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 
-t 
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