The year was dominated by
measures to cut costs of the airline
operation through continued fleet
transition to more efficient aircraft and
through negotiation of new, lower cost
labor contracts with all employee groups.
Both were successful: By the
end of the year, PSA was operating the
most modern, fuel efficient and quiet
fleet of any carrier in the country, and
necessary concissions from employee
groups had been approved.
The new labor contracts, in
effect through 1987, offer all employees
a 15 percent stock ownership in the
airline and a profit sharing program
equal to 15 percent of the airline's
annual pre-tax profits. In exchange, the
employee groups agreed to a 15 percent
reduction in compensation and an equal
increase in productivity. It was
estimated that the new contracts would
save PSA approximately $20 million a year
in labor costs.
PSA took delivery in 1984 of
its first six BAe 146-200 jets, named
"Smiliners," with the first
revenue flight June 20 between Burbank
and Oakland. A 26th Super 80 also was
delivered, and PSA was able to
substantially increase frequencies
throughout its route system.
Eight Boeing 727s were sold
or leased in 1984, with the last aircraft
making its final flight in PSA's fleet on
November 26. The workhorse of PSA for
nearly 20 years, the 727s had logged in
excess of 300 million miles and carried
more than 92 million passengers in their
career with PSA.
Several new customer
conveniences were introduced in 1984. In
January, PSA moved its operations at Los
Angeles International Airport to the new
PSA Terminal One, the first reached upon
entering the busiest airport in PSA's
system. Automatic check-in machines were
installed at PSA's airports, reducing
passenger congestion at the ticket
counter, and the airline's Executive
Flyer program was expanded to include
affiliation with a worldwide carrier,
TWA. In September, PSA reinstated nonstop
service between Stockton and Los Angeles,
offering the only all jet service between
Paul Barkley, president, was
named chief executive officer in March,
replacing William R. Shimp, who retained
his position as chairman of the board.
Shimp died of a heart attack on May 11 at
Financially, PSA, Inc.
reported net income of $2.2 million on
revenues of $689.7 million during the
This ad advertises PSA's sponsorhip of Disneyland, as well as the new Circlevision 3-D film sponsored by PSA. Take a Magical Smiles tour to Disneyland - don't forget kids fly free! Courtesy of Chris Laborde.