Appendix — Hughes Tool Co. v. Trans World Airlines, Inc.

Supreme Court brief1973

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What actually matters in this document.

Text

INDEX

Volume AX-I \

Irem

TWA Ex. 2 (Statement of Robert W. Rummel) ..

TWA Ex. B-3 (Toolco-Convair Amended Agree-

ment—Model 22, 6/4/56)

TWA Ex. R-5 (TWA-Toolco Purchase Agree-

ment—May 9, 1960)

TWA Ex. R-8(80) (FAA Registration Docu-

ments—B707-331, No. N771TW)

TWA Ex. R-8(81) (FAA Registration Docu-

ments—B707-331, No. N772TW)

TWA Ex. 3 (Affidavit of J. B. Connelly) _.....

TWA Ex. 4(b) (C. & C. Report—Comparative

Profit Study)

TWA Ex. 4(c)(1) (C. & C. Report—Financial

Results from Reconstructed Jet Fleet) -...... on

TWA Ex. 4(c)(4) (Exhibits B-J to C. & C. Re-

port—Financial Results from Reconstructed

Jet Fleet)

Volume AX-II ~*.

TWA Ex. 5(a) (Drexel Harriman Ripley, Inc.

Report—Parts I & II)

TWA Ex. 5(b) (Exhibits to Drexel Harriman

Ripley, Inc. Report)

Trem

TWA Ex. 7(b)(1) (Price Waterhouse Study—

Volume One)

TWA Ex. 7(b)(2) (Price Waterhouse Study—

Volume Two) =

Volume AX-Ill

TWA Ex. 10 (Letter—Boeing to TWA re 707

Negotiations—12/29 /54)

TWA Ex. 12 (Tooleo-Convair CV-990 Purchase

Agreement—11/10/60)

TWA Ex. 13 (Holliday Call Sheet—Feb. 20-27,

1961)

TWA Ex. 14 (CV-990 Purchase Agreement—

Amendment of 2/22/61)

TWA Ex. 22 (Rummel Call Sheets) —......

TWA Ex. 23 (Letter Agreement—Sale of Six

Boeings to Pan American)

TWA Ex. 39 (Affidavit of Joseph P. Ripley) ..

TWA Ex. 42 (C. & C. Report—Revision of

Pages 63, 64, 71 & 72)

TWA Ex. 43 (C. & C. Report—Revision of

Page 51)

TWA Ex. 46 (Jet and Turboprop Aircraft of

TWA and Principal Competitors—1958-66) ....

TWA Ex. 47 (Boeing Aircraft Employed on

Routes Formerly Served by B-720Bs) -.......

PAGE

AX-729

AX-732

AX-735

AX-740

AX-742

AX-743

ITEM PAGE

TWA Ex. 50 (Price Waterhouse Report—Sum-

mary of Application of Assumptions) ......... . AX-744

TWA Ex. 72 (TWA Annual Report—1939) ...... AX-745

TWA Ex. 73 (TWA Annual Report—1940) ........ AX-752

TWA Ex. 74 (TWA Annual Report—1941) ...... AX-758

TWA Ex. 75 (TWA Annual Report—1942) ........ AX-760

TWA Ex. 76 (TWA Annual Report—1943) ........ AX-763

TWA Ex. 77 (TWA Annual Report—1944) ..... AX-766

TWA Ex. 78 (TWA Annual Report—1945) ........ AX-769

TWA Ex. 79 (TWA Annual Report—1946) ....... AX-773

TWA Ex. 80 (TWA Annual Report—1947) ........ AX-779

TWA Ex. 81 (TWA Annual Report—1948) ....... AX-783

TWA Ex. 82 (TWA Annual Report—1949) ........ AX-788

TWA Ex. 83 (TWA Annual Report—1950) __..... AX-792

TWA Ex. 84 (TWA Annual Report—1951) ....... AX-797

TWA Ex. 86 (TWA Annual Report—1953) —...... AX-800

TWA Ex, 87 (TWA Annual Report—1954) ...... AX-805

TWA Ex. 88 (TWA Annual Report—1955) ........ AX-814

TWA Ex. 89 (TWA Annual Report—1956) ........ AX-819

TWA Ex. 90 (TWA Annual Report—1957) ........ AX-822

TWA Ex. 91 (TWA Annual Report—1958) ........ AX-842

TWA Ex. 92 (TWA Annual Report—1959) ........ AX-854

TWA Ex. 93 (TWA Annual Report—1960) —s AX-856

Trem

TWA Ex. 94 (TWA Annual Report—1961) —....

TWA Ex. 96 (TWA Annual Report—1963) ~......

TWA Ex. 128 (Pan American Annual Report—

1959) :.

TWA Ex. 132 (Pan American Annual Report—

1963)

TWA Ex. 155 (AAL Annual Report—1958) ........

TWA Ex. 158 (AAL Annual Report—1961) ........

TWA Ex. 159 (AAL Annual Report—1962) ........

TWA Ex. 184 (UAL Annual Report—1959) ....

TWA Ex. 186 (UAL Annual Report—i961) ....

TWA Ex. 187 (UAL Annual Report—1962) ...

TWA Ex. 192 (TWA Prospectus, 5/25/61 & Sup-

plement, 6/20/61)

TWA Ex. 194 (TWA Prospectus—6/17/57) -.......

TWA Ex. 223 (Pan American Prospectus—

7/3/45—Supplement—7 /24/45)

TWA Ex. 249 (American Airlines Prospectus—

6/11/46—Supplement—6/24/46)

TWA Ex. 257 (TWA-Toolco Lease Agreements

—Boeing Jets)

TWA Ex. 264 (Toolco-Lockheed Purchase

Agreement—L-1449A—12/23/54)

TWA Ex. 266 (Toolco-Lockheed Purchase

Agreement—L-1049G—9/26/55)

ITzEM

TWA Ex. 267A (Letter, TWA to Tooleo—1957

Common Stock Offering)

TWA Ex. 267B (Letter, TWA to N.Y. Trust

Co.—1957 Common Stock Offering) -..............

TWA Ex. 271 (Letter, Tooleo to SEC—1957

Common Stock Offering)

TWA Ex. 275 (TWA Board Minutes—April 26,

1945)

TWA Ex. 276 (TWA Finance Committee Min-

utes—September 12, 1945)

TWA Ex. 277 (Page from Banking Quotation

Record)

TWA Ex. 278 (TWA Board Minutes—November

8, 1946)

TWA Ex. 279 (Special TWA Stockholders Meet-

ing—December 23, 1946—Judges’ Report) ......

TWA Ex. 280A (Minutes—Adjourned Special

TWA Stockholders Meeting—December 28,

1946)

TWA Ex. 280B (Adjourned Special TWA Stock-

holders Meeting—December 28, 1946—Judges’

Report)

TWA Ex. 281A (Minutes—-Adjourned Special

TWA Stockholders Meeting—December 31,

1946)

TWA Ex. 281B (Adjourned Special TWA Stock-

holders Meeting—December 31, 1946—Judges’

Report) ,

PAGE

AX-919

AX-921

AX-923

AX-925

AX-928°

AX-930

AX-931

AX-935

AX-936

Irem

TWA Ex. 282 (Minutes & Judges’ Report—Ad-

journed Special TWA Stockholders- Meeting

—January 6, 1947)

TWA Ex. 283 (TWA Board Minutes—December

18, 1946)

TWA Ex. 284 (TWA Board Minutes—December

27, 1946)

TWA Ex. 285 (TWA Board Minutes—December

28, 1946)

TWA Ex. 287 (TWA Board Minutes—January

9, 1947)

TWA Ex. 288 (Minutes—Adjourned Special

TWA Stockholders Meeting—January 13,

1947)

TWA Ex. 290 (TWA Board Minutes—June 15,

1948)

TWA Ex. 292 (TWA Proxy Statement—July

15, 1948)

TWA Ex. 293 (TWA Prospectus—2/18/49 &

Amendments—3/8/49)

TWA Ex. 313 (Debt Outstanding & Available to

TWA & Competitors—1961-63)

TWA Ex. 314 (Weighted Average Interest—

TWA & Competitors—1960-63)

TWA Ex. 319 (Least Squares Analysis _S.LE-

Avg. Stage Length—B-331s)

PAGE

AX-945

AX-950

AX-956

AX-962

AX-966

AX-974

AX-980

AX-991

AX-993

AX-1051

AX-1060

AX-1065

ITEM

TWA Ex. 320 (Least Squares Analysis—S.H.E.

Avg. Stage Length—CV-880s)

TWA Ex. 321 (Least Squares Analysis—S.H.E.

Avg. Stage Length—B-131s)

TWA Ex. 322 (Least Squares Analysis—S.H.E.

Avg. Stage Length—B-131Bs)

TWA Ex. 328 (S.H.E.—Passengers Added/

Deleted—Reconstructed TWA)

TWA Ex. 331 (TWA Historical Load Factors—

CV-880s—1962-1963)

TWA Ex. 336 (Comparison TWA Int'l vs. PAA-

Atl—1959)

TWA Ex. 345A (Price Waterhouse Comparison

—C. & C. and S.H.E. (Revised) )

TWA Ex. 351 (1965 CAB Handbook of Airline

Statistics)

TWA Ex. 355 (Comparative Profit Study—

TWA with AAL & UAL)

TWA Ex. 356 (Comparative Profit Study—

“TWA with All Other Domestic Trunks)

TWA Ex. 399 (Comparison, TWA Actual Jet

Load Factors vs. S.H.E. Marginal Passenger

Mile Factors)

TWA Ex. 401 (TWA B-131 Load Factors—

April-July 1959)

moceeee ooo

TWA Ex. 420 (Price Waterhouse Comparison—

C. & C. (Revised) and S.H.E.)

PAGE

AX-1066

AX-1067

AX-1068

AX-1069

AX-1071

AX-1072

AX-1073

AX-1107

AX-1108

AX-1110

AX-1112

AX-1113

AX-1114

Irem

TWA Ex. 423 (Late Evening Flights—TWA

1961-1963) sili

TWA Ex. 424 (Cargo v. Passenger Revenue—

TWA Late Evening Flights) ......

TWA Ex. 426 (Comparison of Selected A/C

Numbers from S.H.E. Appendix A)

TWA Ex. 431 (Profitability of TWA A/C by

Month—Computer Print-out)

TWA Ex. 432 (Profitability of TWA A/C by

TWA Ex. 485 (Regression Analysis—Random

Numbers)

TWA Ex. 436A (Regression Analysis—Random

Numbers)

TWA Ex. 436B (Regression Analysis—Random

Numbers)

TWA Ex. 436C (Regression Analysis—Random

Numbers)

TWA Ex. 440 (Graph Illustrating Testimony of

Prof. Hare)

TWA Ex. 441 (Regression Experiment—

3/23/68)

TWA Ex. 444 (C. & C. Tabulation—Additional

TWA Domestic Seat-Miles)

PAGE

AX-1129

AX-1133

AX-1134

AX-1135

AX-1145

AX-1146

AX-1154

~ AX-1157

AX-1160

AX-1163

AX-1164

AX-1177

Volume AX-IV

Irzm

DX4 (Tooleo Order—30 P.&W. JT3C-4 Engines,

2/14/56)

DX5 (Letter—Tooleo to P&W. re Jet Engine

Orders, 2/14/56)

DX6 (Tooleo Order—90 Additional P.&W.

JT4A-3 Engines, 2/15/56)

DX7 (Amendment—Tooleo Order for 300 P.&W.

Jet Engines, 9/7/56)

DX8 (Letter—P.&W. to Rummel re 300 Jet

Engines, 9/7/56)

DX10 (Letter—Rummel to Collings re Boeing

707, 1/12/55)

DX11 (Notes of Convair Negotiations—March

24, 1955)

DX15 (Draft C.&C. Report—TWA Financial

Forecast 1959-61)

DX19 (Page from Aviation Week, Jan. 10,

1955)

DX22 (American Aviation, June 20, 1955, pages

21-23)

DX26 (American a, Sept. 12, 1955, pp.

84-85)

DX27 (American Aviation, Oct. 10, 1955, p. 68)

DX28 (Pages from American Aviation, Oct. 24,

1955)

' PAGE

AX-1178

AX-1181

AX-1183

AX-1184

AX-1185

AX-1186

AX-1187

AX-1192

AX-1208

AX-1209

AX-1212

AX-1214

AX-1215

ITEM

DX29 (Aviation Week, Oct. 17, 1955, p. 7) .....

DX31 (American Aviation, Nov. 7, 1955, pp.

23-25, 27-28)

DX40 (TWA Board Minutes—June 21, 1961) ....

DX43 (Excerpts from Deposition of Robert W.

Rummel)

DX44 (Letter of Damon, Dec. 6, 1955) .............. ‘

DX45 (Letter—Leslie to Dietrich, Dec. 19, 1955)

DX46 (Letter—Dietrich to Ayers, Dec. 21, 1955)

DX47 (Boeing-Tooleo Purchase Agreement—

8 B-131s, 1/10/56)

DX48 (Teletype—Boeing to Toolco re B707-

131s, 11/11/56) .

DX51 (Boeing Offer of B707-320s to Toolco,

1/6/56) —

DX53 (Transcript of Telephone Conversation—

Rummel & Connelly, 12/20/57)

DX54 (TWA Board Minutes—June 26, 1959) ....

DX57 (The Huntington Report—1960) -.............

DX62 (TWA Fleet Requirements 1961-70, dated

3/1/61)

DX63 (TWA Financial Forecast 1959-61, dated

5/15/59)

DX64 (Letter to Thomas, dated 5/6/59) ..........

PAGE

AX-1218

AX-1219

AX-1224

AX-1229

AX-1369

AX-1378

AX-1382

AX-1385

AX-1390

AX-1391

‘AX-1393

AX-1402

AX-1410

AX-1420

AX-1433

Irem

DX65 (TWA Staff Engineering Report re Jets

& Turboprops—4/19/56)

DX66 (Toolco-Boeing Contracts—B707-131s,

3/2/56)

DX67 (Toolco-Boeing Contracts—B707-331s,

3/19/56)

DX68 (Toolco-Convair Contracts—CV-880s,

9/10/56)

DX71 (Rummel Memo re TWA Equipment Pro-

gram, 3/15/61)

DX72 (Telegram—Bew to Rummel—2/27/61) ....

DX73 (Letter—Leslie to Holliday—3/20/61) -..

DX74 (Letter—Leslie to Holliday—4/3/61) ......

DX77 (Letters—Toolco to TWA re Financing

Additional Jets, 6/9-10/61)

DX78 (Letter—TWA to Holliday re Financing

Proposals, 6/16/61)

DX79 (Pan American-Boeing Purchase Agree-

ment—B707-120s, 10/13/55)

DX81 (Pan American-Boeing Purchase Agree-

ment—B707-321s, 12/19/55)

DX85 (Boeing-AAL Purchase Agreement—

B707-123s, 3/1/56)

DX95 (Allen Letter Announcing Boeing Jet,

Nov. 19, 1954)

DX96 (Boeing Offer to Sell Pan American 25

B-120s, 6/23/55)

PAGE

AX-1440

AX-1445

AX-1479

AX-1505

AX-1536

AX-1538

AX-1539

AX-1540

AX-1541

AX-1553

AX-1558

AX-1564

AX-1576

AX-1584

AX-1588

Trem

DX97 (Boeing Offer to Sell American 15 B-120s,

6/24/55)

DX98 (Boeing Offer to Sell United 15 B-120s,

6/24/55)

DX101 (Boeing 707 Delivery Positions)

Volume AX-V

DX102 (Boeing Memorandum re 707 Over-Ocean

Configuration, 11/2/55)

DX103 (Boeing Memorandum re TWA Delivery

Positions, 12/23/55)

DX105 (Boeing Memorandum re Negotiations

with TWA, 7/24/56)

DX106 (Letter—Rummel to Cook re Boeing

Deliveries, 1/28/58)

DX107 (Letter—Rummel to Cook re Boeing

Deliveries, 3/17/58)

DX108 (Letter—Price to Allen re Boeing

Deliveries, 3/30/58)

DX109 (Letter—Tooleo to Allen re Boeing

Deliveries, 5/8/58)

DX116 (Rourke Memo to Rummel re CV-880

Deliveries, 1/15/60)

DX120 (TWA Memorandum re CV-880 Deliv-

eries, 10/2/59)

DX122 (Bew Memorandum to Cannady re CV-

880 Deliveries, 12/18/59)

PAGE

AX-1591

AX-1594

AX-1597

—

AX-1601

AX-1606

AX-1608

AX-1611

AX-1615

AX-1618

AX-1621

AX-1623

AX-1624

AX-1625

Ire

DX124 (Parmet Memorandum to Rourke re CV-

880 Deliveries, 1/13/60)

DX125 (TWA Memorandum re CV-880 Deliv-

eries, 1/22/60)

DX127 (Rummel Memorandum to Rourke re

Integration of CV-880s, 2/8/60)

DX128 (Letter—Rourke to Digges re Specifica-

tion Modifications, 4/7/60)

DX130 (Bew Wire to Rourke re Convair Delays,

5/27/60)

DX135 (Letter—Convair to Bew re CV-880 De-

livery, 1/6/61)

DX137 (Telegram—Bew to Rummel re Convair

Delays, 2/16/61)

DX139 (Letter—Convair to Bew re Convair

Delays, 3/16/61)

DX142 (Letter—Convair to Rourke re CV-880

Deliveries, 7/11/61)

DX143 (Letter—Rourke to Convair re CV-880

Deliveries, 8/2/61)

DX146 (Letter—Convair to Toolco re Model 30

Delivery Positions, 5/6/60)

DX148 (Tooleo—General Dynamics Letter

Agreement re 6 Model 30s, 7/14/60) -.............

DX152 (Tooleco—General Dynamics Letter

Agreement re Additional Model 30s, 9/6/60)

PAGE

AX-1627

AX-1629

AX-1630

AX-1638

AX-1640

AX-1641

AX-1643

AX-1644

AX-1647

AX-1650

AX-1652

AX-1654

AX-1655

xiv

Trem

DX156 (Telegram—Beall to Allen, et al. re

PAA Negotiations, 9/28/55)

DX168 (Boeing Memorandum re Conversations

with Howard R. Hughes, 9/23/55) .............. ates

DX169 (Boeing Memorandum re Conversation

with Howard R. Hughes, 10/31/55) ................ 1‘

DX170 (Telegram—Boeing to Toolco re B707-

331s, 7/21/59)

DX218 (C.&C. Letter to Leslie re TWA Finan-

cial Forecast, March 13, 1959)

DX219 (TWA Financial Forecast 1958-1962,

dated 12/1/58)

DX237 (Aviation Week & Space Technology,

11/13/61, pages 42-43)

DX239 (Airlift, May 1962, p. 46)

DX254 (TWA Board Meeting, Aug. 16, 1961—

Report of System General Manager)

DX255 (Statement of CAB Chairman Boyd,

Jan. 29, 1960)

DX257 (Aviation Week, 1/30/61, pp. 36-37) ......

DX258 (Report to Directors of TWA—Oct. 13,

1961)

DX259 (CAB Order of Investigation—Dec. 28,

1961)

eee eoeceececoes

DX260 (Letter—Tillinghast to CAB, Jan. 29,

1962)

PAGE

AX-1657

AX-1658

AX-1660

AX-1661

AX-1664

AX-1666

AX-1671

AX-1673

AX-1674

AX-1677

AX-1681

AX-1683

AX-1694 -

AX-1703

Irem

, DX262 (Revised Pages 70-73 of TWA Ex.

4(c)(1))

DX270 (Report of Loeb, Rhoades & Co.) ............

DX271A (S.H.E. Report (Revised)—Volume

One)

Dx27yb (S.H.E. Report (Revised)—Volume

Two)

DX284 (TWA’Prospectus—Nov. 20, 1952)

DX286 (TWA Board Minutes—Jan. 13, 1955) ....

DX287 (TWA Board Minutes—Dec. 13, 1955) ....

DX289 (TWA Board Minutes—April 26, 1956) ..

DX290 (Tooleo-TWA Conditional Sale Con-

tract—L-1049Gs, 6/6/56)

Volume AX-VI

DX292 (Tooleo-TWA Conditional Sale Con-

tract—L-1649As, 4/19/57)

DX321 id. (CAB Orders & Documents)

DX322 id. (CAB Orders & Documents)

DX323 id. (CAB Orders & Documents) ............ uv

Volume AX-VII

DX334 (Correlation Coefficients—Substituted

S.H.E. Table G-VII)

DX339 (B-120s Available to AAL, Actual vs.

Reconstructed—1959 )

PAGE

AX-1708

AX-1712

AX-1789

AX-1859

AX-1961

AX-1967

AX-1970

AX-1974

AX-1979

AX-1995

AX-2012

AX-2191

AX-2347

Whe

Irem

DX341 (Domestic Carriers—Jets Assigned to

Service, 1959-63)

DX342 (TWA’s Share of Jets Assigned to Do-

mestic Service, 1959-63)

DX348 (Revised Summary—Categories of Dif-

ferences—Wemple vs. Simat)

DX358B id. (CAB Form 41 Reports—Northeast

Airlines, 1957-1966)

DX358C id. (CAB Form 41 Reports—PAA,

1957-1966)

DX359A (Supplemental S.H.E. Report—Volume

DX364 id. (Excerpts from Deposition of Emmett

0. Cocke)

DX367 (Combined Non-Stop Scheduled Fre-

quencies Per Week—Aug. 1958-63) —..............

DX368 (Combined Non-Stop Scheduled Fre-

quencies Per Week—Aug. 1958-63) ...........

DX371 (Summary—Categories of Differences—

Wemple vs. Simat (Supplemental)) -..........

DX379 (Domestic Jet Seat Miles—Wemple vs.

Historical)

PAGE

AX-2429

AX-2430

AX-2431

AX-2452

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exé ne pd SAS EALOIS ex Raped RENEE ‘2 3.028

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&- fox wecks.

Sus: SQrsae ly, Py , S85 Re. to printengpesn

Septaivey 43, 2255. =e Tittee CT HeNs Ys

ae a ae A capt te

DX 102, page 2

ones Memorandum re 707 Over-Ocean aces

5509-10-99 © *

“wre asked us to cubrit price ext dolivory croteticns

"Of the 707.

; 5-51; on or Rolls Royce camay €: engine gnstoller’,

pohaat a:

11/2/55)

PERS ‘bi.

7 exe row revieting casts and schedules ora vill,

et Frits Eescrcoa's evogastlen, precent & nev propecel

Mithin the next ten ee de

Yo Luster conmniert ae Wi sta E33 taken place opt this

regeae Since tat éc: ia his sore! %O ie. Alen of Ootoser

40th General. Alor ¢ acd Sntiecnte’d he Cosives this ietormti.cn

end 26 expecting to % vecoive a Mira procesal feca Ecoing.

BAS - Sconiivevien Aivlines SYD

Dering the past Eoek “2 ONG sivteck. Per Nordin - thes ve wii.

forvsxrd to bin e. proposal. Letice covesing Eslivory of Tive

edateietes Be hes raguestcd that ths Cslivecy pociticns as

Quoted in this proposal bad Guexentecd to Pats for a poricd of

ninety Gays. dime

- & levies frou Hr, GavouedTIolot to Me. Allen dated Oct SouSs

9 1955, the ptesidant of E49 veavests tho Tolling prepess

pa Losing to te emaxttiea to BIS at Reazt cavers €

to the SAS Eoowd oF Tivactors Easting ¢ scheduled to tus

Stockholz con Novexoer 14, 1955:

piace

". oe e eContrest prosocal for nix {6} FO7's vith en

option for an aféities2l four (4) to te dalivercd es

6COn a8 possidle . ee « ote SeOuld izke to beve

alternetivo offers Por Plenes vith tha Je5/ eri wita

tae o“15 engines."

hair Bronce

On Octorer 23 exi 2% the Chnivecu of tho Eoord, President,

tuo Deouty Gencral HENAGS SS exd tao Manager of Ate Frence,

Fortn Americen Gosrctioss, visited Boxing to study tha 77.

Trey were very. Lavoraoly fmoxesecR ead pio to their Acosi%te

Pox

quantities of oo ten cpl fovstcan atsecatt or the J-57 az

Je75 configures « Trey Mother recuested tis yovpocal.

be velid for 2 "pevice a2 rivety os. Ve efviced the Air Feence.

executives trzt ta vould sunz’t & prez col to thom at <:tts

-eorliest Se gare a : .

The engineer in charge et Transpst eve ations till be

Visitinz Eozins an car Vth to further éfsercs Cxtciis

FPollewics this VEsst hoe Fetoset Unt alaas » to SCA

@ proposal isttar covering Low atwevstt vith entica for ’

-— a meee ce Ge

DX 102, page 3

4-1 605

Mesins Memorandum re 707 Over-Ocean Configuration, 11/2/55)

aes

Ey002 = ae | . Page thuwcd

Se BOAC

Wo hevo @ long standing comsitment to provide price and

dclivery date to BOAC based ca a conti ou wavLo on cf the 707

incorporating myth engines end with no cabin interior

furnishings, Béfore wa cen svbmit such « proposel 1% will

be noceszery to coiiad n curvout infermicticn on the price

end evailability cates of the Crermoy engines fron Rolls

Raycée a no oe

It is of interest to née that other airlines such es KLi

end SAS have also shown’ intercst jn taking delivery of jet

. tyansports without intericr furnishings en nd completing this

_ work in their om shops fbrorae It is recom mended thet a

suiteble interior configuration of this type ‘be Sefined

for the 707 and & cost reduction for same es Freee seriy

Jt wid. bs recalled that 707 pro posed. Letters ; vere jnitiauy

sini to ren end SAS cn duly 26, 1955, a fer dcys efter studler

proposals were mailed out to esveral domeztic. airlines. No

‘proposal ‘a is ever bern furnishes to Aie Fronea or The.

We itast exp2ct that ths for ig éirlinss witl, request delivay

position Gnotetions valid for a peviod of ni ety “G2YSe By

vVirtys of their naticnalised cr majority state wined status it

simply tekes those airlines lenger te convinces their directors

. end their governing state sgoncies of the neccssi. ty enc cioice

of now Gquinnent. Even with the United Sistes enpeese aire

lines in ths case of PAA, UAL and Avoriczn it h oat sees frem

thrce to five months tins from first prorose). to signed ies eee

The four Eurorse2n a sjromaery noted above vill pro dedbly bs ths

fivst in that merket eraa to purchese jet tecasports. As they

ere the largest of the @ Turepeen eirlices the uy represent the

best sales potential ir. texas of initisl and follozeca quentiiic

‘Of eirorett amongst tha foveisn operatows. it is probzdle tha’

they will each comalt the i witn either Boeing or Douglas

within the next three months tima. Top tech nical redresent tae

/tinos of each of these airlines gee bs-in the St2tes during

this menth studying in detail beth ts 707 end the DC~6,. y

‘tabulation of the enticipsied iio potential ox the foreign

Sirlines is attached,to this meror endest for your review.

ics

Wo ero prepared to submit orice end dalivery Pivposals covering

the cT3<C), configuration of the 707 to ths afore:cnitionsd fore

eign airlines end axe proceeding to preserve a offs of Propor cls.

AX-1604 7 ei page i dum re 707 Over-Ocean Configuration, 11/2/55)

5502-10-99 S :* *. Page four

7 . S

We ere not. in position 3 unfertunsiely, to submit proposals to

thea ca the atreraty they are really interested in end which is

* Compstitive with thet being offorad by Doves; nemely, the

long renge configursiion of the 707 with Jihs.3 engine installaticn,

It is imperative that ve hastin avellability of tschuiical

data, price and delivery jufom:stion on tai latter conficurce

. tien of the 707 in order to submit % wopscals the forzign

. @irlines have requested of uz nd Lorestel. their purckase

of DC-8's,

Wo urge that pleas be formuleted for a serics of technics?

teem contacts to be nade at the hoelevarters of the mLjor foreign’

eirlincs. These contscts should be instigated just as soon ag

the technical data on the long reng2 Je75 version of the 707

is availeble. 7

Lele:

R, Le Boil

AX - Ai

Memorandum re 707 Over-Ocean Configuration, 11/2/55)

» page 5

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“ 53 .

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am waste pate sPae oA - Cea” . |

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me® Ye BP -

BOSY at forten, wlsceussee.

a UrNammeaie tne Dees OF “ne ~aSh LEGO AUTOS Enc Gis mo pata SEL moe

26, o23 told them thet At ves cw bolie?, in the Lignt of wvevious dis-

cussioas, og brass &s ovi Siaakdons to cthex her customers end pr cheba tO

BrVOcspective Castemers, that we hed mage an aitroaks re and favoreoie offer

pe ne ?

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4 707-3 31's ct this tine. oe

2. Maer deli eve thot they x oy Pequire acéivional T3327 5 CHG -

; tn2t tie rent Bs! thats Drdcows JOS comsttmons showlé be Siven

Pull consi wien es cosnered to other custexevs in ellosniny

RX sispiones. :

3. Taoy de stéave wnes the NX cizclanes cin be of stoeten aGialLy

Wore YonePse to tneis cesly onerctions tian wae’ COSLY

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Pon 6 Stwssonsiclks lester ae VORRSES, TO justify theie fimcsdicte

ms Fb '. Ms « Pol ites My mA ete's

PINES OF tre -3 5: adralenss da cC2ition so. Gal YeSsons

orders. : sa

’ ee : .

DX 105, page 2

‘(Boeing Nenorandum re Negotiations with TWA, 7/24/56) |

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610 DX 105

(neateg Memorandum re Negotanttone with TWA, 7/24/56)

We os See . ;

Pore tates * 1-7OS3-7

* Se AOOe: Cangly, * woulé 2 WSCSI TONE WAS ve give sorio:s consideration

SO the sale cP 3 etéibiennt Simpiones {at lesst oma EX) to S54

VESnOUs consivioa es to Stseptazce oO? a

cioplenes. IF vould x, eecazané Dither, thes to the Cxtont these

3 cinpice. cas a? “ oo ~

3 S SPS GAs Shine Qirsleras previously offercd FA os

- elPLeated firplenes a Gui, 2 Awiust, L Seytexdsy) vo make

— - ? Poe. - 4

— the “€axtos 02 wat aceite ~CL52 Sivplsnes ave cutrentiy

SVeAlsSLe, vith en gr tener aeeenrear, TERS LO WILL keep then ev: se

oz eT Led

en to say ’ chorze Ik suSN avedlobiisty dy veaso:

srOp0saL6 exafoz sate to others.

X dslseve shot & Sbevs socadure £5 fn the | est interest of ox: ovewn2

767 MOTD, ond wid Hk posse <biy help ox total sates by ineveasine: the

PLOscosnty of |86s8 TI, esies, without ofvorreie ate SeSins ore DrSsosals

to ctkers, in aéaii tion, I believe < 22 We cowl Pave uD & yvoswan

Lor S25 a amo eG “s22i" Sizplcre in 28 the roe future, this in ivsol?

COWL Secolve tue SLi mrchaso oF edititors: (O7F~-220 78,

| ees “DX 106,

(Letter-Rummel to Cook re Boeing Deliveries, 1/28/58 )

Bo i | a re

Januzry 23, 1958 es ase

Mr. Rayccond Cook ; \

Andrews, Kurth, Canpboll & Bradley * (¢.7;

2209 Gulf Building tics ;

Fouston 2, Tessas

Desr Ray:

You vil recall ny recent advice that Mr. Kushes request=

' @@ that I ask you end Harry West to revicyv carly Rocing jot

deliveries with Amcrican Airlines re bs titrust ESPECES»,

I hope the follcwing brie? report vid provide useful

inforzation.

1) Bruce Coz molly cra Georse Sandtora clatn Booing has an

egreesent with Arerican Airlines which requires Boeing to

deliver 3.x Model 120 fect aircraft to Areviean Sixty —

pricr to colivering commercial je% eirerett to eny othe

U. S. Ecsiestic operator, chey also onary Bocing is obli-

gates to caintain Aresican's initfal sin airereft Hixty

fey felivesy a@vantcss throuskect Suovteonte aol ivovy

perioa e. » Febrvary 1959 through June 1950. Both ron

Clain this esreement exi sted faen the E. &. Coupsny signed

for its ‘eight Model 131's

2) Kessrs. Connelly end Sandborn eleimed to have en agrees

ment with Pon An which requires Boot ang to dcliver its first

six Jet toansports to Pan An sixty Cays prior to do Liverd aS

any tracssorts to any other commercial customer.

3) Hossrs. Allen, B211 and Sanébo va prior to contrect signe

ing re presented that in the event Boeing could accelerate

product: 202 end Ccliver aircraft prior to contrast cates

that it would maintain "relative delivery fositions". This

expression wes taken es assurance dn principle that while

Soting woule not esree to snecific aslivery secuense —

would asree in principle to caintaining orée> of delivery

“‘pesitions tea existing.

Aig DX-106, page 2

(Letter-Rummel to Cook re Boeing Deliveries, 1/28/58)

_ Nre agysona Uook | -2- Jenuary 23, 1958

4s) Sondbora cleizs, and Connclly reaffiras, that Bocing interore-

tation of “relative position” is that Ecoing will alter relative

Geliverics whon c&déittonal afreret+ are erdor cd in order to rect

its obligation to Atcrican Agsiines. m other words, these gentle}

mon elais t22e cach tine the H. c. ri ay ovdered edditional air-

crett (cisnt, nine, clovea, thon ares) » that Boeing vas forced

eutcraticatly to improve Arericaon's corly Gclivery position and

on ia co coing nsinteined “relat ivity".

5) Tmo H. T. Company contract persits Eooing to deliver tyolve

iSe0r 125 pices he Tis > Verisnt thereof) prio> to the month in

Which the H. T. Company reecives its first airplane. Messrs.

Ssnabora and Connelly ere anterprovins tais clouse literally.

Booing is febricating the first six elrereft to Fen An's specie

fications ond the next tea to Acoxtean Ag txlines? specifications.

The first airplane rooting the a T. Comeny's specifications is

tho coventconth or the 129 ceries and the cishtcenth in sequence,

the other airplane being a prototys 320.

6) Bocing hes teen rohnert reluctant throuch the ronths to

~@ivulge Eolivery infor=ation for custocers other than the H. 2.

Cozzcny- We have, hover ony Odtained throuss uidisclosed’ channels,

Boeing's shop ere Exchibit A, eg ta is,hovever,

subject to sozea further reSincxent ond chong

7) ie have also obtained Boeinew's rrenent torcet echednle for

» Acerican, Pan Aa ond TAs

1958 2959

OHNDJFHANTIAS OND

Fon f’2 121 2

- BA » co: 2: 82:08: 2 2:2

TWA ee2e2ee22k1

Resaining Anerican Airlines terset echedwhes are believed to .de

the camo as contract schedule showa imme =edictely bolo.

8) Bsoing’ $ contrect delivery schedule provides:

1959 1980

VORP PF MAKHTIABOUDIFNAR

Pan Am .lnx0 1.221 2

inx09 CO 2 2 2 222222122222

GWA. inx 3.4 3 43

# includes redelivery of one ns: aizplone.

Taspectioa of target and the contract schedules imnedi istely reveal

in2se

> thet SA kas lost position relative to Arericean Ais

X 106, page 3 AX-181

~ (letter-Rumel to deo re Boeing Deliveries, 1/28/58, ms

hr. nayitona voox *:3.% : January cv, tye

’ \ .

' Q) Pocing hes offered six editions? airplanes for early

Gelivery. Scendbora states thet if the kk. P, _Conpeny tuys ed.

Gitionsl airplanes fer deliver y Curing the Anerican delive ery

perics, Azerican's cchedule nicht recuire aay vensenent to ecu-

ply vith Boeing's basic obligzifons os S reported in itess (2)

end (2) of this letter.

20) Boeing has advised that it is currontly reaufa cturing ten

cdditional comercial jets of the 129 series on speevlati en

with Ccliveries to follow within the E. 7. cmpeny delive 7

perice. These ten are internntional Girglones. If the He &.

Cozmpsny ehowld wurchase thesz sirplsnes, /c:ericen's deliverics

would be advanced "appropriately"

211) Te following is Socing's current certification schedule:

Syoe of Certificate Airvorthiness

PAA Hid-July 1955 Mid-Septender 1953

AA early Sente:her 1958 Mid-lovenber 1958

TA - _ ” Decexder™ 1953 Mid-January 1959

22) American Afrlines' fare investtc sation data for CAB use :

dated Novenber 7 included the following intorzation:

lest quarter 1958 4 ntreratt

first qeerter 1959 13 Gireraft

second querter 1959 6 afreratt

this’ qguortes 1959 ( Girecrart

13) Nessrs S. Eandborm ena Conn: tlly intirated that if? the H.

Company could aczrse to use its carly airplanes in international

Operations that: v perkans Anericen Airlines would go along with

earlicr Celiveries to Ae. I persouclly coudt that Anerican

would agree to this.

Our objective rust be to obtain the Eocing jets at the

earlicst conceivable dzte. Ts evutears thst Boeing rust be

pereus Sded that either its rorel Oblisa ticn to H. T. Comany

ond SA ovex srices its written osrescent vith A American (unlikely)

or it cust be Coxonstrated that the we ttea agreerent with Anari-

con cennot be viewed eas legally valida. Porkcps your end Harry

West's study of th e situaticn will: reveal other plsusible courses

to sursue.

She very fact that we have had recont Ciscussions with

Sanctorn ond Connelly seexs to re to be 2 ce: mw? Bh ty resson for

early action since ir nothing eceurs Eosinz cen elain at time

of Gelivery that we were foirly forevaracay

" pents fre the Boeing Sroat. es

ee: Ee. Lorry Vest

DX 106, page 4

(Letter-Rummel to Cook re Boeing Deliveries, 1/28/58)

Kr. Raysond Cook -k. Jenusry 23, 1958

* ; ;

I, of course, would be very sind to @iscuss this situstion

with you and Ferry at your convenience [¢ you vich.

ZX Will walt to heer fro3 you before taking further actioa

and in the moantine, will renort any pertinent edditionsl develop-

Sincerely ®

eas a :

a 2

nee R. W. Rircsel

= SAM Se. - .Wiee Presideat - Ensincering

; : a %

| | (AXIS SE,

. DX 107, page 1 . —s

(Letter-Rummel to Cook re Boeing Deliveries, 3/17/58) )

“ ]

K-77

Merch 17, 1958

I, Fayzzond A. Cook aie

Anérows, Nurth, Comptoll & Pradley :

22nd Floor Gulf building .

Kousten, Texas c¢

- Sudjocts Delivery of Modol 707-131 Aircraft

. Reference: 2, TA letter dated 1/22/58, R. HW. Prrmol to RB, A, Cook,

<2 "@. BAC letter 6-1300-42-529 dated 3/12/58, J. B, Connolly

to R. W. Rimmel (copy attactod),

Doar Ray:

‘Feferenco (2) outlines Pocine's current terzot datos for the Cslivary

- Of Med2). 707-131 eireraft,

ab appears that my talks or somathinz has gone £07.38 001 after 22

‘sinco tho tarcot dates sro suostantially totter than cutlincsa in

Item 7 of reference (1). However, I do nct know Wiethsr Armor leant,

havo been novea forward cinflarly., Ian attoupting to find ovt end

will previds this information if possible,

Very truly yours,

et eee eo vile‘

. ae Pt i. a ei o Sngincoring

Atiselzcat ee : =F

ccs: >, Cc, H. te : ao : we ? ie e

‘Mr. L. Ke Sehwarts pe ae oo

x ae _.. _ DX 107, page 2

(Letter-Rummel to Cook re Boeing Deliveries, 3/17/58)

Os eet deed hed

LOLMELES ED SOLIDE ERM AE ERLE ESS

TELS SLAM LPG LIS IOS

LEAT UN, VLBTEIUMAITAS ©

i] ys CEE PereNG ee © wee tet

- 0% SE Mee @reew *-

Bn 1LOG Pei 29

’ Mre ke Je Rus21 ‘ : Cg

Ny 26 kichardo Pood. . _ E C ’

Kenaae City, Hissourh = . aie Pee eer

Trroughs tir. Edvin Zak N

Rosidcat Representative

‘Subsect: Delivery of Model 707-131 Aircraft.

Dear Bets :

“Very ecrly in tho Hodol 707 progren ve recasiiced the mitucl bona}

fits to bs derived by our custcrers and Bocing fron easiy calivorys

-of these aizcreft, and vo established target airplane eclivezy

schedules providing for doliveriecs in cdvonce of the Contrast ree

_quirerents. During the past several months te have constuntly

_ponitored this progran to determine our ecpobility against thoco

‘targot cehedules, Ve believe wo are sufficicnily floss in ous

“\movledze of the status of the progran to provide you vith tho

i folloving data with respect ie ous target doMvery sehecale:

: yo MODEL 767«131 AIRPIANS DELIVINISS Fer ronni

? TARGET SCHEDILE

. Doces:tor, 1556 > 4

Janusry, 3959 3

; Febsusry, 199. 5

. -Harch, 2559 - ae

pee April, 3359 * ¢ Sa a2 a. 0 4

: Nasr, 1955 1

: : Just, 195% 2 °

° July, 1959 ee .

# Inclucss ro-dolivery of WX Girsicsse

F °.

The forecsidg tarsct sehodils 49 pcrwiesd co you «27 T3 eps abrcacth

ef the ctv. lonasig in th. del 767 program. Althos “swe cannot

assurc son thet wt shah csliver your civerett in conc. cc ace the r=

with, we recreca to dote andicat.. we chid Ee abic 1. sot these

date. bot. unferecien difficvitics. f

sai In tos avant wooo able ts cat the target seks cls Sho. in this

he det. 7) sou Aave our arsuranc: thet wa cca Provics Spi F.b3

AX-1617

DX 107, page 3

(Letter-Rummel to Cook re Boeing Deliveries, 3/17/58)

F J Ae 4 ae

“ Fegee..00te .

as, he ese Gs

v.pgnre for EPceing sroprietesy ites and ths services, treinlaz

446 Guta Srovidced by the eentract,

tte foreyeing inforsation is provided to erable you to Plen few

farliest petontial deliverles of Mods] 707 Aisovals,. Tae inser

: fien conteined in thio letter of course deec rot chsnge the conirce.

Selivery oshedvle set forta in the Purchasa Agreerent. Should core

ditions arise which alter the Situation cy described above wo cil

W4V1EG® Yous °

Very truly yours

PORING AIRPLANS coupsicr

transport Divisicna

J. B. Connoliy

Vico Fresidcnt - Coners) Manager

(Letter-Price to Allen me ate Beet Deliveries, 3/30/58)

HUGHES TOOL COMPANY py- Of

EXECUTIVE _OFFICTS

Twenty-seconn FLOOR GULF OVILOING

“HOUSTON 2, “TEXAS

. Hoven 36th, 1953.

focing Airp! an2 Comparsy

P.O, Box No. 3707 . ;

scattle, Washington _ Yi ay

Attention: Mr, Willtes H. fllen, President

Gentlemen:

)

es .

a2", Conne Liy's detox to

Poportod a new target schedule of ¢

Commas. The letter Gscs not fr.etu

~Giner Custesera; but en the basis oO

orted 45 Huches (and pertiy Crom tho

self), 4t @cpeere that Fontnete Aamir’ ta

cvlousiy disorlatinate 8 asainst Rusaca ard

_ favor oz SANS competi tora.

w=2 we ee

we o> ae

9439 t7 &

eet,

(POR OMN

bo.

wie as

efe

vat

#ro2 the eonrcheencnt or beat cabs piect whit. i

hughes consistently declercd thas preccetion ce;

ity o> preferential deliveries to eC

Oh Cotential condition of ery purebacs

(03 Consistently Socing reaffirse

policy, When Huse pare) aguested Swtelzic

. Peleting to sequence of 3 shea el

Yenlicd that as a matter of unifo

fused S11 of ita eustonsrs any

tnose iniercnt in ths contr seed

hontha, Thon ccrelored Policy of n

prenzbvit proferentigi treats: ont elthes

(Oeliverics in s2vanee ef tho etinulstsd

OY G3 tO relative Gelivyerios night Cin

UWoprecentcetions anG@ ascuruness fos

-then write 2n does oo insais

ence, since HISANS ca lined

contract, ond } ee bins PAL er:

ance vesoon 8 .

te?

fe VJ

< 3 ry !

”~ 4

% e

WS av tf ad ten

2 &

4 oP

: toes f

is a> re

5 fee ot

e «9

ws.

oi¢

oO net S

to £905 09 Sf

OfF# 200 ¢

3 O ors

jae PY

rey

SOs

to Retype LL

tg pause

teh in O lw

yee ret

ows ot

< ee Ie

C2 cr je

* je & .

“

y I

29 &

wad

€

Bon

=e °

7. -

5 a? Vs

Oran:

"7 te iS

eetes &

ee OP ED ce

teas of

Ch foe

Ost

- Lal

fees

cP ba

AX-1619 |

DX 108, page 2

(Letter-Price to Allen re ) Boeing Deliveries, 3/30/58)

oe eee ee

te ° " g : . a " . rg

Face 2 ~ ‘

TAn4 af P

aw oS et. Mara re0 Comren;

tizsed; Sty ra . ‘

eee 4 e~ wely ree Le) - .

_-— <«

oa ee ~ ag os © © 2 @ @

’ ”

i + ° é . re

. e . - *

a 4e ° 4% : ; .

it 4s unthinkeble that ré-ing wenld Caisresat

oT C2yz- lessi a7 «4 esetre ~e 234; uy te HEe5. Fae he ond ath ge ALI e

Wwe oot am : - z z

spever ee ce ee! Sees OF Hg she Sy Sih Py | Uncen Tosa

Cincy ite fon, dh & t- Caunliv aewn! te hat - 0% ° ‘ cee: See: De

: eo 4 of Whole sd o.58 ais FR Boa. ye Sl oN ye, Oe eee . ©

cnruce or soratt ony pane boos’ SSSI 7. G

bei 4G Oby Giteriniratian tn Viglntion of 4;

f0itrn Cetlare.iona ef foyer pital iba. Sweeedtses GSS At dD

th peg te 5 or oo Pelee ite Sree s ey wt. ee e 3¥f $a to 7. the “s‘ee”

fesse ¢ ros wat Be] ind: arset o> Senn o-$ even é - of x steal wien g

ELPOrr ered Fe O55 te wees SST ee) | es Bo3 tor

2? a3 co 25 ice tet “-* <= «*e

4 ee WJ Ge Phas 40902623 W2~pe Yolnterdaad ans

Wl1d PROLLY L2 COoTTCOC 4 ee stupa see sib sslogd Or

a . oF on :

"9° 2. .

° - fe. 3° mond Ie cf 2 £

tro nee — Js rede haat cntly Y Corpatitive G2liverios, Reoreyse

“? a7 = . x ae r oo & $n” oC @ *

ectcdule § 4S ivsccozsiiahle with tha e--an-n.

Of Kees ristg Crliscation tn that 4+ Sate te ene

G2 ligeny” ‘of the Es mat dt else fntin to seestsrets

fev 65% ois Viren 2 o.¢98 ry ee Se i cae ee tes .

’ tint - t ° e wise 42% > ee 5 lela tees oo

4 CS: a 63 sy pans weed he Pe ie, “te ERNE ee a — ll hh ee fo)

‘POTRE BN EeenRen- be eckte Cn 08 Shes Saver t

$3 o +3 TEES s- vat

vi aac Sgn Os GOATS 2rdusisvatins; af Sch pe can

ce? 32¢' 2 ri { f**3 AASB Vesee 4 pe poe Sere ee ibe - * > tacdiatr hak eth s mE 2Y'~<

drancueat “. ‘tr4 eee sO) OF Sal MK Goliver:, n° ts}

° apy seth WLAL Der seosouele: hee ppc eo ot

th Uh? cgnabllition Greanncmatad Gee fe EER SOP ey

oars Gil daa - 400 ‘. oy pg ePaved er Us Seca t- gs lh a TIA <

a 8: 0 EOL SRe *: $ at te de | Z “res” QA Pome ars | i Ah, . Se a

chould prccuse 2 ous tants m2) 07 de: aw ras ‘oe east Csstyant

cd a fe seer at OTe yas oy Cras 3 ry out 2 oe o ®

Viet sone oe Mien «Bas. © ee ~ « cu: tebe Cots eho) 5

oe a AU: 8 SI? GCiTow ld,

. Unless: accra Biante P aig SALELERA ss °

as inerlination in Gslivariee cng sere oe ensts throstensd

oe 04, 4 é ors sae oe « . oo’, -?

ait re : LVRS eS 4nd J. &., Yregehs ee NS Fees Im a

— | oe vious W 413 Cn0 pret Be cg ~~: a “4 ooro as Le ea Ger. es id

BHD NM>4 - *one CO aNd a" OD sys S35 BAasecas rae

’ oS wdlity 00> tHol2 in: 299 dias a: » . o¢ ole wit g 3 ~

VEEP Dic; 2 At ae borne by Petires Hoth

ps ae wiles O2 Co, iSDROe Jace aisg) Rm og "hes Mec 4 we

hin itions gainet @ieortrinattes art MME eta tutare nyo -

q yee oe . “ * as 7 . .

Anvecd nd Yostrain’ of tress,

‘ Neantte tha enn ;

See t ~ e bib Talblehals Ts) Pe 8% 3 :

.. the uresney of a cotution SONGEANS O% plea Coyylerwoenta paras

wm 2 yttae ‘ > ra, ¢ bated dabble Pett eo wAY Fie he we fou te POP

@ beer? S 3} bg ir 4. ? a

end Lom that mispose this lotéor 4p baton en eee, Ley

. “na! ° Fae ei “. ary “* : $;45-e-3 °&.

a. A : ad ve 2 ier Ate Pin

_ Fe eo chine COM, &s ctcrney fan @-s. ~ fat vs oy xt sa be _—— S Sd ain e

' Lact Or Omatana “dA a se eal teal elas nany . Bemdinrw An ent te

Se eae ee OS Se VIE hy Of bone pttines “en

eres S3 "naar. Ee, i “© oe < 4 80 ws & a 640C3P3 “S8Fy anes,

, eeorSes oro teins with: s21¢c b. Ses? OO

. : eo dd mrt ane we ~@.

o*s,° . 4 . . *

: ae. ; : Yours Vs {rude

* i ° . . . ot? gage Et e

. ° [Vr 2%, 0 Qe

7 , . : . Hy SNEeue wwe uy cc eae

a . «

‘ 4 « - 2:

‘ LY: fal se ae tas mt

: ea FE PS ors PAI

. ad . = >i Gedhetp acm open ea, ¢ «6 _- ee * ni

; Wigs ose peniccec eee

“ - CG oe ow oss e

AX:1620 ' id

page 3

(Letter-Price to Atlen re e Boeing senieleunons 3/30/58)

"Pegs 3 = r

re Alnplece _Coauony

te ehh SOth, 2653

Oe OO: OO we, te eee. eee ee te at as ake le Se

% .

.ces Mr. RY. Paracel

oi SSNS Worle Airlines, Ie.”

20 Rachawds Toad

Kansas haha ts Miscouss

i a Faynend ey Cock te

APMTCWS, hurtin, C Ceupbell & tradicy .

2299 Culf Bulléing As

4. -

Hows ton, y Kop ete)

ott PRESIDE HT

sat THC OCUAER

(Letter-Toolco to Allen re Boeing Deliveries, 5/8/58) te

Scattle, Vovhington

‘your beliefy that you bot completely explained your position vita

‘Bughea ro; mosstatives, Hughsg has been treated by boudny: ‘with

- Ge2liverios of Model JOT-220 Girpicess viLL be nedo to iuynscs in

DX 109, page 1

AX-1621 a°

_.& HUGHES TOOL COMPANY ane

OQ om - axccurive errets =. * ae & ‘Z ie

.. io |P : 7 SWENTY-BECOnD #LU0R GULF SCuUILOING

| HOUSTON 2, TEXAS : ee > (63

i a ne DX-/O1

Re: Your File 6-1190-2-3(6 9 *

3 ‘ | ms /fo-

Ur. Willdea 4. Allen, Preoiéent ; ; Rae

Posing Airplcne Coxpany he es ae By

Deer Hr, #Llen:

: ‘. |

Ve acriovledze your lecteur of Aur t) 24, WH, viereis you etatud

Mepect to the delivery Sesue art thct » to the cetistertion of the

coaplete feirsess emf epilty wider tte contracts’. It is tre

tant cluce our Lotter tw you ated March Jy, IVS, eaftitional

feets cud points of view hove teen Covelopet in dteruncions be-

teca Meuranontntive: of th. wee Cagundess DUT It aA Que aticashble

Wis Jour position haz boon “completely expintned ed w etili

Con ESL Coyea Chit mughkeo bao been trocted ‘with complete Mirness

Ond equity v8er ite contracts’. we €O gpateciute tha cooperative

RBatser in wileh you have been Villing.to Gicouss the probdics,

Frior to the recent mectings in Seottlo it Oymeanxd thar sins

eontowisted Zaliverica on G basis resulting in cone aeorce of ~

Cicerinivsation, but *osing's exuct intentions vith Teagjpreat ty

Galiverigs voce rot then WSN. Lo2ing hes roy etried ths its

Cech & cogisnes, relative ty fneriona Aly Linco, thet bt tho ex4

Of cash month soertean wAll rot bay a certificated adi lene of

vwentage of more thay five cispleses erd that during eath nonth

thio caventaze to Anerionn wil Slucvuste, Rever core thas eight Pe

txt cower lesy then tro, Tart essurenes, thoveh linitiags the

Cogrse oF? Gissrisinstion, dosa not restore tke parity io dcliveries

fo vhich Hushen ie rigutfuuly entitled,

If Esoing'a oristrally ctated Policy stihl proveiled, (1.0., thet

fosirg wuld net for SAY CUstGser Kine & camiltient cones rains

Telotive cocvense of Gelivery, exesnt by eycelfyizg in the contreet

Fosviculer months of colivesy) ond Lf the entire Kogol 12) prosren

Were cocolerated ecuslly with boolaz's ixproves PCustloa cepcslty,~

PRICE

Ax.1622 ©

DX 109, page 2 Peas A

(Letter-Toolco to Allen re “Boeing penawentan, 5/8/58) cs “\

Xp. BEL ina re, Allen | : gee Page 2 | ee Kay 3, 1955

pasricea's evartsoo vould O? rscessity ba velucod through tue period of

Wats Celiverics. Tbrt weowlt is haesdistely cypcrent from ecanparing the |

p= contrasts (eves vitkout giving wu tg » the less formal vovannchegaps ta habe

which foutas nufo to Mr. Beuhes yorvenally, thst THA could eccrescce sere

| Wiss o9 coon eo sserican). Kecther or Hotty it vas ever aE e> “f2ir"

for Iceing to have offered to the intuvtry dolivor ¥ positiocs costesporan-

cous ¥ th. sscevizin' a, that offer vas esosytol emi io ro lenger ofan to

meviev. fo doutt “enmalsodp RS2 contenicd thot na cn covlicr custuser it

is ertitind to preforrstial deliverics. uch canteation La erraedies Ca “

either legal er sral Groanié, Lovevar, valeea vith fcricen Beelog den

Vizeei from ito enasunced policy ceainst eaguense comultacuto. Despite

ths resuiting pece:sres end extsrrosczontn, Boring must now cecopt the

‘Fooponeidbility of cuvforeing equitably the Gelivery ee of ell of

its ¢cutrects.

Socio nitigs? ng assuresces, waloh estoblich a taxiwmzt dlosacity o

the esl of cach month, isvld be wre croweraying LY Loaldty;'o apon S cotiite

yore esteblistiod oa a lente thot vould 2t least ereeto thi: moxinuz pros |

bility of an oplichle divicias of Geliverios within ceah mouth. Ao you.

. Burs, CA engineering coatewrse was held in ‘wattle of Aorii 17 for tho

| Argos of cleritying thta 900 se OT tha prodicn, uforbantely, iu tho

‘.ptoxs thee ovedlesle ant unter Posing'’s solf-Laposed cacurity restriciicns

“way of tie ecteric! fects vers mot divust te Lights art those thet ors

WuUENw digs oh soe a at etigtcly Goowr ow qusetions.

it is to te hod the at the eurruat couversaticns vated Mr. Riches ia having

teth with you e7d with Hr. Yscll wih] soon profuce a rmecolution of thes)

iscvss. Ip the sscudile we trust teat sou wil. ogres with the propricty,

‘Af sot tha cooorsity, oF our witrholding tre inetsLinent poyncato.

Yours vory truly,

WPidtyon

C3 He. Royocosi A. Cook

ba, R, WU, Ral

‘: GERQx , é )) A yi ee \, N AX 1623

ae, 1 /% DX 116 ye

sw }-/s-“ (Rourke Memo to Rummel re CV-880 Deliveries, 1/15/60) ~*~

| | the call

“ "9 iss NR. We. Rew trom: Re Re Pacrica Copies

| ADOPESS 329 Usdicoa Avene. aoon.ess: 10 Rickerds Rowl Mere Me 3B. Termon

civ, saw York, We Yo ‘city: RKaases City, kb,

. - bate: Jonnary 15, 1990

SUSJECT: Convair E60 Iolivery end Cortifloation &

feronct TWA lottor dated 1-13-60, E. NR. Permat to R. XK. Fourko, attached, z

; _D i be

Ti ¢

e” : Cy

: ti,

Confiraing ry tolophons ocnvsrsatioa the ovening of Jenrsty LY,

I ca ctioching a’auscory of ths status of comploticn of tho

first &290 circralt that TH, vill lizely recoivo. Noto that vs

‘octinato (escising no ucok-ond vark oa tho part of Convair)

that tho firot cirplens vill not doliver wntil Murch 2. Tio

cocond elrplend would bo apyrodizatoly ton drys latscr. Daley

of dolivery tatil this tics vould mako Ait dapoysetble to ators

eorvies by Arcll 1 or 15, ovea aseczing the alrplonos wary

cortitied ty thon. Maroovor, all ovidenco that vo cen obtc4u

without directly dlocuocing this with Convaly Indicates that

tho airplano will rot csrtify mtil May 1, ard it io vory

possible that tho cortificatica will bo efter. that dato.

Tnloss sccothing ie ders to couso Convair to expodite this

Frogrea by ovortine vork, I cennot roco=zend that TWA continias =~

to plan on tho prenicos with rosprot to Convaiz oporaticas t9

now ineludad in tha Jet Plens & Prezisos Menual,

Thoro icy reasons vhy it 4a doolrablo to ceatines on this

basis, but I think that wo aro doing ths varios copmrtuzats

nelsving plens ca thoco dates a diccsrvleo,

ERIC CS ead

Attcotraent ~

AX-1624 : DX.120 | | ,

2 (TWA Memorandum re CV-880 Deliveries, 10/2/59) .

- = e- b&b teste i ct +3 sf

Chopter:

TURIA ae Title: Aircraft fvailady

AND

lid a Subtitte: 1.3.1 Convair 889

“ait ; Delivery

PREMISES

Fp, SO Dore: October 2, 1959

e the Delivery Dates of the Convair 650?

: Assipn=ent

Available for

of . Total i . Zraining, Pre- Available

t TWA On or by Delivered Accumulaicd service Mods. for

ed Musher Mo/Day/Yr For Month | __ Total _.. or Other Use Schedules

* 8802 12/10/59 1 1 1 : )

830i 1/25/60 Shee 2 2 - 0

* 8805 2/9/60 1 3 3 0

8805 3/15/69 4

6807 3/24/69 2 5

€8058 4/11/60 i 6 ae

S09 3/3/60 7 ‘taut = as “ oe

8810 5/17/60 8 ey A

8831 5/39/60 3 9 Sem

siz 6/30/60 . 10 ae hee

6813 6/16/60 il ‘ <

8824 6/2:/69 3 12 “

8815 7/5/60 13 :

8816 7/27/69 2 14

8817 8/2/60" 15

882 8/18/50 i6 oe

88s 8/24/69 3 17

8801 9/5/60 18

8803 9/21/60 2 19

8820 10/4/60 | a 1 ey

ey: : as

Paansing & Researsh

= ei f | | | ie

THY.

DX 122, page 1

_— Memorandum to — re CV-

oly ae

Theo

an yuofiticial

Ono in Janus

Two in Fobrusry,

None in Merch,

Fivo in 4pril,

Four in Mey,

Five in Jue,

Four in July,

Fivo inj fo mast vy

Four in’ Sop TELDGS e

Xs ~ ats.

Fol ~o bein ; Soto: $2.26

'-. Wes relecscad to cakeation

ntsar.:

hae Py

Ds to pur this Oe

navi i cation) portion oF tho

. >

cv: Feed ale hele head art sy.“ gos “a¢: a Bates d te! ~

~ :

VOnValIte

Ow ext wo airersft, No

¥ on R (Fonction end Rel

20;

planned, Tacy eso no.

Procuction stopnsa oa thcs

firssafs wanulectwring “Oe

fos ecces* _ 26 Out OF %:

Jexuesy o> casly Februcsy

S&isevalt we nvr a an

ASSOC TS 6

pe. ds p & bons 0d

er O

sf fs ort

IM QO b* ©

US om @ J

“>? «PSF th

> oo ee

5 f .

~ a

’

wan w& « Rionas's wee

Convair sstinate of eakivery = 29%

sxy, (a xozoto

wll CCS suring

very tricat Ksliy ¢

ho word hes

O Deliveries, 12/18/59)

§80S+54

copies

Je Willies Boy :

3155 Pacifie Highwey Mr. R. K. ‘Rourko:

Son Dis :ro 12, Calif, Mre Ne. Re Parrot

1S Decemdexw 1959 !

_ FROM:

ADORESS:

Ciiy:

ststus of casly Celiverics hes again

end

9 Ostebs> 1959, aircralt menvtecturing

on 9 Scec-suer- Tt Tne _ mons ‘

nto the 0 end nications

a2 ication tenting, howeves, no

~» bee hea reds hye WEA ees

az}

oi4 Cert:

ptescran hy

end BO. 8, are no longer beinz readied for

. g end TWA Plight training 3°

are rd E.T.Co. personnel,

1530, 5 Decexdox 1959.

4 will bo ox Zirst cozple% vO cirere

9, wat

cxd could con 1coivably bs a late

no henge>

colivery,.

No. 10 has rolled off the essoxdly

geca acrylic protective. cost on

ssn rec2zived es to how this

oa tha exvcrior, however, it has tho H.7.Co.—

20 - le to seated o> get

— of course, results in

o lind even though tho

i en ‘bs3é =28%9 that Conveis

te. a-0l3 got ah 3

: as wIzseTact won p Ray | ch vty hel

Voss ¥ % awe aA S Bmw eyewash

e- a-s¢

> Gore GD Bivens oes POCO UO Soe |

pe PTT as Pa

Sours Jovacee re eee eee ve .

. .

*e [a

DX 122, e2

: E ‘ ee §£0S~514,

o:' Ms, BE. E, Ceanecy- . from: J, Willise Bev . . COPIES

$$ ADDRESS:

irs . aes cma « CY: é ¥ : oe

ae Date: 1E Docembis 1959 Peay since

<? hag ny “e. ——_ ’

. > ° ‘a é vi : #* . . 2 “

. me ee .

: . e *. . .

+ , a: .

. ee s ‘

. ‘ i 68 °

ittached is a pecduction a rose oss causrt for yor information .

. end Gistetbuttone. 2. ' ;

. . gs me ya ee s ‘. " : . e a

oe eae a eae ont en . : ;

o 2% Oe 88 3: :

ee pss g set Sees :

af . . . Py Pe f *; >

a? = oe e ieee ‘ ee " @ i.e: ° :

: Nea ng a Se ‘ 2r

he. <a a de ae

oe? ae: J, Willica Bow, « ef

ae eerie Maan «Ye Ba - ie, Mrsraft 4ecoptenco ee ee

we as ses i x "Ze A". é eo — Convey 2 a“ a s ss

. tw Be se DR ee oe ; : wl

ee wBsio . Oh aes Pa ae ae be ie,

: ‘ . ve ~- “<° tee = ee: J @ “A a ye . : 3, *. ae kes .. Big a r

ety 3 F date mo de oo 18 ee i * : fn es : : ° : : : ° :

c2” Gitecbessata (6) et ie Se a TEE Se 3,

id vs _ ‘ se i i oe 0 4, ‘ : «

;

i (Bew ecanetememeal to —— re CV. Deliveries, 12/18/59) —

a DX 124, page 1

Fith (Parmet Memorandum to Rourke re CV-880 Deliveries, 1/13/60)

: bx 14é¢/

vo: R, K, Rourko FROM: HH, Re Parnot - » one

-pooress: 205 Airport Aoprtss: 205 Aiport :

civ: Kansas City city: Kensas Clty ‘ ;

DATE: January 43, 29 0 &

sussJECT: Statua of Complotion of — 680 2 Kircratt

pa rosult of our discussions, I roquostod’ Tiny Gordon to reviow tho dolivory nchoedulo|

for tho first two Convaix 880 eairervft and givo ro his ostirate of whon thoso air crati

pight ~ dolivored, Thus, wo havo a comparison of Convair'o ostinate va, our own,

or roviowing the situation, Jinny (with Bill Bow prosent) advised the followings

io cotimaton that tho Ho. 9 aircraft, which Convair statos is schodulod for dolivery on

Pobruary 12, 1960, will not bo roady for dolivery until approximatoly March 2, Tho Noe

Qairplane for.which Convair also estinatos a Fobruery dolivery is approxinately 10

orking days bohind the Noe 9 airplanc, and consoquently Jism eotinater #10 airpleno

ilivory for approximatoly March 17,

iho roasons for the abovo ostinatos aro as follows The #9 airplano in outsido tho

bengar undergoing conplotion and Convair final inspection. This will not bo conploted

mtjl. approxinatoly Fobruary 1, Following this tho airplans will bo woighsd, This will

ako ono day, Koxt conos olectronion choc! kout for which Convair ostinstos ten voring

ty#, Thon coxes Convair pro-flight of two deys Lollowod by Convaixy predjuction flying

hich we estinate will take f4vo daya, Finally wo ostinato our finel inspoction ani

mcking shoots along with TilA aecoptance flights will taxs four days, This rakes a

eee Ae ese “aay6 sat Suvsiiay 2 wich boings tno ostarate vo March 2 as

weviously indicated. | ee,

It should be pointed out that this.estimato is-basod on a five-day work week with no |

artimo boing exponded, It is our understaniing that Convair doss not intend to uso

wortime or to work wookonds to completo those ciroraft.

ho above estirate is based on known factors, Additional unlmovns whieh could altor

mo above eatinatos inoludo the following itens which _— not you tac fully sansa

fe Cabin door intorohangoability chock,

‘ es Eight cqrigus replacomont dononatrationd.

4 3. Cabin soate.

te Tochnical problems unknown at the presont tino.

+5. Rovision of electrical wiring above the cargo conpartnont (FAA advised they will

__ not grant a visional cortificato for carrying cargo unless this wiring is |

protected). ! o é

rocuat dh al rplans wheroin thio

Sin Diego. A chunk of paint

ches bigh and 2 ae long L011 off tho cirplane and ther are blistors ‘tho siza of

man's fini cll ev drole SS%e C2 cours ui nis gdp as: w~ Wii route) a conuptote

"l ating. Other ‘herd which have boon paint La provieucsdy mein Bo% Oxpriemsa Gay

"sgn th been! wo havo had an incident on ‘gna

irplano bogun shodding paint after a recont raiustora 4

ee 7 DX 124, page 2

PP: (Parmet Memorandum to Rourke re CV-880 Deliveries, 1/13/60)

1o: = R, i, Rourko : FROM: Ne R, Parnot Copies

ADDRESS: e * Abpatss: * a ie

cir, ae . om 2

ce batt: January 13, 1960

ae eee eee ‘= Pago 2 =.

{tho synptozs, Early invostigation by Convair onginocrs indicato tho problon

n tho #12 airplane is dus to poor clcaning of tho aircraft skin plus the possibili

ofl or wator in tho cir Jines of tho paint pxossuro syston as a rosult of irproy

41toring. Vo havo ostablishod a hich priority in correcting this probloa and aps

nat 3% 40 not a problen baric to tho Convaiz paint syston, I will advics you fur

or additions information bocomos availablo. | | Bs

Aes Oe Wee a OE eit te ‘, ae ee . ’

i Ts - 38% ’

cee? wma . -*. gs - ae 4°"

; \, Roxana Re Parcot .

fas DX 125

BIES T Con Memorandum re CV_B80 Deliveries, 1/22/60) ——4__

| . FOTO

mo: . RU, Rurnsl FROM: Ty, i, Raurko cories

ADDEESS: = 330 S4sdicon Avo, ADDRESS: 1O Rickarda Resd

civ: = Kew York City Civ: Kansas City, Ko, , B. Fannon

. OaATE: Jamiary 22, 1550 oo

er Convair 660 Dolivory ord Cortification are IC ats ne

| iy ><

feroncat e Lotter, Rourko to Iuxzal, dated 1/15/60 sf?

(2) Lottor, Rumzel te Pearke, dated 1/19/65

‘0 boliove that Convair could conploto €380 ofrcraft in accerdarce with TAT

Mos vs f

“"9' — AX-1629

In your lottor of January 19 you raquosted that vo advics whether or not

plarning pscnices 4f ‘hoy rent to vork incustricualy, insludirg vestoma,

Oar rovica of tho stato cf coxplotion of tho first ar4 cocom aircraft 4ir~

dienton that neotthoy of thess clreraft eculd bo doliversd in accemlanco vith

Poco 1.3.1 of ths Jot Plana & Proriecs Mamel waich callo for Colivery cf on9

dirplaxd ca Jauzary 31 and tho tecord airplom en Fobrusry 19 » 1950, iT be

‘Lfova that if Convair Voricd eaven Gaya a wock on thers airercft to thojr

bcioua capability that tho carliost the first aieplano eculd bo eesoyted

erd Colivercd is Pobruary 22, On thin beats the sccord airplens could poo

oibly bs Coljvereg by tho last day of Pobruary, Oovkeacly fer such ain.

eraft to be éolivored Feosploto" te Eculd haw to cecapt itszs lils coxts

in less than firrl configuration, &s yon mxy Fecal, Convsdr procoatly tay

Wawe uisplisis win of BEALS On Nand, ron. ex KWhier era CoOnsiacred revs

| factory by car tepresontativos, In addition to this vo vould expect that

Procently wo havo no roagon to change cur epinion stated in our Jamary 15

thoro would bs a mnbor of "exceptions lottors® required to pom-it CooGp.anse

of airereft with recognissd ercaz ef doficicnoics,

lottor with respoct to tho 530 cortification data,’

Tho nbovo appearcd to us toto tho rost optinistic that wo oan bo at this

tro with rocpect to tho 830 citation,

Filet ‘Memorandum’ to aviknres lee oy of CV-880s, 2/8/60)

ree be Se THOxAS | : " OR. W. RusnKet

New Yors pee tera ae New Yorx

geri Feoruany 6,

Convarr 6290 txTroRration INTO TWA Scavics

. SF beste "s

. . ee ’ g Pant Wa

WF avecarRs TO KE HAT TW ioe esD ADY FOR el

of Convair $80 a1RCR rv $ OR: 3 Cox Tat Husne

Toor. Conreny.: c WE apana

TION SUAIHS. KY Wesr Sctas JEL : © TWA'S KeCei7r7

OF AIRCRAFT. FROW THO HusKes To . O10 | Fin ANY POSH

ITIVE CONFIAKATIVE INFORH TWA WOULD NOT RECLIVE

AIRCRATY. ;

Yue BiG QUESTION REQUIRING RESOLUTION TO penny on

"PLANNING PAZHISES 35 -- HOW Kany S80'S warn?

O@MER FACEYS, 15 OIscusssd in Tal ATTACHHENTS *0 THIS LETT

RECORKENS THAY | SE GIVEN A DIRICLIVE CONCERNING HOW HANY

TWA SHOULD PLAN ON AND UAZYHEIA UE SHOULD PLAN ON CONTI NUOY

O2 PAR +2AS5U, C8 sone OTHER Seciveay OROSR. Wivn Yuts Hauck Curse

TION RESOLVED, VOY PLANNING COLLO aTYCH?T FO RAKE U? Lost TiHe To

THE KARIKVX CXTINT.

ee SUV anu, PROVISIONING, TLICay FRAINING, GAINTENANCE

ANS JET CNGINE OVCAHAUL tented CRITICAL S72vS. F CoxvIxLOoUS Sze

quence ante tS SELECTEO, ALL OF. FHISE ITENS CICOKE HORE CRITICAL

' ABD CONTRSLEENG.

agemetes TuAT TWA's ey + Pesdeseds s Se . wNvoa saat Furs chat Bad

S00 PLANS OF Au URSIN? BEGINNING THe HONS? Crs

, see0LveD SHENTAYI CS COER

$$: | iin aie SE

v FOXS

WU RECOMMINDIO Phannine ano Rissarcn Pre nileS or}

PERTIRENT DATA.

AX-1631

DX 127, page 2

urke Se i of CV-880s, 2/8/60)

to Ro

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DX kg a page 3 of cv-880s, 2/8/60),

RWR are “th, ress sb m i 156x AVENE

csdpdidene ee Tat 8 Rew-Yorn 17, New Yous, |:

a +s wt wis

A. Oturvrsy ano Clarivicavion of KO Atacrary ror FLicnt ano Mars VENAHCE

TRAIKING PURPOSES. eS :

CURRENT CONVAIR PLESNING CALLS FOR Os Lehre oF TVO NP asRCRATY TO Hue

. Yoot Conaany puniag Fezrauary. Convair esvinaves OFFI Ct ALLY onc Fess

25 AND THE SECOND, uNOFF:c1 at Ly, MARCH 2,

Comarwrevisis 1¥enas Riceiven Yat MY Cexvizicaye FROW Tei

BuSKss Tost Conpany con FIGURAT tO: AND THAY CONTORWITY Ont

TO CCATIF CATE.

PLASONAL SHSPECTION OF AIRPLANES gS AND #10, TRE TwO SCHeDULEO FOR Fésavary

°ce

"OTLIVERY, PLUS 7URYKER OEYAILCO ACVICW WITH Mises. Roursc, Saw ake Condon

WNDICATES Frcavaary DLLIVERIES ARE HICHLY SMPROSAGLE, EVEN WITH CXTLaSIVE

Convair oviatixe. tad : :

iw THD LICKT OF CURRENT KNOULE PHEARE REALOAKCLE To NY ISU PATS

OLLIVERY O7 TVO KP VRAINING AsaRca, rs 3 t COxPAKY ae FOLLONS:

“Asreranue FS - os “arcu 10

Ataesanz $10. :“Marcn 18,

! Recouncnd TWA use THZSZ OATES as KEV TWA PLANZE KG PREBISES. ‘iow vi%,

4 RAVE MOT OSZN SoLE TO VER ; VaCOo uo AlacKAGS wii is - act be

DELIVERED TO ErvKER HusnTs i Fhy me

AX-1638

CV-880s, 2/8/60)

DX 127, page 4

(Rummel Memorandum to Rourke re Intergration of

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DX 127 e 5

- (Rummel epirontom to Rourke fe’ Intergration of CV-880s, 2/8/60)

eee... SASU

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tee ras ., TRANS YORLO AIRLINES, ime eR

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SFCARASSE CY THO, FULLY ELITIOLE

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EG PAR S 8 et: 88s GENS PS SATS SPCS5 75 Sa sta

wants OATA 7oR FAA ©

COMVAIS HAS KOT VET Suds ERTIES

cits UDERwSsy, NOwEVER, s

FRA CORTITICATICN TLIGKT 7

Decsx2c2 ee 7255.

.¢) %

Convair exeZcrs 76 ConPesvs 37S FM Pcarvcauauss ves7s Sy biacn Sisv.

Yue FAA coer vive 712073 To CONTAIR To CyALOAVE THs GUCSSR SvoTcH. Cou a8

RCPATS Vee FAA CFTERIO WO ADVEASS COmsEnTa To Onvs. Movtver, wus FAR nav

REC AE CosvesA® TO°SOLO VIESG ECVEL OSTING ONT SKOIKE CUY CLEMO TESTS.

THis SSESL2SSL7 ASSS OSLAY AND 3S A RLETUYVER Wace LOULS SOT 353 Pacy ce

Wotd. FAA cesinS tus Eossed Cri T26vo VERS Run Vis Vavy, KOSTVIR Tie

16 BST rz. Converse vids — CCRSSETLY 730K tay ts tHe FAA 87 IF saaicvs

OO% BSCDLENS EARCNTOS O2 PCATORuMICS FONALTICS. pats REVIEY CF TUNE AL 122

CPTEUS

Ovo7Es 825; c4vc8 sisbieraats 28; IEFROIENET oveek Cessns AND VERY ss

FERFOANARTES. “7 Se

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dacivasay asp snaarienat FAA acvs (nov spce:7iczzev ‘ant rerpaveo) COLLD Stray

GERTITSSAVICN covexD Romvate's CSV IMATE.

Tae UIVaOHautED OF uC AODIT ONAL Convain ceavsdicavios Psst egies £5;

TS SSreuens Susarscuyion oF a:aPiane §S sac wor apvenctiy Arcdereo

ceariniss 7 vise. Asaenexe FSliS Coss. oss yO czaeerscave|HMosnts Too Crorzan

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AX-1685

page 6

re Intergration of CV-880s, 2/8/60)

DX 127,

Rourke

AND RESTARCH

(Rummel Memorandum to

‘

MIRLINES, INC.

2/6/1260

TRANS WORLD

Convain's M

cok.

TRE FACTORY 15 CURRZATLY WORKING A TUOSSHITT, FIVE~DAY UZZ

rOweR Sencourc?

weed

FLICK

FLICHY

wo Crs

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(Rame Nesorandun: to Rourke re: Intergration of cv-880s, gas A

: AEG, er, RANNING AND RESEARCH re

Se pp TRANS aga AIRLISTS, INC,

RER oe tw oy 0 Marcon Avenue.

jebtes eke er Neu Hace 17, Nev Yorx ,

Rs. Wear ts PRESTRY SCHZOULE FoR HOMES Tod: Coxpany Osriverics?

3°

THE FOLLOVING VASLE SHOWS CURRENT eSYrHATSS oF Convaia 8E0 ofriverizs

VO THO MucHts Toor Coxrany ano ik couanies TALSE ESTINAYES WITH Tat SencouLe

ConvaArKsD ik TwA's Red PLANS AND Pasuioce” Manuats | WAVE SEEN UNADLE.

TO OSTEANING UMAT alacRary Lda {CAN EXPSCT VOCRECCIVE FROR THE Hycncs

: oe Too. Coseany e.

ECTIGH CONPLEYION ON

t i

AIRPLANE ON ue 25K. aie 1S SASED OX

A Ya. $s BY OPINION

RY Zexd, OLLiveRyY acceprance on Feeruary

- OfLIVTRY 15 NUCH won LIKELY OW Mizex 1Ov%,

qd» Vv

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Throw: I, J. Wiica Bou, bostdoat Popoeentative

booze [2:43 oy2

tr, Coxseotl bos trinfed =9 23 to the enters of hts Ciscusoless vith Coavatc rs~

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$22 om> tars, fa oR Casvorcatica ulth you ca ths phono a 1ittlo over a wash ni

expressed exten didhaticisotion with Coavatets tonZling of this matter £35

Te} Basics ene 345

fata te Chesess ehth.us tosthes tho fica sattings thst yos baw ‘solectsd a234

She Sequeskncats oF tho opsrctcca. ;

I c2 cre tht you oro cuore of tha ¢ sR GraVTISS Of having scltirto stay sottinss

ts ex oistins “Goaattes ax Sheso iro not aoadcé to gata the ortsa Flea,

#SeS CRS Se cvs bers oN te cette w 2D S402 COVCIg would bo fe? esse cation

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be Aczyusto cirissthiness clind cider ths entic TSRtal condkticas that vo

vill Pore. ‘

BS costaisly boro 22 ehfecticn to you providing xocdlitonel Plan aottiacs tn tty

Deenetine S2USIk, and oven wce yes to do co, ixt Gz cics-ticdestlicsn bas te do vith

Sho Zine cotiings thas you piczed, souky 2 ond 20%. Sinco wo wa kee 6 orate

Ante éstiy Wath 39? sitap sottiaz, this ssoa8 4h evi? be Gill bo woassasescliy ronelic: |

wt ths cstsst. Zt oheo means that ws will hav Sea & Sods c3t of cSerott dets |

tw saptay ths 20° flap Sotting., Ecd tio flap ctice colsctsé Luolvic3 c« 50°425,

V3 Vorld have sizinissd ths aera Ray ens poetetly usuld sot have bed to come

$00 Dersvay porlomseco Zou the 40” fice cottinz. MOTCOVSS » Sanss you oa vi Susiies

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Ti bocmzes covtly tooublosero to co thet Convet> dig not ecasuls wita us ubsca I

es ay ous Jot Seating expouteacs cod tho fact that vs aro tho rost knowlcazscanle

poopzo with sesrss2 to ox routes end, Shoscloro, ikaow fer wg egee wast La bost Loz

NG] eS 3 Opssatcce Just {3 posoine, 25 0? tareh "20, vo kevo Thaw £5,150 jot hours

@ have 2223 17,000 tokcoesiis end are comving 15 eittos with Sete.

Cozval> to corroct a very nidocisabdlo

velng dats ulthout coot ang to nats it

vio te Moy 15.! 1 tolisvo £4 has boon tho epcoral. intent

of th Bpoeakmtatton ond tho contract that Ceavets vould voz: clocoly «2th tio

Gprctc: in colining tho opsratienal anniicatioa of tho aisplens, It is uafsvtrmate

feat I most civ this, tu .¥2 heve hed co macy ecasoa of Convets nakiny dcosisioas

Wetrone Consulting us. I thick that one of tho largest srobdlexs vo Feyo bea in ow

aes 2 ° oer CA qj >» x «4° 4 . An

mitust coolines bs tssa tn thts area, FS kes not boon OD o=scwcezcs ksostofeso

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“ -< aa” sae a vend . en mee oe owe ae ge _ ~- . -

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(Letter - Convair to Rourke re CV-880 Deliveries, 7/11/6.

July 11, 1961

Noy Toe + Dar

Mr. R. W. Rourke

Anbistent Vice Prosident ,

Equipment Piznning and Development

Trans World Airlines

10 Richards Road

Sansac City $, Mo,

Dear Ruse: .

Since your teleshone call last week regarding the dclivery echodule which

Bili Bow had recently given Mr. Tillinghast on tho remaining 880 alrcraft

eesigned to TWA, Ihave porsonelly conducted a very thorough analysis of

delivery situation, ;

At th oithinkit is worthwhile to review for the record the delivozy

pictu of this date for the sixzecn 380s delivered so far 141951. You will

recall that in the middlo of March of this year I mat with you, Oz Cocks, and

Bob Rummel in New York and presented Mr. Chambers' March 16, 19$1 letiex

to Ufr. Bew. giving the ho eVgreos=é ca the thtact avissiule af Jannory &, 196!

and submitting a revised schedule, At that timo I pointed out that whlio the’

first nine sircraf: had been delivered approximately on achodulo, with no

tircraft clipping more than one week, Wwe anticipated a‘delay on the remaining

eircreatt because of our inability to forecast on short notice the task involved in

preperation of these aircraft becuse they had not boen previously coraploted

nor flown out.

With the exception of aircraft No. 22-00-33 which encountered excessive trim

Gitficultics xequiring ‘in excess of one month to correct and No, 40 which waa

ten Cnyc-lcte, the noxt seven aireref: were dolivercd ahead of schsdule. (Soo

4ttaciment). Actually, this is 2 romcarlhably good performance whon you considsr.

thet roost cf these aircraft had bocn stored outsic= for Over One yo2r and roar

not only complotion but extensive modification for receat enginceriag changea

DX 142, page 1 AX-1647

arn ra

oval

which were not anticipated at the thine of the 16 March schedule. (Sec Attachmor:),

Wo new ar required to dcliver to you the Inst three aircrait, specifically,

Serizls 6, 19, and 3. You will recell, howevor, that the 18 March schodule

bussusted 2 delivery achcdculo ending July 24 for = total of Wonty aizcrazt but

including Serial Nos. 39 and 34 instead of 19 and 3. If{sel that this schedule

t estlafactorily. cince the condition of 39 and 34 Was orxcoliont

at the time the schedule wes promised, Yeu electe:? net to furthar pussuo tho

¢ Hvghee “ool Company that these alrersit (Nos. 39

pod 34) shouls be assigned to TW. ix suite of the fet tint you were successful

covld have been mo

possibility or coavineing th

wetew

ye Pe

AX-1648 .

DX 142, page 2 (qt |

(Letter - Convair to Rourke re CV-880 Deliveries, 7/11/61)

Mir. R. We. Rourke _ . July 11, 1961

Pago 2

Unforturstaly, tho rosult is ther tho throe semaining assigned alrerat for TWA

include Noa. 19 and 3 instoad of Ne. 39 and 34. Tho said remaining aircraft

(i.c., Nos. 6, 19, and 135) are tho ones requiring tho prroatost ro-werk of any

of the other acircratt and have beca in storsqo for the longost pexiod cf tha.

fis We O>o¥ate the sysiomer on these elyeratt wo find that exteasive removal

ond reiurbichment io xroquired rad in anito of the fact that wo havo nocd pasts

“extensively freon the remaining Hushbos Tool Cosapany aircratt in ordar to moot

the TWA nchedulo, wo axe having difficulty doing 50. Wo aro continuing to

boad our beat cfforta in this diz uction howovoez.

With reqaxd to the schedulo givrn to you by Mr. Bow showing July 15 fox Ho. 6,

Ausust 15 for No. 19, and Esptumber 15 for No. 3, thove dates axe not faxallax

- tome. The datos on our 16 March lottor wore July 2A, August 21, and Angust

respectively. At tho prosont tia, do not anticipate that these dates wil bo

pubdsiantisliy clippcd, oxcent for No. 3. No. 3 has boon the moat dificult

Bizcxat td comploto since it waa the fight test nireraft and had to do essteasivol

ctrissed and re-built in order tv delivor it to you co anew alrersft and Uy

modificd to tho lstost ongineering ccafiguraticn. In other words, I ical that wu

will Galivor within ous wock of ths July 24 and August 2] dates but No. SHLD

probably alip st least thirty drys. . :

I rocogaine that Mr. Chorabers' modified bis lottor of Mazch 16 by his Iciter

of hinxch 24, but Ido not beliova that adequate coaaidoxotion was given in the

24 2ésxrck lettor to the effect of your demands which crested the 24 bfarch Lotter

‘Iurcvld, therefore, profex to strnd en the dolivery dates of 16 March rocognivk

_ that the cehodules for Nos. 39, 2%, 9, and 1& havo now boon violated bocausc

prefazeace was givea to the aircrat assigned to TWA.

. ta

You indicated evor the telophoan that Mr. Tillinghast had lost centidanco in

ave

Conveix's ability to schedule alrern%, howevoz, in view of tho above, I facl ths!

we at Goavair have not had 2 propox opportunity to inform Mtr, Tillinghast

recssniine oux porformanco to achcJulo aad come ef the problems which have

‘boen osporionced in delivering sizcreit to TWA.

In view of the fact that Mr. Tillinghast has not had tho bonefit cf cur counsel, |

would anprociate it Lf you would at the voxy least show him tits loiter. Iszculd

smpsecizte, howeves, the opportunity to moot with Mr. Tillfyghnst os:

with hima the totel histoxy of the S80 program which, a» you mow, hrs booa

a revicw

DX 142 AX-1649 j-7

page

(Letter - Convair to Rourke re on B80 Deliveries, 7/11/61)

Mr. RW. Rourke July 11, 196

Pago 3

" entixely satisfactory from a dolivoxy standpoint for our othor customers,

Itrust that the above informatioa sully ancwors your telophono inquiry. If

you desire any further Laformation please do not hesitate to call upon mo,

GENZDRAL DYNALZICS/CONVALR

R. C. Loomis

President

x 14 e

(Letter - Rourke to Pl aa et Deliveries, 8/2/61)

August 2, 1962

Iss. R. C. Locals

Pocootésat

CDISRAL DYUMECS/CONVAIR

Sen Dicco, Colifornin

Dear Bob:

32 avcpn.ce tv your loticr of July 21, ploero bo ansurced that your lotter hes

tooa boousat to Hr. TiLlinghast'o attcation, end a cosy of thio raply fo likovice

Qoiag cout te bine I feol cure that whoa ruteally: cvavoaioat bo will be glad to

— th you end hozy your ccosate concoraing tho totnl hiotoxy of tho &20

by sory

Sno rosy firrortent cupsot of tho comsnt is for Conveir to fM.nd wayu and rans

' far oxprditing dolivery of tho rezaining olrcrart, rostozing dolivory dates to at

Jocst thozo committed in My. Chanbors! lottor of March 24, 191,

In ofd of o {wll undoratanding of backgrownd, I think tho following should bo

tfonticnod, coma of the cvonts, of courvo, antococing your porconal cornoction

with tho 680 srogrea. ‘

is Ao cxocuted in 1955, tho 850 contrect callod for colivoxy of provisionally

eostivicatod ciscecft bogianing in Kovenbar of 1959, with Mull cortifoation

to bo acecanlichsd by May 1, 1959. Tho apposrp to havo boon, cxcndod in

"March of 1990 co aa to provide a rovicsd dolivosy schodulo for fully

‘» cortified aireraft, four in May of 1950 ond camo four or five por month

im cach cuocsoding conth witil doliverios woro couploted in Movmabor of 1960,

2. Eerly in Moy of 1960, Eughoo Tool Company assigned 20 of tho 30 aircraft

to THA.

3e Convair rofecced to honor tho eraigesat to IWA without conMirnction Seca

ths og Tool Cazreaye Ducirg tho vtolo of 1950, ond coatismation woo

received caly wit recpect to ono clreseft, Golivoxod in iay of 1980, THAtO

offocts to obtcin festior Colivesy parce ant to the nsaigemont vore fruiticcss

watil Jenucsy 1, ISS1, ehon a cscond cirplcne vos dolivorod persuant to tho

Lotter Agccmont totucon Couvais end THA datcd Doccabar 3D, 190,

de Ad thro passed botwoca Pky cond tho ond of 19, Convair ropentcdly ascortod

ito «iility to dolivor tho 8500 wry pocaptly. For cxcmplo, Conveir'a

Stor of Auguct 2, 1960, conicnatod 11-2-3945, dot forth a colivosy schoculo

3 in tovendor cnd 4 in Docccbor. You end J porcozally diocuscad tho eolivozy

Git<aticn in your offics just a fow vooke boforo tho oclocs of 1960, cud you

adcorted that vith applicction of ovortiza offort a total of 10 alroraft

could oti]l bo dolévored bofcro tho cad of 1560.

RR. C DX 143, page 2 ARAs6i

exERU. } (Letter - Rourke to Convair re CV-880 Deliveries, 8/2/61):

Qa this backsrovad, wo nest taln Ascuo with exy Inplicetion that this story togina

vita tho doscevy 6, 2901 cchcdito, nod that the dnauaszy 6 cchotule was coao in

beste. Ca tha coateaaw, tho Jauuacy 6 sehcdvlo veo a pevioton of the many pre=

esting ochocvles, covolorsd over a longs porfied of tse, Contrary to boing concaivod

in besto, the dcvery 6 achsdullo chowld have tsen a rost coliberata end conaldcre

ovalustica of all tho factora in tha cituation, Eonca ove ineroasing shock that

each Guccsscing dolivasy echcdvlo chowd reticet oubatcnitel further slippega tea

ovr Ciocdvertaco. |

You toad to piaco tis bles on TWA for fatlvra to obtata anoimicent fron Toolca of

elonieras £39 end £34. Dosing ths Covolorcsnt of your arch 16 nnd Harch 24 lottors

Convefys hea intimate imowkedgso of the airpictsa thas wore escigsod to Ted end tho |

patusa of tho diccecniona which took placo loséins to ouch assigeionts, It is our

redorotancing tuat Coavaie head neny mos Cheewavloan with the Heshoa Teol Ceonpany

end cortataiy hod knowliedgo of tho ascsisnncut cchsevlo. Tho nirersft asolgnod to

TA coma about efter conukdorebo discrsclona and nogotiuttons cad by tho Mareh

ato Shey rormosonted a contractual vadorstanding botucch tho theca partion. TWA

wes not in position to earsu a chaxgs in thoso conditsonn. You rontionod that it

WAD OVF oQuirccont to inoliot on tho dolivesy of tho tyonty canicnod airplenos that

cavcod work offert on tho cnacaignod alrplesoa to to postponed until Jaost. Had

CGsavatr olootod, howovor, to maintain tho staffing on tho 600 ywogren it head in

brxil, thoso last oirplenoc could havo boon conplotcd 4n an ordcorly mennos fox

dolivery to your other critemore Convair hed dn 4t5 honda tha coatsol of ochoduling

zx ca thoco cirplonos concurrent with the TWA cslivowica.

Rolaitcd to this, you rontion that dolivosy of ThAta GS0a woquisod sobbing of prrte”

{soa othor cizplaces. Tats wo aro ovre waco Convois's Ccocision, and it wad macs

pocoossry ty Convair'o inadoquate provictening of oxtra conpancnts in order to

provice tho normal soplaccccate which occur dusting routing aircraft accoptancee

It hac beea ovr oxpexvicacw with othor ronufactyrers thet waits which experionco

fciluro duving acesyptanco Mying aro procerod in exesse of the nomanl qvuntity dn

tontcmplation of this oituaticn, Theroforo, TWA cannot accopt any ronponsibility

br blcmo for thio party chortago. a

fo havo dcalt with rost of tho major eireraft we2vfactirors in tho Unitod Staton

lusing ow corporata hirtesy, ond aro avero of tho wobleas conroctcd with yes

bundnoco. In cll thio oxpsricaca, kowovos, wo havo novas encavntored ouch a

lioperity botwesn dolivory schodvloo end actual dolivozicn a3 has cecwrod in tho

SO progres ath roapoct to thavair & boing acquisod by TWA.

Cc 4

In conolusion I nvat ropoat that wo’ inviot on Convair ect leant raking cood ity

lant provious delivery comuit=ont on 8€0 alreraft end bepofully to bsttor thocs

lates.

Vory truy/ yout,

f¢@

Aosittenut Vico Frosiédcnt

Eguipoont Mosning and Doveloycont

Rs JC .

3 ltr. Cs C. Tillinghast, Jre-

DX 146, page 1

” (Letter - Convair to Toolco re Model 30 Delivery Positions, 5/6/60)

2 ON Ako PR Sr

a Orytston OF GENTRAL OCYNAMICS CORPORATION

’ j - GENERAL OFFICES

BAN DIEGO 12, CALIFORNIA

PEREPNHONE:s CYPRESS C0418

May 6, 1960

by 4 >

Hughes Tool Company

_ Houston, Texa’s

Attention: Mx. C.H. Price

Gentlemen: —-

Pursuant to our telephone conversations with your President, Mr. Hughes,

some time ago, Convair undertook to hold open for Hughes .Tool Company

delivery positions for six (6) Convair Model 30 aircraft in the months of

' July, August and September, 1961. The exact positions which wc have held |

open to date for Hughes Tool Company are oie (1) during the month of July,

two (2) in August, two (2) in September and one.(1) in October, and are the

, ecarlicst uncommitted cclivery positions availawle for Model 30 aircraft.

Although tne holding open oi the aioresaid delivery positions has to date been

at Coavair's risk exclusively, Convair docs not feel that its commitment to

Hughes for the availability of these delivery positions can be continued beyond

this date, May 6, 1960, in the absence of Hughes' agreement to protect

Convair against loss as hereinafter provided.

You are advised therefore that, unless you shall have executed before May 7,

1960, the enclosed copies of this letter and returned same prompily to us,

thercby cvidencing your agreement to the terms hereinafter set forth, the six

' delivery positions hercinabove prescribed will no longer be available.

In the event, on or before July 6, 1960, Hughes Tool Company shail have

executed, and delivered to Convair, a definitive purchase agreement covering

the mantfacture and sale by Convair and purchase by Hughes of six (6) Convair

Model 30 aircraft, for delivery in accordance with the schedule set forth in the.

first paragraph of this letter, on substantially the same terms as those pre-

scribed by the attached Purchase Agreement, then in such event, this letter

a@grecment shall have no further force or cifect; otherwise, Convair miay on

July 7, 1940 or at any time thereafter cancel all or any of said six aircraft,

and, in such event, Hughes agrecs to pay to Convair upon Hughes' receipt of

: DX 146 = ;

* A » page 2

o (Letter ~ Convair to Toolco re Model 30 Delivery Positions, 5/6/60)

pwr

‘Hughes Tool Company - | . | May 6, 1960.

‘Houston, Texas oe Digs tvs

‘an invoice therefor, all costs which on or prior to July 6, 1960, Convair

shall have expended or irrevocably committed for expenditure by Convair

directly attributable to the manufacture of such of said six (6) Convair

,Model 30 aircraft as shall be so cancelled.

Hughes is hereby advised that the six delivery dates committed to Hughes

are dependent upon Hughes! acceptance of a detail specification therefor in

substantial accordance with that set forth in Detail Specification Report No.

~ZD-30-005 (Revision of 1 May 1959) including Change Orders thercto nurmn- |

bered 1 through 13, oo

As you know, Corvair is now at Convair's risk and expense holding open

for Hughes two (2) delivery positions for Modcl 3C aircraft for each month

beginning October 1961 and ending December 1962. These positions cannot be

held beyond July 6, 1960, in the absence of a firm commitnent from Hughes

to purchase additional Model 30 aircraft.

If the foregaine is acceptable to you, kindly so indicate by executing and

. returning to us the enclosed iwo copies hereof.

Yours very truly,

GENERAL va NAMICS CORPORATION

“Nn > :

. * : . é if F ,/ .Y ;

’ vo . od Poy. Ee

J.V. Naish

President - Convair Division

Accepted and agreed to 7 | . , ;

this 6th day of May 1960

HUGHES TOOL COMPANY

By A. Ai geet t. y

ritte (Zee Tree bet

Mi Poe ..

DX 148 .

Model 30s, 7/14/60)

Ve Spee?

a: soe a

MON

ae «te . -

445 PARK AVENUE, NEW YORK 22. N.Y.

July 14, 1960 - =

hughes "001 Company — - ?) x J+ 5

2200 Gulf Building .

Houston 2, Texas - _

Attention: lir. Rayniona ii.

ois Re: Purchase by iughes ‘J001 Company of

: ; _ Six (6) Convair }.odel 30 Aircrait

‘Gentlemen:

Tais will confirm our agveernents reached last night.

. Please rever to our Lette’ Agreosont catec Hay 6,

1960 wherein Lugnes ‘tool Company is advised tiat Convair is

holding open fox tre benefit oF iugues certain delivery »o-

‘sitions of liodel SO airczazt, and our Letter Agreement ox

July 7, 1950 amending sane. ‘

This letter will confirm our further agreement that

wherever in said Letter Agveencént of May G6, 1960 the dates

‘“July 6, 1960" or "July ‘7, 1940" appear, there shall be sub-

stituted therefor the dates "August 6, 1960" and"“August ar

1966", respectively. LO, .

ot said Letter Azveerent of July 7, 195V is in

all respects superseded serevy and shall be of no furtier

force or eifiect. ar

Please indicate your agreement to the foregoing

by signing in the space provided below the ‘two (2) enclosed

copies hereof and returning sane to us.

Yours very truly,

sr t

+ a af : ‘d ied . Ph Ph uke bane .

CSeRAL “DYNA Ics - Le aw CRATICH

LOL is

By & vA ;

sarl valianm yvounson

Fresident

Accepted and Agreed <o 2s °

of the /6f day of July, 1950.

HUGHES-SSCL COLPALY

- 7 f >

. By CLix-77 ¢ eS Oe

: Revjzond i, Froliiasy

“4 ee AX- se ote

DX 152, page 1 wae’

eo - G.D. Letter Agreement re Additional Model 30s, 9/6/60) | 18)

EUCHES TOOL COLPANY _

Exccutive Offices

Tveaty-second Floor Gulf Building

Houston 2, Texas . ; se *, ;

sete eee bg aS,

" September G, 1960

er2l Dynamics Corporation.

vair Divisicn

5 Pacific Highway ;

Diego 12, California

Please refer to‘letter dated Hay 6, 1960 Zron General

anics Corporation, Convair Division ("Convair") to Hughes

1 Company ("Hughes") and to the amendment to said letter

od July 14, 1960, and to Lotter dated July 14, 1960, and to

tor dnted August'G, 1960, all regarding Convair's agrccnont

hole onen for Eughes certain delivery positions fox Convair

iol 30 aircraft and Hughes' agreenont, in certain events, to

ect Convair against. expenditures with respect to such

ivory positions. ae

The next to last paragraph of the aforesaid letter of

+6, 1560 refers to Convair's agreeneat to hold open, at

woir's risk and expense, additional delivory positions for

1 230 aircraft, such dclivery positions consisting of one (1)

the month of October 1961 (in addition to the ono (1)

ober 1961 delivery position referred to in the first paragraph

the May G letter) and two (2) dolivery positions for each

th beginning Noveaber 1961 and ending December 1962. It is

enced by this letter that Hughes agree to protect Convair as

einafter provided, froa exposure to loss attributable to tho

) (2) January 1962 positions.

In the event, on or before October 6, 1960, Eughes

ll have executed and delivered to Convair a definitive

chase agreement covering the manufacture and sale by Convair

| the purchase by Hughes (exclusive of the six (G) Convair

el 30 aircraft referred to in the first paragrapna of the

wesaid ilay G Letter and of the three (3) Convair Nocel SO

erazt referred to in the third paragraph of the aforesaid

y 14 lotter and of the two (2) Convair todel SO aircrait

Orred to in the azoresaid August 6 letter) of two (2) Coavair

el 2O aircraft for Gelivery in January, 1962 on substantially

\ Sone terzs as those prescribed by tho drait of Purcuase

eencnt attached to the May G letter, tnen, in sucn evont,

s letier agreencat shall have no further xorce or OsLoce;

AX-1656 | e

ss DK 152, page 2 3

(Toolco - G.D. Letter Agreement re Additional Model 30s, 9/6 6

‘otherwise, Corvanir may, on Cctobor 7, 1950 or at any time

tuecreaites, cancel any of themaid two (2) aircraft with Me

respect to wnich Eugkes shall not havo therotofore oxccuted

aud cclivered to Convair such a definitive purchase agree~

ment, and, in Such eveat, Mughes agrees to pay to Convair

vpon iughes* receipt of an invoice thoreZor , all costs” 2%

Waich on or prior to Octcher G6, 1960 Convair shall have hh

e::pended or irscvocably comnitted Zor exponditure to the

extent such costs are directly attributable to tho manufacture

of suci of said two (2) Convair Model 30 aircrazt as shall be

So cancclied,

Gughes understands that the two (2) delivery dates

herein refcz>ed to are Gependcat upon Hughes’ acceptance of

the detailed specifications for the two (2) Model 30 aircraft -

in substantial accordance with that set forth in Detailed

Epecification Report No. ZD-30-005 (Revision of 1 Biay 1959) |

inclug¢ing Change Orders thoreto nuabered 1 through 13.

IZ the foregoing is acceptable to you, kindly! s0

indicate by cxecuting and retuzning to us two of the enclosed

copics hereoz. - 4 a

Yours vory truly;

BUGUGS TOOL COsirANy

: am! . s . ° : .

hee Lael

ayaonud MMe Ho

Vice President .

Qhites4.2-¢ treks

J fee % * .

&ccepted and agreed to as of the 4, aoe te? 3

_ 6th day of September, 1960. . eee en ee

CRNERAL DYNAMICS CORPORATION = 8s

“s stiles 2 AG, - oe ee Fee Te

By Fae et a ka hia, _ae 6 aS.

Bart DJ Johnson’ - oe se

| or aaa _

e .

@° *«

AX-1€

3 DX 168, page 1

. . (Boeing Memorandum re Conversations with H.R. Hughes, 9/23/55) 1

tS S Me My Ale GC. Martin’ "i

Bree a4 . "E. Cy Welle. Sm My hes DSR oe Be

, yo et AB. Connolly -<. : G. &. Schatror’.:. | 2p

t -

a Contacts with Howard Hughos (TWA) he eee

. The following is a reoume of the three telephone conversations I had with -

’ Howard Hughes on September 21 aad 22 in Los Angeles. Mr. Hughes reque

” that we keep confidential any information he gave temo. °° or td:

Ale : 1, «. Mr. Hughes stated that ho had information on good authority that _ Phy

v.. “,/ Ran Americaa could finance at this time only the purchace of 12-

‘sa SY, ow 15 jet transports and that would be the exteat of their commit- . 7:

rag 18S Ore mont at this tirac, ° -- mee cee a ae nh Oe

' mero i Tugheo feels that SR. Smith end Juan Tripoe are playing }

ko Oo

dclivery positioas, but

yesterday he said they couts offer TWA nothing entil LYHt, Musghas

avch. Gald that in yesterday's conversation, Paschall indicated that "he -.

ve: gould not care less" whother or not TVA evor got any Douclas air- °

wat 2 planes. (Hughes reported that he talked to Mr. Paschall yeoterday |

ii 34.0.0) while Paschall was at UAL's base in San Francisco.) —.. ~. ee

236. Hughes said that sbout one month ago, C. R. Sraith went to Donald |

**'.. "" Douglas and told him he thought Bocing's announced price of four

i, cys. and one-half raillioa dollars for the 707 would be reduced and asked |

- how much Douglas fatended to reduce its price for the DC-8, Douglas

” veplied to the effect that he didn't intend to reduce the price and, as _

eas ae “=: a matter of fact, he thought hio price was too low oad raight have to.

sac To 'feels this made Mir, Smith unbappy and that it was thea thet Sraith’

“25 ame to Seattle to tall:.to ifr, Alloa and made Bocing an offer. ¥

aa «+ New York last weck that Docing's acceptance of American's offer —

i MWae hedged with 90 many provisos thet Smith withdrew it. I told

"1. ) Hughes that worl on the final agreameat was beias held in tbevyance

oe Until wo negotiated the final specifications and that ao fer as I b:now

rs. the basic deal was "on", but Hughes felt to tho contrary, Kughes

reported that the American Technics! Team wac at thig time in °

Loc Angeles negotiating diligently with Dougles on the detailed

Tae

tate Se ° . o*, . Oe ee ; °

ee ee “+ ae 24-9 ae | ' oh) a

‘ ia # . ' c% ° . , . ee ae - °

8. ,

DX 168, page 2

*. < . , @%.. Pr _ we el > a a“. * cers aah . ee ° : e

ep poeification for t the nG- 8. ‘(The heen Technical Team were,

. in fact, in Los Angcles in force, but frora tho inforraation rcecived

~by 120 I — haa were workiag with Lockheed on a tho ore!

+ = °.

” - +. ae, - - i : e

eee. emory Heskes titted the at the ‘abs oiutely had no ‘deal eutataniins 1g

? with Coavair bessees of Air Force pressure on Convair to do raore

. Gr betters on certain Air Force proje cto at Convair. fie saic that -

he had worked ccereily for six months with Convair on the caal for |

30 jot transports, the first of which is to bo delivered in Octobe

1958, He stated that the dctail specifications had been coimplcicly _

negotiated, a formal coatract Bad been agreed upon by both partics |

, and the Maanclal arranzements made when the "rus was jerked out

from wader tho 9 project hh a a Soles. OD ee

. Whea ssked “ TWA's interest is in the Bocing 707, Uughes replicd

that if Trippe, Smith a x Pouglis ahut Socing out he'd come up znd .

“buy 30 aix rpleacs from uc if we wanted to go ahead. Ii we go ahead

With Pan #American, Amevicca and United he suid he would consider

ar heap 15 ix tho deliveries werca't too bed. Howover, he would not _

‘lake any actlon or sead his technical raca to Seattle uatil he saw which

way the wind blew. (sic Ceclaroc he dida't want an airplane just Mke

(American'ol) - er ee mo Seg we ee

; .

ee ee oe me ees : 7 *. : *

toe . . : . : : : 4 :

A s . ; e . 3s isa, - — «

-° .¢ Pe; we - - ¢ : . > -

My gener al gontlusians are that Mr. Vueke | ehratixe seca and undecided.

Reis inconclusive to me that the Convaty deal

Goad, dam sure h would be more dnterecsicod

Ee apoareatly cislikes Pen American, Arne . and Douglas and doves not .

“want to gee thein coatrol the r erxct for jot transports but, on the other hand,

I palak he would like to seu ~~ n do co if he slinoant Hocing would so ahead

; With TWA with deliveries ahead of his compctitors, (ie does not consider

“United a real Comnpctitoy.) Tassured him that we could not not go forward with

far

the project with « sale of only 30 alxpleneu. ‘He thought perhaps vie could

“Consurarmate cn: ples to foxcign operators to mekxe the pen sok vi vortawhile,

- eae

but Tdoubted te te a ae a es

. oda . . . ° ; Pa a - . : N .

s eniircly out. If itis really

a our airplane end would send

‘T recoiumend thst GO forward as fast as shanints With Pana American,

Atevican ond Uniied and not worry wbout TWA for the time being. Ido.

recemeacad, Soweves, tnt we hold coine delivery positions opea and not

" SOnaradt alh availwals cizzl aacs to the first threes CUSivimers. ee

ae , r Pea ur ve Be irae

SEL LOWRE Se or

We. Been)

~ xen weer <YaSOn St teres (07 2 wyory s acl are 4-3) dated

scree

ese Wate cea tu ae, Tughes by spocicl moss aager.

AX-1660 ee ae Dx 169 ;

ve cqasiaeainel re ere with i. Ri Hughes, nace if

hae eee hy seeeione ne es

oe ay fae ast MY ae §: res Tos : os “ * or ray _ —_ 3 ‘

: Seeees "Octobe: sh! 1928. weal a aan eT —-

OE ee et eee file.

i eee Oe eth op wey eet te. 2

“ST meno ‘Repos’ 988 Ce Ve ey 2 ie pe,

- te aM 2 ‘a* ie oe * ee igh ce mete’ 8 : * * x . et 3 -

coh eh a Stout <8 ee pidge: heist

2 me SE EWOM. Altea 8 Rb Ben ESE Ne

Pate ye Suh Be GC. Molle’ = “3. Gexsally ee ne

Sats fPetephone Goavorgation betwee Kies casd Tor ches: Sata eet

a aa “Sdn Les Angeles and WE, Beall in Seattle atl fee a

Sine OV os 8:00 AM, Ostobsr 31,1955) oF eh mere

vo POS RRORS SNS AES ae ag Ba ae

a oe Ep ovat “Six, Sees inqui: vedas to the 1o nists of the sala of the ote,

esas Bosing 707 to Aimexicnn Aislines. I told hiin’we were o ve ve 7

svt 7 se, ‘ fee ifa Maree teat 2 and that we heed | Wwe could 3 ell, - x. oe age

vt te ' + ‘He desis 5 why, via wera net chlo to sell United and who . ;

Bs Lvepiad that I didalt khaow, he mids the catezericak Soo. us. fe

Ve.

*, ao Vptatesaeat that United nsves had Day intent ray of buying 7

Os pone TT e aa say Eventy, Mt, Pere ae? ay, ee ee At, ee

Seta that ic Rowricen eid not t ay 70 Woy if thor eon ae!

-§ would be any chince fer us to rante! ) Pan fonocicedt: c. ee eeigs

" schedule," I explainad to him that we couldn't match “20S

(25 2 Pan Americants schedule becauce ft is, the period of SN Poe

Fe Jour production build-up and the first airplanes we 6. 8

BA, eoule 4 guot toto oe Ustones would be 4 aril or i aye. ye ee

; Y aateed ‘him 4 he wanted a eclivery quotatio on, put ne eee ee

a ‘paid he would walt-entil aftexs our American deal was 02° pare

settled one way or the othex,’ American docs mot 20° ler erp Fk

- buy froz ‘nua ho, might be terapted to talk to Trippe_ as ores

Sek matching as ives ry achedulea, eM gee ante gee cates et ee tee

vith rao be kept ‘ebéolutely contie lential. |

: ‘ bh -° “$. 3 + Se: ae Te aey Ba oy mS! : |

ee ‘° oo ~ .- ° . “> . ° ee ete ot, 2 wey es a . e

toe. - “ah a . eco a -s LP

o: ner she SIGs fu 6x ‘ " te v2 2 s se" ae OF tae ae -

WW, 2. RAG Oe - a f'8; : re

ity 2 8p Ue ° . i, Senay kere. ire °

<*> pies sy ae et, pote tee Rts : .

. ee. ° re . ifs 7 as i . oe. - . es. >

5 nw. §s We due Beall : ot Lege Meee ete oy tee

a s ve 3 »% ® *. ed a ° oe %*, * *

— “Dx 170, page 1

Ato (Telegram - Boeing to Toolco re B707-3318, 7/21/59)

BCT 4h wig

KR N7AG29 LONG PD ARRTESS Pas RENTON GASH at TI7PLC:

sue POLL. Co PRCT Ss. ee

| CEPGRY “CLIVEAY BOO AS POSSIDLE=

‘wun me

8 Rt A tee ewe Pt

. .

7 e. #1 oe

VICE PALstDehT Wous

fed dre hlen 134 ~~

COUPAIY AID EGUENS APRPLANE COVPANY DATED LARCH TS 195¢

SZ AVEMDIO RELATED TO BOEING MODEL 7TO7—331 AURCRATT

ARTICLE 21 OF THE ADOVE REFERLNCER PURCHASE ASRECIERT

FSTERN. UNION.

Nts ste °

HOG PE o, TOGETHCN TEV ALL LETTER AGREES

RELATING co a ARGGEC ERTS SEPPLOVERTAL

$ AUD MODPR. CATS OS TREREOF s "“"LUBDNG CHANGE on

% CHUANse PROPOSALS HERETOFORE ACCEPT

ew HMEAEMNAFTER CALLER THE PURCHASE AC

POLUSTARY ASSIGEVERT TO PAN Ak rea %

sc OF sit 76/7 OF THE EIGHTEER Het °

~231 AIRCRAFT COVERED BY THE PURcl

o $f ACCORDANCE WaT THE TERS OF Yoatn

WHITH PAE AMERICAN UNDER DATE OF Jhe

ey —

LEOOCL

AGREE

“ AGREEME

= ms co

in ~)

“+

eS DX 170, page

ie (Telegram - Boeing to Toolco re B707-3318, (Ter/59)

eee Be ee

wee

bed

~~ +. &

. t= toe wee So te SY

in ‘cory OF GiCN You RAVE FUR ESNED 16ers . 2° es

BAIN uERERY CHANTS SUCH SENSEUT RBOEMIG UEREDY i on 4

ROLEAGSS THE HUSESS Teek Cecpauy FROM ALL OF 11s if

ORL EGAT POs es TR OTNE AROVE VENTIONED. PURCHASE . '

Po LETH ALSPECT TO THE SIX it] ATRCRAFT REFERRED

TO i! SAI LETICR AGRECHENTs AND ALSO RELEASES THE 7

MUSICS GL -COVPANY FROM ALL LUABILITY WITH RESPECT

TO CHE: THIND J1/37 CF TNE AGGREGATE PRINCIPAL AV OURT

OF INL HOTS JQESIGHATED PROZISSORY NOTES CeNe LD Es

32714 |

770 ¢4-Bts

‘ . 7 7 . ; 3 - = >

fie | Wi TERN. UNION. ae A d:

i .

ee. ee errs ——<- “ae

Ree So 8; ‘ ’

BATED BARCH by 1959/7 ISSUED BY HUGHES TOOL COMPANY TO

ROEING WIT RESPECT TO INSTALLUCNT PAYS ENTS ON! OnE {

(OTHE AVACKAFT: ALD D WITH RESPECT To GMe-THIRD /13/ yt

‘OF THE IPYEREST ACCRUED Of SUCH NOTES FRC’ JUTY 15 1959

TO THE DATE UFRECKe

Q@ iT tf ASSULED THAT HUGHES YELL PROUPTLY PAY TO BOEING

ALL Futts acehivey FROM PAW LIGRICAM AS A RESULT OF SAID

Assiqivecnt TO THe EXTCUT REQUARID TO MEET THE

CUTSTARL ING HOTES/INCLUDING, ie CREST/ AUD OBLIGATIONS oF

ws. eee pee

7 weds

Seer ee ere

- . : ee

" *e °. e° . .e ‘

=—

ee i

. ; “* . . J

‘“ n é 9 @-.

sere et.00e | :

e886: bee cst See-» 8 ge a Oe at Chante Nae geet abreab. tS oy eeeete © AEs ow von ee re 0m 0 Ste teased Laon te 2° nt SR a J q

«, ? @ ae eu eer 8° & . * 7 “8 . -! °

“ : a" vos . . . _ oe . :

. . *. ° 7 . . . 7 ete A . °°

DX 170, page 3

_ (Telegram - Boeing to Tooleo re B707-3318, 7 ei/s9)

(a < cepssnsceumyseniesnp unipss Ate oes gr a's' ses ot ay -

ee ce

wife egTRe N TINION fe tc

cS i ieee een eee =

i bn ists See Anata Sececccepihiaane 6.4m a

Ht 3 PERTAINS To MenEL yo7-151 J AID MONE!

> FREESE TO THE EXTONT SUCH ROTCS SUD»

GRLIGAT IONS HAVE BEEN RELEASED: AS ADOVE PROVINED YoURns

VERY Tavis

BOnnG - fa APLATE CO TL SPAL DY 1G HATIAGES C*): “TRAC

GL oy TR 5g

* ome DX 218, page 1 Pi

-- (Cc. & C. Letter to Leslie re TWA Financial Forecast, March 13, 1959) ~

COVERDALE & COLPITTS

a2 @ 908! CONSULTING ENGINEERS ee cucereres O83 Be

=.:8 5 ceesecoe 120 WALL STREET

aero” oa. 23438 . .

ee 32030"

oe Le NEw YORA 5.N Y.

oe © #044479 .

ee eerne .

ee oot =¢2.6°

Yareh 13, 1999

six. A. Ge Lealte, Scator Vice Presigent

oni Powssuwes

- Mons Vorléd Jdirlincs, Mc.

39 Madison Avenues

ss Yor, Tew Loss -

Doss XS. Loslie: |

; In cecorccsce with your instructions, ve hove started work ca &

study of Tii's finsacial forcesst for tho peried 1958-1962, whics faclutes

cporstion of Jot sisezcft. Th this study, ve will exmine tho various

Scacats OF your foxcesst 20 thot cur independent juiscent on each of these

etters is sotisticd end so thst wo vill be able to sipport the fincnetal

p btay hv iadod > Cam wated WELL bo wed by your investosnt benkers in ccuacctica with

the propesed fincncing. Ox voce will incled2 o revicy of the cathod of

fossecstinz trctlie mA rovorus tor Bc*R demnatie ond, Spterantteacl eis

soStle, ths projections of cycose for tho cporatioca of pistca equig=-st,

tho estfiastes oP cease for cperation of Jot cqutzcsnt, tho eatizatcs of

crnezel 22 eletnictective aqpenses cx4 ths ccsimptions ode respectins CA

Si DOA xt por scute vost policics. | .

DD esceimeco vith your instructions, ve will @o everything pcossibu

_ $9 eseplete the Misst pheso ef cur study vy tho and of March co tiat the ine

oot testers eon thee Esl prolicinary diseussteas vita irsurnce cospaaics 5

Others sespceetinz the fincssing propcs. Ye wtomstend thot ths clesing of}

fin-=si=- is setstulct for Vimo lst.

“i ee F134

AX-1665

DX 218, page 2

(o> &C. Letter to Leslie re TWA Financial Forecast,

March 13, 1959): °

; Wo poertse that our conpeasatics for

st cus stands rates

www

whled exo es folios:

For services 0? stall enzineers - within the rong: of §125

to $175 per cry

; 4ve

7O> sowvices of postacrs - $25) per a7

Yor clerical, stenoorsghie and other vors by our —

mooring cployses - beck poyrcll ecct plus DH per cont

FO> sesvices of temporary coployecs uscd ca this exng2zs=ant,

if eazy - paywol ccst plu; SO ws ccat

For cut-of-peatict

_* ‘

Uo nsopcce tO scmtor

wcntcr meathiy bills esiculctad 63 described sbove,

payctls within 5 dass.

° . At tais caovly cate cm tas ctucdy, ve commot detercine the connt of

A® woe vats vill be soquiced in coassctica vith your Mninclaz presen.

sing es ospsricces with other ctuites of & Gonerclly cQpercdlo nsturn, ve

estincte thst our totcl dilling cry ts of the magituie of $25,

Guia dscesinticn of aus proposed en

cacczcat is intcrécd to b in

esconznee Wita aur ccovercctices oa tho aubjecct; if it 4s not, plecs se lst 52

move

Go aes’ xx for ths eomscmcst. ;

P Vesy truly yours,

Pivanl Le. Vooplke

bee; A

a DX 219, page 1

(TWA Financial Forecast 1958-1962, 12/1/58)

a. TRANS WORLD AIRLINES, INC,

fy, \ 380 Madiaon Avenue

A. } New York City

ne i ‘

- Derg

FINANCIAL FORECAST a .

WITH JET AIRCRAFT °

1958-1962

CONFIDENTIAL

Prepared by:

Trans World Airlines a

Finance Department

‘ A.V. Leslie

Sr. Vice President & Treasurer

5 1880

December 1, 1958

AX-1667

DX 219, page 2

(TWA Financial Forecast 1958-1962, 12/1/58)

CONTENTS 7

. Go)

Snail

Basic Forecast Assumptions

SECTION z

II Cash & Balance Sheet

a Operating. Results

z System

Domestic

International

IV Property & Equipment Expenditures

Vv Revenue Forecast

vt Statistical Data

‘ 9x1668

DX 219; “yes ; ;

(TWA Financial Forecast oe 1960 » 12/1/ 58) =

FIVE ‘YEAR FORECAST | pei

. CS

1958 - 1962 | (3

SECTION I — BASIC FORECAST ASSUMPTIONS

DX 219, page 4 :

(TWA Financial Forecast 1958-1962, 12/1/58)

FINANCIAL FORECAST FOR YEARS 1958 - 1962

Basic Forecart Assumptions

EQUIPMENT {

Jet Aircraft - 14 B-707-131 assigned to Domestic mixed service; 18

B-707-331 of which eight are assigned to Domestic mixed service and

ten to International mixed service; 30 CV-880 assigned to Domestic

all first class service. Delivery schedule summarized on Schedule IV-A,

Present Equipment - The forecast reflects the retirement of the DC-4's,

L-049's, L-1049A's, L-1049G's and Martin fleets by the end of 1960.

No provision is made in the forecast for the sale or lease of these air-

craft. Retirement schedule summarized on Schedule VI-C.

Leased Equipment - The L-1049H leased aircraft will be operated in

Commercial and MATS Charter for the duration of the current lease

aczeement. It has been assumed the leases will not be renewed past

their termination dates,

FINANCING

Jet Aircraft Program - It has been assumed that TWA would purchase

the jet aircraft and related spare parts and inventory from the Hughes

Tool Company on conditional sales contract at 100% of the cost to TWA.

Repayment would be in equal monthly installments over ten years, come

mencing with the first month of schedule service for each fleet, plus

interest at 4% on the unpaid balance.

Fuel Systems & Storage - Jet fuel storage and dispensing facilities

acquired in 1959 and 1960 are 100% financed. Basic terms include ten

year repayment with interest at 4 to 4-1/2% on unpaid balance, Facilities

at several locations are amortized without interest charges.

INCOME STATEMENTS

~ TOU:

Revenucs - No change in the Domestic fare level presently in steel 5

other than those changes effected in October 4958. It has becn assumed

that all fares in the current level due to expire will be extended throughout

the forccast period, International first class fare leveis will be main-

tained at prescnt level, however, there will be no berth or sleeper seat

DX 219, page 5

(TWA Financial Forecast 1958-1962, 12/1/58 )

service on jet aircraft, After April 1, 1960 there will beone class of

service replacing the present tourist/economy service at a yield of

approximately the samé as the weighted average of these yields

experienced in 1958. All other revenues have been assumed at present

rate levels.

Operating Expenses =

- 1. Direct Flying Expenses - In general, expense rates for projecting

costs for piston engine aircraft now in service were based on actual

experience for the year ending June 30, 1958 with the exception of

those areas commented on below. Jet aircraft operating data, on

which cost projections were based, was supplied by TWA's Staff

Engineering and Maintenance Departments and is the result of their

analysis and interpretation of manufacturers estimates for operating

jet aircraft on TWA's routes and under TWA‘s proposed operating

policies and procedures,

a. Salaries & Wages - Flight crew salary expense was based on

' ‘yates of pay stipulated in current flight crew contracts plus a

percentage increase for contracts now open. (Pilots increased

6% for contract expired August 1, 1958.) A contract with the

Flight Engineers was signed July 29, 1958 which extends through

1959 and covers pay rates for operating jet aircraft. It was

assumed that priots pay yor operating jet aircrais wilt ve vaocu

on current type contracts with such factors as contractual speeds

and gross weights estimated. Oor estimates were based on the

recently signed flight engineers contract and its normal relation-

ship to pilots pay elements and, also taking into consideration

Eastern Airlines pilot contract which covers jet pay provisions,

b. Travel Expense - Flight crew travel expense was Lased on actual

experience rates and then adjusted to reflect a 50% increase in

‘flight engineers travel allowance to incorporate their new contract

provisions, Flight engineer and pilots travel allowance are now

at the same rates and no increase is anticipated for pilots.

c. Aircraft Fuel and Oil - Aviation gas and oil expense was based

on current prices and experienced fuel consumption by type of

aircraft. These prices include the recent reduction in Domestic.

aviation gas of approximately 1-1/2 cents per gallon, The

average price per gallon for kerosene used in jet aircraft was

bared on bids received by TWA. The federal tax on aviation

gas, which is now 2 cents per gallon for fuel used in the U.S.,

has been estimated to increase to 3 centé per-igallon effective

July 1, 1959 and to include jet fuel (Kerosene and-JP-4) which

is not now taxable, a AY

al G ul 02 |=

Hee wars GF D YG

By Glenn Garrison

New York—North Atlantic airlincs are

into their winter off-scason with

little of a sharp increase in traffic

to offset last summer's slump, which re-

suited in an increase of only 3% in

scheduled passengers in the face of a

37% increase in capacity.

Last year at this time, when most of

the werc operating large-scale jet

feets for the first off-scason pres.

bookings were reported way up for the

winter months, in some cascs 0% and

more (AW Nov. 7, 1960, p. 40). As

it turned out, the North Atlantic air-

lines carried 35% more passengers in

the final quarter of 1960 than in the

like period. Capacity, how-

ever, rose 53% for the quarter.

An Aviation Weex survey of cur-’

went bookings for the off season indi-

cates a level generally only slightly higher

than last year at this time. Dueaiy

will be up again, but not as drastically

as during the last off-scason.

Bookings are less reliable than they

wed to be as an indicator of traffic be-

cause. Of the tendency to book later.

Airlines report that the figures often

change for the better a few days before

ggertirnler Riche Clemo: me vs

he optimisin evident last year—when

the 17-day excursion fare was going in

for the first timc—seems reficcted as this

winter season goes into its nd

The slump in traffic growth, critical

when linked with the giant increase in

sat capacity, began last May. For the

pe (aviation Week & Space Tech eee ’ ° é

fransatlantic Traffic Slump Continues

four peak season months, June through

‘September, the scheduled North Atlan-

tic airlines carried 917,754 passengers,

up from 884,152 in the summer of 1960.

Capacity rose from 1,273,455 seats to

1,743,085, for a load factor in both

directions of 53% for the 1961 period.

This was a drop from a similar load

factor in summer, 1960, of 68% in both

directions.

First-class traffic was hardest hit,

dropping 34% to a total of 95,225 pas-

sengers for the four months. Economy

passengers totaled 822,529, a 9% in-

crease.

For the nine months ending last Se

tember, scheduled traffic was up 8%

to 1,484,674 passengers, and scheduled

capacity was up 41% to 2,898,560

seats.

Charter Operations

Charter operations, which present

some controversial aspects, zoomed

during the summer period with an in-

crease of 73% among the scheduled

carriers to a total of 153,383 passengers.

Some airline officials, proponents of

lower scheduled fares, fecl that the

charter business is a way of begging the

question and offering lower fares

unvugn tne back door, Also, somc ques-

tion exists as to whether charters are

accurately reported to International Air

Transport Assn. In this view, an in-

determinate number of charter pas-

sengers end up in the scheduled pas-

t totals.

mong the carriers reporting charters

for June, July and August were British

North Atlantic Passenger Traffic

June Through September, 1961 .

Flights = Seats Load Factor

Air France 1,012 143,186 71,463 50%

Air-India 169 22,256 7,780 35

Alitalia $95 78,370 42,061 54

BOAC 1,964 249,958 127,728 ° 51

Canadian Pacific 316 37,232 17,319 * 47

Ei Al 271 32,981 421,507 65

_ 127 14,374 4,856 4

325 40,015 25,774 64

KLM 1,129 129,106 67,678 + $2

‘Peo Am 2,748 340,030 191,071 ! 56

“Qantas 69 6,382 2,945 46

Sabena $03 70,690 30,949 | 42

SAS 878 113,727 63,387 ~ 56

vi $29 67,824 32,816 48

Tr 730 92,528 $1,484 56

a Totals: 13,562 1,743,085 917,754 $3

Pakistan International Airlines began transatlantic service June 16. Figures

a ©

, pages tenes) s

Overseas Airways Corp., with 202 ,

bound legs: Lufthansa, with 72; Kj:

with 74; Pan Am, with 163; SAS, , ..

32; and TWA, with 42. ;

Last summer's results, both in ¢;-

city offered and traffic carried, \3-

considerably among the individual ,.

tiers. Some examples:

@ Pan American showed a 14%. incr.

in passengers for the four months; _

total of 191,071. Capacity rose 4”

Pan Am estimates its capacity for :

winter season will be about 29% gx

than last winter's. Bookings for the:

weeks beginning Oct.-26 are 13% a!

of bookings for the same period ‘

year.

previous summer to a total of 101,’

ts. Capacity was up 8.2° .

96,190 seats. Among the unfavo: '

factors cited by TWA are the incre:

transatlantic capacity of foreign cai:

and their jet fleets; entrance of new .

tiers in the market, and compcti:

from supplemental carricrs oper::

charters under blanket exempt:

TWA’s capacity this winter will °

down slightly from last vear: from 3!

3,200 weekly seats in each dircct

Saneait Rfn.. 9 6. 9 8A

hesinnine No “pov 794Vy Wald, «1

the same date, bookings for Nove’

were running about 7% highcr «

bound and 5% lower westbound. TV’

started promoting the off-season f

earlier this year than last.

e BOAC traffic also was down slig!"

from 133,475 to 127,723 passenz.

Capacity was up 23% for the f

months. For the entire winter sca-

BOAC plans to offer about 85,061 «

bound seats, an increase of about °°

A major unfavorable factor cited

BOAC is the fly-American directis<-

U. S. government departments.

BOAC was getting established in '

U. S. points such as Washington-F

more. The British carrier expects t

duce its transatlantic capacity * |

summer by 7%, —— ng

420 jet equipment to other routes.

¢ KLM increased its capacity by |"

to 129,106 seats. Traffic rose from

900 to 67,678 passengers. Capacity ”

the winter season will run about -.””

seats a week, up from about 2,105 ».

on the average last year. Bookings f

ently are about the same as last

but KLM says it really is too ath

estimate with any exactness. .

to 57,331 passengers and increased

Capacity 72% to 108,236 *

Lufthansa feels an improvement !"

markct is absolutely dent 0”

improvement in the political sit...

The airline is particularly hard hi:

\Aviation Week & Space Technology, 11/13/61, pages 4e-4

wm the Berlin situation. Lufthan-

‘with BOAC and other forcign

pe oe cites the fiv-Amcrican pro-

‘6 @ particular source of trafhe

The Gennan aitlinc’s capacity this

‘Lg will be up about 41% over last

te ong are running about |

— level.

carried 40% more passengers

of 42,016. Capacity increased

* < to 78,370 scats. This winter's

_ tv will be about 51% greater than

ings were up about

7 tcr's. Booki up

oa Nov. 3. Alitalia’s ere

« of last summer coincided with

‘ .yalia

_ stall

the introduction of a full jet flect; next

summer's increase will be considcrably

—_ a a 15% “4 in

trafhe to 63, passcngcrs pacity

was up-2% to 113,727 scats. SAS plains

to about the same capacity this

winter as last. Bookings are reported

as slightly up over this time last year.

e Air ‘France increased its trafic from

59,272 to 71,463 . Sched-

uled capacity rose about 49% to 143,-

186 scats. Bookings for the rest of 1961

and the beginning of 1962 are running

about 10% of last vear's.

‘ontrollers Question Future Value

uf Various Air Traffic Measures

By David H. Hoffman

-tymi—Ait trafic controlicrs have

_.1 to quest

: a any future control system for

tots: that can only print fight

; ws steips, devices designed to pre-

:aflict courses, and the

;

iy!

ep)

4:3

felt 28

Ee? ot Nie ae

Listf

5 gels

ion whether there is a .

centers, controllcrs at the workshop

' gecommended that FAA reevaluate

what constitutes a legal procedure

within an ATC facility. They asked,

for cxample, if it still served a a po

rposc to require a wfitten record o

the control seibiections issucd to every

flight. Would it be necessary to take

motion pictures of cach radar scope if

tadar resulted in the elimination of

flight progress strips? And would not

such requirements, if im lessen

the cficicncy of the ATC facility?

Automatic conflict prediction—a_sys-

tem for waming a controller well in

advanna al ane alanernan shan n.inhe

steer +h aircrait toward a collision—also

was by controllers here.

_ According to Horace Adams of FAA's

ATC tions p at the Agency's

opera

Atlantic City, N. J., test center, the

need for conflict detection devices de-

cteascs as radar control is substituted

for manual control of air traffic. Visual

presentations offered by radar, he said,

make it relatively casy for a controlicr

to predict cn route conflicts without

the aid of a sophisticated computer.

Automatic conflict prediction was to

be the third function entrusted to the

* Data Processing Central semi-automatic

od — system, which FAA =

w operational in

*Boston during November, 1962. But

FAA officials from the National Avia-

tion Facilitics imental Center said

here that the prototype DPC system.

ing to

according t plans, will be re-

tained at NAFEC used to test ncw

traffic control techniques and some coin-.

-ponents.

" It would mot, they said, be installed

in an environment as 3

system. Onc of the six Gen-

eral Precision/ Libr computcrs

rchased by FAA for use in DPC will

shipped to the Atlanta ARTCC

suuectine i Fiscal 1963 (AW Aug. 25,

"of ficld opcrations analysis in the Ap,

. rector of air traffic control for

cording to Lyle H. Ditzler, acting ti

cy’s Air Traffic Service.

FAA now looks upon automaticg

an “assist to the controllcr,” not 4

“salvation fur all our problems,” Dig

told the forum. The concept .of D

Ditzlcr added, must be “changed «

siderably” because it is based on &

“old system” of pilot position r

and cstimated times of arrival over y

checkpoints.

Controllers and airline industry te

sentatives here had little praise

FAA’s three-laver airway struct

which went into operation on Ay.

According to these users, the in

ate altitude route system that exte

— 4509 =) 24,000 S. we “st

i “ jets climbing to

descending from the high-altitede

work above 24,000 ft.

Intermediate and high altitude a

wars oftcn are not defined by the s

VOR radials, controllers complain

Pilots added that their transitioy

through the intermediate airway sin

ture involve cluttering the cockpit i

unnecessary charts. As. more high-pm

jets arc cage ee short-range rout

segments, this n is

because pilots have only oy

climb to altitude and then dex

shortly thercaftcr, or remain at low ai

tude where fucl consumption is hg

and slowcr ene ni ye transport

present a trafic control problem.

Computcr Use

According to Capt. J. D. Smith,

Air Lines, United is using a co

to evaluate just how high its jects ar

fly on short- route segments.

this cvaluation, fucl consumption is

ing balanced against time to climb

descend, he said.

Controllers here also expressed ¢

cern that the qualifications demank

of would-be controllers may be rela

in the yo 4 attract veh

personnel. this point, Jacob Mei

chicf of senna 9 ms divisa

said that the backlog ualified c

mn ty on the weed a ip

was uate to keep controlicr streng

at authorized Soret for the next the

0 FAAS teckh he of

is tackling the problem of

troller strcss, onite and fatigue in t

wars, ed Dr. David Trites

FAA's Civil Acromedical Research

stitute. He said the Agency was ®

oe its testing cfforts to ¢

that only controllers able to witlistes

“stress-causing conditions” are hired

the first place. In addition, FAA

studving controller fatigue in an ¢

to pinpoint and eliminate the cam

Dr. Tnites made it clear, howgy

Goran w-- -qyasscacd

DX 239

(Airlift, May 1962, p. 46)

Capacity Overshaciowea 1:

' On North Atie

rc an [ Cc

rey an

Gittiiu

In ig D671

Load factor dipped to lowest level in years

as 17 carriers flew the equivalent of 14,700

flights without a passenger aboard

- By ERIC BRAMLEY

“HE SMALLEST passenger ‘sie increase on the North

“Atlantic in 10 years, coupled with the biggest jump in

ity, pulled 1961 load cantare down to the lowest point

in postwar history.

‘The 17 IATA passenger-carrying airlines—two U.S. and

1S forcign flag—carried 1,919,466 passengers on regula.

schedules, an increase of 9% over 1960. Seating capacity

jumped 36.7%. Charter flights handled an additional 256,-

8 passengers.

t spots in the picture were cargo, up 36.3%, and

il, up 26.2%.

SAIRLIFT's analysis of scheduled flights from the U.S.

Canada to Europe shows that 1961 was a year in which:

factor dropped an amazing 13 points, from 64.2%

#1960 to 51.2%. This was the first time in at least 10 years

at the figure had been less than 60%. First-class was a

al 37.5%; economy service produced 54.1%.

than 1 million new seats were offered for sale, but

i passenger increase amounted to only 158,694. Thus,

pevery new passenger, more than six new scats were

r The airlines flew with 1.8 million empty scats, which

yal to operating 14,700 flights with no passengers at all.

2% against 12.8% first-class.

lass traffic dropped for the first time since 954,

f the decrease. was a sizeable 20.1%.

fhe U.S, share of the market continued to shrink. More

tha 1 two out of every three passengers used forcign lines.

Sm American continued to lead in all classes of traflic.

fada-Europe opcrators fared somewhat better than U.S.-

' pe, showing a 57.5% load factor, On U.S.-Europe

ites, the traffic increase was only 7.8%. There were 1,-

4,306 passengers and 3,286,294 seats, for a 50.3% load

ef non-U.S. airlines.

n lines had 68.2% of the total passenger market,

68. 3% in re yreerrayd Canada yore Us.

weler - oreion rien '

out of every seven passengers used economy as.

U.S.-Europe against 36.9% for PAA and TWA, In 1960,

the division was 60.2% vs 39.8%

In 1960, when jets were replacing pistons, the airlines

increased their seats by 32.39 but the number of flights

decreased 3.99. Last year, however, it was a case of adding

jets to jets, and the 36.7% increase ‘mn seats was accom-

panied by an 11.6% increase in flights.

Pan Am increased its passenger traflic 9.7% in 1961 and

had 24.4% of the U.S.-Europe markct—one out of every

four passengers. Its seating capacity increased 41.4%. In

1960, Pan Am had 23.9% of the market. TWA experienced

a 14.7% traffic decline last year while seats increased 6.8%,

and its share of the market fell from 15.9% to 12.6%.

. Foreign carriers lead in cargo

Cargo totaled 69,096.2 tons; 61.4% of it was carricd

by foreign lincs and 38.6% by PAA, TWA and Seaboard

World, Excluding Canada, the division was 58.550 vs

41.5%. The three U.S, lines maintained a big lead in carry-

ing the mail, handling 71.9% of the total and 75.6% of

U.S.-Europe. _

Following is cach carrier's share oi U.S.-Europe passenger

traflic (Canada excluded) in 1961:

POR AM isescis 24.4% Alitalia ....... 5.2%

TW wesneen std Swissait ....... 4.4

DES wiiocers 11.4 Sabena ........ 3.7

Air France .... 9.6 WR: kc daarne sir 2.7

Lufthansa ..... 7.4 ot, Seereeare 2.6

BA kvae viewed 6.9 Aic India ...... 9

a ee eee 6.8 ere 6

Qantas ..... sce SS

Many reasons have been advanced for 1961's unexpected

slump. Generally listed as contributing factors were un-

settled conditions in Europe, U.S, recession, and curtailing

of dollar expenditures abroad. The IATA operators are now

poser =f proses 1962 results will be much better, with esti-

Re rowth running from % to 15%

DX 254, page +: .

(TWA Board Meeting, Aug. 16, 1961 - Report of System General Man zer)

At the July Beard of Directors meeting the qucsatson was raicca acto”

where TWA‘s revenne prodyction problems were concentrated, This report

will summarize ine the attached exhibits illustrate the beens of sniagelitin

‘revenue deficiency. a

Chart No. l-ie the most recent competitive load factor comparison

on celected non-stop jet segments. These are the segments upon which in ;

have relatively accurate information thaoush exchange of figures with AAL,

UAL and CAL. This comparison indicates that our most serious problem te

between New York and California where we have eensictently trailed behind

AAL, ‘and either about the same « or ahead of UAL. Secondarily, Chicago to

Los Angeles and San Francieco are the other markets where our penetration .

must be apewend. Note ‘that between ii skithides and Los Angeles TWA leads

“ * in both directions and has donc so consistently. |

eae further isolate the ‘problem, Chart No. 2 shows a comparison of

- UAL, TWA and AAL historical ‘load factors from Mew York to Los Aiigetes.

“Chart No. 3 aives a direct — between TWA Flight 5 at 9:30 Av

f asd AAL Fi esi 1 at 9:45 AM, both non-stop Boeings to Los Angeles. This

‘ AAL Aight continues to surpass our parallel Flight 5. This chart Mustrates

one of the eiiblami ae it revealo*AAL's better ability to feed their flight at

: Idlewild from their regional route pattern in the northeast.

I would like to onneidvene some of the reasons contributing to our com}:

' titive problem with AAL, and toa lesser degree UAL, in the transcontinental

non-stop ma rket 8.

5 SG? | . lv The lack of a new modern terminal at Idlewild 4s becoming ineres:

'* §ngly ‘Ganiaaia to our business. As ah example, wo annually on

“A 17 = AX.1675

px 2 e 2

es faa beara testing, Aug. 16, 1961 - Report of System General Manage

‘ an on-board survey of our transatlantic passengers, and the most

‘ ~ ;

omens we

reer gurvey condwted the last weck of Jin and firct week of

July thie year contained write-in commento from 12% of the

passcngere criticizing our terminal facilities at Idlewild, Thece

12% conotituted come 300 passbngece ant compa re with adverse

comimenté in last year's survey of 4%. Thio clearly indicates the

adverse paceenger reaction to our preeent temporary facilitica,

and undoubtedly places TWA at a competitive cisadvantag:.

The cuccere of AAL's "“Astrojet" sdvevtintan campaign butt

around their new fan engines has becn most successful, Trana-

stctinnwat penedules by AAL with the "Astrojet" arc faster than

TWA's Bocing 13) schedules. J previously referred to our probiem

with AAL's Flight 1 which leaves at 9:45 AM, 15 minutes later than

our Flight S, and arrives in Los Angeles at noon, 10 minutes ahead

of us. | | |

The ability of AAL in the east and UAL in the west, because of

their sate structure, to devclop and concentrate on echeculing

maximum internal connecting. service to their long haul fete,

Aside from our position in the transcontinental jet markecto, TWA's

compctitive position comparcs favorably. If we had load factors equal to our

competitors on these major segments, our industry load factor would be equal

wee ;

to AAL and ahead of UAL, |

As you know, TWA missed its‘domeetic revenue forecast for the mozth

Aug. 16, 1961 - Report of System General

SNSUAA

‘SSVd iS an are

a sae r a

Board Meeting,

54, page 3

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DX 2

" axwe7e

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aid)”

Loot

Dx4

a ‘-SUON! aS SV JO JDUuNOS

bok anne

DX 255, page 1

(Statement of CAB Chairman Boyd, Jan. 29, 1960)

Chairman's Statement

Before House Subcomnittee on Appropriations

January 2°, 1°63

Mr. Chairman and Members of the Cor mittee, the Civil Acronevtics

Board is here on its annual pilgrimage to tell you what it has done and

is doing with the money Congress appropriated lest year and what it needs

for waging the good fight in the coming year. Before launching into the

details of our eccomplishrents and future needs, however, I believe it

would be valvable to refresh your recollection erd brin Ou up to-date

y $s y< Pp

on some salient facts and figures of the industry the Board is cherze

with regulating..end promotinz.

There are 159 direct and indirect air carriers hoiding econcate

* - ve a - * aste =~ 6.. .9

oucwbaey Flu tue poare., imese prez dom inte 53 cortificeted

Specific rovte oporators, 15 Supplemontsl air carriers, and 91 domestic

and internations] 4 eight forwarders. The certificated Specific

route operators inclu

11 trunk carriers porfors! vg mostly lorg-hau! and mediun-

haul dowestic services, and a majority of the: aiso serving

some foreicn points;

13 local service ce erie ers cperatiing within the Conti:

United States;

2 local service carriers Operating in Hawaii;

9 carriers operating in Alaska;

3 helicopter cerriers;

9 all-cargo cerrfers;

DX 255, page 2

(Statement of CAB Chairman Boyd, Jan. 29, 1960)

1 carrier operating primarily betveen the United States ard

Pureto Rico;

4 U.S.-flag carriers operating internationally ard flying

no routes within the Contiznessei Ur.ited States;

5 other small carriers, three cf which are net currertly .

operating scheduled services.

The certificeted reute air erciats provide regularly scheduled

service to 950 U.S. and foreign points, includizg 234 in Alaska. Their

operatirg statisrics for the year ended September 30; 1962, show that they:

Carried 2 9281 traffic ef &.1 btilie: reverue toz.-afles;

Transported 62.9 millios. passergers for a total of 45 billior.

revenue, passenszer-niles;

Trazeported 1.3 billion t:n-amlles of sargo;

Had 2,033 efrcreft which provided a capazity ef 83 hillior

scheduled avallatie seat~miles;

- Had 2.9 billio:: dtllars invested end empleyed 171 thousand

persons; .

Collected 3.38 tfilten dolizess in revenue, and spent 3.25 brlilten

dollars;

Paid 28 milites. dollers in virlous taxes;

Collected 2£7 nillics= deliars in pzsserzer crensporcecict= caxes

for the Federal goverz.rec.t. ;

These are impressive stasfiticz: and they also refless a stz:.ificarc

growth over che preceding year. We cniy wish thas the profic piscure

were as resy tut it is sot. The facc is thes the certificeted rcsuce

industry eareiczs for the year exded Septerter 30, 1962, provided

@ return of o:ly 3.97 perces* on investtent. The elever drastic

DX 255, page 3

(Statement of CAB Chairman Boyd, Jan. 29, 1960)

trunklines reported a composite return on investwent of only 2.63 percent.

Nevertheless, the picture wes a bit brighter then that of the preced

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