Record Profit in 2Nd
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VOLUME 51 NUMBER 8, AUG. 15, 1988 Record Profit In 2nd TWA reported August 8 the highest dividend requirements, compared to the A great new program is coming to TWA .. operating profits ever attained in the 1987 second quarter net income of $52. 8 history of the Company for a second million or $1.28 per common share. For quarter and for a first half based on its the first six months of 1988, TWA's net in preliminary results for those periods in come of $44. 7 million was equivalent to 1988. TWA's operating profit (before net earnings of $0.50 per common share after interest expense, other charges and deducting preferred stock dividend re credits, and a gain from the Howard quirements. During the comparable 1987 Hughes lawsuit) for the 1988 second period, TWA had a net loss of $2 .0 quarter was $106 .4 million, an increase of million, equivalent to a loss of $0.96 per 10 .6% over the operating profit of $96.2 common share after deducting preferred million for the second quarter of 1987. stock dividend requirements. The operating profit for the first six Results for the 1988 second quarter and months of 1988 was $98.6 million, an im the first six months of the year reflect an provement of 37.2% over the $71.9 increase in interest charges over the 1987 million operating profit for the first six comparable reporting periods of approx months of 1987. Operating profit and net imately $21 and $38 million, respective income figures do not reflect net unrealiz ly, primarily because of increased cash bor You'll have the oppor uni o submit your ideas to ed gains of approximately $360 million if rowings. The results also reflect a reduc TWA. .and to earn fantastic merchandise awards such TWA securities holdings were marked to tion in the provision for depreciation of air market based on June 30, 1988 closing craft of $11.6 million and $22.0 million for as: prices. Of this unrealized gain, approx the second quarter and first half of 1988, imately $240 million was attributable to respectively, as compared to the same Televisions . Furniture ... gains during the first six months of 1988. periods of 1987. As of January 1, 1988, Stereos ... Clothing .. The 1988 second quarter net income of TWA changed the rate of depreciation ap $97.2 million (including a gain of $49.9 plied in order to more fully reflect the true Golf Clubs ... Appliances .. million from a cash judgment received by useful life of its fleet. TWA indicated that the foregoing results and much more! TWA in the Howard Hughes lawsuit) was equivalent to earnings of $2.70 per com are preliminary, have not yet been finaliz ed and are subject to change. You'll find out all the details at an exciting announcement mon share after deducting preferred stock meeting coming soon! A/C Talks Continue TWA is negotiating to acquire new two Douglas MD-80 and MD-90 series aircraft. engine jet aircraft mainly for domestic The new aircraft would be used as routes in order to modernize its 219-jet replacements for older aircraft, primarily fleet. Early delivery of the new jets is an the three-engine 727s. important consideration. In the present fleet, there are 76 727s, Discussions are underway with Airbus, 18 747s, 11 767s, 46 DC-9s, 33 MD-80s Boeing and McDonnell Douglas, the three and 35 L- 10 11s. major aircraft manufacturers . Models TWA's Board of Directors has given under evaluation include the Airbus A320, senior management the authority to ne Boeing 737 and 757, and McDonnell gotiate for the acquisition. FFB Tourney Held Nationwide Over 120 FFB members get ready for 18 holes in the TWA FFB Golf Classic at Travel Academy Expands Lake Forest Country Club in St. Louis August 8. Tournaments also are being held at approximately 15 sites nationwide with the winners competing for the top prize in Nassau in November. Golf Digest operates the events at no expense to TWA. Many changes are taking place at Trans Maple Woods Community College Travel ''It is one of our ways to recognize the frequent flyers for their continued support World Travel College, not the least of and Tourism Curriculum. "This is just the of TWA," said Vicki Biermann, national manager, field sales promotion. Joe which is its new name. On June 1, TWTC first of what we hope will be many Vilmain and George Kreith, STL Sales, represented TWA at the STL event. became "Trans World Travel Academy." TWTA top. 6 The reason for the change was due to regulations in Pennsylvania, New York and Florida; all future sites of TWTA cam 1ST, HAM Debut 9/15 puses. These states allow only degree JULY 1988 MONTHLY TRAFFIC FIGURES granting institutions to call themselves "col New international stations in Istanbul SCHEDULED SERVICES leges." Since TWT A provides a certificate and Hamburg will debut September 15. and not a degree, the name change to 1ST service will be via Frankfurt from JFK Academy was instituted. three times weekly. 727 aircraft will be us JULY 1988 1987 %Change Trans World Travel Academy, in an ex ed from FRA-IST. Passengers 2,448,000 2,391,900 2. 3 clusive cooperative agreement with Maple From JFK, departures will be 6:45 PM RPM (000) 3,750,900 3,559,900 5.4 Woods Community College, will open its Th-F-Sa. Effective September 24, the flight ASM (000) 5,399,300 5,103,400 5.8 Kansas City campus on September 12 at will depart on Wed-F-Sa. L/F (% ) 69.5 69 .8 the MWCC Business Training Center Returning from 1ST effective September YEAR-END 1988 1987 %Change (located in Airworld Center near KCI). 15, departures will be at 7:50 AM Sa-Su Passengers 14,666,900 14,502,800 1. 1 TWTA will offer a six-week day and Mo. On the 25th, service will be at 6:50 RPM (000) 19,913,300 19,104, 700 4.2 twelve-week evening Computerized AM on F-Su-Mo. ASM (000) 32,325,400 29,820,900 8.4 Reservations Sales Training course for per Hamburg will be inaugurated JFK-AMS L/F (% ) 61.6 64.1 sons wanting entry level positions in the HAM. Service is daily. From JFK, depar travel industry. TWTA will also provide in ture time is 8:25 PM and returns at 8:35 structional services for other courses in the AM. Know Your Benefits ollservations._ _______ Health Maintenance Organizations (HMOs) - Mr. Chairman: Dear Captain Reynolds: Some of my earlier traveling ex As a frequent traveler (both business periences involve getting on one of those and pleasure), it is rare that I write letters A Health Care Alternative sleek Constellations which your airline us about flight crews, pilots, or overall service . ed in the past. Nothing, I thought, could Usually, I don't take note of such aspects What is an HMO? Most HMO's are for considering. hold a candle to them until I discovered of flying for they are often wrought with profit organizations made up of a group of Read tJ:!e fine print to assure yourself those new Super G Constellations . uncaring people who don't take their doctors, specialists and at least one hospital that the HMO you choose provides the responsibilities seriously. I became ac who together provide nearly all of the quality inpatient and outpatient services The most recent flight is, however, the customed to such behavior, that I figured health care needs of their individual you need. Those services offered may in reason for this nostalgic introduction. Our this flight would be no different. members in return for a fixed prepaid clude mental health care, diagnostic 25th anniversary trip was to be a total sur However, in this case, I must take note. monthly membership fee . If that fee is laboratory, and diagnostic and therapeutic prise for my better half and, thanks to the This past weekend (Friday, June 24 and higher than the employer's cost of pro radiologic services, home health services, help of your people, not to mention your Monday June 27), for the first time in viding its regular medical benefits program, preventive health services and even organ current day airborne giants, the surprise of many years, I had the opportunity to fly the member is required to pay the excess. transplants. Pay particular attention to a lifetime became reality. Particularly I wish your airline round-trip from Washington, There are two types of HMOs - fees, co-pays and other restrictions that to express my gratitude to Mr. Lawrence D.C.'s National Airport to New York's "Group or Staff" and "Individual Practice may be included in the HMO literature. R. Gordon, Customer Service Agent-In John F. Kennedy International Air Association (IP A) . " The basic difference is Remember, once you have joined an Charge, Phoenix, Arizona, for his con port. I wish to commend the pilots, and that under the Group or Staff model, the HMO program, you are covered only by tribution in planning and execution of one especially, the flight crews, on both my physicians are hired by the HMO, paid a that HMO for medical services until the of the most critical phases of the scheme: trips. salary and are usually located in a single next HMO Open Enrollment or until you To get my spouse on the plane, in the seat On Friday, June 24, I flew TWA No. facility. In an IPA, the physicians usually move out of the HMO's service area.