\ -it, ...... ..... ~ .... .. . ...... _ _,~~< . .. \ -... ', Nation's Shortest Coast-to-Coast Airway APPROXIMATELY MAY 1, 1945, vVestern Air Lines will inaugurate service between Los Angeles and Denver over its new, direct "cut-off" route. Initial operations will be restricted to mail and cargo flights but deluxe passenger service will be added as soon as the necessary four-engined airplanes are available. Following the short Great Circle route, Western's Los Angeles-Denver "cut-off" is 2 39 miles shorter and 2 hours faster than the present circuitous rout- ing. This saving will benefit millions of travelers who will use this natural trade and travel artery between Southern California and the East. Traversing, as it does, one of the most beautiful and least known sections of the West, the Los Angeles-Denver "cut-off" will undoubtedly rank as one of the most scenic airways on the globe, offering such outstanding attractions as Zion and Bryce National Parks, the famous Horseshoe Bend of the Green River, Holy Cross Mountain, Rocky Moun- tain National Park and many others. First conceived and surveyed by Western Air Lines in 1936, the award of the Lo Angeles-Denver "cut- off" is another milestone in Western's long list of pioneering achievements and one that will have an important influence on the future of your company. To Tl-f E MARCH 23, 1945 * There is submitted here- with Consolidated Profit and Loss Statement of your Company for the calendar ear 1944, including the operations of Inland Air Lines, Inc., a subsidiary, from June 1, 1944, together with the Consolidated Balance Sheet of the Company as of December 31, 1944, to which is appended the report of Messrs. Peat, far- wick and Mitchell & Co., accountants and au- ditors. Operations of the Company for the year 1944, including seven months' operation of Inland Air Lines, Inc., resulted in a net profit of $13 5,827-54 after all taxes and charges in- cluding provision of $321,321.53 for depre- ciation and $165,876-48 for estimated Federal income taxes for the year 1944, in comparison the year of 1943 resulted in a net profit of $90,194.05 after provision of $203,886.31 for depreciation and $48,087-24 for Federal in- come taxes. The impro, ement in net income is largel) the result of additional schedules made pos- sible by the return of airplanes by the Army Air Forces and the inauguration of service be- t\, een Los Angeles and San Francisco on May l, 1944 The following explanatory comments and the graphs and statistics submitted herev, ith include operations of Inland Air Lines, Inc., for the seven months ended December 31, 1944 whereas prior years' comparisons have not been adjusted to reflect the operating re~ sults of this newly acquired subsidiary. REVENUES * Contini.1ing high load factors re- sulting from abnormal war traffic, together with the inauguration of scheduled service be- tween Los Angeles and San Francisco, effec- tive May 1, 1944, and the addition of seheclulcs made possible by the return of airplanes from the U. S. Army Air Forces, combined to in- crease the revenues of your Company to an all-time high. The gross revenues, totalled $4,257,654.60 as compared with $2,155,- 211.99 for 1943, or an increase of 97.55% Passenger revenue, which contributed 74-43 % of the total, amounted to $3, 168,- 828.29 as against $1,709,402.01, an increase of 85.38%. Mail revenue amounted to $836,- 5 56.04, as compared to $260,906.27 in 1943. Of the 1944 total, $318,297.50 was received by Inland Air Lines, Inc. OPERATING EXPENSES * The expansion in fa- cilities and services, together with a rising trend in wages and costs of materials, person- nel training and turnover, caused a substan- tial increase in total operating expense which rose from $2,073,105.24 in 1943 to a total of $4,022,849.28 in 1944. FINANCIAL POSITION * The attached Con- solidated Balance Sheet of your Company as of December 31, 1944, shows current assets of $1,827,911.31, including cash of $398,762.81 as against current liabilities of $1,145,823.09. As of December 31, 1943 current assets amounted to $1,767,264.24, including cash of $342,257-47 as against current liabilities of 1,027,887.94. EQUIPMENT *On December 12, 1944 your Company entered into a contract with the Douglas Aircraft Company for the purchase of five Douglas DC-4 and five DC-6 airplanes. This contract will involve an expenditure of $4,650,000.00, of which approximately 2 5 % must be paid when construction of the air- planes commences and the remaining 7 5 % on delivery. The construction and delivery of these airplanes is dependent upon approval by the Army Air Forces, governed by the prog- ress of the war, and it is presently estimated that no deliveries will be received until 1946. It is contemplated that the purchase of these airplanes will be financed through equipment loans. During 1944 the Army Air Forces released five Douglas DC-3, twenty-one passenger air- planes to your Company, including one for Inland Air Lines, Inc. As of December 31, 1944 Western operated eight Douglas DC- 3' s, including one undergoing conversion, and Inland operated two Lockheed Lodestar, 14- passenger airplanes, one Douglas DC-3 and one Stinson single motor airplane. Since January 1, 1945 the Army has released three additional Douglas DC-3 airplanes to your Company which are now undergoing overhaul and conversion. 1941 1942 1943 1944 EJ .1944: m 943,415 POUNDS CJ 1941. 821,514 POUNDS The five airplanes received from the Army in 1944, were purchased at a cost of $2r-::o,- 3 78.16. An additional amount of $204,897-44 was expended for overhaul and conversion. The remaining Douglas DC-3' s being received in 194 5 are to be purchas~cl or leased, depend- ing on the basis on which they are obtainable, which information is now being developed by the Army. ADDED SERVICE * The newly acquired Los Angeles to San Francisco service was inaugu- rated with three round trips daily on May 1st, which was doubled in November, 1944. One round trip daily was added to the Los Angeles-Salt Lake route, making a total of five round trips operated as of December 31, 1944. The Salt Lake-Lethbridge service was improved with an additional round trip be- tween Salt Lake and Butte. The service on the routes of Inland was augmented with an addi- tional daily round trip between Denver and Great Falls, two additional round trips be- 1941 1942 1943 1944 t 1944: 1120 EMPLOYEES 19 1941: 330 EMPLOYEES t ' tween Cheyenne and Denver, and in Novem- ber the exclusive mail operation between Cheyenne and Huron was converted to a pas- senger-mail-express service. NEW ROUTES * On May 2 3, 1944 the Civil Aeronautics Board approved the application of your Company to acquire controlling inter- est in Inland Air Lines, Inc., which operates between Denver, Colorado and Great Falls, Montana and between Cheyenne, Wyoming and Huron, South Dakota. As of December 31, 1944 your Company owned 149,117 shares, or 90.8 % of the outstanding 164,218 shares of Inland. Offers have been made to the remaining shareholders to purchase their stock under identical terms and conditions by which your Company purchased the stock it now owns at a price of approximately $2. 53 per share. On ovember 11, 1944 the Civil Aeronau- tics Board awarded your Company the 884- mile route between Los Angeles and Denver 1941 1942 1943 1944 44:~53~ 732 POUNDS 41: 1,289,505 POUNDS t I.I) 5 z 0 - ...J 4 ...J - ~ z - C 3 UJ - 0:: 0:: 0 CL ...J - <{ ~ 0 v; 75 z 0 ~ 60 ~ z 0:: UJ l') 30 z UJ V) V) z UJ > ~ 0 w ...J co <{ ...J 4'. > 3 z UJ 0 o To Al ska .. -. _ __ --- -,-..._..._ .. ,.,._ "4LL,t ,, -~""':--- 1ii.i; '4L.L.ts - -, I I I : \, P0<:.4tt F,tl.L.$'b,.-o-,- - . Be, ---- r-- . ~~cc,. I ,,, -----~it, uro / to~~Ocir \ I -11#/lfQ[/r I / rtlr / "~t I l'tOSWLLo I I i 1 i jHOaes 8IG 0 SPRI SAN ANGLOo -- WESTERN AIR LINES Inc. Map showing present and proposed routes of Western Air Lines - Inland Air Lines November 15, 1944 JO LA~~ ,-;.- MADtSOHo olltlLWAUKE o v,NSI -;.'i~ I I i l I I ~Af'O\.IS RU&er:ttut, ffRIIE HlilJT LEGEND Existing routes of Western Air Lines and Inland Air Lines Proposed routes of Western Air Lines and Inland Air Lines \ All\ \ o~RY oWACO ---~ ' ----- geratr ave y transports~ costing ollars e.ach. Ten four- ~ planes have been 1 on an additional ers will cruise as fast e continent in ten lu ury and kno t word in postwa acqui COAST-TO-COAST AIRWAYS ... Showing how Western's "Cut-off" route joins at Denver to complete the shortest airway between Los Angeles-Chicago- ew York. Great Circle (shortest) route- Los Angeles- Chicago- New York l Western Air Lines-United Air Lines "cut-off" route =========== \ Other transcontinental airline routes 85,000,000 PEOPLE will benefit from Western Air Lines' new Los AngeUs-Denver rrcut-ojf" route All of the great agricultural tatc of the Central We t, plus the teeming indu trial center of the East will have a hortcr and fa ter route to Southern California when \Vestern inaugurate ervice over it Lo ngele -Denver "cut-off" route. 11 told, it is e timatcd that 85,000,000 people, or almo t two-thirds of the nation's population, will benefit from thi horte t coa t-to-coa t airwa . The growing importance of Southern California as an industrial region i reflected in it phenomenal popu- lation growth-11. 3 % between 1940 and 1943. Trade and travel inevitably follow uch increase and a large share"' ill unquc tionably flow over\ estern' route. ttracted b) the fact that a letter or package can leave ew York and be delivered in Lo ngcle the ame day, a large volume of cargo can al o be expected. La t but not lea t, arc the va t number of tourists, who will want to ec the cenic \ e t in all its plendor. Through the magic of air tran port, the) will be a blc to pend their full two-"' eek vacation in California and adjacent tate with no time lo tin tediou urfacc travel. BELOW: Long' Peak (1..p55 ft.) tower over Etc Park and Rocky fountain 1 ational Park . . I, Skyway to the NATION'S PLAYGROUNDS Because it serves more National Parks and Monu- ments, more resorts and scenic areas than any other airline, Western Air Lines is appropriately referred to as the "Skyway to the Nation's Playgrounds." Closed now because of the war, all of these beauty spots will again offer their outstanding attractions to tourists and vacationists after peace has come. Western Air Lines will offer a comprehensive sys- tem of air tours to such world-famous places as Yellowstone Park, Death Valley, Palm Springs, Lake Louise, the Black Hills and many others. Dude ranch visitors, skiers, fishermen and big game hunt- ers will be able to board a Western Air Lines plane and, in a few hours, find their favorite outdoor sport. uare-mile Ye West YeDowstone, T' BanllS~p . (Served by We Calgary, Alberta.) t. Rushmore, Shrine c Black Hills r, L CENTRO .. ~~ - LEGEND Route certificates now held by Western Air Lines and Inland Air Lines .......... 4,196 miles Route certificates applied for by Western Air Lines and . Inland Air Lines 15,092 miles WESTERN AIR LINES Inc. Map showing proposed route from _Los Angeles to Mexico, Central Amer.1ca, and South America and from the United States to Alaska. November 15, 1944