1943 ANNUAL REP"ORT OF 
~ 
WESTERN AIR LINES, INC. 
  OFFICERS 
DIR E CTORS 
REGISTRAR 
S T OCK TRANSFER AGENT 
AUDITORS 
GENERAL OFFICES 
William A. Coulter, President 
L. H. Dwerlkotte, Executive Vice-President 
Charlie N. James, Vice-President, Operations 
Thos. Wolfe, Vice-President, Traffic 
Paul E. Sullivan, Secretary-11easurer 
J. J. Taylor, Asst. Secretary-Treasurer 
William A. Coulter 
L. H. Dwerlkotte 
Harold P. Fabian 
Stanley W Guthrie 
George Albert Smith 
Citizens National Trust & Savings Bank, Los Angeles, California 
Security-First National Bank of Los Ang~les, Califon~ia 
Peat, Marwick, Mitchell & Co. 
6331 Hollywood Blvd., Los Angeles 28, California 
 On August 13, 1941, the Cil'il Acron,1utics Board 
all'ar<lcd W cstcn, Air Linc. 
s a route between Los Angeles and 
San lo'raucisco, re.establishing a service wbicb this colllpany 
pioueercd in 19,8. '!'bis action represents a major forward 
. 
step in a longrmige Pfan of cxpausion designed to continue 
Westen, Air Lines as tl1c strongest independent air carrier iu 
the \Vest. 
nc lllaps included With this rcort illustrate what 
lias been accolllplisbcd to date and the vastly greater opor. 
tunitics that Jial'c been cJ1,1tted for the future. 
During its eighteen rears of oper;1tions, Western 
Air Lines li,is experienced various periods of expansion and 
contraction. But througi, it all, the one essential Policy on 
11'11icJ1 tl1c colllpany \\'as founded lias remained tu1changcd-to 
gfrc the con,lllunitics of the West an unsurpassed air transport 
scnice. 
Noll' stronger tl,au c,cr and Wit!, an expandiug future 
11 'liicJ, has almost no Iimi ts, W cs tern Air Linc, 11 ill con tin uc 
to build soundly so tl,at it lllay continue to merit its dcsig. 
nation as "Tlic \Vest's Own Airline." 
~d~ 
' 
President 
 - 
TO THE STOCKHOLDERS OF 
MARCH 22, 1944 
* There is submitted here- 
with Profit and Loss Statement of your Company 
for the calendar year 1943, together with the Bal- 
ance Sheet of the Company as of December 31, 
1943, to which is appended the report of :tv'!essrs. 
Peat, Marwick and Mitchell & Co., accountants 
and auditors. 
Operations of the Company for the year 1943 
resulted in a net profit of $90,194-05 after all taxes 
and charges including provision of $203,886.31 for 
depreciation and $48,087.24 for estimated Federal 
income taxes for the year 1943. In comparison the 
year 1942 resulted in a net profit of $693,703-30 
after provision of $215,707.34 for depreciation and 
$315,000 for Federal income taxes. 
The decrease in net income results largely from 
the following: 
(a) A decrease in mail revenues of approxi- 
mately $500,000. 
( b) A 10% decrease in passenger fares and a 
12  % decrease in express rates effective 
July 15, 1943. 
( c) Net profit for 1942 included a gain of $401,- 
370. 36 on the sale of equipment. 
( d) A general increase in operating costs includ- 
ing increases in the level of wages and prices 
of materials and supplies. 
( e) Inexperienced personnel requiring consider- 
able training and additional supervision. 
REVENUES 
* Notwithstanding the reduction in 
passenger fares on July 1 5, 194 3, higher Ioad factors 
enabled your Company to. show a 38% increase in 
passenger revenues. The pa senger load factor in 
1943 was 84-6% as compared with 6i .9% in 1942. 
Pas enger revenue amounted to $1,709,402.01 as 
compared with $1,242,540.81 for 1942 and con- 
tributed 79% of the gross revenues. On December 
 1,600,000 21, 1942, the Civil Aeronautics Board issued its 
1,400,000 
order to "show cause" why mail rates for your Com- 
pany should not be reduced to three-tenths mill per 
1,200,000 
pound mile of mail carried over the Company's en- 
1,000,000 
tire system, effective January 1, 1943. Similar reduc- 
tions were proposed for the majority of the other 
800,000 airlines. Your Company protested this reduction 
600,000 
and subsequently a hearing was held by the Civil 
Aeronautics Board. However in its final decision 
400,000 issued on November 8, 1943, the Board affirmed 
the rate of three-tenths mill per pound mile and 
200,000 as a result mail revenue for 1943 amounted to $26o,- 
0 
906.27 as compared with $76o,572.94 in 1942 or a 
1940 1941 1942 1943 reduction of 65%. Prior to 1943 your Company 
800 
had received a rate of 40 cents per airplane mile on 
its Salt Lake-Great Falls route and 37 cents per 
700 
airplane mile on its Salt Lake-San Diego route. 
600 
The decrease in Express and Freight revenue is 
due largely to heavy passenger loads precluding tl~e 
500 carriage of any substantial poundage of such cargo, 
400 
and to the reduction in express rates in July. 
300 
OPERATING EXPENSES 
* Operating and gen- 
eral expenses increased $287,059.34 during the year 
200 due in part to increased prices of materials and sup- 
100 
plies and added costs of personnel and training 
thereof and in part to the expansion of passenger 
0 
and ticketing facilities. 
1940 1941 1942 1943 
FINANCIAL POSITION* The attached Balance 
$4,000,000 
Sheet of your Company as of December 31, 1943, 
3,500,000 shows current assets of $1,767,264.24 including cash 
3,000,000 
of $342,257-47 as against current liabilities of $1,- 
027,887.94. As of December 31, 1942, current assets 
2,500,000 amounted to $1,643,647-18 including cash of $572,- 
2,000,000 
115.31 as against current liabilities of $680,326.32. 
1,500,000 
EQUIPMENT 
* During 1943 one Douglas DC-3 
Airplane was released to the Company by the Army 
1,000,000 
Air Forces, to provide an additional round trip 
schedule between Los Angeles and Salt Lake. An- 
500,000 other Douglas DC-3 has recently been received 
0 
which is now undergoing conversion to a passenger- 
1940 1941 1942 1943 type airplane and will be placed in passenger service 
[4] 
 1940 
40,000,000 
35,000,000 
30,000,000 
25,000,000 
20,000,000 
15,000,000 
10,000,000 
5,000,000 
0 
1940 
2,000,000 
1,750,000 
1,500,000 
1,250,000 
1,000,000 
750,000 
500,000 
250,000 
0 
1940 
1941 1942 
1941 1942 
1941 1942 
1943 
1943 
1943 
[5] 
m the near future. It is possible that additional 
aircraft may be released to the airlines in 1944 by 
the Army Air Forces but your Company has no 
information as to the number or when they may 
be expected. On December 31, 1943, your Com- 
pany and Inland Air Lines, the acquisition of which 
is discussed herein below, operated in commercial 
service four Douglas DC-3' s, two Lockheed Lode- 
stars and two Beechcraft airplanes, while prior to 
our country's entry into the war they operated 
seven Douglas DC-3 and ten Boeing 247D, air- 
planes. 
NEW ROUTES 
* On October 7, 1943, your C_om- 
pany contracted to purchase 137,241 shares or 83% 
of the outstanding common stock of Inland Air 
Lines, Inc. U ncler the provisions of the Civil Aero- 
nautics Act of 1938 this purchase to be effective 
must be approved by the Civil Aeronautics Board 
and as of the elate of this letter the decision of the 
Board has not yet been received. A total of $363,- 
688.65 in cash was deposited in escrow as payment 
for this stock. After approval of the Civil Aeronau- 
tics Board is received an offer will be made to the 
remaining stockholders of Inland Air Lines, Inc., to 
purchase their stock under terms and conditions 
identical with those contained in the contract of 
October 7, 1943. Inland Air Lines, Inc. holds certifi- 
cates of public convenience and necessity for the 
route between Cheyenne, Wyoming and Great 
Falls, Montana; and between Cheyenne, W'> om- 
ing and Huron, South Dakota, involving approxi- 
mately 1200 route miles. Inland is also operating 
between Cheyenne and Denver on a temporary 
permit. 
On May 10, 1943, the Civil Aeronautics Board 
amended the certificate of convenience and ncccs- 
ity held by your Company for the route between 
Salt Lake and San Diego to include an Bernar- 
dino, Palm Springs and El Centro, California, as 
additional intermediate stops. This change in the 
certificate added 282 route miles. Inauguration of 
this ervice is to be deferred until the Civil Aero- 
 nautics Board shall have notified your Company 
that national defense no longer requires a delay. 
On August 13, 1943, the Civil Aeronautics Board 
awarded your Company a certificate to operate be- 
tween Los Angeles and San Francisco, involving 
327 route miles. Authorization to operate over this 
route has been received and service will begin on 
May 1, 1944, with three round trips daily. 
Applications are pending before the Civil Aero- 
nautics Board for the following additional routes: 
(a) Between Los Angeles, California and Den- 
ver, Colorado via Las Vegas, Nevada and 
Grand Junction, Colorado. 
( b) Between Leth bridge, Canada and Nome, 
Alaska via Calgary, Edmonton and Grand 
Prairie, Canada; and J unca u, Anchorage 
and McGrath, Alaska, with supplementary 
service between Anchorage and Fairbanks, 
Alaska. 
[6j 
( c) Between San Francisco, California and Se- 
attle, Washington via Sacramento and 
Chico, California; Klamath Falls, Bend, The 
Dalles a11(l Portland, Oregon. 
(cl) Between Seattle, Washington and Nome, 
Alaska via Ketchikan, Juneau, Anchorage 
and McGrath, Alaska, with supplementary 
service between Anchorage and Fairbanks, 
Alaska. 
( e) Between Los Angeles, California and Rio 
de Janiero, Brazil and Buenos Aires, Argen- 
tina via La Paz and Mexico City, Mexico; 
Guatemala City, Guatemala; San Jose, Cos- 
ta Rica; Balboa, Canal Zone; Bogota, Co- 
lombia; Iquitos, Peru; Cobija and Santa 
Cruz, Bolivia; Asuncion, Paraguay; Curityba, 
Sao Paulo and Porto Alegre, Brazil; and 
Montevideo, Uruguay. 
( f) Between Denver, Colorado and Minneapo- 
lis, Minnesota via Ft. Morgan and Sterling, 
Colorado; North Platte and Norfolk, Ne- 
braska; Sioux City, Iowa and Mankato, 
Minnesota ( filed by Inland Air Lines, Inc.) 
(g) Between Chicago, Illinois and Seattle, 
Washington via Rockford, Illinois; Du- 
buque and Mason City, Iowa; Sioux Falls, 
Mitchell, Pierre and Rapid City, South Da- 
kota; Sheridan, Wyoming; Billings, Lewis- 
town and Great Falls, Montana and Spo- 
kane, Washington (filed by Inland Air 
Lines, Inc.) 
(h) A system of secondary or feeder routes. 
A hearing was held in January, 1944, on the ap- 
plication listed under (a), while a hearing is sched- 
uled for May 15, 1944, on the application listed 
under ( e). No dates have been set for hearing the 
other applications listed. 
WAR ACTIVITIES* Since May, 1942, your Com- 
pany has transported cargo to Alaska for the Army 
Air Forces. Recently this has been expanded to in- 
 clnclc cargo operations m the \Vcstcrn United 
State . During 1943, extensive training of Army 
personnel for the Army Air Forces was also under- 
taken. No profit has been derived from these opera- 
tions clue to disallowanccs of numerous charges by 
Government auditors, but it is believed that your 
Company has made substantial contributions to 
the war effort and i continuing to do so. 
THE ORGANIZATION 
* The continued loyalty 
and cooperation of the employees of your Com- 
pany, in spite of the many problems and uncertain- 
ties, have been most gratifying. 
The number of employees of your Company at 
December 31, 1943, totaled 807, of which 319 or 
. ['7 I 
40% were women. A year previous, employees num- 
bered 593, of whom 30% were women. 
OUTLOOK FOR THE FUTURE 
* A combination 
of lower revenue and increased costs may necessi- 
tate your Company's filing an application with the 
Civil Aeronautics Board in the near future for an 
increase in mail rate. An alternate remedy would 
be for the Army Air Forces to release to your 
Compai1y additional airplanes for commercial 
operations. 
PRESIDENT 
 Current Assets: ,, 
Cash in banks and on hand 
United States Treas r ates, Tax Series C, at cost 
Accounts receivable: 
Interline and agents' traffic balances . . . . 
Customers' accounts receivable . . . . . . 
Sundry ( including $17,872.43 due from officers and employees) 
Less reserve for doubtful accounts . . . . . . 
Billed and unbilled charges to United States Army Air Forces, less 
advance payment of $72,331.99 ( see note) . . . . . 
Inventory of parts and supplies, at the lower of cost ( first-in, 
first-out) or replacement market . . . . . . . . . . . 
Escrow deposit for purchase, subject to approval of the Civil Aero- 
nautics Board, of 137,241 shares of common capital stock of Inland 
Airlines, Inc. . . . . . . . . . . . . 
Investments: 
Securities of other corporations . . . . 
Property not used in operations, at cost-less reserve for deprecia- 
tion of $705.95 . . . . . . . . . . . . 
Properties and Equipment: 
Land . . . . . . . 
Buildings and leasehold improvements . . 
Airplanes, propellers, engines and flying equipment 
Radio stations, furniture and fixtures, shop and other equipment 
Less Reserve for depreciation . . 
Deferred Charges: 
Prepaid insurance rent, taxes, etc. 
Development of air routes . 
$ 17,607.99 
178,230.38 
42,095.98 
237,934.35 
13,527.88 
2,345.34 
10,384.01 
9,449.75 
73,764.10 
825,479.93 
240,997.98 
1,149,691.76 
$ 342,257.47 
160,000.00 
224,406.47 
849,008.44 
191,591.86 
1,767,264.24 
363,688.65 
12,729.35 
534,718.25 614,973.51 
105,954.86 
6,820.89 112,775.75 
$2,871,431.50 
' 
I 
l 
{i 
OF DECEMBER 31, 
LIABIL ITIES 
1943 
Current Liabilities: 
otes payable to bank 
3% equipment notes payable to bank, portion clue in 1944 
Accounts payable-United States Post Office Department 
Accounts payable-other . . 
Interline and agents' traffic balances payable 
Accrued salaries, wages, taxes, insurance, etc. 
Reserve for contingencies ( see note) 
Provision for Federal taxes on income . 
Un used portion of tickets sold . . 
3% equipment notes payable to bank, due 1945 and 1946 
Common capital stock of 1.00 par value per share. Authorized 
1 000,000 shares; issued and outstanding 409,954 shares . . . 
Surplus: 
Capital surplus . 
Earned surplus ( see note) 
Contingent Liabilities: 
Damage claims, if any in exces of in urance coverage which i 
carried in substantial amounts 
$ 100,000.00 
40,000.00 
232,388.33 
253,652.06 
163,254.23 
146,522.19 
50,000.00 
42,071.13 
1,027,887.94 
45,416.28 
62,000.00 
409,954.00 
648,214.12 
677,959.16 1 326,173.28 
$2,871,431.50 
ote to Financial Statements 
The net profit for the year and the earned surplus arc subject to any adjustment that may be made by Army Air Force auditor :md through renegotiation of billed and unbilled charges to Army contracts. Di ens ion with the Army Air Force have disclosed 
the possibility of adjustments for 1942 charges of approximately $50,000.00 and a reserve for contingencies was provided therefor during the year 1943 by a charge to earned surplus. o provi ion has been included in the accounts for pos iblc adju tm nt 
of 194 3 charge as the management docs not con ider it feasible to make an estimate thereof at this time. 
l8J 
 ~ 
FOR THE YEAR ENDED DECEMBER 31, 1943 
Opera ting Revenue: 
Passenger 
Mail . . . . 
Commercial express, freight and excess baggage 
Equipment rentals and incidental services 
Operating and general expenses 
Depreciation . . . . . . . 
Other Income: 
Profit from fixed price and fixed fee United States Army Air 
Forces con tracts . . . . . . . . . . . . 
et income from restaurant operations: 
Opera ting revenue . . . . . . . 
Less Opera ting expenses . . . . . 
Income from property not used in operations-net 
Interest and discounts received 
Sundry . 
Operating Profit 
Other Charges: 
Interest paid . . . . . . . 
Loss on disposition of equipment 
Profit before laxes on Income 
Provision for Federal normal income and surtax 
et Profit ( sec note) 
$243,202.41 
236,961 .22 
SURPLUS ACCOUNTS 
Capital Surplus: 
Amount at December 31, 1942 and December 31, 1943 
Earned Surplus: 
Amount at December 31, 1942 
Net profit for the year . . . 
Deduct provision for re crvc for contingencies 
Amount at December 31, 1943 ( sec note) 
1_10 l 
$1,709,402.01 
260,906.27 
148,472.72 
36,430.99 
2,155,211.99 
$1,869,218.93 
203,886.31 2,073,105.24 
82,106.75 
47,065.00 
6,241.19 
8,336.42 
3,061.56 
81 .73 64,785.90 
146,892.65 
3,936.47 
4,674.89 8,611.36 
138,281.29 
48,087.24 
$ 90,194.05 
$ 648,214.12 
637,765.11 
90,194.05 
727,959.16 
50,000.00 
$ 677,959.16 
  Revenue: 1940 1941 1942 
Passenger ......................... $ 752,140 $1,055,821 $1,242,541 
Mail ................... .... ...... 808,488 848,655 760,573 
Express, Freight and Excess Baggage .. 58,094 83,702 191,051 
Other ..... . ... ................... 29,786 31,067 180,892 
Total ........................... $1,648,508 $2,019,245 $2,375,057 
Revenue Miles Flown ....... .. ......... 2,399,338 3,136,917 2,318,305 
Revenue Passengers . . .................. 47,407 69,791 77,801 
Average No. Passengers per Revenue Mile .. 6.59 7.30 10.52 
Average Revenue per Passenger Mile .. .... .0476 .0461 .0509 
Passenger Seat Miles Flown ............. 32,359,017 48,592,298 39,348,869 
Revenue Passenger Miles ................ 15,803,768 22,892,281 24,393,816 
Load Factor .............. .. . .. ........ 48.84 47.11 61.99 
Mail Pounds Carried .......... ... ...... 951,451 1,289,505 1,547,984 
Express Pounds Carried ... .. . . .. ....... . 566,427 821,514 1,258,368 
1940 1941 1942 
Expense: 
Depreciation ...................... $ 141,746 $ 197,781 $ 215,707 
Other Operating and General Expenses 1,347,742 1,826,920 1,582,160 
1otal Operating Expenses ......... $1,489,488 $2,024,701 $1,797,867 
Operating Expenses per Revenue Mile. . . . .6208 .6454 .7755 
Percent of Scheduled Service Performed. . . 96.39 96.85 96.17 
Number of Employees (Average). . . . . . . . 241 330 485 
Brackets denote decrease. 
All of the above figures, except the umnber of employees, apply to commercial operations only. 
[12] 
1943 
$1,709,402 
260,906 
148,473 
42,672 
$2,161,453 
2,057,028 
80,907 
15.84 
.0525 
38,498,693 
32,589,240 
84.65 
1,914,391 
957,291 
1943 
$ 203,886 
1,850,699 
$2,054,585 
.9988 
94.44 
807 
Percent of 
Increase 
1943 overl 942 
37 .57~1o 
(65.7%) 
(22.29%) 
(76.41%) 
(8.99%) 
( 11.27%) 
3.99% 
50.57% 
3.14% 
(2.16%) 
33.6% 
36.55% 
23.67% 
(23.93%) 
Percent of 
Increase 
1943 over 1942 
( 5.48%) 
16.97% 
14.28% 
28.79% 
( 1.80%) 
66.39% 
 ce fticiency, W t 
ed an average of 9.2 
943, compared with 6. 7 
Center Right: The Military Divi ion of 
We tern Air Lines continued it plen- 
did record of accompli hment in the 
tran portation of vital war cargo to Army 
base in Ala ka and the leutian . 
Lower Right: Western Air's new in- 
strument shop is r pon ible for the mo t 
delicate repairs and adju tment to the 
73 instruments which are contained in 
the cockpit of the Doug]a DC-3. 
Left Hand Column: 
On May 10, 1943, We tern Air Line wa 
awarded a new route from Lo ngele 
to San Diego via an Bernardino, Palm 
pring and El Centro. rvice on thi 
route will be inaugurated a soon a the 
rmy relea es the nece ary equipment. 
ith the addition of a Coflee hop at 
Las Vegas, Western now operate a chain 
of three airport restaurants which showed 
a gross profit of $6,241.19 in 1943. 
In Jine with the general trend, We tern' 
percentage of women employees rose 
harply during 1943. At the clo e of the 
year, 40% of a11 employee were women, 
compared with 30% in 1942. 
tern Air employee numbered 807 at 
the clo of 1943. continuou program 
of inten ive training ha been inaugu- 
rated to teach the employe the fun- 
damental of their variou job . 
 Top photo: Several ticket offices were mod- 
ernized and enlarged this year. One of the 
finest is at Great Falls, Montana, which 
has invested over $500,000.00 in its Muni- 
cipal Airport. 
In et: A total of 119 Westernaires were 
serving in the armed forces at the close of 
1943. Typical of this splendid group is 
former stewardess Lieutenant Henrietta 
Richard on ( "Mike" Furler), an Army 
Flight nurse with 132 hours of combat fly- 
ing to her credit evacuating wounded in 
orth Africa. 
Below: In October of 1943, Western Air 
purchased 83% of the stock of Inland Air 
Lines whose routes extend from Great 
Falls to Denver and from Cheyenne to 
Huron, South Dakota. These operations 
will soon be absorbed into the Western 
Air Lines syst~m. 
Right Hand Column: 
On August 13, 1943, West- 
ern Air Lines was awarded 
a non-stop route between 
Los Angeles and San Fran- 
cisco, re-establi hing a serv- 
ice which the company pio- 
neered in 1928. Pictured 
are Operations Vice-Presi- 
dent C. N. James and two 
of the passengers on the 
original 1928 flight. 
The acute shortage of plane 
equipment was relieved 
somewhat when the Army 
returned one of the air- 
plan es which had been 
taken over. The plane was 
quickly converted and com- 
menced commercial opera- 
tions on August 27, 1943. 
In April, 1943, Western' 
General Offices were moved 
to Hollywood where they 
now occupy two ful] floor 
of the Guaranty Building. 
The Communications De- 
partment has been provided 
with the latest testing fa- 
cilities for the repair and 
maintenance of all air and 
ground radio equipment. 
 LEGEND 
Route certificates now held by 
Western Air Lines, ... 2,265 miles 
Route certificates applied for 
by Western Air Lines .. 15,092 miles 
Route certificates held by 
Inland Air Lines 
Route certificates applied for 
by Inland Air Lines 
 WESTERN HAS ALSO APPLIED FOR 
PROPOSED ROUTE TO ALASKA NORTH 
FROM SEATTLE "IHcouvEI! 
Vi~R IAl,. - 
"Onc11 
SA~T4 BAR 
BOTH WESTERN AND INLAND HAVE APPLIED FOR 
PROPOSED ROUTE TO ALASKA NORTH 
FROM LETHBRIOGE 
--- 
REGIN,_ 
WINNIPEG 
-;o,;r~~-;""o;;ofA- ----------- 
i 
I 
Map showing existing and proposed domestic 
routes of Western Air lines and Inland Air Lines 
March, 1944 
/ G-oro~ 
I 
BISMARCK 
I ~00 
MILES CITY 
NG$ 
r----- 
1 S DA<OTA -  -  -  -  - -  -  
~-.... 
---------------=-=-ie~:::-- 
I 
i 
I 
 ~-T~ 
.1 
COL01t.ao0 
.... ,zo,-, 
I ,;;;--l~---- 
I 
I 
WATE 
LEGEND 
Western's routes, operating or 
authorized 
 Western's proposed routes 
lnland's routes, operating 
- - - - - lnland's proposed routes 
Al I other routes