Western Airlines Posts Operating Profit in ‘84; Wilson New President

Western Airlines on Tuesday reported its first full-year operating profit in five years and a shuffling of top management that included the appointment of Robin H. H. Wilson, the former president and general manager of Long Island Rail Road, as its new president and chief operating officer.

The Los Angeles-based carrier also said that Gerald Grinstein, Western’s president and chief operating officer since 1984, was elected chief executive.

Grinstein, 52, succeeded Lawrence H. Lee, 58, who will continue to serve as chairman of the board, a Western spokesman said.

The company’s 1984 operating profit of $11.4 million--compared to an operating loss of $56.4 million in 1983--was attributed to wage concessions reached with its five unions and a 10% reduction in fuel costs.

Major Turnaround’

Along with the full-year operating profit, the carrier reported its first fourth-quarter operating profit in seven years.

Grinstein heralded these results as a “major turnaround” for the airline in an industry made more competitive by deregulation.

In the fourth quarter, Western reported an operating profit of $6.9 million, compared to an operating loss of $17.9 million during the same period in 1983.

Grinstein said the stronger performance in the quarter reflected gains from wage concessions reached last year with Western’s five labor unions--representing about 10,500 employees--that took effect in September.

These concessions, which will run through December, 1986, were designed to save Western an estimated $300 million over 28 months.

Nonetheless, Western also reported a net loss for 1984 of $29.2 million on revenue of $1.18 billion.

The company attributed much of that loss to interest expenses of $58.1 million for aircraft acquisition and loans. Western’s net loss in 1983 was $54.5 million on revenue of $1.14 billion, which included a gain of $41.5 million from the termination of a pension plan.

A Western spokesman said the restructuring of senior management was designed to “give the company increased operating flexibility” and “make the entire organization more sensitive to needs and changes in the marketplace.”

Wilson, 48, who was senior vice president for operations at Trans World Airlines before taking over the nation’s largest commuter railroad in 1981, agreed. He said Western’s improved financial standing “opens up some options that weren’t there before.”

Wilson, who resigned from the railroad Monday, declined to elaborate on what those options were. However, he said he hopes to help “give Western real direction and drive.” Grinstein added that competitors “should buckle their seat belts. . . . I think we’ll see some more exciting things happen here.”