.
.... CHARLOTTE
.. . . .
GREENVILLE'.:.,,, :
SPARTANBURG :
OGA .: :
A :
- - - - - PROPOSED EASTERN /SOUTHERN ROUTE TRANSFER
OTHER ROUTE APPLICATIONS PENDING
15