Our Cover: 
On May 1, 1982, Western will launch a major 
restructuring of its route system . The key feature 
will be the establishment of a hub-and-spoke oper- 
ation at Salt Lake City where arrival and departure 
times of flights will be coordinated to provide 
connecting services to a broad range of destina- 
tions. This system will permit Western to "feed " 
its flights with passenger and cargo from connect- 
ing services and will increase fleet utilization . 
Routes serving the new hub are shown in white. 
 Description of Business 
Western Air Lines, Inc. is a certificated air carrier 
originally organized in 1925. The company is 
engaged in one industry - the scheduled air trans- 
WESTERN 
AIR LINES, 
INC. 
1981 
ANNUAL 
REPORT 
portation of passengers, air cargo and mail . It 
serves cities in the United States, Canada and 
Mexico. 
 LETTER TO SHAREHOLDERS 
1981 was a disastrous year for Western Airlines. 
Capped by a fourth quarter loss of $56.1 million , 
the largest quarterly deficit in company history, 
Western experienced a net loss of $73.4 million 
for the year. 
There were a number of reasons for this result: 
a recession-related slowdown in air travel , excess 
capacity in the marketplace, rate wars that diluted 
revenues, and continuing inflation that drove up 
costs. Hardest hit by these conditions were a 
number of established carriers like Western that 
had developed their route systems and their cost 
structures in the regulated environment that ex- 
isted prior to October 1978 and had not changed 
them significantly since that time. 
These systems, based almost entirely on point- 
to-point linear routes, were generally profitable 
during the era of controlled competition . However, 
because this type of system does not produce 
or control connecting traffic, linear routes are 
vulnerable to competition and rate wars. Com- 
2 
pounding the problem for Western was the fact 
that it had higher costs than many of its com- 
petitors, which left the company in the position 
of either matching competitors fare cuts at a loss 
or abandoning markets. 
When I came to Western Airlines on December 
8, I found the company on the verge of collapse. 
It had lost money for two years and monthly losses 
had increased at a frightening rate. It was virtually 
out of cash, and because it was not in compliance 
with certain tests under its loan agreements, it was 
unable to borrow additional funds. As a conse- 
quence, Western had retained bankruptcy counsel , 
which the new management team decided was 
premature. A thorough analysis of the problems 
showed that in order to survive and prosper West- 
ern would have to make major changes in its 
structure and its way of doing business and that 
it must develop a strategy that would be respon- 
sive to the deregulated environment. 
We determined that because of its sizeable 
fixed costs the company would have great diffi- 
culty becoming profitable by shrinking to a new 
size or shape. Under-utilized aircraft and facilities, 
which could not be disposed of at anywhere near 
their true value, would have to be put to more 
productive use along with Western's employees. 
In short, we would have to fly our way back into 
the black by doing more, not less. And in order 
to do this and survive, we would have to control 
our costs. 
As essential elements of this plan we concluded 
that we would have to: 
 develop a new marketing organization and a 
more competitive marketing philosophy; 
 reduce overhead costs by eliminating excess 
layers of management, by cutting salaries and 
by getting more productivity out of those who 
remain ; 
 obtain from unionized employees wage cuts 
and changes in work rules that would increase 
productivity; 
 convince our lenders that we have formulated 
a workable short-term survival plan and a long- 
term strategy for profitability in order to obtain 
 additional working capital and waivers of defaults 
under existing loan agreements. 
Programs to accomplish all of these objectives 
are well underway. 
On May 1, Western will launch the most dramatic 
route realignment in its history. The new route 
system will reflect our conviction that the proper 
role for Western Airlines is as a strong regional 
carrier serving the West through a strategically 
located hub and a cohesive pattern of regional 
service. Our objective is to develop a hub-and- 
spoke system that will enable us to control a greater 
share of the passenger and cargo travel that 
emanates from cities we serve. Western's hub will 
be at Salt Lake City, a city that is located in a rapidly 
growing region , is near the center of our route 
system and is an established Western city in which 
we have excellent facilities and a long history of 
service. Most flights from throughout our system 
will be routed through Salt Lake City where con- 
nections will be available to other Western cities. 
We will strengthen the hub furth. 
er by inaugurat- 
ing service to new cities in the West and to New 
York City, Baltimore and Washington , D.Cs Dulles 
Airport. Our Seattle/Tacoma gateway to Alaska 
and California gateways to Mexico and Hawaii 
also will be strengthened by direct links with the 
Salt Lake City hub. 
Implementation of these changes will not 
require additional aircraft or other major capital 
expenditures. The realignment will be achieved 
by increasing the use of existing resources. For 
example, we will increase the average daily utili- 
zation of our fleet by almost two hours per day 
per aircraft. This figure will rise even more as 
additional routes .and schedules are blended 
into the new system . 
Our marketing strategy will be very simple. We 
will price our product competitively, prqvide good 
schedules and service and make it easy for our 
customers to do business with us by answering 
our reservations phones promptly, simplifying our 
fare structure and making ticketing easier. 
In order to be a tough competitor we also must 
reduce our costs to a level that will permit us to 
make a profit from the low fares that now dominate 
3 
and will conti 
nue to dominate high-density routes. 
Since December, we have been taking the 
necessary steps to lower Western's costs. We have 
reduced annual payroll costs for the management 
staff, have obtained wage concessions from some 
of our unionized employees and we are attempt- 
ing to obtain similar concessions from the re- 
maining group. Although our new schedules and 
contractual concessions from our pilots will pro- 
vide some gains in productivity, we need more 
and are working toward that end. 
We are confident that the route realignment and 
our marketing program will stimulate traffic over 
the Western system and increase revenues. We 
are not optimistic that we will receive any help from 
an improvement in the economy in 1982 nor are 
we relying on such an upswing to make Western 
profitable, although such a development certainly 
would be beneficial and welcome. 
The key to 1982 and the future of Western 
Airlines lies in our ability to control our costs and 
increase the productivity of our work force. We 
believe that Western can be a viable company. 
Your management is doing everything possible 
to ensure that this objective is achieved as soon 
as possible. 
Chairman and Chief 
Executive Officer 
April 22, 1982 
 The Year At A Glance 
(in millions of dollars) 
Operating revenues 
Operating expenses 
Operating loss 
Other Income (Expenses): 
Interest expense, net 
Gain on disposition of equipment 
Other-net 
Loss before income taxes 
Income tax 
Net loss 
Passengers carried (000) 
Available seat miles (000,000) 
Revenue passenger miles (000,000) 
Passenger load factor - actual % 
- breakeven % 
1981 
$1 ,059.8 
1,125.8 
(66.0) 
(45.0). 
16.9 
1.3 
(92.8) 
(19.4) 
$ (73.4) 
8,402 
14,496 
8,548 
59.0 
65.8 
4 
1980 % Change 
995.7 6 
1,041.5 8 
( 45.8) 44 
(38.5) 17 
32.1 (47) 
3.0 (57) 
(49.2) 89 
(19.6) ( 1 ) 
(29.6) 148 
9,130 (8) 
15,516 (7) 
8,832 (3) 
56.9 4 
62.0 6 
 MANAGEMENT'S DISCUSSION 
Results of Operations 
The last several years have been very difficult 
for Western. The company reported net losses in 
1980 and 1981 and a 24 percent decline in net 
profits in 1979. Prior to December 1981, when 
the company's new management embarked on a 
rebuilding program , the company had responded 
to this downturn by reducing its production of 
available seat miles (ASM's) in 1981 and 1980. 
Since 1979 ASM 's have decreased 13 percent; 
however, revenues escalated 14 percent because 
of fare increases. This level of revenue growth 
was not adequate to support the cost base 
Western had established in the regulated environ- 
ment. Operating expenses increased 23 percent 
from the 1979 level, more than offsetting the 14 
percent increase in revenues and creating the 
company's substantial operating losses. 
The largest contributor to the rise in operating 
expenses was fuel costs, which increased 45 
percent since 1979. Consumption actually de- 
creased du ring this period by 21 percent but the 
average cost per gallon increased 82 percent, 
from $0.57 in 1979 to $1.04 in 1981. Early in 1982 
fuel prices dropped to slightly under $1.00 per 
gallon. They are expected to remain at this level 
or decline slightly throughout 1982. 
Wages, salaries and employee benefits in- 
creased by nearly $47 million from 1979 through 
1981 despite the fact that the number of em- 
ployees decreased by more than 1,100 during 
that period . The company is currently negotiating 
with its labor unions to reduce wage levels and 
increase productivity during 1982. Labor costs 
for the company in 1982 and subsequent years 
depend in large part on these negotiations. 
Other operating expenses, which are suscep- 
tible to inflationary pressures, include costs such 
as aircraft and ground equipment rentals, adver- 
tising and commissions. Commission expense in- 
creased 20 percent from 1980 to 1981 , reflecting 
the impact of deregulation on the industry. Because 
scheduled carriers are no longer permitted to 
jointly establish travel agency commission rates, 
competition for the agents' business has forced 
commission rates up. This has resulted in increas- 
ing the commission rate paid by Western to travel 
agents from an average of 8.9 percent in 1980 
to 10.4 percent in 1981. Also, higher fares and 
increased ticket purchases through agencies 
5 
have contributed to the rapid growth in commis- 
sion expense. These conditions are not expected 
to change in 1982. 
New equipment financed at higher interest 
rates, as well as a higher level of interest rates 
in general, have resulted in increased interest 
expense of the company in 1979, 1980, and 1981. 
Depreciation expense also has increased because 
of significant equipment purchases. In 1981 , 
sales of aircraft helped maintain the level of depre- 
ciation expense despite the acquisition of three 
new aircraft. 
For a detailed discussion of the impact of infla- 
tion on operating results see Note 13 to financial 
statements. 
Western's operations have been affected in 
these years by activities within the industry. In 
1981 , revenues during the peak season of the third 
quarter were reduced slightly by the walkout of air 
traffic controllers on August 3. The grounding of 
the DC-10 aircraft in 1979 affected operations in 
that year, as did strikes against major competitors. 
Liquidity 
During the first six months of 1981 Western 
was able to fund current operations and debt 
repayment with cash generated from operations 
and the sales of excess aircraft. In addition, $30 
million of the $50 million outstanding at December 
31 , 1980, on its revolving line of credit was repaid . 
In the second half of 1981 , however, traffic and 
revenues were significantly lower than anticipated . 
Operations no longer generated enough cash 
to meet operating requirements. The company 
borrowed additional funds of $20 million from 
two foreign banks and $7 million on its revolving 
line of credit. During that same period the com- 
p~ny also sold and leased back two 737s and sold 
tax benefits under the provisions of the Economic 
Recovery Tax Act of 1981 , generating cash of 
approximately $11 million and $5 .6 million , re- 
spectively. Throughout 1981 Western made all 
scheduled debt payments and paid preferred 
dividends regularly. 
The effects of the losses on retained earnings 
and equity resulted in Western's default of some 
of the covenants of its various loan agreements. 
Since these defaults allow certain of Western's 
lenders to demand immediate payment of the total 
 amounts owed to them and because Western 
has not obtained waivers for a period in excess 
of one year, a portion of the long-term debt has 
been classified as current. Decisive steps have 
been taken by Western to cut its labor force , 
reduce the wages paid to remaining employees, 
modify current labor contracts, negotiate the sale 
of additional assets and negotiate additional loan 
and security agreements with its various lenders. 
Western entered into agreements in January 
1982 with its lenders to waive the company's 
defaults under its loan agreements until June 10, 
1982. Western also entered into an agreement 
with its previously unsecured lenders to secure 
their loans with 29 of Western's aircraft and 77 of 
its engines. In addition , the company obtained a 
$30 million line of credit due April 30, 1982, all of 
which had been drawn down as of March 15, 
1982. (See Note 6 to financial statements.) The 
company is continuing to negotiate with its lenders 
to restructure a portion of its debt. This restruc- 
turing is essential to the continuing operations of 
the company. Western has entered into agree- 
ments with third parties to sell certai n other assets, 
which will generate approximately $31 million . 
Western is required to use the proceeds from 
asset sales to pay off any amounts outstanding 
on the new line of credit. See Note 14 to financial 
statements. 
Capital Resources 
Western has on order six 767 aircraft and three 
767 spare engines, the deliveries of which have 
been delayed until 1984 and 1985. The total com- 
mitment for the acquisition of these aircraft and 
spare engines is approximately $305 million . Long- 
term secured debt or capital lease financing is 
expected to be utilized to finance these acquisi- 
tions although no assurances can be given that 
su_ 
ch methods of financing will be available. West- 
ern also holds options for the purchase of six 
additional 767s which would be delivered in 1985 
and 1986. (See Note 3 to financial statements.) 
Shareholders and Stock 
As of December 31 , 1981 , there were 13,043,621 
shares of Western common stock outstanding 
held by approximately 15,000 individuals and insti- 
tutions. Holders of the common stock last received 
a dividend in the t_ 
hird quarter of 1980. Because of 
continuing losses, Western has not paid a dividend 
on the common stock since that time. Retained 
earnings available for payment of common stock 
dividends are restricted by various debt agree- 
ments. At December 31, 1981 , no retained earn- 
ings were available for dividends on common or 
preferred stock. 
Western has 2,992,300 shares of common 
stock reserved for issuance upon conversion of 
its preferred stock and an additional 1,952,554 
shares reserved for issuance upon conversion of 
its 5% Convertible Subordinated Debentures. 
At December 31 , 1981 , there were 1,196,920 
shares of the $2.00 Series A Cumulative Con- 
vertible Preferred Stock outstanding held by 1,353 
individuals and institutions who have been paid 
regular quarterly dividends. On January 29, 1982, 
Western's board of directors voted to defer pay- 
ment of the quarterly dividend payable at the end 
of March 1982 on the preferred stock. This is the 
first preferred stock dividend to be omitted since 
the stock was issued in September 1977. If six 
consecutive dividends are omitted , the holders of 
the preferred stock have the right, voting as a 
class, to elect two board members. See Note 6 
to financial statements. 
Western's common and preferred stock are 
traded on the New York and Pacific Stock 
Exchanges. 
Market Prices 
Common Stock Preferred Stock 
1980 High Low High Low 
First Quarter 11 % 6 29 19 
Second Quarter ?'fa 6 23Ya 19 
Third Quarter 8 6 24 21  
Fourth Quarter 10 6 25 20% 
1981 
First Quarter 10 8 26. 21 
Second Quarter 11  8 30 22Ya 
Third Quarter 11  6 29 15% 
Fourth Quarter 8Ya 4% 20 14 
On December 8, 1981 , the Board of Directors 
of Western elected Neil G. Bergt as Chairman 
and Chief Executive Officer. Bergt is a principal 
shareholder of Eagle International Corporation 
(Eagle), a privately held corporation which agreed 
in November 1981 to acquire Wien Air Alaska, Inc., 
(Wien) from Household International , Inc. 
In connection with Bergt's selection as Chief 
Executive Officer, Western , Eagle, and Mr. Bergt 
6 
 signed an agreement in principle dated December 
8, 1981, regarding (a) Eagle completing its 
acquisition of Wien, and (b) the preparation and 
execution of a definitive agreement pursuant to 
which Western shall acquire Wien or a business 
combination shall otherwise be accomplished 
between Western and Wien . 
The letter of intent indicates that in connection 
with the acquisition by Western of Wien, 5,000,000 
shares of a new series of preferred stock of 
Western or the surviving corporation (the "Pre- 
ferred Stock") will be issued to Eagle or its share- 
holders. The Preferred Stock will be convertible 
into 12,500,000 shares of common stock and will 
be substantially equivalent to the outstanding 
Western Series A Preferred Stock, except that it 
will have voting rights equivalent to those of the 
common shares issuable upon conversion and 
no dividends will be payable in respect of the 
Preferred Stock for the first year after it is issued . 
The proposed acquisition will be subject to 
approval of Western's shareholders, lenders, and 
the Civil Aeronautics Board . 
Regulatory Matters 
The required filings in the Bergt-AIA-Western- 
Wien Acquisition and Control Case have been 
made with the Civil Aeronautics Board, and the 
board's decision should be announced by the end 
of July 1982. Details of this proposed acquisition, 
which is subject to approval of Western's share- 
holders and lenders, are contained in proxy mate- 
rials being mailed to shareholders in connection 
with the 1982 Annual Meeting of shareholders, 
presently scheduled for June 1982. 
The Civil Aeronautics Board has approved Air 
Florida System, lnc.'s application to acquire 
control of Western . Air Florida had filed its appli- 
cation with the CAB in July 1981 and been given 
permission to purchase up to 50 percent of 
Western's outstanding common stock to be 
placed in a voting trust pending the outcome of 
the CAB's hearings. The final CAB decision in 
the matter was announced January 29, 1982. Air 
Florida, which holds approximately 12.6 percent 
of Western's common stock, has not announced 
its intentions. 
Western's planned merger with Continental 
Air Lines, Inc. was thwarted by the successful 
takeover of that carrier by Texas International. 
7 
Western withdrew from the merger agreement in 
September 1981 . 
With the suspension of its services to Great 
Britain in late 1981 and to Nassau, the Bahamas, 
earlier in the year, Western now serves three 
countries - the United States, Canada, and Mexico. 
In its service to Canada and Mexico, Western is 
subject to conditions of bilateral agreements be- 
tween these nations and the United States as well 
as to policies of each of the governments with 
respect to air transportation and pricing. 
Service within the United States has been given 
increased flexibility since the passage of the Airline 
Deregulation Act of 1978. Effective January 1, 
1982, Western and other air carriers have author- 
ity to fly between any points within the U.S. that 
they desire. However, the air traffic controllers 
strike has temporarily limited flights at 22 busy 
airports in the U.S. 
Under terms of the Deregulation Act, the Civil 
Aeronautics Board will cease to exist January 1, 
1985. Certain of the Board 's functions will be 
transferred to other governmental departments, 
primarily the Departments of Transportation and 
Justice. 
Western's Fleet 
In Operation* 1984/1985 1985/1986 
Owned Leased Delivery Options 
DC-10-10 7 3 
OC-10-30 
727-200 33 14 
737-200 10 2 
767-20Q 6 6 
*As of March 15, 1982. 
Western's present fleet is in compliance with fed- 
eral noise regulations with the exception of the 
two-engine 737s. An undetermined number of 
these aircraft will be retrofitted at a cost of approxi- 
mately $275,000 each in advance of the 1985 
deadline for compliance. 
Schedule reductions in 1981 caused Western's 
traditionally high level of aircraft utilization to drop. 
The 727s, which represent more than half of the 
company's available seat miles, flew a daily hourly 
average of 7:58, down from 8:23 in 1980, while 
DC-10-10 utilization was down to 9:18 from 10:46 
in 1980. Average daily hours flown by all aircraft 
during 1981 was 7:57, compared with 8:24 the 
year before. 
 Ground Properties and Equipment 
Western's general office and principal overhaul 
and maintenance base are located at LosAngeles 
International Airport. These facilities, including 
a DC-10 hangar and a parking structure com- 
pleted in 1975, have been built by the company 
as improvements on leased land. The lease on 
the land and buildings expires in 1993, subject to 
the right of the City of Los Angeles to terminate 
the lease on March 31 , 1988, or any March 31 
thereafter. 
The company also leases hangars at Seattle/ 
Tacoma, San Francisco and Minneapolis/St. Paul , 
as well as terminal faci lities at all airports served , 
plus ticket and administrative offices throughout its 
system. A leasehold interest in a hangar at Denver 
was transferred to another carrier in March 1982. 
Public airports are utilized for flight operations 
generally under contractual arrangements with 
municipalities or agencies controlling them . 
Western's Management 
Major changes took place in Western's manage- 
ment structure during the latter part of 1981 and 
early 1982. 
On December 8, 1981 , Neil G. Bergt was elected 
chairman and chief executive officer of Western . 
Mr. Bergt, 46 , is chairman and sole owner of 
Alaska International Industries, Inc., which has 
subsidiaries active in construction , energy devel- 
opment and international air cargo . He also is 
the principal shareholder of Eagle International 
Corporation , a privately held corporation that 
was formed in November 1981 to acquire Wien Air 
Alaska Inc. from Household International, Inc. 
Employees 
The number of Western employees during 1981 
averaged 10,120, down from an average of 
10,657 in 1980. Labor unions represent approxi- 
mately 92 percent of Western's employees. These 
unions include the Air Line Pilots Association , 
Air Transport Employees, Association of Flight 
Attendants, Brotherhood of Railway and Airline 
Clerks, International Brotherhood of Teamsters, 
Sindicato Nacional de Trabajadores de Aviacion y 
Similares and the Transport Workers Union . 
Following is the contractual status of each of 
these collective bargaining groups: 
Number of Contract 
Employees Open for 
1-1-82 Union Amendment 
Mechanics & Related 
Employees and Stock 
Clerks 1,810 IBT 1-1-83 
Pilots 1,27 1 ALPA 5-1-84 
Flight Attendants 1,677 AFA 1 2-31 -82 
Agent & Clerical - 
U.S. 3,740 ATE 7-1 -82 
Canada 110 BRAC 7-1-82 
Mexico 212 SNTA 1-18-83 
Flight Superintendents 21 TWU 10-3 1-83 
Ground School Instructors 30 IBT 1-1-83 
Legal Proceedings 
Western and other airlines are parties to numerous 
actions in state courts wherein owners of property 
located in the vicinity of major airports, primarily 
Los Angeles International Airport, are seeking to 
enjoin certain aircraft operations at the airport 
and/or to recover damages because of aircraft 
noise and engine emissions. Most of these cases 
have been brought in the Los Angeles County 
Superior Court against the City of Los Angeles, 
which in a number of these cases has in turn cross- 
complained against the airlines for indemnifica- 
tion . The aggregate amount of damages sought 
in cases against the city has been reported by the 
city to be in excess of $57 million. The aggregate 
amount of damages sought in actions to which 
Western is a party as cross-defendant is in excess 
of $36 million . 
Western and its counsel in these actions, 
O'Melveny & Myers of Los Angeles, believe that 
the damages claimed are not a real istic measure 
of the airlines' exposure and that in most cases 
the request for relief is wholly out of proportion to 
any actual damage that may have been suffered. 
Western's counsel , which also represents most of 
the other airlines, is of the opinion , based on the 
current state of the law, that the airlines have sub- 
stantial defenses to the imposition of any liability. 
Moreover, in each case to date in which the issue 
of the airlines' duty to indemnify the airport pro- 
prietor has been tried , the airlines have obtained 
favorable rulings. However, all the issues of law 
involved in these matters have not been finally 
settled, and , pending further judicial clarification , 
the relative rights and liabilities among such 
owners of adjacent areas, the airport operators, 
8 
 the air carriers and the federal, state, and local 
governments are not entirely clear. Unfavorable 
decisions against Western in these actions could 
have a materially adverse effect on the company. 
Further, any liability of airport operators, or 
the granting of any injunctive relief against them, 
could result in higher costs to air carriers, for 
example through higher landing fees. In light of 
this litigation , operators of certain airports, includ- 
ing those at Los Angeles, Orange County, San 
Diego, Calif. , and Washington , D.C.'s National, 
have imposed or are considering imposition of 
limitations on frequency and timing of airline 
flights or upon the proportion of an airline's fleet 
which may continue to operate without complying 
with specified noise standards. In the case of 
Orange County, the local board of supervisors 
adopted an airport access plan for John Wayne 
Airport which would have the effect of denying 
Western access to that airport. Implementation of 
the plan was enjoined by a Federal District Court 
and that decision presently is on appeal . Generally 
speaking , enforcement of such restrictions at a 
major airport served by Western could have a 
materially adverse effect upon its operations. 
A number of actions have been filed in both 
federal and state courts against Western and other 
defendants seeking damages for death or injury 
suffered in the October 31 , 1979, crash of a 
Western aircraft at the Mexico City airport. Western 
has ample insurance coverage for this type of 
accident, although insurance may not cover liabil- 
ity for punitive damages which are sought in sev- 
eral of the actions premised on bodily injury. Most 
of the claims arising from the accident have been 
settled , and Western does not believe that such 
claims for punitive damages will result in any 
material liability to Western . 
Western is also involved in various other liti- 
gation , including cases alleging discrimination 
(including age discrimination) in employment 
practices. In one such action involving the ability 
of Western pilots to continue after age 60 as 
second officers, a judgment was entered during 
1981 directing the company to allow three pilots 
to continue working as second officers after 
age 60 and awarding those pilots back pay and 
attorneys fees. That case presently is on appeal , 
and at least one other similar action has been 
filed . Western does not believe such claims will 
result in any material liability to Western . 
9 
 (In millions except per share amou nts and other items indicated by*) 
Summary of Operations 
Operating Revenues: 
Passenger . . . . . ........ . 
Carg o, charter, and other . 
Total operating revenues . 
Operating Expenses: 
Wages, salaries, and em ployee benefits . . 
Fuel. 
Othera . 
Total operating expenses . 
Operating income (loss) .. 
Interest expense, net . . ...... . 
Other income, net 
Earnings (loss) before income taxes and cum ulative effect 
of changes in accounting princi ples . 
Income taxes . 
Ea rning s (loss) before cumulative effect of changes in accounting principles . 
Cumu lative effect of changes in accounting principles . 
Net earnings (loss) ... . .. .... . 
Preferred stock dividends . 
Net earn ings (loss) available for common stock 
Earn ings (Loss) per Com mon Share: 
Primary: 
Before cumulative effect of changes in accounting principles . 
Net earnings (loss) . 
Fu lly diluted : 
Before cumulative effect of changes in accounting principles . 
Net earn ings (loss) . . ... ... ..... .... ......... . 
Number of Shares Used to Com pute Earni ngs (Loss) per Share: 
Primary . . ............................. .. . . 
Fully diluted. . ........ . . . . . . .. ..... . ........ . ....... . . 
Other Financial Data 
Cash dividends paid per share of com mon stock . 
Total assets ........... ........ . ........... . . . .. .. ...... . 
Property and equipment-net . 
Long-term obligations . 
Shareholders' eq uity ........ . 
Operations 
Ai rplanes operated at end of year* . 
Passengers carried . 
Available seat miles . . ............ . 
Revenue passenger miles . . . . . . . . . . . . . . . . . . ............ . 
Passenger load factor - actual (%)* ......... .. ..... . ..... .. .... . 
- breakeven point (%)* ...................... . . 
- profit marg in (point difference)* . . ....... . 
Average revenue per passenger mile* . . .... .. ..... . ..... .. ....... . . . 
Average length in miles per passenger trip* . . ...... . 
Operati ng expense per available seat mile* . . .. . . . ..... .. . .... ... . 
Cargo revenue ton miles ... ... .......... ... ..... ... .... . . . 
Average number of employees* . 
(in millions of dollars except per share amounts) 
1981 
$ 949.6 
110.2 
1,059.8 
403.4 
326.6 
395.8 
1,125.8 
(66.0) 
(45.0) 
18.2 
(92.8) 
(19.4) 
(73.4) 
(73.4) 
2.4 
$ (75.8) 
$ (5.81) 
$ (5.81) 
$ (5.81) 
$ (5.81) 
$ 
13.0 
13.0 
$ 834.6 
$ 662.4 
$ 248.5 
$ 121.7 
70 
8.4 
14,495.8 
8,547.9 
59.0 
65.8 
(6.8) 
$ .1113 
1,017 
$ .0777 
151.3 
10,120 
1980 
887.9 
107.8 
995.7 
384.2 
296.4 
360.9 
1,041 .5 
(45.8) 
(38.5) 
35.1 
(49.2) 
(19.6) 
(29.6) 
(29.6) 
2.4 
(32.0) 
(2.46) 
(2.46) 
(2.46) 
(2.46) 
13.0 
13.0 
0.25 
917.0 
718.8 
435.1 
197.3 
71 
9.1 
15,515.6 
8,832.1 
56.9 
62.0 
(5.1) 
.1010 
965 
.0671 
163.2 
10,657 
(a) C hanges in the estimated useful lives of certain aircraft were implemented in January 1978 and October 1976. These 
changes increased net income in 1978 and 1977 by approximately $1 .5, or $0.12 per share (primary) , and $2.4 , or 
$0.19 per share (primary) , respective ly. 
10 
1979 
827.7 
104.4 
932.1 
356.6 
225.7 
331 .6 
913.9 
18.2 
(24.9) 
46.1 
39.4 
(2.1) 
41.5 
41.5 
2.4 
39.1 
2.99 
2.99 
2.31 
2.31 
13.1 
18.2 
0.40 
821 .4 
634.6 
318.3 
232.6 
76 
11.2 
16,630.5 
10,494.8 
63.1 
63.2 
(0.1) 
.0807 
926 
.0550 
162.0 
11 ,256 
1978 
734.0 
100.5 
834.5 
309.4 
154.9 
315.3 
779.6 
54.9 
(20.2) 
10.7 
45.4 
6.9 
38.5 
16.2b 
54.7 
2.4 
52.3 
2.82 
4.09 
2.15 
3.04 
12.8 
18.2 
0.40 
710.1 
519.7 
265.7 
198.5 
78 
10.4 
16,254.9 
10,634.8 
65.4 
61.1 
4.3 
.0720 
994 
.0480 
176.3 
10,787 
1977 
614.6 
76.9 
691 .5 
263.1 
138.0 
260.9 
662.0 
29.5 
(17.5) 
7.8 
19.8 
7.1 
12.7 
12.7 
0.5 
12.2 
0.96 
0.96 
0.85 
0.85 
12.7 
15.9 
0.40 
574.9 
427.9 
214.5 
147.4 
77 
8.8 
14,963.8 
8,588.8 
57.4 
56.1 
1.3 
.0734 
966 
.0442 
157.3 
10,413 
1976 
544.2 
61.0 
605.2 
226.4 
108.3 
235 .1 
569.8 
35.4 
( 16 3) 
3.1 
22 .2 
8.2 
14.0 
14.0 
14.0 
1.03 
1.03 
0.92 
0.92 
13.6 
16.1 
0.40 
515.1 
378.6 
192.5 
112.1 
75 
8.1 
13,450.4 
7,833.8 
58.2 
56 .0 
2.2 
.0705 
963 
.0424 
135.0 
9,799 
1975 
465 .1 
53.9 
5'19.0 
20 1.7 
93. 1 
21 1 .1 
505.9 
13. 1 
(14.4) 
4.3 
3.0 
( 1 .5) 
4.5 
7.2 
11. 7 
11 .7 
0.30 
0.77 
0.29 
0.70 
15.2 
17.6 
0.47 
488 .3 
367 .6 
175.4 
133.9 
75 
7.5 
11 ,696.5 
7,102.9 
60.7 
59 .7 
1 .0 
.0665 
942 
.0433 
108.6 
9,357 
1974 
437.3 
51.1 
488.4 
182.3 
71.4 
192.5 
446.2 
42.2 
(15.3) 
13.8 
40.7 
17.2 
23.5 
23.5 
23.5 
1.55 
1.55 
1.38 
1.38 
15.1 
17.6 
0.39 
448.8 
350.3 
167.4 
129.3 
72 
7.4 
11 ,123.5 
6,747 .5 
60.7 
56.1 
4.6 
.0660 
902 
.0401 
95.2 
9,696 
1973 
376.7 
44.6 
42 1.3 
165.4 
44.5 
168.3 
378.2 
43. 1 
(13.0) 
4.2 
34.3 
14.4 
19.9 
19.9 
19.9 
1.32 
1.32 
1.18 
1 .18 
15.1 
17.5 
0.23 
431 .7 
316.4 
178.0 
110.8 
74 
7.4 
11,175.5 
6,476.1 
57 .9 
52.5 
5.4 
.0593 
877 
.0338 
76.5 
9,826 
(b) Effective January 1, 1978, Western changed its method of accounting for post-1971 investment credi ts for financial 
reporting purposes from the deferral to the flow-through method . The cumulative effect of the change, amounting 
to $16.2, has been included in net earnings for 1978. 
11 
1972 
342.9 
31 .1 
374.0 
147.3 
40.1 
160.8 
348.2 
25.8 
(11 .8) 
2.7 
16.7 
5.9 
10.8 
10.8 
10.8 
0.72 
0.72 
0.66 
0.66 
15.0 
17.5 
0.08 
372.7 
262.1 
158.6 
94.4 
71 
6.9 
10,300.2 
5,995 .9 
58.2 
54.6 
3.6 
.0578 
865 
.0338 
76.2 
9,383 
 December 31 , 1981 and 1980 
(in thousands of dollars) 
ASSETS 
Current Assets: 
Cash (Note 6) . . . . .. . ..... . . . . . .. . 
Temporq.ry investments ..... . . . . . . . . . 
Receivables (less allowance for doubtful accounts 
of $2,959 - 1981 and $2,379 - 1980) . . . 
Receivable from sale of aircraft (Note 11) . . . 
Flight equipment expendable parts at average cost 
(less allowance for obsolescence of $15,422 - 1981 
and $14,062 - 1980) ... . 
Prepaid expenses and other current assets . 
Total current assets . . .. .... . 
Property and Equipment at Cost (Notes 2, 3, and 6): 
Flight equipment . . . . . . . . . . . . . . . . . . . ... . .. . 
Facilities and ground equipment .. ... .... . . . ... .. . . 
Deposits on equipment purchase contracts .. . . .... .. . . .. . . .. . .. .. . 
Less allowance for depreciation and amortization .... . 
Deferred Charges and Other Assets . .. . .. . .. . .. . .. . .. . . .. . . . . . 
See accompanying notes to financial statements. 
12 
1981 
$ 24,057 
24,057 
89,311 
20,212 
20,953 
12,646 
167,179 
828,276 
139,400 
21,508 
989,184 
326,737 
662,447 
4,944 
$834,570 
1980 
8,759 
25 ,579 
34,338 
121,859 
26,908 
8,025 
191 ,130 
848,111 
130,703 
37 ,966 
1,016,780 
297,962 
718,818 
7,100 
917 ,048 
 LIABILITIES AND SHAREHOLDERS' EQUITY 
Current Liabilities: 
Current portion of debt (Note 6) . . .... . ........... ... .... . 
Current portion of capital leases (Note 2) . . ............. . .. . 
Notes payable (Note 6) . . . . ..... . ..... . .... . 
Long-term debt classified as current (Note 6) ..... . .... . .... . . . 
Accounts payable . 
Airline traffic liability . . . . . ....... . . . 
Salaries, wages and vacation benefits payable . . . . . . . . ....... . 
Accrued liabilities . . . . . .. . ...... . 
Total current liabilities . .......... . 
Long-term Obligations: 
Debt (Note 6) . . . . . .. . . . . 
Capital leases (Notes 2 and 6) .. 
Deferred Credits and Other Liabilities: 
Deferred taxes on income (Note 5). . .... .. ... . . 
Deferred gain on sale and lease back of aircraft (Note 11). 
Other . . . . . . . . . . . . . . . . . ... . 
Shareholders' Equity (Notes 6, 7, and 9): 
Preferred stock - authorized 25,000,000 shares 
$2.00 Series A Cumulative Convertible 
$25.00 stated value per share 
Issued 1,196,920 - 1981 and 1,196,940 - 1980 ... 
Common stock - authorized 35 ,000,000 shares 
$1 .00 par valu_ 
e per share 
Issued 13,043,621 - 1981 and 13,030,915 - 1980 .......... . ...... . 
Additional paid-in capital . . . . . . . . . . . . . . . . . . ..... . 
Retained earnings . . . . . .............................. . 
Commitments and Contingent Liabilities (Notes 2 and 3) 
13 
1981 1980 
$ 26,650 
7,962 
20,000 
153,369 
76,504 
81 ,006 
41 ,838 
24,460 
431 ,789 
149,331 
99,184 
248,515 
11 ,002 
9,335 
12,265 
32,602 
29,923 
13,044 
31 ,062 
47,635 
121 ,664 
$834,570 
23,756 
7,183 
58,965 
90,058 
43,624 
22,947 
246,533 
353,525 
81 ,526 
435,051 
29,067 
9,051 
38, 11 8 
29,923 
13,031 
30,963 
123,429 
197,346 
917 ,048 
 Years ended December 31, 1981 , 1980 and 1979 
(in thousands of dollars except per share amounts) 
Operating Revenues: 
Passenger . . . . . . . . . . . . . . . . . .. ........ . .. .. . . 
Cargo . . ..... . .... . . . . . . . . . . . . . . . . . ...... . 
Charter and other . . . . . . . . .. . .... . 
Operating Expenses: 
Wages, salaries, and employee benefits (Note 4) . . ...... . 
Fuel .... ........ . ... . ........... . . ........ ... . 
Depreciation and amortization ....... ... . 
Other . . . . . . . . . . . . . . . . . . . . . . ... . . ... . ..... . 
Operating income (loss) . . . .. . . ................ . 
Other Income (Expenses): 
Interest, principally on long-term obligations ... .. ...... . 
Interest capitalized . . . . . . . . . .. . . .... . 
Interest income . . . . . . . . . . . ....... . 
Gains on disposition of equipment . . . . . ..... . 
Settlement with vendor .. 
Other, net (Note 11 ) . .... . .... . ... . 
Earnings (loss) before income taxes . 
Income taxes (Note 5) ..... . 
Net earnings (loss) . .. . . .. . 
Earnings (Loss) per Common Share (Note 8): 
Primary . . . . .. .. . . . . ...... . .. . . . 
Fully diluted .. ..... . 
See accom panying notes to financial statements. 
14 
1981 
$ 949,576 
62,983 
47,282 
1,059,841 
403,428 
326,606 
63,632 
332,129 
1,125,795 
(65,954) 
(49,836) 
4,805 
4,641 
16,869 
(3,333) 
(26,854) 
(92,808) 
(19,408) 
$ (73,400) 
$ 
$ 
(5.81) 
(5.81) 
1980 
887,901 
63,82 1 
44,033 
995,755 
384,201 
296,365 
61 ,310 
299,640 
1,041,516 
(45,76 1) 
(43,507) 
4,940 
3,168 
32 ,099 
(178) 
(3,47 8) 
(49,239) 
(19,607) 
(29 ,632) 
(2.46) 
(2 .46) 
1979 
827 ,675 
61,209 
43,235 
932, 11 9 
356,62 1 
225,682 
50,058 
28 1,522 
913,883 
18,236 
(29,600) 
4,706 
4,957 
31 ,332 
10,000 
(192) 
21,203 
39,439 
(2,101) 
41 ,540 
2.99 
2.31 
 Years ended December 31 , 1981, 1980 and 1979 
(in thousand s of dollars) 
Sources of Working Capital: 
Earnings (loss) . . . . . . . . . . . ........ . 
Add (Deduct) Items Which did not Affect Working Capital: 
Depreciation and amortization . . . . . .. . .. . 
Deferred income taxes . . .. . ..... . 
Gains on disposition of equipment . 
Other . . . . . .. . ...... . 
Total provided (used) by operations . . . ..... . 
Reimbursements of deposits and capital expenditures 
upon acquisition of aircraft. . . .. . .. . 
Proceeds from disposition of equipment .. . 
Proceeds from issuance of long-term obligations .. 
Other, net . . . . . . . . . . . . . . . . . . . ....... . 
Total sources ....... . 
Applications of Working Capital: 
Purchase of and deposits on property and equipment . 
Reduction of long-term obligations including transfers 
to current liabilities . 
Long-term debt classified as current (Note 6) .. 
Cash dividends. . . .... ..... . 
Total applications ........ . 
Decrease in working capital . 
Summary of Increases (Decreases) in Working Capital: 
Cash and temporary investments ........ .. ........ . . . 
Receivables - trade . . . .................... . 
- from sale of aircraft ......... . ... . .. . ... . 
Expendable parts and prepaid expenses . . ....... . 
Current liabilities - long-term debt classified as current . 
- other . . ......... . 
Decrease in working capital . .... . . . .. .. .. .. . 
See accompanying notes to financial statements. 
15 
1981 
$ (73,400) 
61,780 
(18,617) 
(16,869) 
(4,005) 
(51 ,111) 
15,457 
61 ,208 
73,212 
4,000 
102,766 
49,810 
106,400 
153,369 
2,394 
311 ,973 
$(209,207) 
$ (10,281) 
(32,548) 
20,212 
(1 ,334) 
(153,369) 
(31 ,887) 
$(209,207) 
1980 
(29,632) 
60,146 
(21 ,2 19) 
(32 ,099) 
(3,557) 
(26,361) 
10,746 
50,120 
198,350 
172 
233,027 
171 ,123 
81 ,667 
5,652 
258,442 
(25,415) 
(15,975) 
16,568 
9,143 
(35 ,151 ) 
(25,415) 
1979 
41 ,540 
49,581 
(4,788) 
(31 ,332) 
(4,706) 
50,295 
10,563 
50,950 
104,941 
(5,097) 
211 ,652 
182,752 
52 ,402 
7,604 
242,758 
(3 1,106) 
(2 1,147) 
13,252 
3,718 
(26,929) 
(3 1,106) 
 Years ended December 31 , 1981, 1980 and 1979 
(In thousands of dollars) 
Preferred Stock Common Additional Total 
$25.00 Stated Stock $1.00 Paid-in Retained Shareholders' 
Value Par Value Capital Earnings Eq uity 
Balance at January 1, 1979 . ....... $29,923 13,010 30,792 124,777 198,502 
Exercise of stock options . . 17 132 149 
Conversion of debentures . 3 35 38 
Net earnings ... ......... 41 ,540 41 ,540 
Cash Dividends: 
Preferred stock . . .. . (2, 394) (2 ,394) 
Common stock ...... ........ (5,210) (5 ,210) 
Balance at December 31 , 1979 ... 29,923 13,030 30,959 158,713 232,625 
Conversion of debentures . 4 5 
Net loss .. .. .. (29,632) (29,632) 
Cash Dividends: 
Preferred stock. (2,394) (2 ,394) 
Common stock . (3,258) (3,258) 
Balance at December 31 , 1980 ..... 29,923 13,031 30,963 123,429 197,346 
Exercise of stock options . . 
. . . 
. . . 
12 90 102 
Conversion of debentures ... 1 9 10 
Net loss ...... . ....... (73,400) (73,400) 
Cash Dividends: 
Preferred stock (Note 9) . (2,394) (2 ,394) 
Balance at December 31 , 1981 
(Notes 6, 7, and 9) . ... . .. . $29,923 13,044 31 ,062 47 ,635 121 ,664 
See accompanying notes to financial statements. 
16 
 (In thousands of dollars except per share amounts) 
Note 1. Summary of Significant Accounting Policies 
Property and Equipment 
Owned property and equipment, exclusive of residual values, are depreciated over the estimated useful lives by the 
straight-li ne method . Assets recorded under capital leases are depreciated over the life of the lease by the straight-line 
method . The estimated useful lives and residual values of owned aircraft are as follows: 
Estimated Residual 
Useful Life Value 
DC-10 . . . . . . . . . . . . . . . . . . . . . . . . . . 16 years 10% 
727 .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 years 15% 
737 . 14 years 15% 
Estimated useful lives of ground equipment range from four to ten years. Bu ildings and improvements on leased 
property are depreciated over the life of the lease. Depreciation expense for assets recorded under capital leases is 
included in depreciation and amortization expense 
Interest Capitalized 
Certain interest costs, primarily related to deposits on aircraft purchase contracts, are capitalized and amortized 
over the lives of the related assets. 
Investment Credits 
Investment cred its are accounted for by the flow-through method . 
Obsolescence of Expendable Parts 
An allowance for obsolescence of expendable parts is accrued over the estimated useful lives of the related aircraft types. 
Airline Traffic Liability 
Passenger ticket sales are recorded as a current liability until recognized as revenues for services provided by 
Western , refunded , or billed by other carriers for transportation provided by them . 
Note 2. Lease Commitments 
Western leases certain flight equipment and facilities and ground equipment. Lease terms for flight equipment are 11  
to 15 years for 727 aircraft, 4 years for737 aircraft, and 15 to 18 years for DC-10 aircraft. Lease terms for facilities 
and ground equipment range up to 29 years. Interest expense is accrued on the basis of the outstanding obligations 
under capital leases. Equipment under capital leases included in the balance sheets at December 31 , 1981 
and 1980, follows: 
1981 1980 
Flight equipment . $137,283 113,2 19 
Ground equipment ................................... . 2,006 2,006 
139,289 115,225 
Less allowance for depreciation . 57,501 49,028 
$ 81 ,788 66,197 
At December 31 , 1981 , minimum lease payments under leases expiring after December 31 , 1982, were as follows: 
Capital Operating 
Leases Leases 
1982 . $ 20,451 22,619 
1983 .. . ....... . 20,399 21 ,429 
1984 .. 19,969 19,588 
1985 . 15,784 16,223 
1986 . 15,790 12,784 
Thereafter . 100,113 106,688 
Total minimum lease payments . 192,506 199,331 
Less: Amount representing interest 85,360 
Present value of obligations - capital leases 107,146 
Less: Current portion of capital leases 7,962 
Long-term obligations - capital leases . $ 99,184 
See the second and th ird paragraphs of Note 6 regarding defaults and potential payment acceleration. 
Rental expense for operating leases amounted to $25,967, $20,050, and $17,384 in 1981 , 1980, and 1979, respectively. 
Note 3. Commitments and Contingent Liabilities 
At December 31 , 1981 , Western had on firm order flight equipment which included six 767-200 aircraft scheduled 
for delivery in 1984 and 1985 and three 767 engines scheduled for delivery in 1984. Western recorded advance 
deposits on these orders which amounted to $15,799 as of December 31 , 1981 . The balance of the purchase price 
on delivery will be approximately $288,700. 
17 
 Outstanding commitments for flight equipment modificati on and spare parts amounted to approximately $3,300 
and for facilities and ground equipment amounted to approximately $1,100 as of December 31, 1981. 
Western has options to purchase six 767-200 aircraft for delivery in 1985 and 1986 . Deposits on these options 
amounted to $1,125 at December 31, 1981. 
For information regarding the status of legal proceedings at December 31, 1981, see " Legal Proceedings" on 
pages 8 and 9 of this report. 
Note 4. Retirement Plans 
Western has retirement plans, including a union-sponsored plan, which cover substantially all employees. Western's 
contributions to the Company-sponsored plans, together with the participants' required contributions, are sufficient 
to fund current service costs annually and prior service costs over ten to twenty years. Actuarial gains and losses are 
amortized over ten year periods. 
Western participates in a collectively bargained multi-employer pension plan and is therefore subject to the provisions 
of the Multi-employer Pension Plan Amendments Act of 1980. Under this complex law the union plan Board of 
Trustees, as sponsor, is required to obtain an actuarial valuation of the present value of vested and nonvested 
accumulated plan benefits. Western has been advised that its share of the liability for unfunded vested benefits in thi s 
plan is not available. According ly, the table that follows excludes data applicable to this multi-employer pension plan. 
A comparison of accumulated plan benefits and plan net assets for the Company-sponso red defined benefit 
plans follows: 
Jan uary 1, 
1981 1980 1979 
Actuarial Present Value of Accumulated Plan Benefits: 
Vested . $140,331 137,246 114,597 
Nonvested . . . . ' 
. . . . 11 ,984 9,876 9,015 
$152,315 147,122 123,612 
Net assets available for benefits . $163,995 139,000 111 ,559 
The weighted average assumed rate of return used in determining the actuarial present value of accumulated plan 
benefits was six percent for all years. 
The cost of the retirement plans, including the union-sponsored plan , charged to operating expense, was $34,711 , 
$34 ,193 and $30,304 for 1981 , 1980 and 1979, respectively, which included amortization of prior service costs over 
periods ranging from ten to twenty years for certain of the plans. 
Note 5. Income Taxes 
Income taxes are summarized as follows: 
1981 1980 1979 
Current 
Federal: 
Provision . 
i , 
Ii I I I   I I    0      0 I 
(3,647) 18,901 
Investment credits applied . . . . . . . .... 5,75 1 (17,792) 
2, 104* 1,109* 
State. (791) (492) 1,578 
Deferred : 
Provision ... . . . . . . . . . . (12,974) (5 ,073) (5,597) 
Operating loss carryforward recognized . (5,091) (15 ,533) 
Investment Credits: 
Applied . . . . . . . . . . . 
. . . . . . . . . . . . . . 
5,697 (16,420) 
Transferred to current . ... . .. . . . (5,751) 17,792 
(18,065) (20,660) (4,225) 
Amortization of deferred investment credits . (552) (559) (563) 
$ (19,408) (19,607) (2,101) 
*The Tax Reform Act of 1976 provided for 90% application of unapplied investment credits against Federal income tax liabilities for 
1979. This application was reduced to 80% for 1980. Under the Revenue Act of 1978 the application remains at 80% in 1981 and 
retu rns to 90% for 1982 and beyond 
Deferred income taxes arise from timing differences between fi nancial and tax reporting. The effects of these differ- 
ences on income taxes are as follows: 
1981 1980 1979 
Depreciation and amortization . . ... . .. . . . $ (13,409) (3,454) (4,825) 
Sale of tax benefits . . . ..... . 2,560 
Capital leases . (1,754) (1 ,084) ( 114) 
Interest capitalized . 1,1 83 1,140 1,903 
Employee benefits . (847) (718) (1,626) 
Other . (707) (957) (935) 
$ (12,974) (5 ,073) (5,597) 
18 
 Reconciliations of income taxes at the United States statutory rate lo the provision for incomo taxos follow: 
1981 1 
980 1 
97 
Income taxes at tho United States statutory rate . $ (42,692) (22,650) 18, 14 2 
Increases (reductions) in laxes resulting from : 
!feet of operating loss carryforward for which no tax credi l 
may be recogni7ed . 
Amortization of dGferred investment credits. 
Investment cred its recogn ized on flow through method . 
State income taxes net of federal income tax benefit .. 
Capi tal gains . 
Other . 
Income taxes . 
24,490 
(552) 
(427) 
(227) 
$ (19,408) 
(559) (563) 
5,697 (16,420) 
(266) 85 2 
(3, 800) 
( 1 ,829) (3 12) 
( 19,607) (2, 101 ) 
A net operating loss carryforward of $98,400 has not been utilized on tax returns. For income tax purposes, $34,100 
expires in 1995 and $64,300 expires in 1996. For financial statement purposes, $53,200 of the carryforward has not 
been recognized and expires in 1996. 
Investment credits available to reduce future years' Federal income tax liability for financial and tax purposes amount 
to $23,000 at December 31 , 1981 . For income tax purposes, $5,800 expires in 1994, $16,200 expires in 1995, and 
$1,000 expires in 1996. 
In November 1981 tax benefits were sold under the provisions of the Economic Recovery Tax Act of 1981 . The 
proceeds from this sale of $5,565 are included in Other income (expenses) on the statements of operations. 
Note 6. Debt 
At December 31 , 1981 and 1980 long-term debt included : 
9.55% equipment trust certificates due May 1, 1993, with semi-annual 
principal payments of $3,458 . . ... .. ... . 
10% equipment trust certificates due April 1, 1994, with quarterly 
principal payments of $1 ,000 . 
Floating-rate equipment trust certificates due June 30, 1995, with 
semi-annual principal payments of $2 ,609 starting June 30, 1984 . 
13.29% installment notes due May 1, 1995, with semi-annual principal 
payments of $1", 1 00 . 
Revolving credit notes .. 
5% installment notes due September 1, 1981 . 
6%% installment notes due September 1, 1984, with annual principal 
payments of $2,000 on September 1 which will increase to $7,000 in 1982 . 
7% installment notes due May 4, 1986, with semi-annual principal payments of 
$352 starting November 4, 1981 . . ....... .. ..... . 
Notes payable to manufacturers,% above prime and 8%, payable in 
varying installments to 1985. 
5% convertible subordinated debentures due February 1, 1993, with annual 
sinking fund payments of $1 ,500 starting in 1983 . 
10% subordinated sinking fund notes due April 15, 1984, with annual sinking 
fund payments of $2,300 . 
Less: Current portion . 
Long term amounts classified as current .. 
1981 1980 
$ 79,525 86,440 
48,992 52,991 
60,000 60,000 
29,700 31 ,900 
27,000 50,000 
4,000 
21 ,000 23,000 
3,165 2,869 
27,166 29,844 
22,552 23,562 
10,250 12,675 
329,350 377 ,281 
(26,650) (23,756) 
(153,369) 
$ 149,331 353,525 
The revolving credit notes represent borrowings under the 1978 Amended and Restated Bank Loan Agreement. 
This line of credit was reduced to $27,000 in 1981 and extends to June 30, 1982, at which date it may be replaced 
by term notes. The term notes are due June 30, 1990, with quarterly payments starting September 30, 1982. The 
interest rate at December 31 , 1981 , was 105% of prime commercial rate on $15,000 (domestic loans) and 13.2% on 
$12,000 (Eurodollar loans). Although the 1978 Bank Loan Agreement does not require compensating balances, 
Western had on deposit with its banks until November 1981 non-interest bearing certificates of deposit of approxi- 
mately $2,500. Since November 1981 , no compensating balances have been maintained . 
Western's various debt agreements contain requirements pertaining to working capital , liquid assets, and net 
worth levels, as well as restrictions on amounts of cash dividends and creation of rental liabilities and additional 
debt. At December 31, 1981 , Western was not in compliance with some of these requirements. This non-compliance 
resulted in technical non-compliance with certain other debt agreements. Western may not resume the payment 
of cash dividends on its common stock, which were discontinued in 1980, nor may it pay dividends on its preferred 
stock, until certain of the financial tests referred to above have been met. 
The agreements with which Western was not in compliance at December 31 , 1981 , include provisions whereby 
the lenders may, at their option , accelerate the scheduled maturities. Western has not obtained waivers of these defaults 
for a period in excess of one year. Therefore, a portion of the long-term debt has been classified as current obligations. 
All of Western's long-term obligations, including all capital leases, contain provisions by which the lenders may 
accelerate scheduled maturities if Western fails to make any required payment on its obligations. As of December 
31 , 1981 , and March 15, 1982, Western had met all required payments of its obligations. 
19 
 In January 1982 , Western entered into ag reements with its revolving c redit note lenders and certain insurance 
companies to create short-term loans of up to $30,000. As of March 15, 1982 , the entire $30,000 had been received 
by Western . This loan is due no later than April 30, 1982 . The interest rate on fund s borrowed is equal to 105% of 
the agent bank's prime commercial rate. As part of the new short-term loan ag reement, the interest rate on previously 
issued 6%% installment notes was increased to 105% of prime while any part of the new short-term notes is out- 
standing . The commitment fee under the new short-term loans is % per annum on the average daily unused 
portion of the $30,000 . 
As part of the January 1982 short-term loan, Western was granted waivers on its existing defaults until June 10, 
1982. Also granted was forbea rance fro m acceleration and collection of previously unsecured debt. In connection 
with these arrangements, Western provided security on existing and new debt in th e form of a chattel m ortgage. 
The chattel mortg age grants a first priority security interest in 29 aircraft and 77 aircraft engines to th e previously 
unsecured lenders. The net book value of the aircraft and engines encumbered was $141,467 at December 31, 1981. 
The amount of collateral must be maintained at specified levels until substantially all of Western's debt has been 
repaid . Western anticipates that following the lenders' evaluation in March 1982 of an appraisal of the existing collateral, 
additional collateral may be required . 
Equipment trust certificates and 13.29% installment notes outstanding at December 31, 1981 , are secured by 
aircraft and engines with a net book value of $255 ,310 at December 31, 1981. In addition, two holders of equipment 
tru st certificates who are also participants in the new short-term loa ns referred to above are also collateralized by 
the c hattel mortgage as described above. 
The following schedu le shows the amount of long-term debt due in each of the five following calendar years, 
excluding such amounts, if any, which may be due on acceleration , as desc ribed above: 
1982 . . ..... $26,650 1984 . . . . $50,977 1986 . . . . . . . . . . . . . $23, 56 1 
1983 . 29,618 1985 . 31,771 
During September 1981 , Western entered into agreements with two foreign banks for lines of credit up to $10,000 
eac h. In connection with these credit lines, $20,000 was outstanding under demand notes at December 31, 198 1. 
The interest rate on these demand notes, outstanding at December 31, ranged from 17.8% to 13.2% during the out- 
standing period in 1981. These demand notes also became secured by the collateralization of loans referred to above. 
Note 7. Stock Options 
Western has a non-qualified stock option plan adopted in 1974 for officers and key personnel. This plan-provides for 
options to purc hase a maximum of 1,030 ,000 shares of Western's common stock at prices not less than the fair 
market value of the stock at date of grant. The options are exercisable in equal annual increments over a five-year 
period The options expire ten years after the date of grant. A summary of activity in the plan follows: 
Options granted and outstanding at December 31 , 1978 . 
Options granted . . ............... . 
Options exercised . . . . . . . . . . . . . . . . .. . .... . 
Options cancelled or expired .......... . ..... . ....... . .. . 
Options granted and outstanding at December 31 , 1979 . 
Options granted ... 
Options cancelled or expired .. 
Options granted and outstanding at December 31 , 1980 . 
Options granted . . ....... . 
Options exercised . . .. . .... . .. . 
Options cancelled or expi red ........ . 
Options granted and outstanding at December 31 , 1981 . 
Options Exercisable at: 
December 31, 1981 ... 
December 31 , 1980 . 
.. .. . . . . 
Number of Shares Average Price 
790,835 $8.56 
71 ,000 8.62 
(17,630) 8.47 
(6,550) 9.12 
837,655 8.56 
21 ,500 7.27 
(12,500) 8.65 
846,655 8.53 
12,500 9.29 
(12,050) 8.46 
(84,430) 8.49 
762,675 $8.55 
697,319 $8.57 
683,493 $8.63 
At December 31, 1981 , 200 ,21 0 shares (128 ,280 shares at December 31 , 1980) were reserved for the issuance of 
future grants. 
Note 8. Earnings (Loss) per Common Share 
Earnings (loss) per common share is calculated as follows: 
Adjustment of Net Earnings (Loss) 
Primary: 
Net earnings (loss) .. 
Preferred stock cash dividends . 
Net earnings (loss) available for common stock . 
Fully Diluted: 
Net earni ngs (loss). 
Preferred stock cash dividends 
Reduction in interest expense, net of income 
taxes, fo r the assumed conversion of 5% 
convertible subordinated debentures 
Adjusted net earnings (loss) assuming full dilution 
20 
1981 
$(73,400) 
(2,394) 
(75,794) 
$(73,400) 
(2,394) 
* 
$(75,794) 
1980 
(29,632) 
(2,394) 
(32 ,026) 
(29,632) 
(2,394) 
(32,026) 
1979 
41 ,540 
(2,394) 
39,146 
41 ,540 
653 
42, 193 
 1981 1980 1979 
Adjustment of Shares Outstanding (in thousands) 
Primary: 
Weighted average shares outstanding ....... 13,037 13,031 13,026 
Assumed exercise of stock options . * * 58 
Total average common shares for primary . 13,037 13,031 13,084 
Fully Diluted : 
Weighted average shares outstanding . 13,037 13,031 13,026 
Assumed conversion of subordinated debentures . * 2,073 
Assumed conversion of preferred stock .. * 2,992 
Assumed exercise of stock options .. * * 146 
Total average common shares assuming full dilution . 13,037 13,031 18,237 
Earnings (Loss) per Common Share: 
Primary . $ (5.81) (2.46) 2.99 
Fully diluted . . . . . . . . . $ (5.81) (2.46) 2.31 
*The exercise of stock options and conversion of the convertible subordinated debentures and/or the preferred stock into common 
shares has not been assumed , since the effect of such an assumption would be anti-dilutive. 
Note 9. Preferred Stock 
The shares of preferred stock are convertible into common stock at the rate of 2.5 shares of common stock for 
each share of preferred stock, subject to adjustment under certain conditions, and may be redeemed in whole or in 
part at any time at the option of Western. The redemption price of $26 .20 at December 31 , 1981 , decreases peri- 
odically until 1987 after which it remains at $25.00 per share. The preference on !iquidation is at the stated value 
plus all accrued and unpaid dividends. 
On January 29, 1982, the Board of Directors voted to defer payment of the preferred cash dividend of $0.50 
per share payable at the end of March 1982 on the 1,196,920 shares of $2 Series A Cumulative Convertible 
Preferred Stock outstanding . 
Note 10. Regulatory Matters 
Western has announced its intention to acquire Wien Air Alaska, Inc., an Alaska regional carrier, and merge it into the 
Western system. The Civil Aeronautics Board has approved Air Florida System , lnc'.s, application to acquire control 
of Western . Air Florida, which holds approximately 12.6 percent of Western's common stock, has not announced its 
intentions. Western's planned merger with Continental Air Lines, Inc., was thwarted by the successful takeover of 
that carrier by Texas International. Western withdrew from the merger agreement in September 1981. For additional 
information see the first four paragraphs under Regulatory Matters on Pages 6 and 7 of this report. 
Note 11. Other Matters 
In May 1981 , Western sold two DC-10-10 aircraft to International Air Leases, Inc. for $2,000 of cash and $28,000 
of 12% notes which are payable in monthly principal and interest installments of $480 over 50 months with the balance 
payable in 1985. In December 1981 , Western decided to sell the notes receivable and has reached agreement in 
principle to sell these notes with recourse. This transaction is expected to be consummated by April 30, 1982. During 
the fourth quarter of 1981 , the notes were written down by $6,557 to their estimated net realizable value. 
In December 1981 , Western sold two 737 aircraft for $11 ,000 to Batch-Air Leasing , Inc., and then leased back the 
aircraft from International Air Leases, Inc. , under a four-year operating lease with monthly rental payments of $130 
per aircraft. The gain on the sale of the aircraft is being recognized on a straight-line basis over the lease term . 
The owner of International Air Leases, Inc., and Batch-Air Leasing , Inc., holds approximately 7% of the outstanding 
common stock of Western . 
In the opinion of Western's management, the transactions described above were at terms comparable to those 
which would have been negotiated with unrelated parties. 
Note 12. Quarterly Financial Data (Unaudited) 
Summarized quarterly financial data (unaudited) for 1981 and 1980 is as follows: 
1981 
Operating revenues ... 
Operating (loss) 
Net (loss) . 
Net (Loss) per Common Share: 
Primary 
1980 
Operating revenues . . 
Operating income (loss) . 
Net (loss) . 
Net (Loss) per Common Share: 
March 31 
$262,159 
(3,497) 
( 1,692) 
$ (0.18) 
$232,153 
(23,006) 
(8,868) 
Three Months Ended 
June 30 
270,844 
(15,003) 
(8,399) 
(0.69) 
237,707 
(20, 1 77) 
(5,379) 
September 30 
293,621 
(3,753) 
(7,255) 
(0.60) 
273,720 
7,658 
(6,397) 
December 31 
233,217 
(43,701 ) 
(56,054) 
( 4 34) 
252, 175 
(10,236) 
(8,988) 
Primary $ (0.72) (0 46) (0 54) (0.74) 
Western revised its procedures for recording commission expense in the first quarter of 1981 to more closely identify 
the expense with the period in which the related revenue is recognized . The effect of this change on the first through 
the fourth quarters of 1981 was to reduce (increase) the net loss by $3,244 ($0.25 per share) , $504 ($0.04 per 
share) , $(1 ,040) ($0.08 per share) , and $630 ($0.05 per share) . 
21 
 The quarterly inco me tax benefits fo r the first, second , and third quarters of 1981 are based on the statutory rate. 
The tax benefit available fo r the fourth quarter 1981 was limited fo r financial reporting purposes to approximately 
5% of the pretax accounting loss because the tax benefits of the remaining net operating loss could not be recog ni7ed 
currently. In the th ird quarter of 1980, previously recorded investment credits of $12,507 ($0.96 per share) were 
reversed since they could not be utilized for fin ancial reporting purposes. No investm ent c red its were recog nized 
during 1981. 
Note 13. Description of Impact of Inflation (Unaudited) 
Statem ent of Financial Acco unting Standard s No. 33 (SFAS No. 33) prescribes two supplemen tary incom e compu- 
tations for estim ating the im pact of inflatio n. These co m putations estimate the effects of general inflation (constant 
dollars) and the effects of changes in specific prices (current cost). 
SFAS No. 33 defines co nstant dollar accounting as a method of repo rting fin ancial statem ent elements in dollars 
each of wh ich have the same general purchasing power. Current cost accounting is defin ed as a m ethod of 
measuring and reporting assets and expenses associated with the use or sale of assets at their current cost or lower 
recoverable amo unt at the balance sheet date o r at the date of use o r sale. Both m ethods involve the use of 
assumptio ns and estim ates. Therefore, th e resulting m easurem ents sho uld be viewed as esti mates rather than as 
precise ind icators of the effects of inflation. 
The amounts reported in the primary fin ancial statements have been adjusted fo r depreciation and am ortization 
expense. Revenues and all other operating expenses are co nsidered to reflect the average price levels and have not 
been adjusted.,Further, there have been no adjustm ents made to provisions for inco m e taxes. 
Co nstant dollar values were determined by restating histo rica l costs, accumu lated depreciation and am ortization, 
and depreciation expense of property and equipment into average 1981 dollars using the Consumer Price Index for 
all urban consumers (C PI-U) published by the Bureau of Labor Statistics. Current costs for aircraft were determi ned 
by using the direct pricing method. Current costs for spare engines and ca pital rotable spares and assem blies 
were computed based on the ratio by which the c urrent cost of aircraft fleets exceeds the histo ric cost of such fleets. 
Current cost for other prope rty and eq uipment were determined by indexation using the C PI -U. 
An estimate of the net (loss) adjusted for changing prices for the year ended December 31, 1981, follows: 
Net (loss) as repo rted in the statement of operations $ (73,400) 
Adjustment to Restate Costs for the Effect of General Inflation : 
Depreciation and amortization expense (32,706) 
Net (loss) adjusted for general inflation . 
Ad justment to Reflect the Difference Between General Inflation and Changes in Specific Prices (current costs): 
Depreciation and amortization expense . 
Net (loss) adjusted for changes in specific prices . 
Gain from decli ne in purchasing power of net amounts owed . 
Increase in specific prices (current cost) of properties and equipment held during the year* . 
Effect of increase in general price level . 
Excess of increase in specific prices over increase in the general price level . 
(106,106) 
(26,582) 
$(132,688) 
$ 41,716 
$186,912 
(108,810) 
$ 78 ,102 
*At December 31 , 1981 current cost of properties and equipment, net of accumulated depreciation and amortization , was $1 ,189,243. 
A five-yea r comparison indicating the effect of adjusting historical revenues, purchasing power gains or losses on 
net m o netary items, cash dividends, and common stock market prices to dollar am ounts expressed in terms of 
average 1981 dollars as measured by the C PI-U follows: 
Year Ended December 31 , 
1981 1980 1979 1978 1977 
Operating revenues . $1 ,059,841 1,095 ,330 1,165,149 1,159,973 1,037 ,196 
Historical Cost Information Adjusted for 
General Inflation 
Net earnings (loss). (106,106) (62, 434) 26,162 
Net earnings (loss) per common share . $ (8.32) ( 4.99) 1.77 
Net assets at year-end . 384,364 483 ,525 524 ,169 
Current Cost Information 
Net earnings (loss) . (132,688) (78, 1.20) 13,904 
Net earnings (loss) per com mon share . $ (10.36) (619) .84 
Excess of increase in specific prices over 
increase in the general price level 78,102 125,487 7,157 
Net assets at year-end . 654,403 739 ,133 670 ,431 
Gain from decline in purchasing power of 
net amounts owed .. 41 ,716 51,532 45 ,947 
Cash dividends declared per common share . $ .27 .50 .56 .60 
Market price per common share at year-end . $ 4.87 10 04 12.97 11.47 11.44 
Average Consumer Price Index . 272.4 246.8. 217.4 195.4 181 .5 
Note 14. Continued Operations 
Early in 1982, Western began to implem ent a new strateg ic plan designed to return the company to profitability 
and to streng then its financial co nditio n. This plan includes, am ong other factors: (1) establ ishi ng a hub and spoke 
system with operations centered at Salt Lake City, (2) introd ucing service to nine new cities and increasing service 
to a number of cities presently on Western's system as a means to more fully uti lize the available capacity in Western's 
fleet, (3) wage and/o r wo rk rule co ncessions fro m Western's organized labor groups, and ( 4) conti nued cooperation 
from Western's lenders. 
If this plan is not substantially achieved , Western may not be able to co ntin ue in existence. 
22 
 Peat, Marwick, Mitchell & Co. 
The Board of Directors 
Western Air Lines, Inc.: 
ertificd Public Accountants 
555 South Flower Street 
Los Angeles, alifornia 90071 
We have examined the balance sheets of Western Air Lines, Inc. as of December 31, 1981 and 1980 and the related 
statements of operations, shareholders' eq uity and changes in financial position for each of the years in the th ree-year 
period ended December 31, 1981. Our examinations were made in accordance with generally accepted audi ting 
standard s, and accordingly included such tests of the accounting record s and such other auditing proced ures as we 
considered necessary in the circumstances. 
As shown in the financial statements, the Company incurred net losses of $73,400,000 and $29,632 ,000 during 
the years ended December 31, 1981 and 1980, respectively, and , as of December 31, 1981, certain of the Company's 
long-term debt is subject to demand for accelerated payment after June 10, 1982 . These factors, among others, as 
discussed in Notes 6 and 14, indicate th at the Company may be unable to continue in existence. The fina ncial statements 
do not include any adjustm ents relating to th e recoverability and classification of record ed asset amou nts or to the 
amounts and classification of liabilities that might be necessary should th e Com pany be unable to con tinue in existence. 
In our opinion, subject to the effects on the 1981 financial statements of such adjustments, if any, as might have 
been required had the outcome of the uncertainty abou t the recoverability and classification of recorded asset 
amounts and the amounts and classification of liabilities referred to in the preceding paragraph been known , the 
aforementioned financial statements presen t fai rly the financial position of Western Air Lines, Inc., at December 31 , 
1981 and 1980 and the results of its operations and the changes in its financial position for each of the years in the 
th ree-year period ended Decem ber 31, 1981 , in conform ity with generally accepted accounting principles applied 
on a consistent basis. 
March 1, 1982, except for the fourth 
and fifth paragraphs of Note 6, which 
are as of March 15, 1982. 
Notice to Stockholders. 
A rule adopted by the Civil Aeronautics Board ("CAB") in July 1970, as amended on December 29 , 1972, imposes 
obligations on certain stockh olders of air carriers. Any person who owns as of December 31 of any year or subse- 
quently acquires.either beneficially or as a trustee, more than 5% of any class of capital stock of an air carrier must 
file with the CAB a report containing the information required by Part 245.12 of the CAB's Economic Regulations 
on or before April 1 as to the capital stock owned as of December 31 and/or a report containing the information 
required by Part 245.13 of the CAB's Economic Regulations within 10 days after acquisition as to the capital stock 
acquired, after December 31. Any bank or broke r which holds as trustee more than 5% of any class of capital stock 
of an air carrier on the last day of any quarter of a calendar year must file with the CAB within 30 days after the 
end of the quarter a report in accordance with the provisions of Part 245.14 of the CAB's Economic Regulations. 
Any person req uired to report under either Part 245.12, Part 245 .13 or Part 245 .14 of the CAB's Economic Regula 
tions who grants a security interest in more than 5% of any class of capital stock of an air carrier must within 30 
days after granting such security interest file with the CAB a report containing the information required in Part 
245.15. Any stockholder who believes that he may be required to file such a report may obtain further information 
by writing to the Di rector, Bureau of Pricing and Domestic Aviation , Civil Aeronautics Board , Washington , D.C. 204 28. 
Form 10-K: Stockholders may obtain free of charge a copy of the company's ann ual report on form 10-K as fi led 
with the Securities and Exchange Commission by writing to the Secretary, P.O. Box 92005 , World Way Postal Cen ter, 
Los Angeles, California 90009. 
23 
 BOARD OF DIRECTORS 
Fred Benninger 
President 
Tracinda Corporation 
Las Vegas, Nevada 
Neil G. Bergt 
Chairman of the Board and 
Chief Executive Officer 
Western Air Lines, Inc. 
Los Angeles, California 
Miguel M. Blasquez 
President 
Inter-American Commercial 
Arbitration Commission 
Mexico City, Mexico 
DIRECTORS EMERITI 
Hugh W. Darling 
Attorney-at-Law 
Darling, Hall & Rae 
Los Angeles, California 
Leo H. Dwerlkotte 
Las Vegas, Nevada 
James D. Garibaldi 
Attorney-at-Law 
Los Angeles, California 
Victor L. Brown 
Presiding Bishop 
The Church of Jesus Christ 
of Latter-day Saints 
Salt Lake City, Utah 
Gerald Grinstein 
Attorney-at-Law 
Preston, Thorgrimson , Ellis 
and Holman 
Seattle, Washington 
Walter J. Hickel 
Chairman of the Board 
Hickel. Investment Company 
Anchorage, Alaska 
Arthur F. Kelly 
Los Angeles, California 
Robert 0. Kinsey 
Los Angeles, California 
Dr. Donald H. Mclaughlin 
Chairman of the Board 
Homestake Mining Company 
San Francisco, California 
John H. Myers 
Assistant to the President 
St . .John's University 
St. Paul, Minnesota 
Dominic P. Renda 
Los Angeles, California 
24 
Bert T. Kobayashi, Jr. 
Attorney-at-Law 
Kobayashi , Watanabe, Sugita 
& Kawashima 
Honolulu, Hawaii 
Arthur G. Linkletter 
Television Producer and 
Broadcaster 
Chairman of the Board 
Linkletter Productions 
Beverly Hills, California 
John G. McMillian 
Chairman of the Board and 
Chief Executive Officer 
Northwest Energy Company 
Salt Lake City, Utah 
Vernon 0. Underwood 
Chairman of the Board and 
Chief Executive Officer 
Young's Market Company 
Los Angeles, California 
Harry J. Volk 
Union Bancorp, Inc. 
Los Angeles, California 
George S. Suddock 
Chairman of the Board 
Alaska National Insurance 
Company 
Anchorage, Alaska 
Capt. Roy G. Utter 
Pilot 
Western Air Lines, Inc. 
Los Angeles, California 
Robert H. Volk 
Chairman/Owner 
Martin Aviation , Inc. 
Torrance, California 
John M. Wallace 
Walker Bank & Trust Company 
Salt Lake City, Utah 
Arthur G. Woodley 
Bellevue, Washington 
 CORPORATE OFFICERS 
Neil G. Bergt 
Chairman of the Board and 
Chief Executive Officer 
Robert D. Heath 
Senior Vice President - 
Administration 
Lawrence H. Lee 
Senior Vice President - 
Service 
George M. Sullivan 
Senior Vice President - 
Alaska Region 
Harold Achtziger 
Vice President - 
Airport Operations 
Craig B. Benedetti 
Vice President - 
Marketing 
Anthony Colletti 
Vice President - 
Maintenance & Engineering 
General Offices 
Howard L. Culver 
Vice President - 
Regulatory Affairs 
Andre C. Dimitriadis 
Vice President - Finance 
Thomas J. Greene 
Acting Vice President, 
General Counsel & Secretary 
Steven S. Lay 
Vice President - 
Passenger & Cargo Sales 
Seth M. Oberg 
Vice President - Flight Operations 
Western Air Lines Building , 6060 Avian Drive 
Los Angeles International Airport 
Los Angeles, California 90045 
(213) 646-2345 
Registrar/Transfer Agent-Common & Preferred Stock 
Bank of America National Trust & Savings Assn . 
555 South Flower St., Los Angeles, California 90071 
Debenture and Subordinated Note Trustee 
United States Trust Company of New York 
45 Wall Street, New York, New York 10005 
Exchange Listing-Common & Preferred Stock 
Debentures and Subordinated Notes 
New York Stock Exchange 
Pacific Stock Exchange 
Marvin Rich 
Vice President - 
Data Processing & Communica tions 
Ray Silvius 
Vice President - Corporate Affairs 
Glen L. Stewart 
Vice President and Controller 
C. F. Van Every 
Vice President - Airport Services 
Donald W. Vena 
Vice President - Personnel Relations 
George Varney 
Assistant Vice President - 
Flight Control 
Ticker Symbols 
Common Stock WAL 
Preferred Stock WALA 
5% Debentures WALK 
10% Notes WAL. 
Independent Accountants 
Peat, Marwick, Mitchell & Co . 
555 South Flower St., Los Angeles, California 90071 
 General Offices Western Air Lines Building, 6060 Avion Drive, Los Angeles International Airport, Los Angeles, California 90045