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April 25, 1968                                    
Page 282
AviationDAILY

BOR RECOMMENDS NORTHEAST FOR NEW ENGLAND - GREAT LAKES ROUTE

CAB's Bureau of Operating Rights has recommended that Northeast Airlines be awarded a new route between points in Northern New England and Chicago, Cleveland and Detroit.

In its brief to examiner Richard A. Walsh in the No. New England-Great Lakes service investigation, the Bureau indicated that its choice of carriers in the case was close between Northeast and Mohawk. In selecting Northeast over Mohawk, BOR said that the services which Northeast proposes concentrate on the core markets at issue and named Bangor, Portland, Manchester, Lebanon/White River Junction and Burlington as the New England core markets. 

Since Northeast offers the best schedules and lowest fares, BOR asserted, the carrier is in "an excellent position to develop this route to benefit the traveling public and to its own benefit." BOR indicated that an award to Northeast would result in a "substantial operating gain" (Northeast estimated an operating profit of between $1.2 and $1.5 million).

In recommending denial of Mohawk's application, BOR said that the case is "simply not the best vehicle to break Mohawk out of its periphery by extending it into Chicago." Moreover, the financial benefits to Mohawk would be "insubstantial." In regard to the application of Trans East, and air taxi operator, the Bureau said that Trans East is "in no position to take on the added task of establishing a certificated airline service stretching half way across the American continent." 

TWA SAYS IT WILL BUILD NEW OVERHAUL FACILITIES AT KANSAS CITY

New TWA construction projects at the Kansas City International Airport were announced yesterday at Kansas City by TWA president Charles C. Tillinghast, Jr., at the annual stockholders meeting. Tillinghast said TWA will break ground in late June for a $33 million addition to its overhaul base to handle the next generation of superjets and supersonic transports. 

"When completed, this addition to our already huge base will result in the largest commercial aircraft overhaul and repair base in the world," he said. "We hope to finish phase 1 construction by 1970 to accommodate the first of the 747s we have on order. The hanger bay will be large enough to house the 747 and the U.S. SST." Tillinghast said phase II construction will be completed by the time TWA places the U.S. SST in operation about 1975. TWA has the first delivery position.

Tillinghast said that TWA expects, within the next few months, to complete work on a new $8 million expansion of the company's jet engine overhaul building. "This new space will double our existing capacity of handling 120 engines a month and should take care of our requirements until about 1972/" TWA expects to break ground this fall on a new test cell which will accommodate engines on the new 747 and SST. This is now in the design stage.

A new TWA office building will adjoin the new overhaul base. Also underway are plans for cargo-handling facility and an inflight food handling unit at the airport. TWA two weeks ago broke ground in Kansas City for a new hostess academy.

NET EARNINGS of Northeast Airlines amounted to $2,521,000, or 40 cents a share in the quarter ended March 31, 1968, compared with a deficit of $281,000 in the same 1967 period. Revenues, however, increased to $31,440,000 from $19,112,000. 1967 results do not include $187,000 in federal subsidy made to the carrier in March, 1967. Northeast went off subsidy as of Jan. 1, 1968. 

STOCKHOLDERS OF HOWELL INTERNATIONAL yesterday approved the previously announced acquisition of Butler Aviation Co. and a change in Howell's state of incorporation from Michigan to Delaware. At the same time, Howell Board Chairman Paul S. Dopp announced that upon completion of the re-incorporation, Howell's  name will be changed to Butler Aviation International Inc. Howell also owns Aircraft & Airport Services Inc., making it one of the nation's largest service companies. Stockholders also approved an increase in the authorized common stock from one million to three million shares and authorized issuance of one million shares of a new class of serial preferred stock.