HR70-14

29 NOV 19ri,

MEMORANDUM FOR: Deputy Director for Support

SUBJECT : Southern Air Transport, Inc.

1. Attached is a paper on Southern Air Transport, Inc. whichwas prepared in connection with the last Meeting. It coversmost information about the company including background on type ofwork, finances, profits, etc.

2. I thought you might wish to retain this for your information andreference from time to time.

Special Assistant to theDeputy Director for Support

Att .

APPROVED FORRELEASE DATE:24-Sep-2009

SOUTHERN AIR TRANSPORT, INC.

November 1971

SOUTHERN AIR TRANSPORT, INC.

Introduction

Southern is one of the eleven surviving Supplemental Air Carriers whohold certificates of public convenience and necessity, issued by the-CAB, authorizing them to engage in plane load charter operations withrespect to persons and property. Southern's certificates authorizeit to conduct charter operations within the United States and betweenany State of the United States on the one hand and points in the Carib-bean and points in the Pacific, Asia and Australia (Transpacific), onthe other hand. Six other supplemental carriers also have Caribbeanauthority namely World Airways, Universal Airlines, Trans InternationalAirlines, Capitol International Airways, Saturn Airways, and OverseasNational Airways. Two other Supplemental carriers have Transpacificauthority namely World Airways and Trans International Airlines.Southern's certificates authorize worldwide operations under contractswith MAC as do the certificates of all other Supplemental carriers.

Southern has exemption authority to operate charter service with respectto property only between Puerto Rico, the Virgin Islands and other pointsin the Caribbean. Southern also has an exemption authority to operatecharter flights with piston aircraft with respect to property only betweenthe United States on the one hand and Central and South America on theother. Finally, Southern has exemption authority to engage in chartermovements of "outsize" cargo worldwide with Lockheed Hercules LOO typeaircraft.

Southern's certificate authority to provide charter services in theCaribbean and Transpacific area is up for renewal in the Supplemental Renewal Proceeding. Southern will have an opportunity in that proceedingto seek broader certificate authority. It is anticipated that the hearingin the Supplemental Renewal Proceeding will be held early 1972.

In its supplemental air service, Southern, operates seven transport cate-gory aircraft consisting of two leased Boeing 727 convertible (passengerand cargo) jet aircraft which are used primarily on Military AirliftCommand (MAC) operations in the Far East, two owned Hercules L100-20 andone leased Hercules L100-30 all cargo turbo prop aircraft which are uti-lized in commercial cargo operations out of Miami throughout the world,and two owned DC-6 A/B piston aircraft one of which is in a convertible(passenger and cargo) configuration and used on MAC missile range operationfor MAC out of Patrick Air Force Base and the other of which is in an allcargo configuration and utilized in commercial cargo operations out ofMiami in the general Caribbean area.

Southern has CAB authority to engage in Supplemental Air Transportationwith respect to "outsize" cargo to any place in the world. Southern alsohas authority to engagepassenger and property charters in the UnitedStates, Caribbean and the Transpacific areas and to engage in pistonaircraft cargo charters to Central and South America. Thus Southern hasa commercial presence throughout the world. Southern's Hercules L100aircraft have tail gate loading and unloading for expeditious and easycargo handling. The Hercules L100 aircraft are capable of making in-flight cargo drops and Southern has crews trained in such procedures.

The typical commercial operation of the L100 aircraft is with a 45,000pound payload and the range with such payload is 1,600 statute miles.However, with the removal of certain equipment the L100 aircraft cancarry 48,000 pounds over the same-range and when lightly loaded withapproximately 20,000 pounds has a range of approximately 4,000 statutemiles. The Boeing 727 aircraft also have drop capabilities out theventral exit which can be opened in flight and Southern has crewstrained in this procedure. The typical capacity and range of the 727is 105 passengers or 33,000 pounds of cargo with a range of 1,900statute miles.

Southern has numerous well trained and dedicated employees, most ofwhom have been with the Company for many years and are well versed inthe operation of aviation activities. At April 30, 1971, this staffincluded 55 management administrative and general office employees,67 flight personnel, 56 mechanics and technical service personnel, 14ground operations personnel and 42 traffic personnel. The currentemployment is approximately the same.

Southern does its own flight training and maintenance at Miami and hasthe capability for providing such services for others at that location.

Southern has its main headquarters at Miami International Airport whereit occupies approximately nine acres of ground on which are constructedits general offices and maintenance operations and supply buildingconsisting of approximately 27,300 square feet of covered space.Southern also has warehouse and office facilities at San Juan, PuertoRico where two employees are based.

In summary, Southern has extensive worldwide authority, the personnel,facilities and capability to deliver anything any place in the world onshort notice and to establish an aviation activity any place in the world.Southern is a viable and going concern with a history of over twenty yearscontinuous service. Southern was purchased by the present stockholdersAugust 5, 1960 together with its sister corporation Actus Technology, Inc.(formerly known as Southern Air Holding Corp.) for $307,506 at which timeIt showed a negative net worth of $14,797. As of September 30, 1971after ten, years of operation the net worth of Southern is $4,052,898.Of this amount $1,377,906 is represented by paid-in capital consistingof $1,105,467 represented by the assets of Foreign Air Transport Develop-ment, which were purchased for stock, $253,989 consisting primarily ofDC-4 aircraft and parts, and $8,457 of donated capital, and $10,000originar capital stock. The remaining $2,674,992 of net worth representearnings over the past ten years after federal income taxes of $862,060.In addition, Actus has a net worth as of September 30, 1971 of $71,186.

4014dentCha rman of the Board &

TreasurerVice PresidentSecretaryAssistant SecretaryAssistant SecretaryAssistant Secretary

James BierbowerWilliam R. GilmoreWilliam J. MerriganDavid W. GarberMax G. Wells

Stanley G. WilliamsF. C. Moor

SOUTHERN AIR TRANSPORT, INC.

Corporate Data

Incorporated

Incorporated under the Laws of Florida on October 31, 1949Authorized Capital - 500,000 Shares of $1 par value stock

Shareholders

400,000 Shares of stock are outstanding and held by ManufacturersHanover Trust Company in a Custodian Account and are registeredin the name of the Bank's nominee, Suydam & Co. pursuant to aCustodian Agreement between the Bank and Messrs. Percival F.Brundage, Perkins McGuire, F. C. Moor and Stanley G. Williams.The Custodian Agreement provides that the Directors are jointtenants with rights of survivorship with respect to the stockand that any two (or one if he is the sole survivor) may addor delete individuals to the Custodian Agreement and may other-wise direct the Bank as to the handing and disposition of theshares. The foregoing form of holding shares was adopted.August 5, 1960, which was the date of acquisition by the presentowners.

Directors

Chairman F. C. Moor

Member

Percival F. BrundageMember

Perkins McGuireMember

Stanley G. Williams

Officers

SOUTBERN AIR TRANSPORT, INC.

Civil Aeronautics Board Authority

Certificates

Southern holds certificates of public convenience and necessityissued by the Civil Aeronautics Board authorizing it to engagein Supplemental Air Transportation with respect to persons andproperty on charter flights and inclusive tours both within the50 states and between any state of the United States on the onehand and points in the Caribbean and points in the Pacific, Asia

and Australia (Transpacific), on the other hand. Southern'scertificates also authorize domestic and worldwide operationsunder contracts with the USAF Military Airlift Command (MAC).

Southern's certificate for domestic authority became effectiveMay 13, 1966 for an indefinite period, except domestic inclusivetour authority, which was for a five year term. Southern'scertificate for Caribbean and Transpacific authority becameeffective November 26, 1966 and was for a five year term expiringNovember 26, 1971. Southern's certificate authority for MACoperations is for an indefinite term.

By Order No. 71-10-126, adopted October 26, 1971, the CABinstituted a proceeding to be known as the Supplemental Renewal Proceeding, to consider the renewal and modification of theexpiring inclusive tour and overseas and foreign authority heldby Southern and the other eleven Supplemental Air Carriers.Southern has applied for renewal of its domestic inclusive tourauthority and its Caribbean and Transpacific authority, andSouthern is entitled under the Administrative Procedure Act andCAB Regulations to continue to operate such services until finaldisposition by the CAB of such renewal applications in theSupplemental Renewal Proceeding. Southern has also applied forcertificate authority covering the Intra-Caribbean and outsizecargo authority it now operates by way of exemption as describedbelow, and upon review of its requirements may apply for additionalcertificate authority prior to the hearing in the Supplemental Renewal Proceeding.

Exemptions

Southern has an exemption to provide Supplemental Air Transporta-tion with respect to property only on charter flights betweenPuerto Rico, the Virgin Islands and other points in the Caribbean.This exemption was originally granted February 9, 1968 and expiresNovember 26, 1971. Southern has applied for renewal of thisIntra-Caribbean exemption authority and ii entitled under the

- 2 -

Administrative Procedure Act and CAB Regulations to continue tooperate such services until final disposition by the CAB of suchrenewal application.

Southern also has an exemption to operate all-cargo charter flightswith piston aircraft between the United States on the one hand,and Central and South America, on the other hand. The Centraland South America exemption was originally granted on April 10, 1968and has been renewed on the application of Southern on a year toyear basis by the CAB with the current exemption effective throughMay 10, 1972.

Lastly, Southern has an exemption to engage in Foreign SupplementalAir Transportation of "outsize" cargo with Lockheed Hercules L-100type aircraft between the United States, on the one hand, andCentral and South America, Mexico, Canada, Greenland, Iceland,The Azores, Europe, Africa and Asia as far east as (and including)India, on the other hand. When taken together with its certificateauthority the geographic scope of Southern's outsize cargo authorityis worldwide. The outsize cargo charter exemption authority wasfirst granted February 9, 1970 and was renewed for a second yearon Southern's application and is now scheduled to expire February 10,1972. Southern will seek renewal of its outsize cargo charterexemption authority.

Operations to other parts of the world to which Southern doesnot hold either certificate or blanket exemption authority canonly be conducted with a specific exemption from the Civil Aero-nautics Board for each separate charter.

SOUTHERN AIR TRANSPORT, INC.

Points Served During First Ten Months of 1971

'Accra, Ghana• Amman, Jordan• Amsterdam, Holland

Antigua, BWTAtlanta, GeorgiaAmampara, West Irian.Anderson AFB, GuamBermuda, Bermuda Is.Bangor, Maine

• Boston, Mass.Bogota, ColumbiaBangkok, ThailandBurbank, Calif.Buenos Aires, Argen.Bombay, IndiaBrussels, BelgiumBrisbane, Aus.Beirut, LebanonBordeaux, FranceBuffalo, N.Y.Biak, IndonesiaCape Kennedy, Fla.Cayenne, Fr.GuianaCaracas, VenezuelaCambridge, EnglandCharleston, W.Va.Cincinnati, Ohio-Cordoba, ArgentinaClark AFB, PhilippinesChicago, IllinoisCali, Columbia'Ciro Alegria, PeruDahran, Saudi ArabiaDarwin, AustraliaDaytona Beach, Fla.Dal/as, TexasEleuthera, BahamasFrankfurt, GermanyFt. Worth, TexasFukUoka, Japan-Guayaquil, Ecuador-Georgetown, Br.GuianaGander, NewfoundlandGoose Bay, LabradorGrand Bahamas, BahamasGrand Turk, BahamasGuatemala City, GuatemalaHall Beach, Canada

Hartford, Conn.Hagerstown,.MarylandHouston, TexasHalleman AFB, N.MexicoHamburg, GermanyHonolulu, HawaiiIstanbul, TurkeyIwakun, JapanKadena, OkinawaKeflavik, IcelandKingston, JamaicaKeita, BouganvilleKansas City, KansasKunsan, KoreaKwang Ju, KoreaLago Agria, EcuadorLafayette, La.Louisville, Ky.London, EnglandLos Angeles, Calif.-Lima, PeruLas Palmas, Canary Is.Lagos, NigeriaLong Beach, Calif.Linz, Austria •Miami, FloridaMinneapolis, Minn..Marietta, Georgia-MAcarena, ColumbiaMadrid, SpainMacon, Georgia.-Maracaibo, VenezuelaMcGuire AFB, N. J.Madras, IndiaManaus, BrazilMayaguana, BahamasMisawa, JapanNaples, ItalyNew York, N.Y.New Orleans, La.Neiva, ColumbiaNorfolk, VirginiaNauskchott, MauritaniaNassau, BahamasOstend, BelgiumOakland, CaliforniaOsan, KoreaOttawa, Canada

Palma, Majorca----Puerto Asis, Columbia

Port Moresby, Aus.Paris, FrancePort-of-Spain, TrinidadPointe-a-Pitre, Guade lopePonce, Puerto RicoPago Pago, Tutuila

--Recife, BrazilRota, SpainRome, ItalySan Juan, P.R.Saigon, VietnamSan Salvador, El SalvadorSioux City, IowaSeattle, WashingtonSeoul, KoreaShannon, IrelandSanto Domingo, D.R.Santa Maria, AzoresSt. Croix, V.I.St. Thomas, V.I.Sondrestrom AFB, Green.San Francisco, Calif.Singapore, MalaysiaSal Island, Cape VerdeSao Paulo, BrazilSan Diego, Calif.Sidney, AustraliaSalt Lake City, Utah-Santiago, Chile--Talara, PeruTaegu, KoreaTehran, IranTitusville, Fla.Travis AFB, Calif.Tocumen, PanamaTaipei, TaiwanTainan, TaiwanTulsa, OklahomaThule AFB, GreenlandVientiane, LaosVanderburg AFB, Calif,Wallops Is., Md.Wake IslandWest Irian, IndonesiaYakota, JapanYuma, Arizona

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