The $100 Million Bet

Captain Eddie Rickenbacker, lifelong specialist in the calculated risk, last week staked $100 million on the future of his Eastern Air Lines. He signed final contracts for that much in new airplanes for Eastern, the largest replacement order in U.S. aviation history. The orders were for 30 four-engined Lockheed Super-Constellations and 60 twin-engined Martin 4-0-4s. They will add an average of 65 m.p.h. to the speed of the Eastern fleet and will boost passenger capacity by 175%.

The Super-Connies are 18.4 feet longer than present ones, will carry 88 passengers instead of 60, have a 40% bigger payload. The first planes, which will go to Eastern in three months, will cruise at 319 m.p.h. Later models, with new 3,250-h.p. Wright engines, will cruise at 350 m.p.h.

The 280-m.p.h., 40-passenger Martins will replace Eastern's slower 21-passenger DC-3 fleet, will be used on short hauls beginning in December.

When all deliveries are made, Eddie Rickenbacker estimates that his big fleet will boost Eastern's traffic revenues, now running at an estimated $105 million a year, to $160 million by 1953. With that much money coming in, Captain Eddie, who is borrowing $30 million from banks for his new planes, expects to pay most of it back, plus the other $70 million, out of earnings. And he doesn't intend to lose money selling his old planes. Demand for secondhand transports is so heavy that the canny captain thinks he can sell them off for 75% of their original cost.

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