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-2- that "limited subsidy support through fiscal 1970 is essential if NYA is to continue to serve the public need of the New York area" and that a cessation of NYA's certificated operation would "wipe out the gains and contributions which NYA has made over the past 14 years and deprive the New York area if valuable and substantial service benefits which NYA is providing for the traveling public." The situation has markedly improved since the issuance of the Show Cause Order. In the first nine months of 1965, NYA's traffic increased 17%. It is now carrying traffic at the rate of 1,000 passengers a day. Moreover, NYA has entered into contracts with TWA and Pan American which have reduced the maximum subsidy requirements for the period at issue to $3,986,000.2/ As a result, it is now possible to provide more service to the public at less subsidy dollars than was contemplated by the Show Cause Order. A permanent certificate with subsidy eligibility will assure a continuing and rapid development of helicopter services in the New York area serving passengers from all over the United States. By fiscal 1970, this service will be utilized by over 1,100,000 passengers a year. (NYA T-3, App. B) Continuing technological improvement will permit lower seat-mile costs, greater reliability and rooftop operations. These advances will make a substantial contribution to the resolution of the difficult problems of vertical lift air transportation between city centers. Moreover, NYA's technological efforts plus the intensive utilization of vertical lift equipment in certificated service will continue to make substantial contributions to improved design, better procedures, and lower costs for the huge fleet of military helicopters. [[footnote]] 2/ The Department of Commerce filed no objection for the period July 1-December 31, 1965. This amount is required for the period January 1, 1966 through June 30, 1970. If Pan Am and TWA renew their options for the additional two years, the maximum subsidy requirement will be reduced to $3,319,000.