TWA) SKYLI IM VOL. 30, NO. 8 APRIL 10, 1967 747 Passes Preference Test As a Plane for All People TWA has disclosed that its planning for the giant Boeing 747 em­ braced "the entire travel spectrum," from those wanting the ultimate in luxury accommodations to those interested in the ultimate in economy—all in the same plane. Disclosure was made at a press conference in New York by Presi­ dent Tillinghast and Robert W. Rummel, vice president of planning and research. It came in the course of their remarks on "The Future of Air Travel," a massive passenger preference survey initiated to test ideas for the interior design of the 747 and to explore public Ellis, Bruemmer attitudes about supersonic flight. TWA has ordered 12 of the 347- passenger Boeing 747s, coming into Head New Regions TWA service in January 1970, and Appointment of two new re­ has options on eight additional gional sales vice presidents was 747s. It also has on order six announced by President Tilling­ Anglo-French 1400-mph Con­ hast following the Board of Direc­ cordes, entering service in the tors meeting on March 22. 1972-73 period, and ten Boeing Russell E. Ellis, district sales 1850-mph SSTs, expected to enter manager in Washington, has been airline service around 1974-75. named to the newly established "As an airline operating these position of Regional Vice Presi­ aircraft," said Mr. Tillinghast, "we dent-Sales, Mid-Atlantic, with must win public acceptance for headquarters in Washington, and them. That's one reason we made Robert O. Bruemmer, currently the survey—to find out how peo­ district sales manager for the ple felt about the advanced sub­ ST. LOUIS' GATEWAY ARCH serves as symbolic bridge between the passing of the props and the forward United Kingdom, named Regional sonic jet and supersonic flight, to progress of TWA. This was Captain Jesse Fiser's view from the cockpit on one of the final Connie runs Vice President-Sales, Central, with test our ideas about how to make before TWA became all-jet with termination of Flight 249 at St. Louis on April 6. headquarters in Pittsburgh. them the most comfortable air­ At the same time, expansion of liners ever flown, and to gain A new epoch for TWA began last Friday night (April 6) when, on termination of Constellation Flight the field sales organization to a deeper insights into what new total of seven domestic regions 249 at St. Louis, we retired the last of our propeller-driven passenger airplanes. TWA thus became the features might be most important was described by Daniel P. Reid, to the public. We wanted to know first United States domestic airline to switch completely from props to jets, just as on October 29, 1961 vice president and general sales whether there were negative feel­ we were first to go all-jet across the Atlantic. manager. In addition to the two ings about airliners that big, and, On any day but last Friday, anyone taking Flight 249 from New York to St Louis might consider it new regional headquarters being if so, how strong those feelings a "dog," as it stopped enroute at Philadelphia, Pittsburgh, Columbus and Louisville. But for many on established at Washington and were. Happily, the findings were board the historic flight it was Pittsburgh, there have been geo­ very positive." to be a sentimental journey, to be graphical realignments and re-nam­ Public Responds Favorably savored all the way. ing of existing regions. '66 Annual Report Reviews Ray Dunn, senior vice president A new Northeast region, to be Mr. Rummel said the survey and system general manager, headed by J. N. Martin as regional was received enthusiastically and vice president-sales, with head­ the response indicated great in­ booked a reservation for the en­ 'Year of Accomplishment' quarters in New York, will include terest. Respondents volunteered tire trip. So did Carl Haddon, the sales territories of New York, a great number of written com­ TWA achieved all-time traffic records in 1966 but earnings and group vice president of Lockheed Boston, Albany, Binghamton and ments and suggestions on features revenues were substantially curtailed because of the 43-day machin­ who was project engineer for the Toronto. and services. ists' strike last summer, President Tillinghast has noted in the first Connie. A new North Central region, "Broadly, the survey results to Annual Report. The report was mailed to shareowners on March On May 11 we'll phase out our to be headed by Bonham Fox, date support fully our enthusiasm 24 along with notice of the annual meeting to be held in Kansas last piston-powered cargo plane with headquarters in Chicago, will for the overwhelming acceptance City April 27. and from that day on TWA's entire include the present Chicago sales of the 747 by the traveling pub­ Final figures for the year indicate revenues of $681.6 million, fleet will be pure jet. area, with the addition of the De­ lic," TWA's planning chief noted. troit and Minneapolis territories. In the survey of nearly 200,000 a gain of only 1.3 percent over 1965's $672.7 million. Expenses, The April 6 flight recalls a book- The present Western region will air travelers, TWA's plans for con­ meanwhile, rose by $41.7 million or 7.1 percent to $632.9 million. ful of "Connie" achievements in remain unchanged except for the figuring the 747 were approved Net earnings after taxes thus were held to $29.7 million or $3.29 more than 20 years of service. transfer of Minneapolis to the by a three-to-one margin over a share compared with 1965 earnings of $50.1 million or $5.74 a One of the most photogenic air- North Central region. current jetliners. Survey respond- share. (Continued on Page Seven) (Continued on Page Three) (Continued on Page Eight) Mr. Tillinghast said that while TWA quickly resumed full opera­ tions following the strike July 8-August 19—TWA's peak travel season—residual effects were felt late into the year. Nevertheless, he reported, "1966 was a year of very substantial accomplishment" in which TWA again exceeded the 10 billion revenue passenger mark, carrying 9.9 million passengers 11.3 billion revenue passenger miles. Revenue ton miles in 1966 were 1.5 billion, an increase of 8.7 percent over 1965. In his letter to shareholders—of whom nearly 5,000 are em­ ployees participating in the Stock Purchase Plan—Mr. Tillinghast recalled then President Jack Frye's letter to shareholders 21 years ago—"just two months after a TWA survey flight circled the globe to lay the groundwork for future international routes, and one month after TWA's inaugural flight to Paris." President Frye had written: "To accomplish the planned expansion, TWA has to act well in advance. Before planes begin to fly, there must be provided the overhaul bases, the stocks of spare parts, the ticket offices, the communications facilities, and most of all the trained personnel needed to carry out a successful airline operation." "And so," said President Tillinghast, "TWA proceeded in 1966, "PROPELLERS ARE FOR BOATS." That's the theme in a pictorial history of propulsion, from paddles to the 20th anniversary of its international service. With extension propellers to pure jets, produced by public relations to mark TWA's transition to all-jet service. Illustrations of our Asiatic route to Hong Kong, obtaining of rights to East by artist John Alcorn picture primitive man paddling his dugout canoe, Robert Fulton's steamboat, the screw Africa, our application to fly across the Pacific, the placing of our propeller patented by Swedish engineer John Ericsson, the marriage of the internal combustion engine and (Continued on Page Four) the propeller principle by the Wright brothers and the jet engine patented by Sir Frank Whittle in 1930. S KYLI N E R

Noonan, Chambers (TWA) SKYLINER Fill New Posts

Published Bi-Weekly for TWA Employees The following appointments in w,ITo the transportation division have By the Public Relations Department *i *r 605 Third Avenue, New York 10016 been announced by J. E. Frankum, Printed in U.S.A. vice president-transportation: Dan Kemnitz, Editor William J. Noonan, director- Joe Riley, Associate Editor terminal service, has been placed on special assignment as director- passenger service procedures, re­ porting to the staff vice president- Editors' Notes passenger service. In his new position, Mr. Noonan will be re­ The passing of the props is, in a way, like the passing of the clipper sponsible for developing plans, in ships. That's progress . . . but it's the Flying Cloud you mount over conjunction with the data services your fireplace. department, for the automation of * » * passenger service and terminal There's no end to Connie nostalgia, so let's just take the first flight that operations. went into the record books. It was almost 23 years ago—on April 17, S. W. Chambers, regional direc­ 1944—that Jack Frye and Howard Hughes delivered the first Connie to tor-customer service at Paris, has the military, flying nonstop from Burbank, California to Washington, been promoted to the passenger D.C, in 6 hours, 57 minutes. service staff in New York as di­ Hughes was in the pilot's seat on takeoff. Halfway across the continent, rector-terminal service, reporting to they exchanged places and President Frye brought the Connie into the staff vice president-passenger Washington—to the cheers of a thousand TWA employees on duty RAY LUND, Columbus DTM, receives his 30-year pin from Mrs. Lund service. with our wartime Intercontinental Division (ICD). while Jim Kennedy, Atlantic region maintenance director, supervises the Carlo Gullino, district transpor­ « « « operation. Ray started with TWA at Chicago on April 1, 1937 and served tation manager-station operations Three TWAers who are still very much around were aboard that at Dayton, Toledo and Cleveland before coming to Columbus 10 years ago. at Milan, will serve as acting re­ record flight. Ed Minser, now director of meteorology, was weatherman gional director of customer service. for the flight. Lee Spruill, now director of powerplant overhaul, had been resident engineer at Burbank during the Connie's development (along with John Guy, who, come the jet age, moved north to Seattle as director of aircraft acceptance at Boeing). Captain Orville Olson, Brighton Named whose by-line you read in the March 27 Skyliner as he told of flying Appointment of Allen B. Brigh­ the Vietnam airlift, was second officer on the delivery flight. ton to the new position of director- Captain Olson celebrates 30 years with TWA this year. He started marketing budgets has been an­ as a clerk in the traffic department in '37. When the war broke out, nounced by Thomas B. McFadden, he took a leave of absence and learned to fly, then became a pilot in vice president of marketing. Mr. the Intercontinental Division. With Hughes and Frye in the cockpit, Brighton, who joined TWA as a there wasn't much to do and Captain Olson designated himself as financial analyst in March 1964, "chief steward" in charge of brewing coffee. moves to the marketing division * » * from finance, where he most re­ What did they talk about back in the cabin? Opening of the big league cently was manager-budget anal­ baseball season. Then Captain Olson fished a crumpled telegram out of ysis. He previously had been man­ his pocket. He'd received it just before they took off, from his wife in ager-budget analysis, marketing. Washington. The message read: Triplets born today. Two blonde, one brunette. Mother and babies doing nicely. Michel Joins TWA "The Western Union clerk thought I was nuts because I laughed so Appointment of George Michel hard," he recalled. "She didn't know they were puppies." as manager-direct advertising de­ * * « velopment has been announced Somebody got up a poker game and they played from the Continental by Lawrence V. Stapleton, staff Divide until they were 15 minutes out of Washington. Captain Olson vice president of advertising and won $37. sales promotion. He succeeds James * » » P. Flaherty, recently promoted to President Frye was interviewed the next day over CBS, in Report to TRANS WORLD AWARD WINNER Joseph Rougeau (right), who received director of direct advertising. the Nation. TWA's highest honors for distinguished service, recently participated in Mr. Michel joins TWA after "On this flight yesterday," he said, "we did not deliberately set out a panel discussion on "helping others" on the nationally syndicated nine years with Scandinavian Air­ to establish a new transcontinental record. The trip was made in under TV show produced by The Christophers movement. Here he meets with lines, New York, where he was seven hours simply because the Constellation was designed and built to Father James Keller, director, and actress Jeanne Crain who greeted supervisor of sales development fly at such remarkable speeds . . . The Constellation is a great deal Joe as an old friend from her many trips on TWA. Mr. Rougeau is a and, most recently, assistant ad­ faster than any other transport in the world, faster even than the veteran Los Angeles passenger relations representative. vertising manager. Japanese Zero." * * » Anti-Malaria Pills Orville Wright, who 41 years earlier had piloted the first heavier- than-air flight, was invited aboard the return flight from Washington Advised for E. Africa to Dayton. He took the controls for a few minutes over Wright Field. Employees traveling to East The wingspan of the Connie was, at 123 feet, three feet longer than Africa should take precautions the distance he'd covered in his historic flight at Kitty Hawk in 1903. against malaria, according to Dr. It was his first spell of piloting in 25 years and his first airplane ride C. C. Gullett, director of medical since 1939. services. "I guess I ran the whole plane for a minute," the 73-year-old pioneer "Malaria can be prevented by told reporters, "but I let the machine take care of itself. I always said taking prophylactic drugs," he airplanes would fly themselves if you let them." advised, "but medication should start at least two weeks before departure." Several drugs are effec­ tive, including chloroquine tablets which are available on prescrip­ tion in the U. S. under the brand name "Aralen." An adult dose of 500 mg. once a week is recom­ mended. Employees planning an East African vacation are advised to receive medication from the family doctor. Employees traveling on company business may obtain medication from the nearest TWA The New York Times of April 19, 1944 editorialized: medical unit. "From a long range point of view ... it is the implication of this Phoenix set an all-time month­ remarkable flight for a more closely knit world of tomorrow which is ly boarding mark of 21,835 SEVILLE SALES REP Emilio Miron Oton and Ivonne Baumann, fashion of special interest. The performance graphically illustrates the fact that during March, breaking the pre­ magazine cover girl, pose with desert dwelling natives of El Aaiun in we must learn to measure tomorrow's world in terms of time rather than vious record of 20,283. the Spanish Sahara. Emilio was on vacation; judging from his smile he space units, and that under this yardstick it will be a small world indeed." enjoyed the jaunt.

PAGE TWO APRIL 10, 1967 S K Y LINER

The Board of Directors on U.S., Italy Seek March 22 declared a dividend of 25 cents per share, payable Air Agreement to all shareholders of record on April 6. Payment to sharehold­ WASHINGTON—Officials of the ers will be made May 9. United States and Italian govern­ ments will meet again tomorrow (April 11) in Rome in another effort to reach agreement on a new Southern Route bilateral air transport pact under which TWA and other carriers op­ Sought by TWA erate between the two countries. WASHINGTON—TWA has asked Italy, according to the Interna­ for new route authority across the tional Aviation newsletter, "has southern United States. Applica­ long favored capacity restrictions tion was filed March 30 in an in­ and has been critical of the fact vestigation by the CAB of the need that U. S. carriers have operated for additional service in 18 mar­ considerably more U. S.-Italy kets from Florida to California. flights than has Alitalia." Italy also TWA proposes service between wants a U. S. West Coast route Miami/Ft. Lauderdale via New and to extend its present route to Orleans, Dallas/Fort Worth, Hous­ Mexico City via New York, the ton and Los Angeles/Long Beach newsletter noted. and San Francisco/Oakland—and The Italian government denun­ between Atlanta and California via MARKETING DIVISION'S field sales organization has been strengthened through an expansion to seven ciation of the agreement, effec­ Texas. regions. New regional headquarters have been established at Washington, D. C. and Pittsburgh. tive June 1, could affect TWA's In addition, TWA has asked the schedules. However, government CAB to lift restrictions on its St. affairs vice president Thomas K. Louis-Southeast service. New Sales Regions . . . Taylor explained that "TWA has Delta and National enjoy a near favored some liberalization of route monopoly over the routes involved, (Continued from Page One) authority for Italy in the bilateral carrying 95 percent of Miami/ Los Angeles and San Francisco Kingdom since 1962. He joined agreement and we are hopeful Atlanta-West Coast traffic. For a sales areas will be redesignated TWA in 1944 as a traffic repre­ that an accord will be reached." brief period in 1959-61 TWA was Southwest and Northwest regions, sentative in Los Angeles and was In another bilateral negotiation, a major participant in the southern respectively. a senior sales representative in Los the U. S. was unsuccessful in transcontinental market with its Angeles and Kansas City until 1948 securing rights from the Irish gov­ through-plane service via St. Louis. In his new capacity as sales ernment for Pan American to serve head of the Mid-Atlantic region, when he joined the agency and In 1959, for example, TWA carried interline sales staff in Kansas City. Dublin. TWA had sought the same 55 percent of the Miami-West Mr. Ellis will have responsibility extension from Shannon, but the for marketing functions in the sales In 1949, Mr. Bruemmer trans­ Coast traffic and 52 percent of the ferred to New York and was inter­ Civil Aeronautics Board designated Atlanta-West Coast traffic. territories of Washington, Phila­ Pan Am after the President ordered delphia, Baltimore, Harrisburg, line sales supervisor until 1956 Subsequent restrictions imposed when he became manager-domestic that one airline be chosen. by the CAB and the award to Delaware, Virginia, North Carolina After Ireland refused permission and South Carolina. schedule research. He was ap­ Delta and National of direct routes pointed system director-sales sched­ for any U. S. carrier to serve have since prevented TWA from Mr. Bruemmer, heading the ule coordination in 1959 and Dublin, the CAB, on TWA's peti­ providing effective southern trans­ new Central region, will have re­ performed scheduling and research tion, decided to defer the effec­ continental competition. sponsibility for the sales districts activities until 1962 when he was Robert O. Bruemmer tiveness of its previous order des­ of Pittsburgh, Columbus, Dayton, ignating Pan Am as the only U. S. As of April 1 the FAA has Cleveland and Cincinnati. His carrier to serve Dublin. assigned to London. been redesignated the Federal territory also will include West Meanwhile, Mr. Taylor said, Mr. Bruemmer is a native of Aviation Administration and is Virginia and eastern Kentucky. TWA will continue its summer Muscatine, Iowa and graduate of now a part of the new Depart­ schedule pattern to Italy and Mr. Ellis joined TWA in Decem­ the University of Iowa. He is mar­ ment of Transportation. ber 1945 as a sales representative ried to a former TWA employee, Shannon. in Washington. He became as­ Dolores Daniels. They have two sistant to the district sales manager daughters, Janet and Nancy. in 1951 and progressed to super­ Concurrent with the new re­ visor of sales development in 1957. gional alignment, field reservations He has been district sales man­ offices will report directly to their ager in Washington since 1961. respective regional vice presidents A native of Dayton, Mr. Ellis of sales in New York, Washington, is a graduate of Kenyon College, Pittsburgh, Chicago, Los Angeles Crambier, Ohio. He is married to and San Francisco. The reserva­ the former Jeanne Lane. They tions offices at St. Louis, Albuquer­ have a daughter, Joan. que and Phoenix will continue to Mr. Bruemmer has been district m report to the senior director of re­ sales manager for the United Russell E. Ellis servations and city ticket offices. also be sent through the United 25. The 301-room Brussels Hilton Nations Post Office and must bear will occupy 14 floors of a 27-story UN postage. Send covers and re­ skyscraper. Its rooftop restaurant quests for dispatch to Superin­ and supper club will be the highest tendent, United Nations Post Of­ point in Brussels. First flight covers will be flown fice, Room 1B-26, United Nations * * * on TWA's inaugural service April Headquarters, New York, N. Y. 29 to Kenya, Uganda and Tan­ OAKLAND — TWA will begin 10017. These should reach the UN daily nonstop Royal Ambassador zania, according to Jack Murphy, at least five days before the inau­ director of mail and express sales. service between Oakland and New gural flight. York May 9. Flight 154 will Covers to receive the official * * # Post Office cachet on Flight 882 depart OAK at 9.30 a.m., with should be addressed for delivery Coach passengers on transconti­ arrival at JFK scheduled for 5:30 to addresses in any of the three nental nonstop flights between New p.m. Flight 153 will depart JFK East African countries, the U. S. York and Los Angeles and San at 8 p.m., arriving OAK at or Canada, with the postage pre­ Francisco now have a choice of 10:48 p.m. paid at 25 cents per half ounce. four hot entrees, part of a general « # * expansion of in-flight meal services The 11-cent aerogramme will also WASHINGTON—President John­ be accepted. in both Royal Ambassador and coach. son has approved CAB route The covers should be enclosed awards to American and United in in another envelope addressed Another innovation in coach is the Los Angeles/Chicago-Toronto either to Postmaster, New York, a fresh fruit and cheese tray, Service Case. American is author­ GPO, New York, N. Y. 10001, served from an aisle cart. ized to serve nonstop between Los or to Superintendent, Aiiport Mail Coach entree choices are broiled Angeles and Toronto and Chicago Facility, POD Kennedy Interna­ club steak, roast leg of veal, bar­ and Toronto; United's certificate is tional Airport, Jamaica, N.Y. 11430. becued chicken and king crab amended to add a nonstop route ALOHA! Bevy of Hawaiian hostess candidates—(clockwise from lower They should reach these offices Cardinal. between Chicago and Toronto. left) Goldie Ching, Sharon Fowler, Arlene Chagami, Roberta Lee, Bobbie not later than the day before the * * * The decisions implement the U. S. Fisher and Pat Lorenzo—form a photogenic circle in Honolulu. They were inaugural flight date. BRUSSELS—Hilton International's and Canadian bilateral signed in among 23 hired in one weekend by employment team headed by Covers for these flights may newest hotel opens here on April January 1966. Clarence "Rick" Rickman, manager of recruiting.

APRIL 10, 1967 PAGE THREE S KY LINER

Outlook "As we progress into the second half of the sixties, it be­ comes more evident that the competition this country faces from foreign nations and their industries will become increas­ ingly severe. Air travel will be no exception. In fact, due to the prestige that is often connected with our industry, we can assume that extra effort will be expended to combat America's traditional leadership role. "The financial health of U. S. air carriers is vital to their ability adequately to equip themselves to compete effectively with this increased competition. With equipment programs which tax the capital resources and earning power of the airlines, the industry must be allowed to preserve the financial health which it has regained only in the last few years and accumulate reserves that will enable it to weather any eco­ nomic downturns. The prospect of constantly increasing costs together with declining yields will make this task a challeng­ ing one. "The routes assigned and the agreements made in the next few years will have a profound effect upon the course of trade and travel for decades to come. It will be essential that car­ riers who are assigned the task of developing these routes PICTURE OF THINGS TO COME. TWA is in line to fly the first United States supersonic transport. Boeing model have the determination to plough new ground as well as the was posed realistically on the runway at Frankfurt by public relations supervisor Gunter Muller. proven ability to serve. Your management believes that TWA's ability to offer these values in a way unmatched by other carri­ Earnings ers stands proved by a single fact—its record of performance." Annual Report . . . The 43-day shutdown of all scheduled operations (Continued from Page One) due to the IAM strike—the most costly strike in airline history—very substantially altered TWA's largest order for future aircraft, and the adoption of financial results for 1966. Nevertheless, 1966 results $JL*4juAS e, f^LQJ^^Jrf' new personnel recruitment and training programs, represented the third highest net income ever re­ your company took positive steps to accomplish its ported by TWA, exceeded only by 1965 and 1964 planned expansion during the next decade." results. Action taken in 1966, he said, "evidences the de­ termination of the people of TWA to push forward, Pre-tax profit for 1966 fell to $48,672,000—a irrespective of temporary setbacks. We look to a decrease of $32,892,000 or 40.3 percent below the stronger and more profitable 1967 which will help 1965 pre-tax profit level. After provisions for current to provide the financial sinews to continue TWA's and deferred tax liabilities TWA earned a net profit Consolidated Balance Sheet strong growth trend." of $29,740,000 or $3.29 per share for the year. This compares with 1965's $50,104,000 net profit and Here is a summary of the Annual Report: $5.74 per share earnings. Current Assets: Cash • • • * 23,494,106 J 11,216,593 32,689,708 Revenues Taxes Marketable securities, at cost plus accrued interest 22,251,706 Receivables, less reserve (1966-$! ,966,822, 1965-$!,930,2-16) . . 83,007,798 68,352,491 Operating revenues for 1966 totaled $681,632,000, Direct taxes paid or accrued by TWA for federal, Inventory of spare parts, materials, and supplies, al average cost less an increase of $8,845,000 or 1.3 percent over 1965. state and local governments—including social se­ reserve (1966-$8,453,394,196S-S8.2U.092) 33,268,232' 27,837,445 The 1966 level, a new record, was achieved despite curity, unemployment, property, fuel and income Prepaid expenses .' 2,639,776 2,004,535 142,100,832 the impact of the 43-day IAM strike. taxes—amounted to $36.2 million in 1966. In addi­ Total current assets 164,661,618 Passenger revenues declined $10,998,000 or 1.9 tion, the company collected $18.2 million in federal Special Funds and Investments: percent from 1965. Cargo revenues, continuing their transportation taxes from its customers and $45.2 Flight equipment deposits 65,875.046 52,047,791 Funds restricted for flight equipment pun liases rapid growth in the period not affected by the strike, million of withholding and social security taxes from 394,166 629,420 employees. Other : 1.223.058 1,052,563 increased by $2,275,000 or 3.3 percent. All other Total special funds and investments .... 67.494.270 53,729.774

Financial Position Property and Equipment (At cost): At December 31, 1966, TWA's long-term debt Flight equipment ... 861,672,616 725,201,577 Less accumulated depreciation 328,894,109 289,060,634 Revenues and Net Earnings outstanding (including the current portion) amount­ Flight equipment—net "... 532,778,507 136.140.943 ed to $394.1 million compared with $288.4 million Other property and equipment . . . 95,995,370 84,596,201 Dollars in Millions at year-end 1965. During the year, TWA added Less accumulated depreciation . . . 38,075,753 35,193,891 $119.1 million to its outstanding long-term debt. Other property and equipment—net 57.919.617 49,402,310 Net properly and equipment .... 590.698,124 485,543,253

Security Holders Oeferred Charges: Ownership of TWA was substantially broadened Aircraft integration costs 1,443,266 1,030,399 as a result of the 6,584,937 shares secondary offering Long-term prepayments . 2,588,328 2,793,099 Other 3,492,324 3,025,764 of Hughes Tool Co. in May, 1966. The number of Total deferred charges 7,523.918 6,849,262 TWA shareholders increased almost 113 percent from 11,488 in 1965 to 24,467 at December 31, Total ^830,377,930 $688,223,121 1966.

liabilities 1966 Dividends Under the company's new dividend policy TWA's Current Liabilities: Current maturities of long-term debt $ 21,861,609 $ 11,885,372 Board of Directors declared quarterly dividends of Accounts payable and act rued liabilities . . . 94,218,894 80,069.933 25 cents per share in 1966, totaling cash payments Accrued Federal, state, and foreign income taxes 6.892,783 24,363,712 of $8,895,140. This marked TWA's first cash divi­ Customer deposits 5,357,526 5,250,482 dend in 30 years and was the first full year of Advance ticket sales not redeemed 18,509,137 14,526,988 quarterly payments. Total current liabilities I lO.KVI.'ll!) 136,096,487 Operating Revenues I Nalfvnlnga Long-Term Debt, /.ess Current Maturities-see summary 372,194,375 276,500,405 Operations Deferred Credits: On February 5, 1966, TWA marked its 20th year Deferred Federal income taxes . 45,933,500 39,007,911 of service as an international air carrier. On that Deferred incentive compensation 397,275 1,262,260 revenues increased by $17,568,000 or 84.8 percent, date 20 years earlier, TWA had inaugurated the Other 1,920,135 1,663,001 reflecting a substantial expansion of military charter first scheduled commercial flight between the U. S. operations which were not curtailed by the strike. and Paris. Since then, TWA has crossed the Atlantic Total deferred credits 48,250,910 41,933,172 Revenues for the domestic operation were $485,- 88,239 times. Stockholders' Equity: 1966 1965 916,000—$5,600,000 or 1.2 percent above last year The IAM strike, although a temporary setback to Capital stock, par value $5 per share: —while international levenues increased by $3,245,- Authorized 15,000,000 15,000,000 TWA's continued progress, should not have a serious Issued and outstanding ...... 9,050,356 8,734,180 45,251,780 43,670,900 000 or 1.7 percent over 1965. long-term effect on your company's future. Com­ Reserved for exercise of warrants . . . 2,336,981 2,569,204 parisons with earlier operational records, however, Available for stock options . . 223,746 281,356 Expenses will be unfavorable since the strike occurred during Available for employee purchase plan 341,296 367,639 the peak summer traffic period. Available for incentive compensation . 250,000 250,000 Total expenses in 1966 were $632,960,000—an Capital surplus 90,721,090 83,746,947 increase of $41,737,000 or 7.1 percent over 1965. The grounding of TWA's entire fleet, except for Retained earnings 127,119,826 106,275,210 Mutual Aid strike payments of $17,962,000 from aircraft under military contract, from July 8 through Total stockholders' equity 263,092,696 233.693,057 non-struck airlines were credited against 1966 ex­ August 19, curtailed capacity by 3.2 billion available penses. (In 1965, payments of $976,000 were made seat miles. Although TWA became 100 percent op- Total $830,377,930 $688,223,121 by TWA to other airlines.) (Continued on Page Five)

PAGE FOUR APRIL 10, 1967 S KYLINER

Comparative Statistics Operating Highlights

Financial Statistics (two omitted) 1966 1965 1964 1963 1962 • Twentieth anniversary TWA international service. OPERATING REVENUES: • TWA resumes cash dividend payments to shareowners. Passenger $571,344 $582,342 $498,686 $411,904 $347,791 Cargo . . 72,003 69,728 58,822 52,240 44,678 • Inauguration of Bangkok and Hong Kong service. All Other . . • _ 38,285 20,717 17,490 12,389 10,560 TOTAL OPERATING REVENUES $681 632 $672,787 $574,998 $476,533 $403,029 • Hughes Tool Company sells holding in TWA. OPERATING EXPENSES: • $410 million flight etp.iipment order—largest in TWA history. Wages and Salaries $245,571 $221,095 $187,904 $165,455 $146,545 Depreciation and Amortization 71,931 59,226 49,245 51,861 57,262 • Landing rights obtained in East Africa. Other 297,032 295,366 253,080 220,579 192.228 TOTAL OPERATING EXPENSES $614,534 $575,687 $490,229 $437,895 $396,035 • Filed for Pacific routes to make TWA a round-the-world carrier. Operating Profit/ (Loss) $ 67,098 $ 97,100 $ 84,769 $ 38,638 $ 6,994 • Arranged for additional $50 million bank credit. Net Income/(Loss) Before Taxes 48,672 81,564 68,474 19,571 (9,752) Net Income/ (Loss) After Taxes 29,740 50,104 37,003 19,840 (5,704) Net Income/ (Loss) per Share $ 3.29 $ 5.74 $ 5.47 $ 2.96 $ (0.85) Operating Ratio (ratio of Expenses to Revenues) . 90.2 85.6 85.3 91.9 98.3

SELECTED BALANCE SHEET ITEMS: TWA's Revenue Dollar Current Assets $164,662 $142,101 $147,502 $136,757 $136,231 Current Liabilities 146,840 136,097 120,713 91,348 101,711 Net Working Capital 17,822 6,004 26,789 45,409 34,520 Flight Equipment (net) 532,779 436,141 403,657 299,578 322,403 Other Property and Equipment (net) .... 57,919 49,402 40,549 34,853 34,661 Total Property and Equipment (net) 590,698 485,543 444,206 334,431 357.064 Long-Term Debt 372,194 276,500 326,868 310,812 329,218 Stockholders'Equity $263,093 $233,693 $140,319 $101,996 $ 81,624 Shares of Common Stock Outstanding at Year End . 9,050 8,734 6,766 6,702 6,674 Rook Value per Share $ 29.07 $ 26.76 $ 20.74 $ 15.22 $ 12.23

Operating Statistics

Number of Revenue Passengers (thousands) . . 9,942 9,686 8,226 6.836 5,863

Percent of Scheduled Miles Completed .... 99.4 99.5 99.1 99.3 98.2 Revenue Plane Miles Flown (thousands) .... 185,689 176,843 145,758 126,961 110,108 Aircraft Utilization—hours per day 9:20 8:23 7:16 7:17 6:57 Available Seat Miles Flown (millions) .... 20,813.0 19,349.3 15,675.2 13,755.0 11,150.6 Revenue Passenger Miles (millions) 11,327.5 10,563.8 8,875.1 7,016.3 5,681.2 Passenger Load Factor 54.4 54.6 56.6 51.0 51.0 Operating Expenses per: Available Ton Mile 19.00 19.2(5 20.3«! 22.10 25.00 Revenue Ton Mile 42.20 43.00 44.80 50.40 55.70 (Dollars in Thousands) Available Ton Miles (thousands) 3,235,438 2,995,464 2,418,267 1,983,379 1,585,081 Passenger Revenue Amount Percent Revenue Ton Miles Flown (thousands): First Class $140,435 20.6% Passenger 1,007,421 986,395 827,432 661,297 540,747 Cargo 328,424 311,566 234,084 187,807 159,238 Coach/Economy 430,909 63.2 AllOther 120,705 42,382 33,834 19,031 10,349 Cargo 72,003 10.6 Total Revenue Ton Miles 1,456,550 1,340,343 1,095,350 868,135 710,334 Charter 25,215 3.7 Payload Factor (Ratio of Revenue Ton AllOther- 13,070 1.9 Miles Flown to Available Ton Miles) .... 45.0 44.7 45.3 43.8 44.8 TOTAL REVENUES $681,632 100.0% Break-Even Payload Factor (Operating) .... 40.6 38.3 38.6 40.2 44.0 Break-Even Payload Factor (Incl. Non-Operating) . 41.8 39.3 39.9 42.0 45.9

TWA's Expense Dollar (Continued from Page Four) New Luxury Liner a Remarkable Ship erative three days after the strike ended, the residual From boarding to debarkation, the 747 will mean effects of the strike were felt into the fourth quarter. a new era of comfort and convenience for TWA For the year as a whole, TWA produced 14.8 passengers. Not only will the giant ship offer roomier billion scheduled available seat miles domestically, accommodations because of its spacious interior, 4.6 percent more than in 1965. TWA's 7.9 billion but it will provide TWA the opportunity to offer a scheduled domestic revenue passenger miles repre­ variety of services that have never before been prac-^ sented an improvement of 4.2 percent over last tical on commercial aircraft. year. Thus, load factor, the average percentage of seats filled per plane, showed a decline of 0.2 points, Although the 747s will be capable of carrying decreasing from 53.7 percent to 53.5 percent. TWA's nearly 500 passengers, TWA is emphasizing passen­ market share of RPMs dropped from 15.5 percent ger comfort by restricting its 747s to a maximum of the domestic trunk industry to 13.9 percent, al­ capacity of 325 to 350 passengers. Particular em­ though by December it was back to 14.8 percent. phasis will be on innovations in passenger comfort. Internationally, TWA produced 5.1 billion sched­ uled available seat miles, for an increase of 4.6 Cargo Expands with New Equipment, Facilities percent over the previous year. Scheduled passenger Besides being able to carry 31 tons of material miles decreased to 2.5 billion, or 3.6 percent less on the lower deck of its passenger version, the all- than 1965. As in the domestic market, load factors cargo configuration of the 747 will be able to carry registered a drop, decreasing from 54.5 percent to more than 100 tons—nearly three times the capacity 50.2 percent. Market share of transatlantic passen­ of current 707 cargo ships. gers slipped from 19.7 percent of IATA carriers to As part of its cargo expansion program, TWA in 16.7 percent, but again by December TWA had 1966 unveiled plans for a $72-million ground con­ increased to 21 percent. struction program. The new cargo terminals will permit us to unload 100 tons of cargo from a 747 (Dollars in Thousands) Amount Percent A Vote of Confidence in the Future in less than 30 minutes. Salaries, Wages & Benefits $267,310 42.2% Shortly after resumption of normal operations Fuel&Oil 80,138 12.7 and culminating more than five months of negotia­ New Services Added tion, which was interrupted by the IAM strike, TWA Depreciation & Amortization 71,931 11.4 In an effort to improve service to smaller cities placed the largest order in its history for new aircraft. Material, Supplies & Services . . 67,383 10.6 adjacent to large metropolitan markets, TWA en­ The purchase, amounting to $410 million, included 7.5 tered into an agreement with Piper TWINAIR to Rent, Utilities & Communications 47,757 12 next-generation superliner Boeing 747s. Delivery provide commuter air transport between numerous Advertising & Publicity . . 21,545 3.4 of the 747s will begin late in 1969 with service smaller, outlying communities and the major airports 2.9 starting in 1970. Sales Commissions 18,062 of 15 key U. S. and European cities. TWA also has options on 41 more Boeing aircraft 58,834 9.3 which can be exercised to increase its capability in Internationally, 1966 had a dramatic kickoff when TOTAL EXPENSES . $632,960 100.0% the event of traffic growth or new route authority TWA participated in the Zambian airlift under con- greater than that used for planning purposes. (Continued on Page Six)

APRIL 10, 1967 PAGE FIVE S KYLI N E R

Pacific service for more than 37 American com­ Annual Report. .. munities without change of airline. Domestic Rate of Return on Investment 1956-1966 (Continued from Page Five) Company Efforts Reduce Gold Outflow (Employees may obtain a personal copy of the 1966 Annual Re­ TWA estimates an improvement of $130 million port by writing Andrew Bisagna, manager-office services, 605 annually in the critical U. S. balance of payments Third Avenue, New York 10016. Enclose self-addressed mailing gap would be achieved if new transpacific and label. Offices requesting copies for public distribution also should round-the-world routes are awarded to TWA. provide pre-addressed mailing labels. In the interest of promoting foreign tourism to Participants in the Employee Stock Purchase Plan automatically America, TWA adopted sharply reduced charter receive the Annual Report and Proxy Statement.) rates for flights originating in Europe. In effect all year round, the plan has no limitations on the length tract with the Agency for International Development of the U. S. State of stay in the U. S. As an example of the savings Department. For 85 days TWA averaged over 2& trips per day supplying that can be realized, this special fare on a round petroleum products as part of a British, Canadian and U. S. effort to trip London-New York flight would cost $156.87 counterract the effects on Zambia of the Rhodesian situation—an out­ per person compared with $270 per person for the standing achievement carried on under difficult conditions. cheapest inclusive tour fare available to Europeans Service to the Orient was expanded in July with inauguration of jet last year. flights to Bangkok twice weekly and service to Bombay was increased For overseas visitors, TWA has established a to three a week. Commercial service was extended farther into the Far "Visit U.S.A." fare that permits jet coach round-trip East when TWA launched its first flight to Hong Kong in October. transcontinental travel for less than $218. This com­ 56 57 5» 59 60 61 62 63 64 65 6( As part of the company's program to broaden the travel market, TWA pares with the regular New York-California jet in mid-year established its own credit card program. coach fare of $290.20 for a savings of $72. TWA filed an application in February of 1966 for routes across the Pacific to Japan, Taiwan and Hong Kong both directly over the Great TWA Aids Defense Effort in Pacific Circle Route and via Hawaii. Success in this case would enable the In July, TWA began the operation of an average basis was followed in April with the establishment company to provide round-the-world service. TWA is energetically of 44 flights monthly between the U. S. and South of a jet coach excursion fare saving U. S. travelers prosecuting this application, stressing the benefits of competitive U. S. Vietnam under contract with the Military Airlift 25 percent. flag round-the-world service and TWA's ability to provide Hawaii and Command. The contract calls for 24 monthly flights to and from Travis Air Force Base in California and Other Activities 20 monthly flights to and from McGuire Air Force As a part of its continuing effort to develop im­ Base in New Jersey. Also, as part of its contract proved aircraft communications, TWA in conjunc­ Summary with the Military Airlift Command, TWA operates tion with NASA conducted tests which hold great an average of 42 monthly trips between McGuire promise for the future. These tests utilized the ex­ and Europe. perimental satellite ATS-1 as a relay and indicate Financial Highlights Amounts in thousands 1966 1965 Change Technical Development Continues that communications by satellite can be attained. $672,787 + 1.3% The tests will be continued throughout 1967. Operating Revenues $681,632 Progress in extending aircraft reliability was con­ TWA realized more than $18 million in revenues Operating Expenses 614,534 575,687 + 6.7 tinued throughout the year helping TWA to main­ from services to other airlines. The services included tain its position of leadership in technical excellence. Income Before Taxes 48,(i72 81,564 -40.3 contract representation on new aircraft procurement, With an eye toward future all-weather capability, flight crew training, aircraft overhaul and field main­ Net Earnings After Taxes 29,740 50,104 -40.6 TWA received Federal Aviation Agency approval tenance, engineering services, and purchasing for 233,693 + 12.6 for operations under FAA's Category II landing Shareholders' Equity . . . 263,093 associated airlines. In addition, TWA sold its pro­ minima with the aid of Auto-Scan. Long-Term Debt 372,194 276,500 +34.6 grammed instruction DC-9 training course to eight When TWA implements Category II operations airlines. Common Shares at Year-End 9,050 8,734 + 3.6 throughout its whole system, weather delays will be $ 5.74 -42.7 reduced, resulting in improved service and reliability Net Earnings Per Share* $ 3.29 Management Changes for travelers. Shareholders'Equity Per Share* $29.07 $26.76 + 8.6 Particular emphasis was placed upon management * Based on shares outstanding at the end of eacli period. development during the year. In our fast-expanding Comparative Price Trends business the demand for new qualified management Statistical Highlights All statistics include cliarter continued high. Seven hundred fifty-five employees Available Seat Miles (in millions) .... 20,813.0 19,349.3 + 7.6% were assigned to their first management positions. Revenue Passenger Miles (in millions) . . 11,327.5 10,563.8 + 7.2 To meet these needs which will continue into 1967 and the years thereafter, our management appraisal, Revenue Ton Miles (in millions) 1,450.6 1,340.3 + 8.7 development and training activities were increased Revenue Plane Miles Flown (in thousands) . 185,689 176,843 + 5.0 and strengthened, and we actively recruited new Payload Factor 45.0 44.7 + 0.3 pts. young people at 50 colleges and universities. Break-Even Payload Factor 41.8 39.3 + 2.5 pts. Passengers Carried (in thousands) .... 9,942 9,686 + 2.6% Personnel During 1966, TWA's employees increased from 29,471 to 34,396, including 2,797 employees based overseas and 1,984 employees at Kennedy Space Center. Through intensified recruiting effort in crit­ ically tight labor markets, 677 flight crew members and 1,164 mechanics were added to the work force. Statement of Consolidated Income and Retained Earnings In personnel training, TWA enjoys world-wide

1966 recognition for applying programmed learning. Dur­ Operating Revenues: ing the year, classroom responders, permitting train­ M 17 Si SI M (1 62 U M 69 M Passenger • - • • $582,342,398 ees and instructors to confirm individual progress, Cargo 72.002.9S9 69,727,740 resulted in superior training in one-third less time. Other 38,284,880 20,717,204 Systtm Operations ol rwlve Ua/or U.S. Alrlinu Total operating revenues 681,632,003 672,787,342 In December a number of improvements were Operating Expenses: made in our group health and accident insurance Flying, ground, and passenger operations 317,734,905 291,371,968 In electronic data processing, TWA moved ahead program in behalf of all employees. Maintenance • . . -> . 96,765,759 92,769,662 toward replacement of the present reservations sys­ Depreciation and amortization 71,9.'10,829 59,225,720 Selling and advertising 95,779,964 85,323,477 tem with more advanced equipment and systems General and administrative 28,546,306 25,167,740 concepts to provide a wider range of customer Average TWA Fare Per Revenue Passenger Mile Employees' welfare 21,788,372 20,852.555 service. Net contributions to (from) airlines under "mutual aid agreement (17.961.960) 976,496 Total operating expenses 614,534,175 575,087,618 Expanded Responsibility

Operating Profit 67,097,828 97,099,724 TWA's 20-year-long responsibility for providing Income Charges (Credits): technical management service to Saudi Arabian Air­ Interest—net 20,208,081 17,729,114 lines was replaced by a program of full management Gain on disposition of aircraft—net (176,452) (1,732,375) by TWA of all facets of that airline's operation. 6 III!. J ]. CURf« Other—net • . . . (1,605,528) (461,020) Trans-Mediterranean Airways has contracted with ': Total income charges—net 18.426,104 15335,719 TWA to provide management of its technical op­ Income Before Provision for Income Taxes 48,671,724 81,564,005 erations, thus expanding upon the former contract for establishment of an engine overhaul facility. s Provision for Income Taxes 18,931,968 31,460,029 A new contract for the provision of management service to Ethiopian Airlines was made effective on 29,739,756 Net I ncome for the Year 50,103,976 the 20th anniversary of the TWA-Ethiopian Air­ 4 Retained Earnings at Beginning of Year 106,275,210 56,171,234 lines relationship. TWA Offers New Fare Reductions Cash Dividends Paid (8,895,140) _ Continuing its efforts to provide the best air travel Retained Earnings at End of Year (Note to summary of long-term debt) $127,119,826 $106,275,210 bargain possible, TWA reduced fares for broad cate­ gories of travelers. A special 50 percent travel discount to persons in the 12 through 21 age group on a no-reservations

PAGE SIX APRIL 10, 1967 S KY LINER

Last Connie Flight Signals a New Era... (Continued from Page One) Newsmaking was a matter of Spanish bullfighter, Manolete, who course for the TWA Connies in planes ever built—with its dolphin- flew to Peru and Mexico in 1946 their heyday when the airplane like fuselage and triple tail it to participate in 20 events for r:_ fc /fe was synonymous with the ultimate starred in countless motion pictures $1,000,000. in luxurious air travel. On the first —the Connie (its endearing nick­ A Connie flew General Eisen­ transatlantic flight in 1946 a name) carried many of the world's hower from Europe to Washington Connie carried 36 passengers—the most photographed people. The to accept the Republican Party's largest number ever to fly between names on its passenger manifests bid in 1952. A Connie, the the U. S. and Europe. Departure would make a massive world Columbine, became his first presi­ was delayed until a woman passen­ Who's Who—statesmen, religious dential airplane. ger found her mislaid purse. The leaders, Hollywood stars, noted In his retirement President Tru­ flight carried an emergency ship­ athletes and "names" in business, man regularly flew Connies from ment of penicillin, and a "diversi­ commerce, industry, government— Kansas City to New York to visit fied cargo of American products," people in every walk of life. his grandchildren. including Kansas City steaks. The propeller-driven Constella­ Many "Firsts" Passengers included American tion was the product of years of Many of the Connie's "firsts" businessmen seeking to establish pre-World War II research. Goal of its designers and builders: to charted new courses and helped post-war contacts in Europe, a produce an airplane that would bring on the post-World War II number of American government fly faster, carry more passengers hunger for travel: officials, French businessmen, two New York fashion designers, and a more comfortably and higher above A Connie was the first commer­ World War II veteran from the weather than any other plane. EXCITEMENT WAS IN THE AIR as Kansas City employees turned out to cial airliner to span the U. S. con­ Brooklyn returning to Europe to Lockheed Aircraft Coiporation have their first look at the Connie. tinent nonstop (from Burbank, claim his Belgian war bride. was selected to build the first California to Washington D. C), TWA Constellation for delivery in doing so in 6 hours, 57 minutes. 1940, but World War II delayed ments of the Constellations were The date: April 17, 1944. the project. legion. But these performance Tax Withholdings On February 3, 1946 Jack Frye, The first major test of the first comparisons with jets dramatize then TWA president, piloted a Connie 049 resulted in setting the the fast-moving developments in Connie 049 with 45 passengers first of many records. On April modem aviation: Can be Adjusted aboard nonstop from Burbank to 17, 1944, the world's first 300- The 049 Constellation had a When Congress enacted grad­ New York in 7 hours, 27 minutes mile-per-hour commercial airplane range of 1,800 (statute) miles, a uated income tax withholding in and 48 seconds. streaked across the U. S. nonstop top speed of 310 m.p.h. 1966, provision was also made for February 5, 1946 marked the from Burbank, California to Wash­ The giant Boeing 747, which reduced withholding for employees inauguration of TWA scheduled ington, D. C. in 6 hours, 57 minutes. will enter service on TWA routes who claim substantial itemized de­ international service and the first At the controls were President in early 1970, will have a range of ductions on their Federal income service by any airline between the Jack Frye and Howard Hughes. 6,000 miles, be able to streak at tax returns and who would other­ U. S. and Paris. An 049, the first But the world was at war, and 620 miles per hour while carrying wise receive a large refund due to in a series of Connie models, was the first "Connies" were turned up to 350 passengers. The U. S. excessive Federal income tax with­ the airplane used. over to the military. SSTs will fly at 1,850 miles per holding. hour and whisk passengers from Beginning in 1967, you may Connie 049s went into transcon­ Returns from War New York to Paris in less than tinental service between New claim additional withholding allow­ At war's end, TWA began three hours. ances of $700 based upon itemized York and Los Angeles February Recalling the U. S.-Paris TWA 15, 1946. taking delivery on new Constella­ deductions in your most recent tions and on November 25, 1945 inaugural flight more than two Federal income tax returns and A next-generation Connie, the a TWA Constellation 049 set off on decades ago, Captain Harold F. thus reduce the amount of income 749, inaugurated all-sleeper luxury a proving flight from Washington Blackburn, who piloted practically tax withheld from your paychecks. service between New York and to Paris, preparatory to starting every type of aircraft from 1934 Paris on October 1, 1948. An employee with estimated peacetime transatlantic service. to his retirement in 1961, said: wages of $7,500 or less may claim TWA pioneered low-cost fares (During the war, TWA's Inter­ "What concerned us most was one $700 withholding allowance in May 1950 by converting Connie continental Division crossed the the terminal weather. Our aircraft for each full $700 by which his 049s to 81-seat all-coach service. Atlantic nearly 10,000 times as was the finest in the sky. The new estimated itemized deductions ex­ On May 1, 1952 a Connie 749A ULTIMATE in luxury were the all- part of the Air Transport Com­ DC-4s were not pressurized. Our ceed 10 percent of his estimated gave TWA another first—trans• berth London and Paris "Ambassa­ mand.) The proving flight, carry­ aircraft (an 049 TWA Constella­ wages. An employee with esti­ atlantic Sky Tourist service with dors." Lower berths were bigger ing TWA personnel only, made the tion) was the only pressurized air­ mated wages over $7,500 may seats for 60 passengers. than Pullmans, could sleep two. trip in 14 hours and 48 minutes. plane operating out of the United claim one $700 withholding allow­ Super Constellation 1049s Through the years seven types States and it could fly higher and ance for each full $700 by which launched the first scheduled trans­ Only five days later, two air­ of Connies—a total of 147 in faster than previous aircraft. his estimated itemized deductions continental nonstop service—Los planes, "The Star of Rome" and TWA's fleet—rang up 1,679,491 "And with each new plane we exceed $750 (10 percent of $7,- Angeles to New York in 8 hours "The Star of Cairo," flew five departures and carried some 50,- pilots always said, 'Well, we'll get 500) plus 17 percent of estimated —on October 19, 1953. Cardinals-elect — four American 000,000 passengers a total of over the weather.' And of course wages in excess of $7,500. On October 24, 1955 a Super and one Chinese—to Rome for the 36,123,449,000 passenger miles we are still saying that. But, it is These additional withholding G Constellation flew from Los consecration ceremonies at the —equal to flying a million and a true that each airplane, almost allowances may be claimed by Angeles to London in 20 hours, 45 Vatican. The newly-named Cardi­ half passengers around the world. without exception throughout the filing Schedule A (Form W-4), minutes—a record. nals were Samuel A. Stritch of TWA's now all-jet fleet grows history of aviation, has been better Determination of Withholding Chicago, Edward Mooney of steadily, numbering some 150 in than the one before. Each time we Allowances for Itemized Deduc­ Detroit, Francis J. Spellman of service across the world. developed a new one we also said: tions, and a revised Form W-4 • TWA's Constellation fleet New York, John J. Glennon of St. By the end of this year the jet 'This is the end. You can't make with TWA Payroll Section in taxied an estimated 3,350,000 Louis, and Thomas Tien, the first fleet will have grown to 172. another much better.' But we have Kansas City. miles during more than 20 years Chinese so honored. The world-shrinking achieve- and will. . . ." of service. Any additional withholding It would take a typical New Other headline-making events allowances claimed based upon York taxi 38 years, averaging that inaugural year included Perry itemized deductions in your 1966 1 87,000 miles a year, to clock Como and cast broadcasting their •myiijumwwmiiMi in " "**"* MM!—"wyfyi'i" '""""'?^' Federal income tax return will ex­ that much mileage. "Supper Club" radio show while pire on April 30, 1968. To sub­ cruising over New York City at sequently claim additional with­ • An estimated 50 million 20,000 feet. holding allowances, it will be passengers flew seven genera­ necessary to file a new Schedule tions of TWA Connies. That's In 1949 White House corre­ spondents chartered a TWA Con­ A (Form W-4) and Form W-4 equivalent to the total popula­ each year based upon the itemized tion of the four most populous nie in Kansas City and beat the presidential Connie, the "Indepen­ deductions in your Federal income states—California, Illinois, New tax return for the previous year. York and Pennsylvania. dence," back to the capital while covering President Truman's trip Schedule A (Form W-4) which • The Connies made 3,358,- to St. Louis and Kansas City. includes instructions, and Form 982 take-offs and landings be­ W-4 may be obtained from your tween their debut on February Connies have flown World War supervisor if you want to claim 5, 1946 and retirement of the II Greek orphans to new homes additional withholding allowances. last passenger-carrying Connie in the United States; thousands of on April 6. American servicemen during World War II and the Korean conflict; a System Golf • During their more than 21 Canton, Ohio, grocer who saved years of service before retire­ for 17 years for the price of a trip Tourney ment last week, TWA's Connies to Italy to see how they do busi­ Las Vegas, June 5-6 flew a total of 36,123,449,000 ness in the Old World; Kentucky passenger miles—equal to flying Contact Las Vegas DSM Ray triplets, born blind, who flew to 1,500,000 passengers around the SLEEPER SEATS were introduced in 1955 over the Atlantic, later on trans­ Culley for entry forms and in­ world. Boston for treatment that restored continental flights. Berths and sleeper seats gave way to the speed and formation. their eyesight; and even the famed comfort of the Jet Age.

APRIL 10, 1967 PAGE SEVEN S KYL IN ER

747 Preference Survey . (Continued from Page One) ents also expressed a desire for Twenty-three percent indicated no supersonic flight over subsonic preference. Twenty percent indi­ flight by a three-to-one margin. cated preference for the present Concepts for various special fea­ first-class seating. tures in the 747 also won approval by wide margins. Special Compartments Mr. Rummel pointed out that Availability of a compartment those surveyed were sophisticated, for two came out on top, with 30 experienced air travelers whose percent voting yes. The business opinions were especially valued. lounge got a 28 percent approval, "It would be wrong, however, not the compartment for four 24 per­ to recognize that as a group these cent, and the compartment with a experienced travelers tend to favor bed 10 percent. spaciousness over congestion, com­ About four out of ten said they fort over annoyance, and luxury would pay "a reasonable premium" over necessity," he said. for the business lounge or the "We in TWA are mindful that a compartment for two. ROYAL AMBASSADOR BUFFET may be among in-flight amenities offered first class passengers on 747. San grace the foot of spiral staircase tremendous potential for the future The lounge idea got a high Francisco hostess supervisors Sharon Craven (left) and Eileen Herbert growth of air transportation exists rating regardless of sex, age, in­ leading to special compartments on upper deck. Bar in background gives glimpse of other possible attractions in currently untapped markets. The come or frequency of flying. adding to enjoyment of a 747 journey on TWA. future vacation air traveler, the Seventy-seven percent said yes, 16 student, and many others may well percent had no opinion, and only large and can be equipped with "Let me assure you we are prefer to sacrifice some luxury in five percent said no. the interest of reduced transporta­ such diverse services to cater ap­ equally concerned and we are Timely Interview tion costs. While it is our purpose Result: the 747 will have cock­ propriately to these various in­ working hard on these problems," today to review the recent survey tail lounge facilities. terests. he said. "We have set up an Ad­ Taped by Furbay among experienced air travelers, A movie theater won 51 percent "Looking back over the years vanced Program Integration Com­ we want you all to know that our approval, with 36 percent giving it's easy to remember the single mittee whose job it is to make A nose for news—plus an un­ planning embraces the entire travel a neutral reaction and 11 percent service Ford tri-motors and DC-3s. getting on and off the plane as canny knack for being in the right spectrum, including this one. The disapproving. Later on first class and coach be­ pleasant as the flight itself" (Sky­ place at the right time when things 747's size provides an opportunity Sixty-eight percent favored a came the prevailing modes. Even liner, January 16, 1967). happen—has always characterized to open these untapped markets." separate nursery for children. later, and to a limited extent, John Furbay, public relations' three classes of service emerged. Computer Network director of Air World Education. Survey highlights include: TWA also tested customer pref­ erence for walk-in closets rather A diversified interior may well Technology, Mr. Tillinghast When a dispatch in the New 3-to-l Favorite than the traditional overhead stor­ only reflect diverse public need. added, was aiding the situation. York Times on March 27 reported Fifty-seven percent of respond­ age compartment. Closets won by In any event, we will continue "TWA is implementing the Bur­ the disappearance of "silk king" ents indicated preference for the two to one. Many felt both types with our studies and our planning roughs D-830 system," he said. James Thompson, Dr. Furbay was 747, compared to 17 percent for would be desirable. in an effort to ultimately produce "When this computer network able to supply U.S. radio networks current jets. The remainder indi­ an airplane second to none in pub­ comes fully 'on-stream' in 1968, with recordings of a recent inter­ cated no preference. Supersonic Travel lic preference." it will be the most advanced such view he had taped with the busi­ Preference for the coach/eco­ When given a direct choice be­ Mr. Tillinghast noted that air system in the industry. nessman while in Bangkok. Mr. nomy interior of the 747 is par­ tween an SST and a 747 at the travelers were concerned over the "The reservations, ticketing and Thompson was reported missing ticularly strong. Nearly 75 percent same fare, two-thirds said they ground handling of future large check-in functions will be closely in the central highlands of Malay­ prefer it over present coach con­ would prefer the SST. Why? volumes of passengers and bag­ tied together by this data process­ sia and believed to have been figuration. Biggest reason: "its Speed—enabling them "to arrive gage. ing equipment, which also will kidnapped. compute the lowest applicable fare. For many, the issuance of Perhaps the best-known Ameri­ tickets by vending machines will can in Southeast Asia, Mr. Thomp­ become commonplace. At major son is famed for having established airports electronic means will exist the Thai cottage silk weaving in­ for determining which tickets rep­ dustry. When he disappeared he resent confirmed reservations, a was on vacation in Malaysia, col­ feature which will be appreciated lecting art objects for his teakwood by passenger and airline alike. In home and museum in Bangkok. many cases, access to the plane Dr. Furbay met Mr. Thompson may be gained by insertion of the through Bangkok district manager ticket in a scanning device. And Dave Anderson and interviewed the computer will keep track of all him in his silk factory headquar­ these functions, calculate them, ters and again in his home. "Mr. check and re-check, record changes Thompson is one of the most pleas­ in travel plans, make new tickets ant persons I have ever met in all and cancel old ones. my travels," Dr. Furbay said. "The precise nature and form of these developments, which ob­ On his recent tour of the Far viously involved some fairly com­ East, R. M. Dunn, senior vice presi­ plicated human engineering, can­ dent and system general manager, not be fully detailed at this time. also met with Mr. Thompson. BUSINESS LOUNGE proved a popular idea. Seattle DSM John Bailey portrays the executive-on-the-go. But they are an important part of The Furbay interview was broad­ Compartment for two also was cited by a significant number of survey respondents as a feature they'd like to our planning for the future of air cast over NBC, CBS and through see on TWA's 747s. travel." UPI Audio, serving 700 stations. spaciousness and increased com­ at destination refreshed and rested" fort—bigger seats, more leg room, (93 percent mentioned this) and BULK RATE wider aisles." "to do more things with time U. S. Postage A coach-section concept in the saved" (88 percent mentions). TWA) SKYLI IMKR brochure showed nine-across seat­ More than a third said they PAID ing: three seats, an aisle, two pairs would be willing to pay $30 or Trans World Airlines Hackensack, N. J. of seats, an aisle, then a pair of more over the subsonic fare for a 605 Third Avenue Permit No. 1 seats. As might be expected, the transcontinental trip, and 20 per­ New York, New York 10016 "most preferred" are the window cent said they would be willing to seats, and "least preferred" the pay $50 or more. center seats. "There isn't any question but Result: galleys will be installed that the survey is contributing along center of fuselage, freeing significantly to TWA's fund of up more window space for seats. knowledge and its efforts to pro­ vide an airplane which stands to MR H.J. GATHERS JR First-Class Findings receive the best possible public 73 FRANCES AVE The questionnaire illustrated acceptance," Mr. Rummel said. SHARON HILL PENNA six-across seating in first-class— "While the majority of respondents 19079 three pairs separated by aisles. favored maximum possible comfort Fifty-four percent of respondents and convenience, we are sure, on preferred the 747 first-class section the other hand, that many will over present seating. Again, "spa­ prefer the ultimate in economy. ciousness" was the big reason. Happily, the 747 is sufficiently

PAGE EIGHT APRIL 10, 1967