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INDEX

[[subject]] | Page No. | 

VI. (Cont'd)

B.. (Cont'd)

| 1. Certificated operations produce more intensive utilization than do military operations | 34 |

| 2. The contribution of NYA's intensive utilization to longer times between overhauls and to maintenance provisioning | 35 |

| 3. The contribution of NYA to design improvements | 37 |

|  C. Commercial Experience is Sufficiently Comparable to Military Operations To Be of Direct Value | 39 |

VII. NYA's Certificated Service Provides Other Important Public Interest Benefits  41

| A. It Contributes to the Balance of Payments | 41 |

| B. It Contributes to the Postal Service | 43 |

| C. It Aids Civil Defense | 45 |

| VIII. The Realization of The Benefits Resulting From Continuation of NYA's Certificated Operations In a Manner Most Consistent With the Public Convenience and Necessity Requires Continued Subsidy Eligibility | 47 |

| A. The Five-Year Plan Provides the Minimum Subsidy Required for the Operations Forecast | 47 |

| 1. The volume required for self-sufficiency operation cannot be attained with less subsidy or in less time | 48 |

| 2. Time will also be required to achieve the technological improvement essential for self-sufficiency | 48 |

| 3. While realization of self-sufficiency will take time, it is attainable | 49 |

| B. The Operating Support Contracts With Pan American and TWA Will Not Eliminate the Necessity for Subsidy Eligibility | 51 |

| 1. The main effect is to reduce actual subsidy requirements by $2,341,000 | 52 |

| 2. The contracts are firm for only one year | 52 |

| 3. The contracts pay interest only and provide no return on equity capital | 53 |

| 4. Even if the contracts are renewed, subsidy eligibility is needed to meet the requirements of the public convenience and necessity | 56 |