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May 21, 1968 Aviation DAILY Page 118 Boeing officer sees bright future for jet sales in South America South America promises to be an increasingly important market for jet transports, John O. Yeasting, senior v.p. of The Boeing Co., said in an interview. "I see a need for hundreds of planes by South American airlines in the next ten years," Yeasting said. Yeasting recently returned from a five-week sales and survey trip to South America. Yeasting noted that Boeing has sold 30 jet transports to six South American carriers since registering its first sale in that area to the Brazilian airline VARIG in 1957. "I see six to ten potential new customers for Boeing in South America in the next five years," Yeasting said. The best sales potential for Boeing in South America is for transports in the 727 and 737 classes, "with some 707 requirements," he said. Some of the larger operators probably will require small numbers of 747 jumbojets. "South American carriers need to modernize their present fleets of piston-engine transports," Yeasting said, "and the 727, for example, has intercountry range, so international traffic in South America can be handled with the trijet." Carriers which have not bought 727s probably would start out with the standard triject, he said. "But there are some developing routes in South America that in a few years would require transports in the larger 727-200 class." The Boeing executive notes there are many airlines in South America which have not made jet equipment decisions yet. "We have been working the South American market very vigorously for several years," Yeasting said. "We have a good foothold, and we are determined to obtain a fair share of the total market." Present South American customers include Aerolineas Argentinas, Avianca of Colombia, Faucett of Peru, L.A.N., Chile, and VARIG and VASP of Brazil. VASP recently ordered five short-range 737 twinjets. Financing will be a problem in sales to South American carriers, Yeasting said, "but it is any place these days. "But I don't believe financing will be a major deterrent to development of the South American market. The need for transportation is there, and the opportunity for airlines to make a reasonable return means financing will become available." JAL's OPERATING REVENUES INCREASE 26 PERCENT Japan Air Lines will distribute a six percent dividend to its private stakeholders for the third consecutive year. JAL's financial statement for FY 1967 (April 1967-March 1968) shows the airline earned operating revenues of $234,819,444, and 26 percent increase over the last fiscal year, and total gross revenues including non-operating revenues reached $237,850,000, an increase of 25 percent over the preceding year. Ordinary expenditures for the 1967 period amounted to $28,347,222, a 20 percent increase over 1966. Accordingly, the balance was $28,347,222 in the black, an increase of 88 percent over the preceding year. JAL's net profit for the period under review is $3,330,556 before taxes. During FY 1967, JAL carried 802,000 international passengers, an increase of 24 percent over the previous year, due to efforts to step up sales activities by increasing the number of flights, inaugurating new services and opening new offices abroad. JAL carried 140 million ton-kilometers of international cargo, an increase of 29 percent over the previous year, and 26,070,000 ton-kilometers of international mail, an increase of nine percent of the previous year. PACIFIC SOUTHWEST AIRLINES will begin jet services between Ontario (Calif.) and San Francisco in June, PSA President J. Floyd Andrews announced. The California Public Utilities Commission authorized a minimum of four round trip flights daily for PSA, but denied its application for roundtrip service from Ontario to Sacramento via San Francisco. One-way fares will range from about $13.33 to $15.24. HILTON HOTELS CORP. has named R. L. Fitzpatrick as senior v.p.-marketing. He was formerly v.p.-sales and services for American Airlines.