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CERTIFICATE OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Stockholders of 
Colonial Airlines, Inc.:

We have examined the balance sheet of Colonial Airlines, Inc. at December 31, 1946 and the statement of income and earned surplus (deficit) for the year then ended, have reviewed the system of internal control and the accounting procedures of the Company and, without making a detailed audit of the transactions have examined or tested accounting records of the Company and other supporting evidence, by methods and to the extent we deemed appropriate. Our examination was made in accordance with the generally accepted auditing standards applicable in the circumstances and included all procedures which we considered necessary.

As esplained in Note 1 to the financial statements, there has been included in the accounts receivable from the United States Government and in operating revenue (on the basis of a temporary rate determined on March 18, 1947) $497,282 with respect to compensation for mail carried during the period from April 15, 1946 to December 31, 1946. Such amount is subject to increase or decrease by the Civil Aeronautics Board, but the amount of adjustment cannot now be determined.

In our opinion, subject to any increase or decrease of the compensation for mail carried as mentioned in the preceding paragraph, the accompanying balance sheet and statement of in come and earned surplus deficit present fairly the position of Colonial Airlines, Inc. at December 31, 1946 and the results of its operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year, except for the change from a reserve basis to a charge-off basis for cost of overhauling engines (see Note 6) which change we approve.)
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New York, N.Y.
March 24,1947
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Arthur Young & Company
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* * *
COLONIAL AIRLINES, INC.
OFFICERS AND DIRECTORS

DIRECTORS
Sigmund Janas          Francis Hartley, Jr.
Karl H. Bissell        Branch T. Dykes
Carl O. Hoffmann       William M. Boyle

OFFICERS
President _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Sigmund Janas
Vice President _ _ _ _ _ _ _ _ _ _ _ Edward S. Ridley
Vice President in charge of Operations _ _ _ _ _ _ _ _ _ _Branch T. Dykes
Vice President in charge of Traffic _ _ _ _ _ _ _ _ _ _ _ _Alfred M. Hudson
Treasurer _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ William K. Byrne
Secretary  _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _K. Hamilton

General Counsel-KADEL, HOFFMANN & GILLIS

General Office-630 Fifth Ave., New York 20, N.Y.
Corporate Office-100 West 10th Street, Wilmington, Del.

Transfer Agent
THE EMPIRE TRUST COMPANY
120 Broadway
New York 5, N.Y.

Registrar
THE CORPORATION TRUST COMPANY
120 Broadway
New York 5, N.Y.