# Appendix — Hughes Tool Co. v. Trans World Airlines, Inc. > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386414_0039%3A12 ## Record - **Collection:** Supreme Court brief - **Document type:** Appendix - **Published:** January 1, 1973 - **Citation:** 409 U.S. 363 ## Text a3 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 iv 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 ix 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 A) 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 re 707 Over-Ocean Configuration, 11/2/55) : . 7. ao CNS : ivy essen 3 31¢ 3? SE Sow’ 1099 W->7 ad we Nes -«. C. Ba Ie G. &. e- ome” : - - * « oe ae vere bans O02a1 Tetters to ‘To. enti roth ay 22. ove Seas hye : he 502-3 4 Petes 195 IDs 20 3 2°. guding 4 tne eet he Oe Pe : » “ egmrool ye dite aeUtest, Git CuTouneon ya aS : va b : FRE Moulbied ene ser =46, sy = ~”~ ae" oe we ° IOVS 22 ry ° so ; aes tte tne: Sy x3 are 5, :3 Bots ase, es = ‘ - BO matt Se 2 gM Ber 5 Cur . = ~~ 3 poe “a4 ? ‘ 4 “ 3 ‘ps 925 saiiead . ~ wii rere wt ses es “hat TICS Dow ae - J +. teehee ht gg a fee Se | ow en Foy ee ee Perse ® stew sy Ge ef ge 0%: — i o swe “. Ss: "5 * br ae Be 3 ate. 58 Tog 5 5 pee iS *¢ se0my S3E 30) bon Pa “=e: ete b one tay ot NS tet ey atest may neat ee ee or el a | : Sis “~~ Beth to esiicve 2 . * ue ria | vO Qe. oe SIS : dDz 3TGLVO are! oS ae ogc te h by ses Level, 3 ‘ q oe i i Og a me os Cla ae Sel 253 L6ngtn fo: gee > oe 32 © % thee Las aah bet WE. e223: Land, an, y : . ead ei r2 cEnie MOONEE 7 6 of. Lio J. OCS. ey - oot tie) 7. cnet vs “pr 50s . ae et ae ee Tupsrs the Scot Aussies % Tow ‘oP tr 50x" Fis apes “7. * ” 4 “$n wNL SOS brlee end asaveis Sos = 2: Gates or. Ubicn ory Powrised 7] e t? Gemmly thea est: computes cud the = RACER ote we last CO E225013 ave Cmitecbey 19) od, é9 Boscncsa, OF bor of Goxduel. Ale, vommsied | exé ne pd SAS EALOIS ex Raped RENEE ‘2 3.028 Ve WOW toatinte Geis ts 2 Go Gtnavel &- 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 © * 2. “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: B 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. é 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 . ‘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 t Wo ero prepared to submit orice end dalivery Pivposals covering the cT3 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 e o - Memorandum re 707 Over-Ocean Configuration, 11/2/55) » page 5 DX 102 (Boeing SSit_ = S98e TWaeL J WiOL as VICKZ tev SEIT ivave SVENTS ee re isva uve WI SVELMEVV SVEUTICHV TINE OF Wivave VOR SSLC6s ' SRVIENEV NVODMEY ess SUSVROUCS CELOTaNT. CS Oo $9 = Wil Ivics ~~ Ue Qe Cy TVLOL G63 4 = WaVEVO save ¢ ULVSStiis eae ‘svg’ a VEE - EVPIVIC é DX 103, . page 1 ~ ‘(Boeing Memorandum re TWA Delivery Positions, 12/23/55) ~ CONFIDENTIAL ~ Dx/o3 ——_F = my ~- waaclTEF AZ, 4955 55960-29); Ee C. Fag Y, i, Alcan vv, 3 22223, vy J. Be Carcmay ~ | Ewj2b: Mods JO? Deltveny Echefvtes Ia arcoxlenes Tita Bits WOGRIS, VE exe hoLCSng Mem for EIA the forlwiag Neotel FO7 GAvITy sasiticws: Hokey, (Oy * OW AM Pag ® 89540 4b we , -. * YEO Exton S Wt aw Aeri8 oe oy =* a2. . WAVY oe ? Nisa ys Eoath BOs OR Aasomxte fora 2689 - ; | é 1 : Kay I$39 ' aoa es 2 guns S59 F434 euny 1539 ‘, ‘2 duguct MEY 3, rion a Total § BSEOR GOTRE Sonte o Korth "2 + Bde Of ftzonots A ae SANE Erte Bvt. ee Ne For. 3659 B32, 1559 : OFA. 219%: Fao. i6%d av. 36:69 -? . . ? *R and - . ee a i BRE ya ! & ” | atid Fara y Malay bo aA “3% 2, ae oho y+ «PRR AL De quouse to. Nakiw, Yo neta by ENE 225% C43 Eon tana ASRiasss ho. IS 4 Tm! c? fee Fs Sa Te Ws Sas A . “? . 608 & et waevww ’ bd oe ate epee FES! rat nd oe ey GD I5€3 : 5 5 . . , ; 3 : Co R. L. Bol, - . ‘ : a, % s ‘“ ‘ : . * ° . > . . CON NT me ss ) se " o . : — ‘ A 4 . * o ‘Our Dx 105, pag pas (Boeing Memorandum. re eectineagin with TWA, 7, | | er OPE ae Mee WE File July 24, 1956 de 70G0~7 BOs W. 2. Benth ccs W. 2. Alion . R. Ie Ber : c. B. ee 4. T. Cvrren D. VW. cy inley . Me. L. Pennell ; J. 0. Yeasting \ Mee %, Sxdject: Visit with R. YW. Rexel end: re ¥. Leslie o? THA ia Deverly sen weky 19 ex:20, 1956 \ . “ 53 . cn aiiiitg fo ae - we, *e Z ss ee Usor wsoctingy Voosrs. Rummel ané Leslie on Suiy 2 2G dSeesrie Ecracdiccaly se “ad 2 Vv ° . oe i a 2 « Pa-ce °. é. oe%. é « - ona- EMAC S CIN Vasis praincinal {steress wan thes oF GZESLSSING Tas wrt fo o."8 s oe ee, ner, “ Ho ~ eae oo te os Po ° Goose oF céé2GSo0nceL (0=1. L Sirp.anss, Sut thes, weicustedé? on « ? > . am tttesgse syle e? ° > ~ 3 f-, ewe Ste etn OC = 4 ShIsVSeLoLs Seer ie, Eughes, they seve to Minit the dise am waste pate sPae oA - Cea” . | Menwsively Lew Skhisionel easly aicplcnes, vrePovabby the 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 ? % ‘wiisoe ° " f ake ed sete] Sane Pe ° ansy owolincd thesis reasons 2 ” o> 2 ove Of2cy verve not favorable, as Pollows: ae ‘Thoy ave not ready to ccxnlt to & sudoctextiolly lerser nucbe: 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 Cyovctlons 3 6 saver owstomoss. . 4%. Grey Leek treet the eievcsioe Of tintag on tha Ii atsplo-es’ ts Beteioton’s to taen, ev m Srousn they o OSes not reacy to ccrmit * #. 290° we 6. ve « ee oe vem, 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) | 7 ae, we Dage wiv 1="(ULo~'/ ‘ 7 - ao d - on rece 4 ches wa would r xy refully, ond o, *., * “ + Ome to on - “o- tol: to it. Mion Cirectly cs s90n ac sible, and tnt o Goody anticavion concerning ar: VILEROLV!S COULD WO WS gece CESS SUATGE That after such consiGove! — g. a would on dovn Ruzzol SLAC CSS oo fllen nis woe peso ¢ % Thartincrcm — “ayecte - ; Pte Tus %0 C54.4, Wri > et vig bodied — a ccli. J . 313 on to teak to mimed o:G *9 2 OCS OVS TDOUGIES ng : fy CRG Gevelosed come dnvercs im G22 goiect, perc peat os jeozatintng tae Convacr s21 Swislictely, Bue E% Ic sing Rust to take anctie. 2.097, 0 IGIVESCLAS Leslie. in the xo: eee 2 a tevly econest ve Ee aCe ise LG wes S1s0 amon’ SOECSLVOL.* selva view of Tz 520% Helo, dcoruy S leae ES oe eet 4c0u3 a ror me arg) cans ov ar Bee SER of (WOpielis ot sh is tis oS W202 ViC2 C72 Cn aed 2 B SAY OF Sox WS Bosia Ba Cor ape mo’. * |. ~ « _* °° - m * C2 SCAG t8 wy World peavres 3€ inte ”™: “ ~ 53 “96 og e' e oon Dian Sete Ss -oG 695.222 =5 GS UG dis tind ip ah foc off Pare ct cen? mrereene OTF VSI SOV RCV 27 CNC Sean a we, A ++ P oe °.. % de® oo *. PF, a - . ols gin puma soot COLE O ¢ Kon (VP av) oO TAC CLO y ‘i *.% 7 ° - re, _ : chive —atAy. iia EPan orth f: Eien bmi nnn. on" Shoes Baek £22 tao ge 3 "OP GEO272 cut Sere SaPg ade ores acd m age fimpan, e ‘ ee ee i> Saeed CIC ELSAS Bos ae Mat ; s SU yee e. tt! On Pee ee os wens eel atte} : PERSSON Gos seis ne oun CS Geant ae) JS ss Wu ys CULL? YPOWBM SS woen stoma | ek rr es x Sah OF * Ce ee . za : > . 2 wn SIE CS CF Tite 3 ad L eizplic AEROS y ro ae dad ot fod’ : be Wee 305c : Se : Be x ee a Gad A Pore v2.5 wie anletce won Ve Glens Se euscetse mde etn weme CO G3. Ow Cane es; &, ofe*. oe oe oo Beata ° Hon o - «es , ULLLEVE Gis Gus FO conservative tht CES OA vec Sle - meo4- . oe on, a. te Se - . ooo ew™ > "4 nan Ve SUG 20% or. vO seli tno & Lerso nocber of echttionch “” a Ca & ~~ awk Vout (O[-2.52.°3 maatete Tutute. Pwr A tena p SH ADP p eae oO =sitatoler 22 ofPersa man SAAR cies eaqta Pigs Be inaugurate ecsliy got thie | Gon VW. ace © $ sone =! % p.c'es%e a Buy 3 acdiviiorcl ataplones, trey WiLL be tester cevtiil he oo Jo ment = 3 fanse e78 FD Ts 4. Lys jos O35: afons, t: 32 _— ct 132 ~@e be Veawy 4 oC we aD Mmccn ge o%s “os, apts S Geass co Conyvoéc , 7 a’ ave ance - r » -. Qoror 6 PT. i roe Ss S38 Vem ~ pr ET “Vy cmcals embewse 9° wate Ce Secs" = ’ ~ ae Es% 2 oo? ro eg DOr ma bom - tet P om oo Beak percomepen pee 4 r 2 : . oft Cate Be «2 se Bie 4 os . Peed to ee Gates Ve. wy Pak won Ne c= ahi Hite Fors teed. en a oe ee ee 2 SR Pen o's S mA ens Gen ee ee od Wee we Be! we me ee I ee eet ree bf ve Gece ww — ss won aod Oere wee OM mig Meee oy sae eee oe oo a oN ee We tmteete rm eee Jew we -_y Vu sua 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 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 J 2 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, , 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 © 7. 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 1 (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: ) 8 m es . de 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. c , a - 4 w=2 we ee we o> ae te 9439 t7 & eet, (POR OMN 4 bo. . . wie as 5] efe po 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 . oe a te? mo fe VJ re 5 fee ot e «9 | ws. oi¢ $ oO net S to £905 09 Sf OfF# 200 ¢ 30 3 O ors jae PY rey SOs to Retype LL tg pause teh in O lw yee ret ows ot 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 “-* 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'~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 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 ‘ 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; . i m 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 o ASSOC TS 6 2 a pe. ds p & bons 0d er O sf fs ort h IM QO b* © US om @ J . “>? «PSF th oO > 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 aa az} ae oi4 Cert: a 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 ° ‘a é vi : #* . . 2 “ . me ee . : . e *. . . + , a: . . ee s ‘ . ‘ i 68 ° 7 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. «f t 2 4 a, at Ss *t nes «> > 2 ta ® és Q « 2 4) an # as 3 Q - bi as 5 % GAN & : | = a a if | mf ae z am he > ‘2 ae an we xs a ee N Whey Has yer Coxvaik® 660 Ararcane PRocks+ e. tie Convar® FLicut 2 Q a tJ “t a 4 a a a «] b- {% 4 “s © . - ~ o Oo w oO 8 oo = 3:9 > Vv ~e A Uavil - = WIRES OVERTIB ur c* =. 3f Ww a ) ee a ? . “> &3 2 3f - 2 J ee > Vv Lie? | > i- UV iy 4 oe. f -- a- “ng od s} oe 2 -V te te ‘dd 16 = G) te ' > a J 2 e 3- 7? 2 9° \ 3¢ --*V O- 2 3e aw =~ (¢ Ye tw © wu = f& y) Zz te wu > a ° : a & wdaQn 34 wv a oa 0 0 ZW o- c¢ t= * Po a a a .) 3 x‘ . ~~ « 3 Qa -2 Ff" . ° + c $e CoLscves 2uyO PILOT CEATI7iCeTICN YO SCE Oi:77sCuULT CY Mav 7, Cuv - . .’ 4 se *- eRsivSSo TRIS 32 vs May Lev vsvexcvc. o * wee . . * d Pe rye Gus TVZE SCATIFICSTS 85 CLIGA ODTALEZD VO APPuY Vo Sut E2O's. Cusvoxs SPECIAL sEVSHS SUS VO GE BASOLEDS SY BHSLOOIAN ON THE SOUIPRERY LIST, tAsiaz 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. o v $3 \ 3 .¢) % 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 é . 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 Siz: “tome se 8S SASCERTLY GOT CaSYsCkt Gciwcoy Tis. Yuc asgeewt' rv. - tzu on Foss LV 242. ’ ie aie hs ee pte AX-1685 page 6 re Intergration of CV-880s, 2/8/60) DX 127, Rourke AND RESTARCH (Rummel Memorandum to ‘ MIRLINES, INC. ¢ RR 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 .¢.% sare c eae ee Ry g Be 8 te ee ts WOR KTS ~~ ’ w. Vee Convats es nuatt, ONG. 7 iS IR « ad Conv L, We wiew CUBVY eR csser At N aay s s . *. Nia ise eeer twee el j “wre 8 erree i 0; “EVER « coszccy, “ec PE cua : DX 127, page 7 (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 , Lr e 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. © 7iesy NP vrRaixina ae 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 09 3 . Convaie uxorriciacey esyimeves peniveny OF THE SECOND KP TRAINING ALRPLANE | ON Maren Er, 4. (ESTIRATE Tats on MaRcn WiKi. t -" . a 4‘ ; . nen ~~ ak ee +4 el : . ~ itp) Q > 8 8 _— Gg N aw ~ pie oe i ty 8 mid eg oJ ) elt. A 5 ’ ’ ‘ 4 ’ ae Oe o cv) as ’ N Ww as 9) e U wo is ag ty © 7 : 4 4 rat) - pra’ i ae o9uwU on Oo wiijé © p34 ve Q ee v $3 be 23 ft) we Zt i. a 1.» Cy “ 9 i “) 0 * Loe. 2 7] > Ww ~ * "he s Se ¢ > Pt 4 O 4) «3 ae & a ee NM . oO}, - ° « re) 2s. . 3 ° e? wo oe = ~« vo om . nm . ? . . Ato F . 2 & Ta) ot 5 bd z4 19 st pe - ° : webs kon ‘ t.3 Wy) = O03 —- COIN 0) e~. Vaid i ; Qo . Z- ( - W& 5 : ee) ea rons) r ro) oO ~ | ; Uh ge td ts ty Oa 02 03 were, bg m4 ae n & te ee 52 te 7} MSRP SD 5) v 6) td te GD 3 e (2 ~~.) LS 2 ” ; . = oo GQ th «ew ° 3 vs 6) tb «) Efe ce , ¥ ' : Nou 5 ro Of ©) . : i 0320 = 3 il er ee 2AMMA MAMAN DED O56 x 2 o- —, - ’ e- ViOD 8P ID “QIAO «aw Y ‘ CO¢ as “ & sc - i a ° ee 4 #8719 > B OO oe cess ee Ve oe we ote prt 4 Cs OO) st As oy ) Q} C3 GY $3 “bl oe te 6) = ee 2 2d . 3 ee Se ee Se ee Ve Se es ee es ee eee Se Ye Se Ye ne Se ne S$ 3 ¢. by - be oo CP UY Gre gee SP ne OX OP 6 Om me Em ge coe ane Ge WP Oe OO BP Ee Ge tHe g-8 gre or ve or Yr we 1) wae 8 OY ee a f) Ss ; a2 = bt gs 3 D4 pe oe Ree * re Roca OGL ESC SOMOOMYOOAVGASMNROARWVDAAADASY - ee a ; Be Rae es Siw wags ones gine Fi, + 0, bites 4 +209 po matin can GO Ce aN fg Maree anes) gegen, SP cminmte ss + Dn, tS wcieg ~3 G2 fs 6 2 Pe ng 8 Sage oe hes. CTT een ects eee eg sk rxe au t - « . + i " Be AS al ee : aie HS tee Fy ~ ° ‘ "« ; . “2 fe fe ap LE ee “* ~- rr) ‘ et opens > ose *%, (% Pend wv oO .t ‘ ° 2 ed dedin, -) Qh oa a i's . ‘ fo 8 AIA aes ee) 37° QO ” * - we ee uzgel 22 99 st “> ve WV 6:2 Aor c> oO QQ. 32 53 ve oO %3s : PO Poo Sy Ov WwW Mam eeece re aes we vee ve ge Aly O tnf 8 3 , é oe ©) $e co] “2? ve ove . 8 oe ge pow ~ oo oe oo -- we Ge me c~ ore gre oe co - 32 e2 23-42 4) 4D Se ww a : : a i C}, 63S #f £4 00 49 23 «9 i mit Ss a se he $0 OQ 22 8 : 8 ce, a : Om. oo ~ ese 3 eb Se ; ys. we - ° : o- ‘ . co PsJ tl ive € ms G.: 33 1 o Teeve A Oe 8 wee OY wits ‘Chee O3 yo Oy T9) a) 4% > 6g t) fe Z a a oe ’ 1 st A > 3 3 , 3 ee ee} 4 ry . ye > Te we eh. ag ‘ «3S “> - $ <> O00) ao an oe) ag + foe re) . j . ° aa? D . vo ~ € se ¢ . : : ‘ : Qorwes try 7 a ; - ; ('€2 33 So 32 oi ie ; , 2 ; : =} i Se e -¢ . ® a * re . 7 4 % : ’ | te se sf r . ven a ‘ .. , . (Ech ekg \ E ee cre org ee Ms ta es ; . 2 bose ib Se a4 a2 Se & “ 44° . v- 6) am Rie” ——_ » y od a 4 if { te it my td oO 73 O te BK ne i Bh BBS oS. 3 3 8 :$ 5 2624 iy Ps Phlpeks Be PRS th ‘3 i> ‘at 3 , &BHH8 22 $a 4 | ieeapbeboiasnie “= Digges oe Bas pot Modifications, 4/7/60) ¢j ri.) sey A EN=C” eee PbY- Jk 7 ue Tacit Neer | oe April 7, 2929 : | / Oep Filo: eed-1295 oo“, . ; @ Tet : . tere » ale Lissoo - 3% A semages OF Ceutoasts CCWalh, A bistetes of " Mosel Syacaies Comps sration | 3165 tact fic Bie suc r : San gr tes 12, Caiitorata e : 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~ otics ti 3 to-oft flap cattiors Comets ks3 csisets. tan thst excinatica wit $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 Sactesy 2a thar St actiisvos; : ; & Aoina tntomoft GCistensos Lor sost opsvatiny comlitiono S05 c& ‘ be Aczyusto cirissthiness clind cider ths entic TSRtal condkticas that vo vill Pore. ‘ c 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 $00 Dersvay porlomseco Zou the 40” fice cottinz. MOTCOVSS » Sanss you oa vi Susiies flop cotthacs of 2D end 20 9 tho Slap vorafag Sore acu teox05 sroctiechly rosn~ isets sos - a Sem de & ° a 2.0$ ONE oe & “ AS eRtue tho.clromstoncos I eannst wlorstan SVSII%S Cainting is sot cancultias a =~ eect A ew Ase 4 59 7 a, aot, Nee ¢ , wits es. Ss a secult of tris orecnins 3 information A£d mot coz & ~, 3668S 2005523 em ete ee ve! t sstly to 45 ths fonitican of aot totag »*. owe ~~ - s ~ -+ &% el « a 2 “& tra Climo whoa to nosd st, ~~ ; . ‘ 2 mt ° arm Rewer ere wre *, PLANNING AND SECEORTH se Sone op A eet « ‘ Ai Ag yy ste B a DX 128, page 2 _ AX-1639 Ye D. & (Letter-Rourke to Digges re Specification Modifications, 4/7/60) ont tes ny ve 8 ‘4 | 3 Gur Tab lelo-r295 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 2 aes 2 ° oer CA qj >» x «4° 4 . An mitust coolines bs tssa tn thts area, FS kes not boon OD o=scwcezcs ksostofeso Eedor ths cfrcucntare stestics by ; wm yidin Weticsio as necr ac poss [ rs) 8 f ot t- c f° ” Toe 4) ¢ er j* ae eens 4 Meee - ~ 00 Fn + Se terese 8 es '° ee - ond] - - ~. Sh Olhsy GiniwWoctiwers to fine thtnes ext ty chance and * v2 Often vizsa 1% is oe a “oe Se eee a -- - — . > . 7 ae al eo Asta to co cnything ached it. 2% 3 boon GilTiewlt at timos Ler cee Tomtcsae tabives ca routins ccosstens to have accoss te your pactenais Bg powscomnel, altmoes A) “ oe %,2 as 25 oe ‘ 2 - . es 4 4 of Lats erie sie certainly kas ineroved. | Séinco Convats hag rosoateal: Cociscd “ - tad -- Gea bobeswss Convaly yorzonnt} to bocess so consitivs to operating eur ran WSSD Sur Moorle battes Lslosnsd of thotr Csinking whilo £t oti is jn ths Ponts heme s? ->33g Vw OD ? _ 4 . e ’ . , 7 . ~~ “ ¢3t . e ‘ 4 a J tc*eve— é e L = 9 o setae em e\e ee @ assistant Vico Isocidont . . ° c - ° Squipmont Planning and Lewlomost KE 2 IC . Os iS. KH. OL. Beylezs : . oe He We Rol: . ‘ ~ . . . + aes * . . a af r~ a sien . . ad 2. eee vy © - AX-1641 & UP SIGS CF GLNER A OMe auIcy CO2-Ga4910% : ann — 4 st oe 1 ee . Cetier P*Gonvair to Bew re CV-880 Delivery, 1/6/61) . ae f . L e = . fe mT tte. Be OIEECO OS. CALIFOLNDE, eats oe ; . ? : so : “ge . ihe Je . tzitewons ecewe)|ss © Cote i . ". ie = or é ve 7 9 me ° ° _ . - 7 - “es ee we “ ; ‘3 ~ °.@ : ; . . . ° : a wd. ! . “ay %e ° et bid . > 5 ? Fife ee poe = wh «te . . ‘ 7 8 771 4, ? oxgeaages av St DoOe Sen SEVe , . ‘ . ( Lu eye re* a a ee . “oe . percas Worlé Atriices ; | 21 . . . ——*- ° 38 : ' Ovyis Set ee Se . "ee . : ae c/o CSavei> ace L443 sica of Corners. LN ULeS I lee pom ese. Ne . hi Po ne 4 . : | ° a wae oa . . -——_— - bedeed wee “3 a y eink vy ee ey c? SOLGS se cow {nf jo woe on ehvea re) fos ce? € eRmrat sp # gts. Paco's eg . . “ ve ts bg 423 Ges pe owe. 3335%3 ef a x . + . ee. °. : . te ° . ® . . . . @ Sor yoqe Pee Tie & o ° ee” te we tees ofa ve ° . ° ° "0, © pd . . »* a oe Lay . es St wie i . SL - - — ° 2}. Jen “fin ~ ne i a e 44. 7 °° 6 Veonwe "od Soon Se t 955.542 * = > * a2° e / ’ 20% -¢ ° * *. °° 2/ Sie MODE ALON, OOSLS} Cite OO weN . “Tek oe ° cl e an °. ° Lee U Sere 59 ty S= i] is { : @ , no 20> .¥) ~ . ts maint job cnd sensril confPourction firver.fs con be identified on or beTore ee ‘1s Colivery cztes as Indiccted ore epplicn oe 22° oF 7 2, one © solace =, 2. vee - ¢ ~ Vesa? —_ TS r Coe Fan} 112 ‘e - ~~ eA 7 * * rn a ° ? vt toe ve - 2 © ¢ ae ~ o. de ‘Sines cts nesting vith you which ves hold vithin ten minutes o% * we af oe 2. 232 Us » Cereata cinot cuages @ aos sar" om Woeiwe wakes ase So% C4t-ve * els sr wor? pad 2 ¢. wee. SOcatSce . eomtoe cs fer. - awe aw * ~ we ocsewe oe We % wilt Sh Inbor Poree d2 cs Co:parcd ts 2 nei Leyos Fores: ._ 7 * = aan ~ = . “s , LES this Now 6 OE 9 Slip fron tr2is p revi 25 sypervest position? - . . e y ate? - os +6 Bi te paz Sao wis: wrocut 0 Fag be “a -—F/ Secs os gag, d ne ~ -* in, Coren efs. Sots go=s2 lotioy cal : 7 -_ onsyeas ta 23% 4% -~j- . “*. 4° ee ee . * >, 2 . ey ave ad - - “ a ae o« ~ -_*se* eee =a- Oe ee ee ea Veteawu® Geo Lclccwc of, ait ve Cx ve vee eae BoM oN nos o*ts ~~ Se =) . age - fiw oseess «7 8 ee ed fees (Telegram-Bew DX 137 to Rummel re Convair eins. 2/16/61) AX-1648 = ams NG Hf 1 Lttes mg Or 9 PP ones = 8 —*s = >: wy ; = - - - — is i Sfevrh oy SF-1201 (60s) Fo taterncunans: * - ane @ e749? > 0 oom co > ay , ee’ . te Ho rol re Speer on » = pa ed. Rh N R se er) ong feat LITER VUN YY Ree mbit’ ree meee Pa Bed Thee) Bee OT “ fF t2¢ noe =" “ ~ Pa ey “Af - > saase LCUESS ~eeee & See vu. 3 OU ll a So ws rw ou SONSAER UCULYU a . StU TT Stes eseeNy me wee AMDEARIYU C02 ees ftp 0 SATS By ae Seams 9 eeed ._- “s =“2 JANUAR ‘ GS «o 2b Can Gx Je nd LOGICAL 3. WLC ON WHY 7S. Nin cancun: veur-, se ov annsar TR ITD Danes MASON YA THZS- ELS NOY ACCOMPLYSEHE: pony LoSCUSSED IN CLR PHONE . ~-- ae? ore ere > ~~ se. ba ed roc nee J Jac on” -- vw. ,*e~ aa a , ue OF 405 v5, 26 £3 4? OPINION CONUZER ES APOROMIMA ELY 569 2 . a ted ts MN Ue. fine AA 9eheere mAG bk Wg ik SHOR Fe Sur O62 PA LODuUS TL ON wll O fee > ets etek te Bmr~~ AAt f* ’ a+se0 etd ~G" ua Mt -@ Og "RE a9 Cm v ol seeMN: weg ONY ae 2 CAN “YU vu} -_ H a OF 7 © ON Scx Mowe . “30 omer, er NN Ms “22 Mere yéy ‘ are stan? om F os © J 2 Hee, o ms s mee sv tes Se cst Woe / momges ¢ En. be Socece eNUhs Soccer NS ~~) Wore ued CUE fu : ye oe *, A * en Be Ves mers tye iY e Perr , @ afew ewe ome ese Mew ecee 6 Pwdcdeatun wee oe Wet & 5) wo Vevee sou > 2s Pee Vircereccc: The bai, 2 tires shown ta che 2-2 Pe ¢a domectis wanna: LOMAL YL 25 er suis: cl ecizin. 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SaeyS ay semvicsl, oxpondizs wy to 5% overs 7 ae ae Greene oe Leen wy 9 Pee. fe 5 Fen = Paha es wr) ca ® > > = ., Sas. *-*.c pla ed goers E>... Case Pr a | = © @ay ses, we wee ~—- owes 8 le 4 te Me - aed — Vaw PES. ~—ow . . ® ‘ . . sd 2 . -* . ; . ° : wn AN 1645 DX 139, page 2 Bew Sat dceeade Delays, 3/16/61) . —- ~ . . ° . . ° om, Re wn . x . io, - . . oe Phew + wos Oe cans Sow whee . ee Wee soe od — Se ee @ 0° wer, -- me 9a, 70% 7% =, “a0 “ee son ade ageete Suet lwe tees Tcoiee ose nwe at Me aw tee C6 50E33,2 ee ey Olee ene OMe Ne, were ae a7 ae J oe owen i ee ed ~,’ . . Dame meetce em Paennns renee .* ee ae oo eo ow Fat nies o Swoasew 6 We We Swe te ele mets 6 eed 3 2 . et. . - 4 ste. e » o” € in} AO, ‘% 0 . i ae ce . . Cicenen ered wes eoreaserat cn Sina Cate naar ean conan : . . * Wa Sachi 5g 2 . se . . - ° Meee r ,. : . or Pe . .. “ ave 3 P te ees. EGareswc, vw a Pe ~ * . 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Seiededeiad vet's fi aa) Cozy chil a2 Sigty's sa, + mt oboe AF i * 2% eo" ses se rower Suede ere x gro * : ° a Sac gietls tnceee 2,65, 33 eR teehee we em in weve emer ne Ho vanty vs See, Pa at + se, Se ee ee aa eo: md enparee =. ‘ Serene Seems wet awe Sows 5 ole ae ee: 4 iM ge Be rf ee Oe Oe a ee te em ih LE Ame Oe eRe et ee oon fewer esss den SP Neg a Sb ta ou ee Woke td boone Cl euler tiwcowe co. sates e-quhe? eh tate a etn r rotated 4. “3 43 wa 84 “-7- ee i ‘/ owe Se ? Oo we meee . bes esas ee -t wa S. = eee 4 iy F ; Newcee ale a ot Pr smeate b “igs eunaad pe E PES RE Wsy Bn PE oak Sy ae iy eo Oem e ? ae eae,” ans . ears nse. see a - J . * * » ee ee ae . ~ > oN . “f ermney Oe oven! ace _maee" oe 9,8 Oto vee pew se e+ a in i oe ee ey tet 6 ee vee SS eee Cae 86 ees we iett eee et ee bode ou te ‘siete Gewtwots wie w Gaternus te *. . - eee . hy F J ra wre, © tare ee Mery Pam ae en ee ee . emer YY ee —— Reweeed wet tee teres seteses “Seas enews . 4 it Tr-- Seowe*.e oy ee . 2 Ee 2 &.. om qe enrry ° ; . » . —~ + - . p . v c: - ° ‘ £ Tee a? a mete aed Op OM! meqeyts® « a oo. ah. . nn mwee We ee oe wre et me ee . . ° . ‘ ‘ * vo 7 » - pl af’ | / ‘ “ao i pee - . . . rc di ; Pg AY —S — See, ee . = no PE hy . : ee ete joes NaS a . ° “ta aes vee 6 P mmsce+ 2 gee we® he te ae See . 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 e 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 andicating ¢31i. way ef © aizeratt in sugeat, 5 in Saptcabdos, 5 in Ostobsz, 3 in tovendor cnd 4 in Docccbor. You end J porcozally diocuscad tho eolivozy Git ’ 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 a By A. Ai geet t. y ritte (Zee Tree bet - id Mi Poe .. DX 148 . Model 30s, 7/14/60) Ve Spee? a: soe a MON N. 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 . By CLix-77 ¢ eS Oe : Revjzond i, Froliiasy i, 2 “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 i \ 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 . ° : . Ny 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 . @° *« s 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 - a a“. * cers aah . ee ° : e ay 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 ; . re 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 {ble technical ans le to Seoatile to learn moro about it, © ke in i i ‘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 . ° 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. > © 4 . . -. 2 ey ~~ - ° 2 .- . 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 ~~ © WSU PUNCHEGD ASREEMENT HO 9 DESEEH HUGHES TOOL COUPAIY AID EGUENS APRPLANE COVPANY DATED LARCH TS 195¢ SZ AVEMDIO RELATED TO BOEING MODEL 7TO7—331 AURCRATT © You HAY. REGUZSTED ROEINGTS CONSENT, AS REQUIRED BY’ ARTICLE 21 OF THE ADOVE REFERLNCER PURCHASE ASRECIERT ae = 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 -- oe ey — LEOOCL AGREE “ AGREEME oe = ms co in ~) “+ eS DX 170, page ie (Telegram - Boeing to Toolco re B707-3318, (Ter/59) eee Be ee + Ree + So tem meme © Ge oom cee 8 ty ~~ oe oe ee we ene | es eee sme ee - ee 7 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 a 32714 | 770 ¢4-Bts ‘ . 7 7 . ; 3 - = > fie | Wi TERN. UNION. ae A d: i . ee. ee errs —— 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 é -~ ~ For cut-of-peatict © expences incusred directly in conaacctica wita tris ——— = © ot cost _* ‘ 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) = A a FIVE ‘YEAR FORECAST | pei . CS 1958 - 1962 | (3 Co 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 { A 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 A. 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 A. ~ 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 Lufthansa 164 © 108,236 $7,331 7 $3 ‘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. © TWA traffic dropped 18% from : 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 . . > . 7 . . . ° . . rn , . ° . / . ° ° ou . = . DX 2 " axwe7e " (PWA aid)” Loot Dx4 WT 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 e would be valvable to refresh your recollection erd brin Ou up to-date y $s y v o%. % ~ : = ° tance gun. The caiiier’s emphasis on ce ach ‘raitic since its accuisition o: tun get equipicent is itiustzated ove lo7 “ne the orca with turbojet equipment. Fastesa, Nationa! a2.1 Noztheast, ‘closet: sonrpoting for tactic on Fast Coast tutes into Flosica, coatinucd to se- pect saad a ore pare below the ap ere mesa aet. 2 atSEn wk paicuces 3 as " dossesse in seven? Suiens ei mites i ot R Deceniner, aVAIDe a cee eon sath: aN». He cols ie iced with the i 20. Se (Ave Dee. 5, ? $1). -Aa inspection of every enginc Tadisting fiom the bore--with viriasiy Vanguards were grounded, Were hi We BVohse so Saat é fi: ight test P35 nature of t Ae a. Mena. CL-44 aircraft. me = ne ee ee 730 insrease in coach trafie curing the month, vut a =9%e dip in first-class ousi- ness gave the aintine 1 14% loss in all z types ¢ o zane h dled. “These is a tendency to consides last month's maicaiz coltision over New York (AW Dec. 26, 9 26) as the chief reasoa seek Deses hes por recard. A‘ a0 2 fas Seen Sabie Coss satcn ae She 7 fe accidents Have s Gecicse out snozi-eteria aiiec? Ga 3: DSesisess, the December secczd 37 to 11082 oOs2r5 "sy de 3 RIM 3° quence sae Cisaas shows in Ne vemoder waca iaihe fell 3% aad wad factors gapped 2.7%. Net result of the current situation wil be ¢: oa inued stress on $.' Mic het Guring reduction of the blank. Tiest ticotvient tecltal vies whe hase been me Vied, The purity of the metal has been isaproved bs switching to vacuum meting of the stock moteti:l, and the better grila flow has been achieved by consicestly the length-te-diameter ratio of the bilct so that the reduction of the bite: dur ing forging invelses more hot wossiany. The failure proved to be one of Ure most perjicring fiaaky reducing tu a statistical proticns involvin physical properties of the material, Altioush the decision was finally taken to scrap all the ozizinal disks, the statistical anaiysis piclicted that less than Gaz in 200 of the Major Tyne sethick fulewed burs nd of ensed Virkers Vanguad and come vis. that kod flowa seve. nee one oti ree! $ 2°_%. ee | At Sate Gis “itt “> gue Yuist GSR oi wat Stringent investizations of the turbine disks followed, and “short tife” seins Wik Uae wircaal could paeceed Because the failure was diticult to tepruauce, the investigations were eagininss Rots’ mianazement Cecided to consurt world evpeitsand comultiats from en mines? factucess, stee! soy nic’ ers aid research comers bsfars . Compressor aud turdine disks are new in full pretation, wing the nigncs ane sie being fitted to all new engines si [us replacements for Siose engh.cs tunning with short. life disks. Fagines with the new the latest standard are now being delivered § for instaiistion in Vanguare and Cana sis a me ee rs me ee em tee teat (AW June 6, yo 435 working and beticr gue Row The forging progtem itself bas boon problems that Rotis bas 3 scatter factors of the * 7 . 26..% od Seth. Tast Mus oftes ol Ps abe Ee tof tet. eb OM. G 2 thee peecteeresitiy t.° 3 0 Ges | iw in Ge vr 8 f foe ditciuds 5 cuati.. . . : 1 “Rb a ce. oh : . Cn siies ’ ¢ confirms s the statis new tech: ’ . Cisis and we ied UP ow frou siowing competi inion eee ust with equip: ar 4 eed sisbtie: ins Costs W. ie die not iesesing oi as anticipates wisn jet services were fir rt luncaed, wit! y.Ac¢ Acw Rstut Coit. incs oa 7 inc: 7 whica seneratiy has been denise the beneits of wit hhetJ predis as a ricans GF 3: *.83C7052 work 28S vt seat cee hs Ae : wives ye a eee Saws a54s an . ° . 4 ® , ser ti an nS i ng Asdiced Sas sen OP yay “Te * Py . oe. ¥ * e° n° Mis Face: ST 4685. 4S ns Spy “. Py - “are e Ss Bececants *. 8. ese oe b as. BOM 8 > - 6 . . ; . . ‘ . = weg Os -. . large and powerful airline that esmmphasized specd, style anc glamour over ‘". personal attention and efficiency”. an . The consequence of past policy has been to weight TWA's clientel more in the direction of the tourist than of the business man, despite a route structure that passes through the commercial and industrial heart- land 6f the country. Thus, in September, TWA's coach traffic was 71.7% of its total, as against 60.7% for American and 62.9% for United. While much business traffic now travels in coach accomodations, the percentages ‘are significant. TWA's dependence on the tourist has meant both a lower - revenue yield per passenger and a greater seasonality of traffic. TWA's load factors normally improve relative to American's and United's in vacation periods and drop in the fall. coms ‘ Greater success in obtaining new routes than in acquiring the equipment needed to exploit them has also created problems for TWA. Conspicuous among major cities to which rights have been Obtained with- . out adequate means to serve them are Cleveland, Denver and Detroit. _» Weak efforts to exploit these markets have assured that TWA would not “be the first choice of travellers. ‘They have also made it certain that ' WA's activities in these markets would not be highly profitable. s. et $ i : Against such a background, changes in advertising policy may - a -(@ nae Fes _ vice in 1959 (at considerable sacrifice to its international business) bid DX 258 e 4 : eas a (Report to Directors of TWA-Oct. 13, 196.) 8 TP ae have unusual impact, It is believed that the decision in 1960 to cut . advertising expenditures to the bone and eliminate magazine advertis- ing entirely has had an appreciable ettect on sagging load factors in *. 1961. Delays and indecision with respect to the availability of flight . equipment have been most damaging to the company, particularly in this last year, TWA's outstanding job of putting jcts into domestic ser-, fair greatly to improve its industry stature. Within a year, however, its competitors had introduced a greater number of jets and TWA's 880 - program had bogged down. As noted by the CAB in its order of Decem - - ber 29, 1960, this adversely affected TWA's competitive position. By the time the 880s were received, am ajor opportunity for TWA to move to the front of - e competitive race had becn lost, From a high of 17.4% ‘in the third quartcr of 1959, TWA's share of trunk line traffic fell to 13.2% in-the first quarter of 1961. In the*meantime, TWA had incurred ‘heayy internal costs and lost substantial revenucs. This contributes heavily to its present financial problems. schut THB ua. . LERNATIONAL SITUATION Turning briefly to the international front, much that has been eusd Glove fs applic ste. fe ehaum he Evhihit 11.-Pan American's busi- ness has both grown more vigorously and been more profitable than TWA'e. Until 1958, TWA ' +d relatively higher costs but since that time TWA's unit costs have generally been lower than Pan Am's (Exhibit 12), TWA labors under the handicap that between the United States and London both _ Pah Am and BC .C schedule higher frequencies while Pan Am and Air France do the sam. between the United States and Paris. Exhibit 13 (as well as Exh. 1) reflects the damage suffered by TWA through the operation of Super Gs and 1649s rather than DC-6s and DC-7s and by the diversion to Pan Am in 1959 of six Boeings originally . destined for TWA. Prior to 1957, TWA generally showed higher load factors than Pan Am. From 1957 on, however, this was not the case and _ TWA experienced an unfavorable relationship in 1959 and carly 1960. — Thé introduction of jet service by TWA overcame this in 1960. In recent months, however, TWA's load factors have been below those of Pan Am . reflecting, among other things, our disadvantageous terminal situation at Idlewild and the hunk of magazine advertising in 1960, _ Within the last few months the economic = sibbitinih of all transatlantic by carriers has suffered greatly from sagging load factors. resulting from excessive capacity. TWA has not escaped these competitive pressures. Nevertheless, in recent months TWA's international business has earned . . . ° » . » ° . ‘ . ’ * . . ‘ . . . a ‘ . ° DX 253, page 5 (Report ‘$e Directors of TWA-Oct. 13, — a a © ctendy but instant profit. At the moment this businese is surpr isingly strong. ; _ MAJOR OBJECTIVES eo, From the ‘iseuten: it scems apparent that to ebtein future .' profitability TWA must achieve greater public acceptance and higher load factors. While cost reduction must be a constant challenge, there is little | reason to believe that we can so improve our costs vis-a-vis other carriers that we can operate indefinitely with substantially inferior load factors. It is significant that system revenues for the twelve months ended ' August 31, 1961, were $362.2 million, an increase of 50. 7% over those of the year 1956, Du:. g the seme period the average number of employees - had increased by only 8.9%. ‘i..us, a general reduction in headcount does Fo not apeene: to present a likely solution, Perhaps as an ovorsimplification ¢ our major epectsrae for the next _ few years must be to: : tg (1) Complete’ a idiataaian program to give us —_ equipment ‘ comparable to that of our competitors, ~ (2) Improve our public ‘acceptance through better schedules, betes D tun etauk & . teLsimaio aun Assapaus rom Suseewete festthe : (3) Discontinue , ctivitics which our resources do not permit us to- » Carry on effectively . Local service type operations must come under particular scrutiny, ; ° 2 (4) Maintain a constant effort to effect savings in operating and overhéad costs without — our ability to maintain the quality of our essential aerviess. -(5) Improve and strengthen our internal organization with specific ° reference to better interdepartmental relationships, more — plan- ning a and more effective marketing. : Short term,‘our specific problem is one of maintaining solvency — while making as much progress as possible toward ‘completion of our reequipment program. Exhibit 14 shows the relative equipment disadvantage. at which TWA will be, even if we succeed in completing our Caravelle pro- : — We have an-obvious obstacle to o crcome., ‘ . ‘ ‘4 A reequipment program must assume, of course, that the aircraft can be profitably utilized. In times such as the present, such an assump- _ must be challenged, me, 80 far as seme sn proves. AX-1688 , neces — pu y DX 258, page 6 : 26~ en (Report to Directors of TWA-Oct. 13, 1961) ae The present is not the firet depression which the industry has experienced, Others occurred in 1948-49 and, to’a limited degree, in 1958, On each occasion the industry eventually pulled out and went on ‘to new records, Looking at tho present ono, I do not think that we should assume either that the industry will not pull out or that it will pull out with quite the vigor of the past. Quite possibly, future growth will be slower. Most of the long haul business to be taken from the railroads and buses has already been garnered, The remaining market lics largely’ : among those who can be induced to travel more and drivers of automo- biles. Factors of cconomy and convenience make the latter a particularly difficult market to penetrate. Probably a greater potential exists in the international ficld where a large volume of steamer traffic still remains to be tapped. : . Practically all forecasts predict an annual increase in revenue passenger miles for the next few ycars of more than the approximately 6% which will be roughly the average for 1958-1961. It would appear conservative, however, to use the 6% figure. This comparcs with an — _ anticipated net increase in available capacity of approximately 5% ayear. | '' . Thus one cannot expect sharply improved load factors for the industry ‘as awhole, Notwithstanding this, TWA can fairly look forward to improved load factors, comparable to those of American and United, to the extent .. tina AL Upeaaicn Cumpetiiee cohsfetes with ramnarahia equipment out of ’ - comparable terminals. ores TWA's jets are with few exceptions producing profits. The major problem is that they are not producing sufficient profits to overcome the _ ‘loss being occasioned by piston planes, Our operating loss on our 1049G : * flect alone amounted to approximately $11, 500, 000 for the twelve months -. ended July 31, 1961. In part, this problem must be solved by elimination ‘*- of certain uneconomical route services. Solution of the problem will also . require, however, more modern ships with which to provide the services which are retained. The Caravelle would break even with smaller loads’ than the 1049G. At the same time, it could be expected to attract substan- tially higher loads. ‘On routes of the type in question, Caravelles would ‘break even with about 10% fewer passengers than our 880s and, thereforq _. ‘ are to be preferred. oe Attached es wxhibit 15 is a table showing for several alternate . equipment programs the available domestic seat miles for the years 1962, _ 1963 and 1964, Also shown are anticipated load factors and the TWA share of total trunk passenger milcs required to achieve such load factors. On . the chance that the Caravelle program might abort, particular study is being given to alternatives B and C, the latter of which would involve the pur- : - chasing of 18 131Bs and 10 7276 as opposed to the 20 131Bs and six 331Bs , Row on order, Alternative C vould anticipate a more modest shzre of the "* Pe ee a " (Report to Directors of TWA-Oct. 13, 1961) — trunk market than any of the others, a share which approximates that y actually realized in the years 1955-1958 and 1960. It suffers, however, in that it would leave us particularly short of jets vis-a-vis our competi- * * tors in the next few years. The question of the extent to which additional jets would produce additional profits is undergoing the most careful scrutiny. It might be . wise to postpone the six long-range Bocings if this could be done without , severe penalties and if it would enable us to obtain short-range jets. A. ' definite recommendation on this question will be made at the meeting on ' . October 23. Suffice gt at this point to note that while the profitability of .- any jet program muSt rest in the realm of opinion, one can be almost ‘positive that without substantial additional jets TWA must undergo a vast : ontraction which would raise the most serious doubts as to the possibility ' of future profitable operation, ; a * ECONOMY MEASURES Whether or not we are able to proceed with a Caravelle program, ‘+ the biggest current question is that of financing our activities for the ‘next twelve months. ; At the last meeting of the Board, the financial forecast indicated |; aneed for $1.9 million of additional cash at the year end in order to have the 919 MOM UF Canoks acyuiacc for somfortohle aneration. Barring some further unexpected deterioration in the gencral level of business, we expect ; that this amount will be more than made up through operating economies of ™ about $2,000,000 and curtailment in planned capital expenditures of approxi- mately $500,000. Should we be spared another crash before the year is out, an insurance reversal of about $4 million should be available besides, ‘~ but obviously this cannot be counted on. If the Caravelle program aborts, another $1,000,000 will be available. All : the trunklines but one have reached an agreement for down- grading the Icvel of service in the coach section. If final agreement is _ reached and if this is approved by the CAB, which is highly likely, this should result in additional savings in the next half year of nearly $2,000, 000. : oe : © It is our expectation that at year end, even barring any improvement .in business conditions, we will show cash substantially in excess of ig 000, ens The mentee problem will occur in the first half of 1962. sea are being taken to eliminate various local service type opera- tions. We hope to get rid of Albany, Binghamton, Scranton, Williamsport, ‘ Reading, Allentown, Fort Waync, South Bend, Terre Haute and Fresno. _ Additionally, vigorous attempts are being made @ less active stations to 4 handle ground services through or in cooperation with‘other airlines. = It is hoped that from all of these activities a saving of $2,000, C00 per 258, page 8 (Report to Daveutune’ ee TWA-Oct . 13, 1961): year or $500,000 per quarter can be realized. It is doubtful that elimination of these services can be accomplished in time to . be of material assistance, however. Steps to climinate certain unprofit- . _ able foreign services already have been taken, : 7. e Another source of first quarter savings might be curtailed adver- _ tising, However, our necd to add volume suggests that we should procecd cautiously here. It would scem prudent to reduce our ¢»xpenditures some- * what in the next few months so as to be in a position to mount a major campaign to build up to the opening of our-new Idlewild terminal, the receipt _ of our new Boeing jets and the normal spring increase in business. weforte are being made to cut down crew costs through use of doppler on transatlantic flights and through achievement of a three man cockpit. If successful, these efforts should prove to be of real financial significance over the long run. From a short term standpoint, however, severance pay provisions probably will prevent realization of any significant economies. ‘At the present time, Mr. .Hall is engaged in’a crash program to eliminate expense and improve operating results over the next six months. Among other things, this involves a complete review of schedules and of ‘the level and type of service being offered in the various markets which we serve. At this writing, this effort h2= ret peer brougnt to # puine cinae ie is possible to include in this discussion a definitive forecast.for the first quartcr of 1962.. Hopefully, this will be embodied in Mr. Leslic's financial report which will be presented to the October 23 meeting. Suffice it to say here that it is expected that while the forecast will represent a definite improvement over that presented to the September meeting of the Board, it will still leave us with a financial problem during the early months of 1962, REVENUE MEASURES Considerable thought has been given to means of effecting a rapid .increase in revenues. One such possibility is that of instituting a new and cheaper high density jet coach type of travel in order to stimulate new business. This general approach has been tried by TWA in the past; at times with considerable success and on one occasion with little to show as aresult. Undoubtedly a high density low fare jet coach to the Pacific Coast would attract considerable business, If successful, however, our competi- tors undoubtedly would follow suit and the end result probably would be a general debasement of the fare level without a sufficient increase in volumc to cure the basic problem. f ae A The Sint estimates seem to indicate that two-thirds of those who patronize the airlines are rcgular travellers who will travel via the airlines for busincss or other reasons without particular regard tu fares, Market \ 7 sci a |: AX.1001 DX 258, pag : | (Report to Directors of yg 13, 1961) . “= siaabatey must be pone among the casual travellers nition up the +: vemaining third who are responsive to fare levels. A general drop of ‘5% in coach fare levels would require a 16% increase in these casual travel- ° Jers in order to break even. Particularly at this time of year, such an in- ° + difficult cash problem, : = “ ¢rease would appear too unlikely tobe a ee solution to our problem. . Thought has also been given we sseihal discounts or promotional - 3 | fares. The general industry fecling, however, is that promotional fares “ .: ‘have done more harm than good, The current youth fare is subject to wide - spread abuse and even its originators now wish to get rid of it. To date, our own promotional 13-30 day fare appears to have been a limited success | but ite effectiveness may bé diminishing with time. It is unlikely that any ‘. promotional fare in jets which we might conceive would be sufficiently "beneficial to warrant interrupting an apparent industry trend to eliminate discounts in order to avoid a general deba [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386414_0039%3A12. Public record. Not legal advice.