January 28, 1929. 
Stockholders, 
WESTERN AIR EXPRESS, Inc. 
Gentlemen: 
Herewith is submitted the 
annual report on affairs of your company 
for the year ending December 31, 1928. 
HARRIS M. HANSHUE, 
President. 
HMH/GAR 
  Your company has progressed very materially during 
the past year. Both in earning3 and in the relationship it 
hears to the air transport industry, Western Air Express, Inc., 
has improved its condition and enters its fourth year of opera 
tions prosperous, profitable and prepared for expansions that 
should still further enhance its value. 
At the time of our last Stockholders* meeting we had 
just taken over the Cheyenne, Denver, Pueblo air mail route. 
On May E6, 1928, in cooperation with the Daniel Guggenheim Pund 
for the Promotion of Aeronautics, we opened the model passen 
ger airway between Los Angeles and San Prancisco. On June 15, 
we acquired the Pacific Marine Airways operating flying boats 
between Wilmington and Avalon and negotiated a ten-year con 
tract for that service with the Santa Catalina Island Company; 
and, in October, we improved that service with the addition of 
an amphibian airplane operating directly between Vail Pield and 
Avalon. Also, during 1928, we laid plans for a de luxe passen 
ger service between Los Angeles and Kansas City via Albuquerque 
in planes similar to those used on our Los Angeles-San Prancisco 
route and placed orders for this equipment together with an ad 
ditional number sufficient to re-equip our Los Angeles to Salt 
Lake City line. 
Our air mail contract between Los Angeles and Salt 
Lake City continues to be our source of greatest revenue, the 
monthly return on this line more than doubling during 1928. 
But, the other operations are rapidly approaching a profitable 
basis and we expect during 1929 to show a very substantial earn 
ing on each division. The return on our exclusive passenger 
services between Los Angeles and San Prancisco and Los Angeles 
and Avalon, except for mid-winter months, and the percentages of 
surface travel we have been able to divert to airplanes even 
during the off-season periods warrant the belief that the pres 
ent year will see exclusively passenger operations earning 
healthy profits. But, even should this no`t immediately prove 
to be, it was and is necessary for Western Air Express to main 
tain its prestige as the foremost air transport system of the 
nation by rendering such service as the public now demands at 
prices the public can afford deferring profits till such time 
as air travel volume shall develop. 
Despite the increased service on old lines and the 
extension of flying to new and untried routes, our company 
continued its high on-time performance record of better than 99 
percent throughout the past year. Por the year, the airplanes 
of Western Air Express flew an aggregate of 9,738 hours, 41 
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  minutes for a total of 946,660 miles. These flights were at 
all altitudes, in all sorts of weather with equipment ranging 
from the small biplanes used on our Colorado division along the 
backbone of the continent to the huge, fast passenger cabin 
planes of our Los Angeles-San Francisco service and the slow, 
heavy flying boats operating between Wilmington and Avalon - 
the most diversified air transport operation in the world. 
For the twelve months a total of 6,794 persons took 
passage with Western Air Express. An aggregrate of 458,231 
pounds of air mail and 13,502 pounds 6 ounces of air express 
was dispatched on these planes. There were no serious mishaps 
and none but nominal damages sustained by any equipment. No 
passenger or employe was injured and no cargo lost or damaged 
throughout the entire year. 
The industry, during 1928, began to take on new as 
pects. Huge holding companies were formed to acquire and com 
bine groups of independent operators, aircraft manufacturers 
and engine builders. In many instances these mergers were 
necessary to save weak companies from failure; and, in others, 
desirable to consolidate the positions of substantial groups. 
Your Board of Directors were frequently approached with propos 
als of one sort or another, but to date nothing has been submit 
ted of sufficient attractiveness to pass on to you for decision. 
Meanwhile, with operators and manufacturers joining forces, it 
became imperative that Western Air Express protect itself by 
securing a definite and unassailable source of equipment. 
The policy of your company has been from inception 
to purchase the best equipment available from whatever aircraft 
manufacturer is in ascendancy at the time. Such a policy hardly 
permits of interlocking an operator and manufacturer. Your 
Board of Directors decided, therefore, that Western Air Express 
although desiring close affiliation with some builder should be 
left free to buy its equipment anywhere without injury to its 
own pocketbook. 
Proposals that your company combine with one or an 
other manufacturing concern were, consequently, declined. But, 
in order to protect their - and your - investment in this operation 
from possible equipment shortage at critical times, certain of 
your larger stockholders acquired control in the Fokker Aircraft 
Corporation of America. The result is, that, while Western Air 
Express is free to buy equipment in the market from any aircraft 
builder, it can never be rendered unable to secure satisfactory 
equipment by any combination that might oppose it. 
There have been many erroneous statements made as to 
the relationship between Western Air Express and Fokker, and 
this detailed explanation is made so that you will understand 
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  precisely the nature of their contact. Neither owns a single 
share of the other. Each is free to pursue its own destiny. 
But the control and management of the Fokker company are in the 
hands of those who by personal serivce and through investment 
have an abiding friendly interest in Western Air Express. 
Selection of Fokker Airoraft as the manufacturer best 
suited to this purpose was predicated on the fact that Western 
Air Express had already proven Fokker equipment to be the best 
performing and most economical from a transport standpoint. 
Development of the MF-10W, tri-motored, Wasp-engined, Fokker mo 
noplane was in response to an advertisement for bids, sent out 
by Western Air Express and the Daniel Guggenheim Fund, for 
equipment to be used on the Los Angeles-San Francisco line. All 
American builders of aircraft were invited to submit proposals on 
equipment which they must guarantee would meet our requirements. 
Eokker was the only one who would make such guaran 
tee; and, at a prioe considerably below that asked by other 
manufacturers for planes which we considered entirely unsatis 
factory to our purpose. The result, the wF-10n, in actual 
service for eight months has exceeded the guarantee at every 
point and actually produces unit transportation at a lower 
cost than that of any other airplane flown. This combination 
of economy and performance assures Western Air Express the 
ability of earning profits while rendering superior service 
at lower rates than will be necessary to any present competitor. 
Recently you have been invited to exchange your hold 
ing in Western Air Express, Inc. of California for stock in 
Western Air Express Corporation of Delaware on a basis of twen 
ty-five shares of the latter having a par value of $10 for each 
$100 par share of the former. The reasons for this transaction 
are: to give greater facility in the matter of expansions and 
extensions of service to the east; to break the stock down into 
more easily marketable units and, through listing on exchange, 
to secure a wider distribution of holding. This also will have 
a certain advertising value through daily mention on the finan 
cial pages. The exchange date has been set as February 1. Ap 
proximately seventy-five percent of the old stock has already 
been presented for exchange. 
Refer now to the financial statement which is made a 
part of this report. The combined operating statement for 1928 
shows gross revenues of $1,417,504.23 divided as to disposition; 
expenses, $696,726.43, and, profit, $720,777.80 an earning of 
$168.28 per share on the old stock or of $6.73 on the new. 
The balance sheet and combined operating statement are 
submitted in detail that you may be thoroughly informed as to the 
present condition of your company and the nature of its assets. 
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  BALANCE SHEET 
ASSETS: 
DECEMBER 31, 1920, 
CURRENT: 
Cash 
On Hand 
In Banks 
Accounts Reoeivable-U .S. Gov't. 
Accounts Receivable-Miscellaneous 
Inventories: 
Gasoline 
Oil 
Stockroom Parts & Supplies 
Miscellaneous 
Notes Receivable 
Gasoline Tax Receivable 
Accrued Interest 
TOTAL CURRENT ASSETS 
OTHER ASSETS: 
U. S. Liberty Bonds (Cost) 
Other Bonds (Cost) 
FIXED: 
Airplanes (Under construction) 
Airplanes 
Engines 
Hangars & Buildings 
Machinery, Tools & Misc. Field 
and Shop Equipment 
Autos- Trucks 
Purniture & Fixtures- Gen'l Offices 
Furniture & Fixtures- Field M 
Radio 
Radio Sets- Aircraft 
1,735.00 
585,775.59 
203,642.26 
11,895.10 
1,455.92 
914.94 
40,734.88 
1,888.72 
312.50 
2,205.82 
2,566.00 
$852,926.73 
37,596.87 
101,100.00 
395,789.42 
451,414.23 
187,656.82 
106,983.32 
38,468.00 
4,701.00 
5,891.12 
4,377.68 
6,888.20 
675.00 
1,202,844.79 
224,029.02 
TOTAL FIXED ASSETS 
Less Reserves for Depreciation 
978,815.77 
DEFERRED CHARGES: 
Prepaid Insurance-Deposit Premiums 9,306.00 
Prepaid Insurance-Unearned Premiums 4,454.94 
Deposit- Public Utilities 616.25 14,377.19 
TOTAL $ 1,984,816.56 
  BALANCE SHEET 
* 
LIABILITIES': 
CURRENT: 
Accounts Payable- Trade 
Accounts Payable- Miscellaneous 
Insurance Premiums Payable 
Vail Co. 
Dividends Payable 
^Contracts Payable 
Accrued Interest 
TOTAL CURRENT LIABILITIES 391,766.47 
RESERVES: 
Crash Insurance 
Por Obsolescence 
113,231.54 
48,231.54 
65,000.00 
41,406.76 
1,203.68 
4,130.53 
150.00 
8,566.00 
335,372.00 
937.50 
TOTAL LIABILITIES & RESERVES 504,998.01 
NET WORTH 
CAPITAL STOCK: 
Authorized: $500,000.00 
Issued: 4,283 shares of $100 Par 428,300.00 
SURPLUS: 
Capital Surplus 112,180.00 
Undivided Profits 939,338.55 
' 1,051,518.55 
TOTAL NET WORTH 1,479,818.55 
TOTAL $1,984,816.56 
* Undelivered Equipment 
  OPERATING STATEMENT 
POR YEAR ENDING DECEMBER 31, 1928. 
OPERATING REVENUE: 
Mail 
Express 
Passenger Service 
Baggage - Excess 
Special Service 
Airplane Rental 
$1,208,866.05 
5,757.25 
133,859.80 
177.00 
37,590.84 
450.00 
1,386,700.94 $1,386,700.94 
EXPENSES: 
Overhead 
Traffic 
Maintenance of Pields 
Maintenance of Equipment 
Transportation 
Communication 
Depreciation 
Insurance & Obsolescence 
101,108.97 
100,733.56 
35,032.54 
106,183.22 
145,100.08 
13,997.54 
146,570.52 
48,000.00 
NET PROPIT PROM OPERATIONS: 
696,726.43 696,726.43 
$ 689,974.51 
Add: Miscellaneous Revenues: 
Interest - 
Gov't. Bonds 
Interest - 
Bank Balances, etc 
Discount earned 
Misc. Income 
Sales - 
Gas & Oil (Net) 
Total Misc. Revenue 
1,090.86 
24,605.73 
758.52 
3,193.45' 
1,254.73 
30,803.29 30,803.29 
CARRIED TO SURPLUS $ 720,777.80 
 *