A MILLION DOLLARS LOST .... 3c

Taranaki Daily News, 10 June 1930, Page 7

A MILLION DOLLARS LOST .... 3c

■ • AIR LINE’S OPERATIONS. DISAPPOINTING RESULTS. A loss of almost 1,000,000 dollars, in one year, set out in the first annual report of Trans-continental Air Transport, Incorporated, shows the magnitude of commercial flying in the' United States. < . . The report of Trans-continental Air Transport includes the. operations of the Maddux Airlines Company from August 1 to December 31, says the New York Times, Of the loss 746,519 dollars was incurred by TranS-continen'/.l Air Transport and 240,071 dollars by Maddux Airlines. Commenting on the report, Mr. C. M. Keys, chairman of the board, said: “Wbjle operating losses had, of course, been expected during the pioneer steps of this enterprise, • these results were disappointing both in respect to <rross volume of traffic and to cost of operations. Operating losses continued throughout the first quarter of 1930, though the rate reductions have greatly increased traffic and consolidation and drastic revision have reduced costs. “Through the ■ consolidation of the operations of the Trans-continental Air Transport, Inc., and the Maddux Airlines Company, we are now operating two divisions, one from Columbus to Waynoka, having headquarters at Columbus, and one from Clovis to Los Angeles, including the California coastal lines, having headquarters at Los Angeles. Mr. Keys said that, although actual operations on the T.A.T.’s line from Columbus to Los Angeles were begun on July 8, 1929, large sums were spent on the system before the line was opened. The net cost of the line, he said, including equipment, amounts to 3,700,602 dollars, of which 2,932,235 dollars was spent on the Trans-continental route, and the remainder on the lines of Maddux Airlines Company. “The accounts of the Maddux Airlines Company have been consolidated with the accounts of Trans-continental Air Transport, Inc., from August 1, 1929, and the figures presented in this report represent this consolidation of accounts, said Mr. Keyes. The present line of the Maddux Company is from San Francisco to. Los Angeles, and from Los Angeles to Agua Caliente, Mexico. “The Trans-continental Company be<ran operations with a fleet of eleven tri-motor 1275 horse-power’ 'planes, and has been using this type of 'plane during the past year. At the end of the year the fleet "consisted of twenty-three tri-motor ’planes, including the Maddux fleet. Recently the company purchased four bi-motor 1250 horse-power Curtiss Condors with a capacity of eighteen passengers. These ’planes are being used on the Eastern division of the °Trans-continental route, and were acquired to provide for the large .increase in traffic since the rate reductions.

“The original rate fixed by the company for the trip from Columbus to Los Angeles was 319.51 dollars. On January 14, 1930, this rate was cut to 127.50 dollars, and a general basis of about 6 oente a mile was established for local operations. These rates were published as. . 'winter rates/ and are frankly experimental. They liave re-

suited in a very large increase in traffic, but enough time has not elapsed to determine their full effect or to establish a permanent basis of rates.”