Viewing page 1 of 9

This transcription has been completed. Contact us with corrections.

TO: WWH            Copies for: JHS, JEG, RW, RLC

SUBJECT: NEW YOK AIRWAYS 5 YEAR PLAN


In putting together the following plan, the satisfactory conclusion of the now pending management consultant study is assumed and it is further assumed that TWA and Pan American Airways will always pay New York Airways for value received. As to this latter assumption, I think we have been pushed into an unfortunate defensive position where we have been relating their payments to our costs. The sooner this situation can be changed, the better. It is, of course, recognized that this will not happen initially. Again, related to the second assumption, in our November Bluebook we directed our energies to the attainment of a result which would show the practical elimination of the need for payments from Pan American and TWA. Although at the time this appeared to have been required (and probably in fact was), I am satisfied that we must now forget that objective.



[[underline]] FINANCING PLANS [[/underline]]
1. Concurrently with other requirements, New York Airways must commit to raise $1,500,000 in equity at the