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EXHIBIT 8

EASTERN AIR LINES, INC. REVENUE LOSS RESULTING FROM DIRECT COST PRICING IN THE NEW YORK-ATLANTA

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CITY PAIRS IMPACTED IF NEW YORK-ATLANTA FARE IS BASED ON DIRECT COSTS

19,395

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[The following information was subsequently received for the record:]

Mr. ROBERT E. GINTHER,

Committee on Commerce,

Dirksen Senate Office Building,

Washington, D.C.

EASTERN AIR LINES, INC., Washington, D.C., April 19, 1977.

DEAR BOB: As you requested, we are attaching the additional material regarding the supplementary presentation which we made to you on April 5 and which outlined very specifically the results we obtained to refute the scatter shot claims made by GAO-using their own figures and methodology.

Sincerely,

Attachment.

J. E. REIN KE.

SUPPLEMENTAL STATEMENT OF FRANK BORMAN, CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER, EASTERN AIR LINES, INC.

In my testimony of March 29, I stated that the DC-8-61 seating assumptions in the General Accounting Office study would require a reduction in seat pitch to 31 inches in First Class and 28 inches in Coach. Further, at that seat pitch, there would be only 198 Coach seats, compared with the GAO's estimate of 205. The basis of this statement is Attachment 1. This diagram retains the galleys and coat closets Eastern required to serve 24 First Class and 173 Coach passengers when we operated the DC-8-61s. The seat pitch has been reduced in an attempt to achieve the GAO seating assumption.

Contrary to reports published after my testimony, the GAO did not use Trans International Airlines' actual seating configuration. TIA's DC-8-61 is a single-class 254 seat aircraft. The GAO assumption was 31 First Class and 205 Coach seats.

As stated on Page 18 of the GAO report, this is a derived number, based on the assumption that "the average First Class seat uses 160 percent of the floor space used by the average Coach seat.” Mathematically :

Assumed First Class seats-31x160%.

Equivalent Coach seats-49.6.

Assumed Coach seats-205.

Total-254.6.

It should be noted that this assumption implies a marked reduction in comfort levels. It retains a Coach seat pitch which TIA itself has described as cramped (Aviation Week and Space Technology, February 7, 1977). Further, it provides less pace between First Class seats than the trunk carriers now provide their Coach passengers.

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Further, the effect of modifying a single-class charter aircraft to a two-class aircraft used in domestic scheduled service cannot be estimated by any mathematical formula. It must be based on an actual layout of the aircraft.

Attachment 2 contains a diagram of a 253 seat single-class DC-8-61 with 31 inch seat pitch and TIA's galleys and coat closets. Without access to a detailed specification of the TIA aircraft, we could not duplicate their 254 seats, but believe the diagram to be accurate in other respects.

Attachment 2 then shows the effect of:

Installing 31 First Class seats at the 33 inch seat pitch assumed by the GAO. Alternatively, installing 32 First Class seats at Eastern's standard 37 inch

pitch.

Relocating the four rear galleys, in order to meet minimum meal service requirements.

The layouts for the forward part of the aircraft reflect the constraints imposed by FAA safety requirements, not considered by the GAO:

Access to the forward emergency exits. This requires removal of the outboard seats next to those exits.

Adequate clearance between the first row of Coach and the bulkhead sperating the First Class and Coach sections. In effect, the spacing between the last row of First Class seats and the first row of Coach seats must be 49 inches, or 18 inches more than the TIA seating.

As shown in the attached diagram, TIA's galleys are at the extreme ends of the aircraft. This provides the flexibility needed to maximize seating and at the same time permits adequate in-flight service on their charter flights (typically 4,000 miles).

One hundred passengers are served from the forward galleys and 154 from the aft galleys.

However, to our knowledge, no operator of DC-8-60s in scheduled service has used the TIA aft galley configuration. With two classes of service, the forward galleys are needed to serve the First Class passengers, and it is a practical impossibility to serve 200 Coach passengers from the TIA aft galleys on a typical two and one-half hour domestic flight.

There is inadequate working space for the flight attendants, as a result of both the galley layout and the proximity to the lavatories.

The distance between the galleys and the forward part of the Coach cabin, together with congestion in the aisles, precludes adequate food and beverage service.

Therefore, in Attachments 1 and 2, we have used Eastern's actual aft galley configuration, which provides the needed working space and closer proximity between the galleys and the passengers.

We have not attempted in Attachment 2 to adjust the positioning of seat rows to eliminate the wasted space in the main Coach cabin. It is possible that an additional row of Coach seats could be installed. However, since four outboard seats blocking emergency exits would have to be removed, this would provide only two additional seats.

Following is a comparison of the seating capacity produced by an actual interior layout and the GAO assumption. In each case, we have used TIA's 254 seats as a base and retained 31 inch pitch in the Coach section.

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This comparison does not reflect the addition of a third forward galley, and an additional coat closet, which, as stated earlier, Eastern required to properly serve 197 passengers. This would displace three rows of seats.

Clearly, either the GAO has seriously overstated the seating capacity of the DC-8-61 or the already marginal comfort levels which it assumed must be further reduced. The seats which I exhibited during my testimony simply demonstrate the magnitude of that reduction in comfort level.

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