m 
 HIGHLIGHTS OF 1958 
1958 * 1957 
Seat miles produced 981,740,000 1,175,071,000 
Seat miles sold 533,443,000 702,727,000 
Passengers carried 970,498 1,379,653 
Total operating revenues $ 33,970,204 42,218,951 
Operating income 1,055,791 4,796,714 
Net income 1,402,340 2,401,914 
Dividends paid: 
Cash $ 731,861 660,002 
Stock 807,238 755,492 
Common stock outstanding 927,920 882,483 
Income per share 1.51 2.72 
Dividends per share: 
Cash--annual rate 0.80 0.80 
Stock 4% 4% 
Total shareholders' equity 18,996,428 17,469,192 
Shareholders' equity per share 20.47 19.80 
Cash and U.S. Government securities $ 6,520,798 7,332,034 
Working capital 5,319,511 4,688,158 
Investment in property and equipment 46,319,339 38,412,441 
Long-term debt 19,748,000 16,827,000 
Number of employees 
Wages and salaries paid 
2,547 
$11,946,734 
2,773 
14,334,769 
Operations were suspended from February 21 to June 10, 1958, because of a strike. 
V J 
THE COVER 
During a lengthy series of performance tests, Lockheed 
Electra prop-jets race through southern California 
skies at 400 miles-per-hour. Western Air Lines 
will introduce Electra/Flight to key western cities in 1959, 
marking the company's entry into the commercial jet 
age with a fleet of airliners designed for efficient 
operation over the WAL system. 
 THE PRESIDENT'S LETTER 
General Offices 
Western Air Lines Building 
6060 Avion Drive 
Los Angeles International Airport 
Los Angeles 45, California 
Registrars 
Bank of America National Trust & 
Savings Assn. 
660 South Spring Street 
Los Angeles 14, California 
The Chase Manhattan Bank 
11 Broad Street 
New York 15, New York 
Stock Transfer Agents 
Security-First National Bank of Los 
Angeles 
561 South Spring Street 
Los Angeles 14, California 
New York Trust Co. 
100 Broadway 
New York 15, New York 
Trustee for Debentures 
Union Bank 
760 South Hill Street 
Los Angeles 14, California 
Stock Listings 
Listed and traded on 
New York Stock Exchange and 
Pacific Coast Stock Exchange 
General Counsel 
Darling, Shattuck & Edmonds 
Attorneys-at-Law 
523 West Sixth Street 
Los Angeles 14, California 
Auditors 
Peat, Marwick, Mitchell & Co. 
618 South Spring Street 
Los Angeles 14, California 
To Shareholders, Employees, Customers and Friends: 
For Western Air Lines, as well as most of the domestic airline 
industry, 1958 proved to be a year filled with problems. There was an 
unprecedented wave of major strikes, a further contraction of profit 
margins and costly preparation for the commercial jet age. Despite these 
difficulties, Western and the industry moved into a new year convinced 
of the promise which lies ahead, assured by a resilience which seems 
unparalleled in the tradition of American business. 
The company suffered a lengthy pilots strike. However, traffic tem 
porarily lost was recovered speedily by an aggressive program of sales 
and service. Due in large part to the unusual efforts of company 
personnel, who were patient and loyal during a long period of enforced 
idleness, Western succeeded in producing a profit and in continuing 
its regular dividend policy. The most significant single statistic, which 
justifies the promise held for 1959, is that operating revenues for the 
concluding six months of 1958 increased almost 12 per cent over those 
for the same period in 1957. 
Within a few months, Western will be operating the prop-jet 
Electras in regular service. For some time our personnel and operations 
have been geared for the introduction of these jet-age aircraft, looking 
ahead to the competitive advantages which they will provide. 
On April 17, 1959, Western will become the first commercial airline 
in the nation to complete 33 years of continuous operation. The coming 
year, in which we will have an opportunity to provide our best service 
to the people of the fastest-developing region in our hemisphere, should 
be the best in the long history of Western Air Lines. 
I 4JULc. 
Annual Meeting 
Fourth Thursday in April 
at General Offices 
February 20, 1959 PRESIDENT 
Western Air Lines Building 
Los Angeles International Airport 
Los Angeles 45, California 
Published as an information 
service for the shareholders, 
employees, customers and friends 
of Western Air Lines by the Public 
Relations Department of the Ad 
ministration Division. 
 THIRTY-THIRD ANNUAL REPORT 
EARNINGS 
$1.51 a Share for 1958 
Western Air Lines in 1958 earned a total of 
$1,402,340, or $1.51 a share based on the 927,920 shares 
of stock outstanding on December 31. 
Net gains from the disposal of property amounted to 
$1,522,386, or $1.64 a share, while operations, reflecting 
the severe impact of an Air Line Pilots Association 
strike which forced suspension of operations from 
February 21 to June 10, resulted in a net loss of 
$120,046, or $.13 a share. 
By comparison, the 1957 net income of the company 
was $2,401,914, equivalent to $2.72 a share, including 
profit realized from the disposal of property of $528,077, 
or $.60 a share, adjusted for the 1958 stock dividend. 
More meaningful, however, is the substantial increase 
in operating income reported for the last half of 1958, 
the period following the strike, as compared to the same 
1957 period. Operating income for the final six months 
of 1958 amounted to $3,656,000, materially in excess of 
the $2,290,000 realized in the final half of the previous 
year. 
DIVIDENDS 
Eighth Successive Year 
Cash dividends to its shareholders were paid by 
Western Air Lines during 1958 for the eighth consecu 
tive year. In addition, a stock dividend was distributed 
for the third successive year. 
Regular quarterly dividends of $.20 a share were paid 
on March 10, May 15, August 15 and November 15, 
and a 4 per cent stock dividend was forwarded to share 
holders on March 20. 
Dividend declarations were announced at directors' 
meetings in San Diego, Los Angeles, San Francisco and 
Salt Lake City as the company continued its long-stand 
ing policy of holding quarterly business sessions in key 
cities on the company system. 
At the February 18, 1959 meeting in Mexico City, 
the board of directors declared the first quarterly cash 
dividend of the new year and also ordered distribution 
of a 4 per cent stock dividend. The $.20 cash dividend 
is payable on March 20 and the stock dividend on April 
3 to all shareholders of record on March 6. 
REVENUES 
Promising Second Half 
Operating revenues of Western Air Lines for 1958 
were $33,970,204, down 19.5 per cent from the record 
$42,218,951 of the previous year. V*. 
Significantly, operating revenues for the last six 
months of 1958 were $25,271,000, up 11.9 per cent over 
the comparable 1957 period. This improvement mirrored 
to some extent the widespread business upturn which 
became apparent in September and October, as con 
trasted with the recession which became evident during 
the same months of 1957, and reflected the intensified 
sales and service efforts of the company. 
Principal revenue sources were substantially the same 
as in 1957 with passenger traffic accounting for 92.6 per 
cent; freight, express and excess baggage 3.8 per cent; 
mail 2.2 per cent; and other operating revenues 1.4 per 
cent. 
Revenues for the year benefitted from the interim 
fare increase of 4 per cent, plus $1 a ticket, granted by 
the Civil Aeronautics Board on February 10, and from 
-- 
BRIEF BALANCE SHEET 
Western owns: 1958 1957 
Cash and U.S. Government 
securities $ 6,520,798 7,332,034 
Owed by others 5,769,421 3,462,603 
Expendable parts and 
supplies 662,276 922,432 
Buildings and improvements, 
net 2,129,052 2,249,539 
Flight and other equipment, 
net 28,905,983 22,402,940 
Deposits on new equipment 4,208,493 6,476,711 
Prepaid expenses 1,131,126 834,973 
Deferred charges and other 268,389 335,844 
49,595,538 44,017,076 
Western owes: 
Owed to vendors and others 5,047,091 4,267,780 
Federal income taxes-- 
current and deferred 2,699,272 3,147,672 
Tickets sold but not yet used 904,747 1,105,432 
Notes payable- 
current and long-term.... 18,700,000 13,905,000 
Debentures 3,248,000 4,122,000 
30,599,110 26,547,884 
Excess of what is owned 
over what is owed, or 
shareholders' equity $18,996,428 17,469,192 
 further CAB action, on October 20, authorizing elimina 
tion of roundtrip discounts, reduction of family-plan 
discounts from 50 to 3314 per cent, and restriction of 
promotional stopover privileges. 
An additional stimulant to revenues will become effec 
tive on March 1, 1959 when the two-part CAB ruling 
becomes applicable to intrastate operations in California. 
It is possible that in 1959 the CAB finally will act on 
the long and complex record developed in the General 
Passenger Fare Investigation, a proceeding which was 
instituted in November 1957. It is hoped that after a 
realistic appraisal of the record the board will permit 
fare increases in line with the value of air service now 
being rendered, and in order to meet the continuing 
upward spiral of operating expenses. 
STATEMENT OF SOURCE AND 
DISPOSITION OF FUNDS FOR 1958 
Source of funds: 
Net income $1,402,340 
Depreciation and other 
non-cash charges 4,386,682 
Deferred federal taxes on 
income 230,000 
Sale of capital stock 
Bank notes $2,000,000 
7,305 
Insurance company notes.. 3,995,000 
Less reductions in 
long-term notes 
5,995,000 
2,200,000 3,795,000 
9,821,327 
Disposition of funds: 
Planes and other equipment 
including contract deposits 8,458,113 
Dividends: 
Cash 731,861 
Increase in Working 
Capital 631,353 
$9,821,327 
J 
Star of the company's television advertising is the entertaining 
"Relaxed Bird," seen here in a scene from the newest of a 
prize-winning series of films. In Mexico, he speaks Spanish. 
EXPENSES 
Operating Costs Held 
Operating expenses of Western Air Lines during 
1958 were $32,914,413, compared to $37,422,237 in the 
previous year. 
While operating revenues for the last half of 1958 
were 11.9 per cent above those for the same period 1957, 
operating expenses were held to an increase of 6.5 per 
cent. This favorable improvement in the operating ratio 
underscored the increase in operating income which 
occurred in the last half of 1958. 
While most expense classifications reflected a decrease 
due to the suspension of company services during the 
strike, depreciation, promotion and sales, and general 
and administrative costs were up over the previous year. 
Depreciation is a continuing expense not susceptible 
to contraction. In addition, the 1958 figures show the 
additional provision for nine new DC-6B aircraft intro 
duced into the Western fleet during the year. 
Within the promotion and sales category it was 
possible to reduce variable expenses during the strike 
period; however, these reductions were more than offset 
by the need for increased programs to regenerate traffic 
for the favorable second-half period. 
The general and administrative category includes, 
proportionately, more fixed costs which could not be 
curtailed than other categories and, in addition, includes 
an increasing burden of property taxes. 
These categories also reflect the management decision 
to retain all supervisory personnel on the payroll during 
the pilots strike in order to perform essential duties, 
handle extraordinary responsibilities which developed 
during the period of labor unrest, and prepare for the 
swift and orderly resumption of operations. 
 Members of the Western Air Lines Board of Directors and 
executive staff who provided leadership for the company 
during 1958 are (left to right, standing) Arthur F. Kelly, vice 
president-sales; D. P. Renda, vice president-legal and sec 
retary; Hugh W. Darling, director and general counsel; Terrell 
C. Drinkwater, president and director; Harry J. Volk, director; 
J. Judson Taylor, vice president and treasurer; Alexander 
Warden, director; G. G. Brooder, vice president; Thomas M. 
Murphy, assistant to the president; L. Welch Pogue, director; 
Stanley Gewirtz, vice president-administration; Marvin W. 
Landes, vice president-service; Hector C. Haight, director; 
Charles J. J. Cox, controller and assistant treasurer; and 
Stanley R. Shatto, vice president-operations and director. 
Seated are (left to right) Sidney F. Woodbury, director; Dr. 
Donald H. McLaughlin, director; John M. Wallace, director; 
Dudley Swim, director; and Robert E. Driscoll Sr., director. 
Not present was Goodrich Lowry, director. Western's board 
represents many regions served by the company system. 
FINANCES 
Strong Capital Position 
Working capital of Western Air Lines on December 
31 was $5,319,511, an increase of $631,353 during the 
year. The ratio of current assets to current liabilities was 
$1.61 to $1, almost identical to that reported at the close 
of 1957. 
The financial statement of the company for 1957 
disclosed a firm commitment of approximately $26,000,- 
000 related to the equipment program initiated in 1956. 
At the end of 1957, $12,000,000 remained available 
under the 1956-57 loan agreements, leaving $14,000,000 
to be covered by depreciation, deferred taxes, earnings 
and, if necessary, additional borrowings. 
For 1958, the financial statement sets forth a remain 
ing commitment of $17,500,000, of which $4,000,000 is 
expected to be provided through an engine-lease arrange 
ment now under negotiation. Of the remaining $13,- 
500,000, $6,000,000 will be provided by additional 
funds to be drawn during 1959 under the terms of the 
1956 financing plan. Balance of the funds required dur 
ing the period between the close of 1958 and early 1960 
is expected to be provided from operational sources, 
enumerated above, in the amount of $7,500,000. 
SHAREHOLDERS AND STOCK 
Equity at All-Time High 
On the final day of 1958, there were issued and out 
standing 927,920 shares of Western Air Lines common 
stock, 79,379 shares more than the total of 848,541 out 
standing at the close of the previous year. 
Included in the increase were 35,483 shares distrib 
uted as a 4 per cent stock dividend, 43,053 shares issued 
upon conversion of debentures, and 843 shares issued 
through exercise of stock options. 
Shareholders' equity at the close of 1958 was a record 
$18,996,428, equivalent to $20.47 a share, an increase 
of $1,527,236 over the 1957 total equity of $17,469,192, 
or $19.80 a share, adjusted for the 1958 stock dividend. 
Ownership of the company's stock continued to be 
widespread. 
On the New York Stock Exchange, 319,000 shares of 
Western stock were traded in 1958 at prices ranging 
from a low of 1914 to a high of 2814, with a closing price 
of 2734, up $7 a share from the final 1957 price of 2034. 
On the Pacific Coast Stock Exchange, 14,901 shares 
were traded. The year's low was 1914, high was 27%, 
and the closing level was 2714, also up $7 from the 
previous year. 
At a special meeting of stockholders held at the Los 
Angeles general offices on December 15, election of a 
13-man board of directors headed by the company's 
president brought to a close more than two years of 
complex litigation involving action taken by share 
holders in 1956 to change the method of electing direc 
tors from cumulative to straight voting of stock. 
1 he special meeting followed clarifying decisions of 
the Superior Court of California and the Court of 
Chancery of Delaware on the voting-method issue. In 
accordance with the shareholders' amendment of the 
company's certificate of incorporation, and confirming 
court rulings, voting at the meeting was by the straight 
 method. Dissident directors who had opposed the change 
did not stand for re-election. 
With shareholders in attendance representing in per 
son or by proxy 75.93 per cent of all qualified shares, 
the new board was elected without opposition. In all, 
702,208 of the 924,757 shares, qualified for balloting 
were cast for the 13 nominated directors. 
EQUIPMENT 
Ready for the Jet Age 
In close cooperation with officials of the Lockheed 
Aircraft Corporation and the Allison Division of Gen 
eral Motors Corporation, personnel of Western Air 
Lines worked throughout 1958 in preparation for the 
company's introduction of the prop-jet. 
Vehicle for the entry, scheduled for Summer 1959, 
will be the tested Lockheed Electra prop-jet, a 400-mile- 
per-hour transport now in production for 15 major air 
lines serving five continents. Western expects to be the 
first airline to offer prop-jet service on the heavily trav 
eled Pacific Coast routes, and plans to introduce Electra/ 
Flight to key western cities during the year ahead. Deliv 
ery of the first plane in a fleet of nine Electras is sched 
uled for June 1959. Five of the new aircraft will be 
placed in service this year, four in 1960. 
Western's personnel worked throughout 1958 in preparation 
for the company's entry into the commercial jet age. Here 
veteran supervisors attend special Electra training course. 
 Checking the magnetronic "memory drum," heart of Western's 
new electronic reservations system, are Tony Villodas, Tele 
register Corp. field service manager, and Jack M. Slichter, 
WAL passenger services director, at newcentral control center. 
Integration of the Electra fleet into the company's 
schedule patterns by early 1960 will provide passenger 
carrying capacity double that of Western's 1955 opera 
tions. Considered by company engineers to be ideally 
suited for the company's system, the Electra is designed 
to operate efficiently for the 550-mile average Western 
passenger's air trip. 
Western's management has not yet made a decision 
to acquire turbo-jet aircraft, but is continuing to study 
available equipment, as well as proposed aircraft, in an 
effort to find an intermediate-range airliner which will 
provide efficient and economical utilization on the com 
pany's relatively short-haul system. 
While preparing for the Electra, Western in 1958 
acquired nine additional Douglas DC-6B airliners, and 
operated six of them in 87-passenger aircoach configura 
tion. During the year, the company sold three DC-6Bs, 
and in 1959 will convert the aircoaches to 95-passenger 
configuration. The program calls for modification of 
seven planes. 
DC-8 operations were cut back in preparation for the 
transfer to local service airlines of operating rights at 
smaller cities. As a result, the company disposed of three 
DC-3s. Three Convair 240s were disposed of during the 
year. 
At the close of the year, the Western fleet was com 
posed of 35 planes, including 21 60-passenger deluxe 
DC-6Bs, six 87-passenger DC-6B aircoaches, six 40- 
passenger Convair 240s and two 22-passenger DC-3s. 
Setting a fast pace for the year ahead, Western on 
January 13, 1959 flashed into operation the Resetron, a 
new concept in reservations-by-electronics perfected dur 
ing more than two years of study and testing by the 
company's passenger service experts. 
The revolutionary network, which now links sales 
offices, reservations centers and airport ticket counters 
in every city on the system for swift replies to requests 
for flight reservations, was designed and built specifi 
cally to meet the particular needs of Western by the 
Teleregister Corporation, pioneer in the production of 
electronic systems for stock exchanges, banks and 
industries. 
Working at split-second speeds, the Resetron enables 
ticket agents at 96 locations to determine seat availability 
on as many as 60,000 flight segments up to six months 
in advance. Agents also are able to sell or to cancel 
space for passengers by electronic controls installed and 
maintained by contract engineers of the company from 
which the equipment is leased. 
Heart of the network is a magnetronic "memory" 
drum, located in a new reservations control center at the 
company's Los Angeles International Airport headquar 
ters. At the selling end of the vast electronic network 
are agent sets, no larger than conventional adding 
machines. 
Automatic transactions through agent sets are being 
channeled through 38 locations in the Los Angeles area, 
21 sites in San Francisco, and at city ticket offices, airport 
counters and reservations centers in San Diego, Long 
Beach, Oakland, Portland, Seattle, Tacoma, Las Vegas, 
Phoenix, Salt Lake City, Denver, Minneapolis and St. 
Paul. In other cities on the system, transactions are 
being made through teletype machines and tape trans 
mitters which send information to the "memory" drum 
through the same equipment at nearly the same speeds 
as the agent sets. 
SALES AND SERVICE 
Campaigns Win Traffic 
Imaginative exploitation of newly established routes 
and services, an intensive campaign promoting winter- 
vacation travel, and a program planned to regenerate 
strike-impaired traffic were highlights of the company's 
sales and service effort during 1958. 
Despite the suspension of all company flight services 
for nearly one-third of the year, Western carried 970,- 
498 passengers during 1958, a decrease of 29.7 per cent 
from the previous year's record. 
 Total passenger revenues for the year were $31,459,- 
203, down 19.8 per cent from $39,243,111 in 1957. 
Deluxe services accounted for 70 per cent of the 1958 
passenger revenues, as contrasted with 75 per cent in 
the previous year, while aircoach services contributed 
30 per cent, up from 25 per cent in 1957, demonstrating 
continuation of the rising trend in public acceptance of 
Western's economy flights. 
Cargo revenues totaled $1,304,919, down only 18.2 
per cent from the 1957 figure of $1,596,246 in spite of 
the lengthy suspension of service. Mail revenues, includ 
ing service payments for both regular air mail and the 
non-priority transportation of surface mail by air, were 
$732,441 during the year, compared to $1,067,404 in 
1957. Mail payments, for service rendered, accounted 
for only 2 per cent of Western's income dollar, reflecting 
the company's continuing status as a subsidy-free carrier. 
Passenger load factor was 54.3 per cent for the short 
ened operating year as 533,443,000 of the 981,740,000 
seat-miles produced were sold to the traveling public. 
The decline of 5.5 points in the load factor can be 
attributed largely to the business recession and the post 
strike period in which traffic had to be regenerated. 
Results of an expanded program of advertising and 
promotion, necessarily concentrated in the second half 
of the year, were apparent in accelerated traffic gains 
during the winter months. On January 4, 1959, a new 
passenger-traffic record was set for the second time in 36 
days when 6,393 air travelers boarded Western planes 
within 24 hours. 
Sales emphasis continued on the Phoenix and Mexico 
City routes, highlighted by a major campaign announc 
The combination of attractive routes, carefully designed serv 
ice and imaginative promotion attracted famous personalities 
to Western Air Lines flights during 1958, as it has for the past 
33 years. Among leading figures in the entertainment world 
who enjoyed WAL service during the year were (left to right) 
ing inauguration of aircoach flights to Mexico on 
December 1 as economy counterparts of the company's 
popular "Fiesta Flights'' aboard deluxe aircraft. 
"Take a Sun Break'' was the keynote of a four-months 
advertising campaign designed to emphasize the attrac 
tions of the system's winter-resort cities. At the same 
time, the biggest "tie-in'' promotional campaign ever 
conducted by the company was organized in cooperation 
with leading fashion houses and manufacturers of resort 
wear. 
The company's television advertising, featuring the 
famous "Relaxed Bird,'' won national recognition during 
the year, including an award from the American News 
paper Publishers Association. For the first time, the 
company signed contracts for year-round TV commer 
cials in principal metropolitan centers. Television adver 
tising was inaugurated in Mexico City during the year 
with a Spanish-speaking "Relaxed Bird.'' 
A new series of travel posters, employing an unusual 
art technique, was introduced and will be widely dis 
tributed during 1959. 
A variety of promotional activity drew attention to 
the company's services during 1958, with Western's 
now-famed San Francisco cable car winning top honors 
in a score of civic appearances. 
Sales centers were opened in Portland and Palo Alto, 
and service facilities were inaugurated at the new down 
town airlines terminal in San Francisco. 
Charter activities were increased during the last half 
of 1958 with the result that special flights earned $256,- 
428 for the year. 
Cary Grant, top Hollywood star for more than a decade; 
Margot Fonteyn, favorite British ballerina; Kim Novak, leading 
filmland glamour star; and Cantinflas, Mexico's internation 
ally famed entertainer. For many years known as "the skyway 
of the stars," Western continues as a show business favorite. 
 Highlight of Western's new "Fiesta Flights" between Los 
Angeles and Mexico City is a tempting service of frosty 
parfaits and French pastries served from a unique aisle cart. 
Keeping pace with the growth of agency, interline, 
government and military sales, the company expanded 
this area of its organization in 1958. 
The impact of interline business is illustrated by the 
fact that Western now maintains interline traffic agree 
ments with 95 other air carriers throughout the world, 
including Central and South American operators tied 
in with the company's Mexican services. 
PERSONNEL 
Reorganization for Future 
The company suffered a major loss on September 9 
in the death of Mr. Paul E. Sullivan, vice president- 
administration and secretary of the corporation. A 28- 
year veteran of the air transportation industry, Mr. 
Sullivan had served Western since 1930 and had been 
a member of the executive staff since 1945. 
In October, reorganization of principal responsibilities 
within the company was accomplished by the election 
of Mr. Stanley Gewirtz as vice president-administration 
and Mr. D. P. Renda, vice president-legal, as corporate 
secretary. 
Mr. Gewirtz, an attorney and former vice president 
and assistant to the president of the Air Transport Asso 
ciation of America, the industry organization represent 
ing the nation's scheduled air carriers, was selected by 
the board of directors to take over direction of the com 
pany division which includes personnel, public rela 
tions, labor relations, government affairs and flight 
schedules. 
Mr. Renda, who will continue to serve as head of 
Western's legal division, a position he has held since 
his election to that office in 1954, assumed additional 
duties as corporate secretary. He has been with the 
company since 1946. 
Elected as assistant secretaries were Mr. William C. 
Jennings, corporate law department director, and 
Mr. John W. Simpson, administrative law department 
director. 
Despite severe burdens placed upon more than 2,000 
company employees who had to be furloughed during 
the pilots union strike, the company closed the year 
with a personnel roster reflecting one of the highest 
seniority standings in the airline business. 
Headed by Western's senior employee, Mr. W. Edgar 
Eatchel who was awarded the first 30-year service pin 
in the company's history, 46.3 per cent of employees 
were credited with more than five years of seniority 
at the end of 1958. More than one-quarter of all per 
sonnel are entitled to wear 10-year service emblems, 
and a select 2.5 per cent have been awarded 20-year pins. 
The company is expanding its employee relations 
programs to provide necessary orientation for the 20.3 
per cent of personnel who have been with Western less 
than one year. 
As of December 31, the company's employment ros 
ters carried the names of 2,547 employees, a decrease 
of 8 per cent from the previous year. Sixty-nine per cent 
of employees are men, 31 per cent are women. More 
than 2,200 employees, representing 87 per cent of total 
personnel, are represented by the seven labor unions 
with which the company has agreements. 
Western reached agreements with five unions during 
the year, including a pact with the International Associ 
ation of Machinists which was approved an unprece 
dented 11 weeks in advance of scheduled negotiations. 
Agreements with the dispatchers and the stewardesses 
will be opened for negotiation in 1959; all other agree 
ments are effective until at least 1960. 
Four major airlines, in addition to Western, were 
grounded by strikes in 1958. The first pilots strike in 
the company's 33-year history suspended all operations 
for 108 days, equivalent to 29.6 per cent of the year. 
Issues in the strike were settled when an arbitration 
award was handed down on November 19 providing for 
a contract which will remain in effect until October 1, 
1960. 
During the year, most Western employees partici 
pated in the company's inclusive group insurance pro 
gram, with 93.6 per cent subscribing to one or more 
types of coverage offered. Group hospitalization insur 
ance attracted 88.7 per cent of eligible personnel, while 
84.6 per cent availed themselves of accident and sickness 
coverage and 69.6 per cent purchased life insurance 
under the plan jointly financed by the company and 
its employees. 
A total of $289,631 in insurance benefits was paid to 
employees and their family members in 1958, including 
 $192,078 to defray hospitalization expenses, $85,553 
in accident and sickness benefits, and $12,000 in life 
insurance. 
On December 31, 920 eligible employees were par 
ticipating in the company's retirement income program, 
now in its seventh year of operation. Cost of retirement 
plans during 1958 was $513,402 for past and current 
services. Remaining past-service cost of the insurance 
program will be funded over the next six years and is 
expected to require annual payments of $106,000. 
Throughout the year, the company maintained its 
free and reduced-rate transportation plan for employees 
and their families. Several thousand space-available 
passes were issued to personnel for trips on the company 
system, and an almost equal number of passes was 
obtained from other scheduled airlines through a pro 
gram of reciprocal agreements. This privilege continued 
to be one of the most attractive "fringe benefits" for 
company employees. 
-- 
BRIEF STATEMENT OF INCOME 
Western's income came from: 
Passengers 
Express, freight and baggage 
Mail 
Gain on disposal of property 
Other income 
1958* 
$31,459,203 
1,304,919 
732,441 
2,120,386 
560,193 
36,177,142 
1957 
39,243,111 
1,596,246 
1,067,404 
708,077 
443,301 
43,058,139 
Western's expenses were: 
Wages and salaries 11,946,734 14,334,769 
Social security, group 
insurance and 
retirement plans 909,524 1,086,628 
Gasoline and oil 5,126,302 6,309,060 
Materials and repair parts.. 2,254,901 3,350,555 
Depreciation 4,135,612 3,010,894 
Advertising and publicity... 1,410,912 1,297,259 
For service to passengers.. 1,595,177 2,271,800 
Rentals and landing fees... 941,473 980,205 
Insurance 743,948 822,425 
Interest 1,023,340 780,419 
Taxes 2,032,759 3,754,855 
Utilities and services 1,667,328 1,491,331 
Other costs 986,792 1,166,025 
34,774,802 40,656,225 
Net Income $ 1,402,340 2,401,914 
'Operations were suspended from February 21 
to June 10,1958, because of a strike. 
V J 
Representing the company's skilled corps of flying hostesses, 
Western's Mary Lou Talbot won honors as top domestic 
airline stewardess at 1958 international contest held at Miami. 
In February, selected management-level personnel 
attended the second phase of a graduate seminar at the 
University of Washington for development of mana 
gerial abilities in preparation for assumption of increased 
company responsibility. Conducted by faculty members 
of the graduate College of Business Administration, the 
special course emphasized advanced training in em 
ployee relations and job motivation. 
During the year, programs of scientific employee selec 
tion and wage-and-salary analysis were activated by the 
personnel department, as was a specialized plan for pro 
curement of highly qualified stewardess candidates. A 
schedule of employee training classes utilized to near- 
capacity the new facilities of the Western Air Lines 
Training Center adjoining the general offices at Los 
Angeles. 
The Westernaire Federal Credit Union, operating 
from the company's general offices, provided savings and 
loan service to 80.2 per cent of employees during a 
record year. At the close of 1958, total assets of the 
WFCU were $1,287,310; net earnings for the year were 
reported as $70,455. 
 This complex flight simulator in the Western Air Lines Train 
ing Center is a key in the development of crew proficiency. 
ROUTE DEVELOPMENT 
Completion of a Program 
In 1958, Western Air Lines brought to virtual com 
pletion an important phase of its long-range program to 
modernize the company's 9,153-mile route system. The 
transfer of operating rights at 16 smaller communities 
to subsidized local service carriers should result in sub 
stantial operating economies. 
In the Seven States Area Investigation, the Civil 
Aeronautics Board, in accordance with its policy of 
separating trunkline from subsidized local service oper 
ations wherever possible, authorized suspension of West 
ern service at Rochester, Mankato, Brookings, Spearfish, 
Hot Springs, Chadron, Alliance and Scottsbluff. 
Working closely with local service carriers to insure 
the continuance of air service to the traveling public 
through orderly transition, the company has scheduled 
suspension of its flights so there will be no interruption 
of Western's service until the smaller airlines are pre 
pared to provide service tailored to local needs. 
On February 16, 1959, Western withdrew service 
from Rochester; on March 1, 1959, the company 
planned to suspend flights at Brookings, Mankato and 
Spearfish as North Central Airlines succeeded to service 
rights; by April 1, 1959, Frontier Air Lines is scheduled 
to replace Western at Hot Springs and the three 
Nebraska cities. 
On December 9, 1958, in a "press release decision" in 
the Montana Local Service Case, the CAB indicated it 
would grant final approval early in 1959 for elimination 
of the company's services at Lewistown, Cut Bank, Jack- 
son, Logan and Ogden. It is anticipated that obligations 
at these points will be transferred to subsidized local 
service carriers during the first half of 1959. 
Earlier in this route-modernization program, the com 
pany's flights were suspended at Cedar City, and service 
rights terminated to Richfield and St. George. 
In an earlier press release, the CAB stated its intention 
to deny the company's application for authority to oper 
ate turnaround service between Minneapolis-St. Paul 
and Chicago, indicating that award of the route would 
go to Eastern Air Lines and Capital Air Lines. The 
company plans to file a petition for reconsideration of 
the final CAB decision, which is expected early in 1959. 
Western's authority to provide service to Phoenix 
was made permanent when the U.S. Court of Appeals 
for the District of Columbia denied an appeal of the 
1957 CAB decision in the Service to Phoenix Case. 
In 1958, the CAB issued a press release stating that 
it intended to defer decision on all applications in the 
Dallas to the West Service Case for contemporaneous 
decision with a newly inaugurated Southern Transcon 
tinental Service Case, a complex proceeding which is 
expected to involve the entire southern tier of states 
from California to Florida. 
At hearings scheduled to begin in April 1959, West 
ern will request authority to provide service between San 
Francisco-Oakland and Los Angeles to Dallas-Fort 
Worth and Houston via the intermediate cities of San 
Diego, Las Vegas, Phoenix, Albuquerque, El Paso and 
San Antonio. 
Hearings are scheduled to open on March 10, 1959 
in the Pacific Southwest Service Case, which involves 
an examination of the air service needs of an area 
bounded by San Francisco, Reno, Las Vegas, San Diego 
and the Pacific coastline. In this proceeding, the com 
pany will request authority to operate direct service 
between Los Angeles, Sacramento and Reno; direct 
service between San Francisco and Las Vegas, which 
would provide one-carrier flights between the Pacific 
Northwest and the Nevada resort city; and, permission 
to provide San Diego-Long Beach-San Francisco and 
Palm Springs-Ontario-San Francisco service by elimina 
tion of a restriction now requiring stops at Los Angeles. 
The company also will oppose vigorously proposals 
for unnecessary duplication of the services it now is 
providing over routes in the area included in this case. 
Announcement of new bilateral conferences between 
the United States and Canada early in 1959 may vitalize 
the company's long-dormant U.S. authority to serve 
Calgary in the Province of Alberta by international 
agreement. 
To the south, the U.S.-Mexico pact under which the 
company operates its 1,555-mile Los Angeles-Mexico 
City route is scheduled for review prior to its June 30, 
1959 expiration date. Western, in company with other 
carriers operating under terms of the pact, anticipates 
renewal of the agreement through negotiation between 
the two governments. 
 Western Air Lines route-development programs 
conducted during 1958 were culminated by virtual 
completion of a major phase of the company's 
long-range system-modernization plans. Impor 
tant changes in the 9,153-mile Western system are 
illustrated in this map which shows permanent 
routes and cities in bold type (LOS ANGELES), 
cities from which the company's services are 
expected to be withdrawn during 1959 in light type 
(ALLIANCE), proposed routes as broken lines, and 
cities which WAL is seeking to serve in italic type 
(CALGARY). 
In accordance with Civil Aeronautics Board policy 
of separating trunkline from local service opera 
tions wherever possible, the company's obligations 
already have been terminated at Rochester, Minn., 
and Cedar City, Richfield and St. George, Utah. 
Upon completion of the expected transfer of smaller 
communities to subsidized local service carriers, 
34 key western cities will enjoy improved and more 
efficient WAL service. Successful completion of 
pending route-development cases could add 11 
new major centers to the company's network in 
the near future. 
J 
 A DECADE OF GROWTH 
financial summary 1958* 195"7 1956* 1955 1954 1953 1952 1951 1950 1949 
Revenues:** 
Passenger $ 31,459 39,243 26,249 28,756 22,423 20,302 16,250 13,688 11,395 8,471 
Express, freight and excess baggage... 1,305 1,596 954 1,185 968 846 662 507 497 313 
Mail 732 1,067 775 862 764 875 719 1,212 2,090 2,504 
Other 474 313 210 236 326 853 964 875 264 246 
Total Revenues 33,970 42,219 28,188 31,039 24,481 22,876 18,595 16,282 14,246 11,534 
Operating Expenses:** 
Depreciation 4,136 3,011 2,294 2,151 1,761 1,718 1,019 998 1,124 1,335 
Payroll 11,947 14,335 10,283 11,057 9,239 8,367 7,067 6,084 5,353 4,855 
Other 16,831 20,076 13,009 13,798 11,505 10,300 7,674 6,666 6,133 4,374 
Total Operating Expenses 32,914 37,422 25,586 27,006 22,505 20,385 15,760 13,748 12,610 10,564 
Operating Income** 1,056 4,797 2,602 4,033 1,976 2,491 2,835 2,534 1,636 970 
Other Income and Expenses--net** 1,171 18 2,331 (201) 333 (56) (103) 280 (196) (258) 
2,227 4,815 4,933 3,832 2,309 2,435 2,732 2,814 1,440 712 
Provision for Taxes on Income** 825 2,413 1,889 1,850 850 1,250 1,500 1,425 690 391 
Net Income** $ 1,402 2,402 3,044 1,982 1,459 1,185 1,232 1,389 750 321 
Earnings per share0 $1.51 2.72 3.62 2.38 1.81 1.48 1.54 2.25 1.27 0.54 
Dividends paid per share: 
Cash0 0.79 0.76 0.72 0.80 0.54 0.54 0.54 0.44 _ _ 
Stock 4% 4% 4% -- -- -- -- -- -- -- 
Shares outstanding**0 928 882 841 834 804 803 803 617 589 589 
Shareholders' equity--total** $ 18,996 17,469 14,991 12,430 10,786 9,746 8,991 6,396 5,045 4,295 
Shareholders' equity--a share0 20.47 19.80 17.82 14.90 13.42 12.14 11.20 10.36 8.56 7.29 
Working capital** 5,320 4,688 4,600 2,784 1,490 755 1,364 435 981 243 
Long-term debt** 19,748 16,827 9,677 3,484 3,755 2,072 2,903 1,924 2,231 3,113 
Properties and equipment--net** 31,035 24,652 17,216 11,208 13,146 9,844 9,702 6,588 6,621 7,171 
Total assets** $ 49,596 44,017 32,075 23,332 20,204 18,123 18,564 13,802 10,657 10,579 
operating statistics 1958* 1957 1956* 1955 1954 1953 1952 1951 1950 1949 
Route Miles 9,153 8,799 6,350 5,525 5,525 5,525 5,016 5,016 5,016 4,727 
Available Ton Miles** 123,416 137,640 86,196 100,015 80,261 68,580 48,557 43,036 44,515 32,034 
Revenue Ton Miles** 56,710 74,468 48,481 54,999 42,669 38,088 31,434 27,549 24,697 16,383 
Passengers and Tonnage Carried: 
Revenue passengers 970,498 1,379,653 928,746 1,092,578 834,910 838,732 774,079 691,322 619,624 422,193 
Mail tons 3,754 5,367 4,034 4,897 3,283 3,284 3,243 3,419 2,150 1,359 
Express and freight tons 4,256 6,170 4,166 5,435 4,276 4,206 3,729 3,191 3,396 2,435 
Revenue Miles Flown:** 
Airplane miles 16,449 21,896 14,851 18,335 15,842 14,450 12,631 11,487 11,783 9,496 
Passenger seat miles 981,740 1,175,071 740,174 870,596 721,255 613,814 453,332 401,720 414,169 299,503 
Passenger miles 533,443 702,727 458,131 514,677 402,255 359,965 298,931 259,693 233,118 155,747 
Mail ton miles 2,159 3,092 2,212 2,621 1,669 1,610 1,358 1,449 978 567 
Express and freight ton miles 3,150 4,026 2,455 3,207 2,556 2,100 1,524 1,282 * 
,442 926 
Other Statistics: 
Passenger load factor % 54.3 59.8 61.9 59.1 55.7 58.6 66.0 64.7 56.3 52.0 
Average length in miles per 
passenger trip 550 509 493 471 482 429 386 376 376 369 
Average revenue per passenger mile... $.0595 .0558 .0573 .0559 .0557 .0564 .0544 .0527 .0489 .0544 
Number of employees end of year 2,547 2,773 2,343 2,130 1,864 1,813 1,649 1,459 1,279 1,226 
Operations were suspended trom February 21 to June 10, 1958, and from January 9 to March 22, 1956, because of strikes. 
0 Based on shares outstanding at close of respective periods adjusted for stock dividends paid in 1958, 1957 and 1956. 
000 omitted. 
 STATEMENT OF INCOME 
For the year ended 
December 31,1958 
(with comparative 
figures for 1957) 
Operating Revenues: 1958* 1957 
Passenger $31,459,203 $39,243,111 
Express, freight and excess baggage 1,304,919 1,596,246 
Charter and other transport service 325,432 147,827 
Mail 1,067,404 
Incidental revenue (net) 148,209 164,363 
33,970,204 42,218,951 
Operating Expenses: 
Flying operations 10,233,643 12,533,097 
Maintenance 4,262,936 6,094,328 
Passenger service 2,692,591 3,556,375 
Aircraft and traffic servicing 4,921,652 5,763,615 
Promotion and sales 4,616,833 4,596,057 
General and administrative 2,051,146 1,867,871 
Depreciation 4,135,612 3,010,894 
32,914,413 37,422,237 
Operating Income 1,055,791 4,796,714 
Non-Operating Income: 
Gain on disposition of property (Note 1) 2,120,386 708,077 
Other 86,552 131,111 
2,206,938 839,188 
Non-Operating Charges: 
Interest 1,023,340 780,419 
Other 12,049 40,400 
1,035,389 820,819 
Income before Taxes on Income 2,227,340 4,815,083 
Provision for Taxes on Income (Note 2) 825,000 2,413,169 
Net Income (Note 1) $ 1,402,340 $ 2,401,914 
Operations were suspended from February 21 to June 10,1958, because of a strike. 
STATEMENT OF SURPLUS 
For the year ended 
December 31,1958 
earned surplus 
Amount as of December 31,1957 $ 9,640,104 
Net income for 1958 1,402,340 
Excess of proceeds over par value of: 
43,053 shares of stock issued upon conversion 
of debentures 
843 shares issued under restricted stock option plan.... 
Excess of market value over par value of 35,483 shares 
paid as a stock dividend (Note 3) 
11,042,444 
Dividends paid: 
Cash--$0.80 a share, annual rate 731,861 
Stock--4% (Note 3) 807,238 
Amount as of December 31, 1958 (Note 4) $ 9,503,345 
capital surplus 
$ 6,980,547 
807,108 
6,462 
771,046 
8,565,163 
$ 8,565,163 
 Current Assets: 
Cash 
U.S. Treasury Bills at cost and accrued interest .. 
Receivables: 
Traffic balances (net of allowance 
for doubtful accounts $50,000) 
U.S. and State Government Departments 
Other (Note 4) 
Expendable parts and supplies 
Prepaid expenses 
Total Current Assets 
1958 1957" 
$ 3,535,824 $ 5,337,991 
2,984,974 1,994,043 
3,049,283 2,443,467 
1,018,038 838,393 
1,702,100 180,743 
5,769,421 3,462,603 
662,276 922,432 
1,131,126 834,973 
14,083,621 12,552,042 
Sundry securities 96,524 94,221 
Properties and equipment at cost: 
Flight equipment 
Buildings on and improvements to leased property 
Other property and equipment 
Less allowance for depreciation 
Deposits on equipment purchase contracts (Note 5) 
38,759,630 31,268,978 
3,873,092 3,794,637 
3,686,617 3,348,826 
46,319,339 38,412,441 
15,284,304 13,759,962 
31,035,035 24,652,479 
4,208,493 6,476,711 
171,865 241,623 
$49,595,538 $44,017,076 
Deferred charges 
BALANCE SHEET as of December 31, 1958 
(with comparative figures for 195"7) 
Current Liabilities: 
Current portion of long-term notes payable 
Accounts payable 
Accounts payable--taxes collected from others 
Accrued salaries and wages 
Other accrued liabilities 
Air travel plan deposits 
Unused transportation 
Federal taxes on income (estimated) 
Total Current Liabilities 
Long-term debt (Note 4): 
Notes payable to bank 
Notes payable to insurance companies 
4%% convertible subordinated debentures 
due June 1, 1971 
Deferred federal taxes on income (Note 2) 
Commitments and contingent liabilities (Note 5) 
Retirement plans (Note 6) 
Shareholders' Equity: 
Common stock--$1.00 par value per share 
Authorized 2,000,000 shares (Notes 4 and 7) 
Issued 927,920 and 848,541 shares respectively 
Capital surplus 
Earned surplus (Note 4) 
liabilities 
1958 
$ 2,200,000 
1,935,620 
814,153 
1,134,403 
846,715 
316,200 
904,747 
612,272 
8,764,110 
5,220,000 
11,280,000 
3,248,000 
19,748,000 
2,087,000 
927,920 
8,565,163 
9,503,345 
18,996,428 
$49,595,538 
195T 
$ 1,200,000 
1,544,416 
523,799 
1,407,370 
486,620 
305,575 
1,105,432 
1,290,672 
7,863,884 
4,700,000 
8,005,000 
4,122,000 
16,827,000 
1,857,000 
848,541 
6,980,547 
9,640,104 
17,469,192 
$44,017,076 
 NOTES TO FINANCIAL STATEMENTS 
Note 1. Net Income. Gain on disposition of property after taxes 
totaled $1,522,386 and net loss from operations $120,046. 
Note 2. Taxes on Income. Federal income tax returns through the 
year 1956 have been examined by the U.S. Treasury Department. 
Provision has been made for all known income tax liabilities. 
The policy of the company is to provide in the years when tax 
depreciation exceeds normal depreciation by including in the pro 
vision for income taxes the amounts necessary to offset the esti 
mated effect on federal income taxes which will occur in the years 
when depreciation recordable on the books of account will be more 
than that allowable for federal tax purposes. Accordingly, taxes 
on income in 1958 includes a) provision of $222,000 for current 
excess tax depreciation and b) credit for $240,000 representing the 
return to income of prior provision related to assets sold in 1958. 
The provision for current federal and state taxes totals $843,000. 
Note 3. Stock Dividends. On March 20, 1958, the company paid 
a stock dividend of 4% on the shares outstanding as of February 21, 
1958. For the 35,483 shares thus issued earned surplus was charged 
$807,238, with $771,046 (net of expenses) being transferred to 
capital surplus and $35,483 to capital stock. The charge to earned 
surplus was based upon the closing price of $22.75 a share on the 
New York Stock Exchange on February 6, 1958, the day preceding 
the declaration by the Board of Directors. 
Note 4. Long-Term Debt. The 
loans summarize as follows: 
bank and insurance company 
Bank Loans Payable Maturity 
1956 Agreement for $6,000,000 
borrowed in 1956. Interest 4% 
$100,000 a 
month 
Jan. 2, 
1962 
1957 Agreement for $3,000,000-- 
$1,000,000 borrowed in 1957 and 
$2,000,000 in 1958. Interest 5% 
$50,000 
monthly effective 
Oct. 1, 1961 
Sept. 1, 
1966 
Insurance Company Loans Payable Maturity 
1956 Agreement for $12,000,000-- 
$6,000,000 borrowed in 1957. 
Interest 4%% 
$1,200,000 
annually effective 
Sept. 1, 1962 
Sept. 1, 
1970 
1957 Agreement for $6,000,000-- 
$2,005,000 borrowed in 1957 and 
$3,995,000 in 1958. Interest 5%% 
$600,000 
annually effective 
Sept. 1, 1966 
Sept. 1, 
1975 
The $6,000,000 remaining under the 1956 insurance company agree 
ment is to be available between July 1959 and December 1960, and 
carries a commitment fee of % of 1%. 
The convertible subordinated debentures are subject to a sinking 
fund requirement of 5% per annum effective May 31, 1961, and 10% 
per annum effective May 31, 1966, with maturity on June 1, 1971. 
The debentures, which are subordinated to the bank and insurance 
company debt, are convertible into common stock of the company 
based on a conversion price per share adjustable for, among other 
things, stock dividends. The effective price as of December 31,1958 
was $19.59 and 165,799 shares of the authorized unissued stock of 
the company were reserved for such conversion. The related trust 
indenture also provides for retirement by call at a price of 104% 
through May 31, 1959, decreasing annually until June 1, 1969, when 
the call price becomes face value. 
The 1956 and 1957 agreements with the bank and the insurance 
companies and the trust agreement governing the debentures 
provide among other things (including restrictions on additional 
borrowings) conditions and requirements which limit the amount 
of earned surplus distributable as cash dividends. As a result, 
earned surplus as of December 31, 1958, which may be applied to 
the payment of cash dividends is limited to $3,115,846. 
The current portion of long-term notes payable reflected in current 
liabilities includes the stipulated payments due on the bank loan in 
1959 amounting to $1,200,000 and in addition $1,000,000 to offset a 
portion of the receivable, included in current assets and derived 
from the sale of Douglas DC-6B aircraft, which upon collection in 
January 1959 was remitted to the bank and insurance companies in 
accordance with the related agreements. 
Note 5. Commitments and Contingent Liabilities. At December 
31, 1958, the company had on order nine Lockheed Electra propjet 
aircraft, with delivery scheduled for five in 1959, starting in June, 
and four in early 1960. 
These aircraft together with orders for spare engines and other 
major items represent a commitment in excess of deposits made at 
December 31, 1958, of approximately $17,500,000. (See Note 4 for 
related financing.) However, negotiations are in process to lease 
instead of purchase all Electra engines. The completion of these 
negotiations will reduce the above purchase commitment by ap 
proximately $4,000,000 and will create a related rental commitment. 
As of December 31, 1958, the company was contingently liable for 
claims and lawsuits in which it is or may be a defendant, but man 
agement and its counsel believe the ultimate liability, if any, will not 
materially affect the financial statements. 
Note 6. Retirement Plans. The company has an insured con 
tributory retirement plan for all eligible employees, including offi 
cers, and in addition, the company is negotiating in accordance 
with the pilots' labor agreement a "variable pension plan," to be 
based on pilots' current services, of the trusteed type which is 
subject to approval by the Treasury Department. The cost of these 
plans charged to operating expense in 1958 totals $513,402 for both 
current and past services. Management contemplates that the 
remaining past service cost of the insured plan will be funded over 
a period of approximately six years and will require annual pay 
ments of $106,000. 
Note 7. Options to Purchase Capital Stock. Through December 
31, 1958, 32,203 shares (including 843 shares in the year 1958) have 
been issued under a restricted stock option plan for officers and 
key employees approved by the shareholders in 1951. The option 
prices ranged from $8.19 to $17.47 a share, representing a total 
option price and total fair value when first exercisable of $392,189, 
and a total fair value at dates when exercised of $610,446. At Decem 
ber 31, 1958 options for 3,367 shares were outstanding and exercis 
able within five years from the dates granted; the prices average 
$16.19 a share and represent a total option price and a total fair 
value when first exercisable of $54,510. 
Pi.a i. Makwk'k Mitch i:i i. <S: ( <> 
a in 
The Board of Directors 
Western Air Lines, In'.: 
We have examined the balance 3heet of 
Western Air Liner, Ir;-. as of December 31, !95P 
and the related statements of income and surplus 
for the year th-'n ended. Our examination war 
made in accordance with generally accepted auditing 
standards, and accordingly included such tests of 
the accounting record? and such other auditing 
procedures as we considered necessary ir. the 
circumstances. 
In our opinion, the accompar.yir.g balance 
sheet and statements of income and surplus present 
fairly the financial position of Western Air Lines, 
Ir.c. at December 31, 1958 and the results of its 
operations for the year then ended, in conformity 
with generally accepted accounting principles 
applied on a basis consistent with that f the 
preceding year. 
))/UAJsOZ-CJt, 
Los Angeles, California 
February 13, 1958 
 EXECUTIVE STAFF S' 
f* ' 
Terrell C. Drinkwater 
President 
Stanley R. Shatto 
Vice President--Operations 
Marvin W. Landes 
Vice President--Service 
Arthur F. Kelly 
Vice President--Sales 
J. Judson Taylor 
Vice President and Treasurer 
I 
D. P. Renda 
Vice President--Legal and Secretary 
\ i 
Stanley Gewirtz 
Vice President--Administration 
G. G. Brooder 
Vice President 
Charles J. J. Cox 
Controller and Assistant Treasurer 
William C. Jennings 
Assistant Secretary 
John W. Simpson 
Assistant Secretary 
Thomas M. Murphy 
Assistant to the President 
BOARD OF DIRECTORS 
Hugh W. Darling 
Darling, Shattuck & Edmonds, Attorneys-at-Law 
Los Angeles, California 
Terrell C. Drinkwater 
President 
Western Air Lines, Inc. 
Robert E. Driscoll, Sr. 
Honorary Chairman, Board of Directors 
First National Bank of the Black Hills 
Rapid City, South Dakota 
Hector C. Haight 
International Division 
Hughes Aircraft Co. 
Culver City, California 
Goodrich Lowry 
President, Northwest Bancorporation 
Minneapolis, Minnesota 
Dr. Donald H. McLaughlin 
President, Homestake Mining Co. 
San Francisco, California 
L. Welch Pogue 
Pogue & Neal, Attorneys-at-Law 
Washington, D.C. 
Stanley R. Shatto 
Vice President--Operations 
Western Air Lines, Inc. 
Dudley Swim 
Monterey, California 
Harry J. Volk 
President, Union Bank 
Los Angeles, California 
John M. Wallace 
Chairman, Board of Directors 
Walker Bank & Trust Co. 
Salt Lake City, Utah 
Alexander Warden 
Publisher, Great Falls Tribune-Leader 
Great Falls, Montana 
Sidney F. Woodbury 
President, Pine Street Co. 
Portland, Oregon