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BEFORE THE
CIVIL AERONAUTICS BOARD
WASHINGTON, D.C.

In the Matter of the
WASHINGTON, D. C. HELICOPTER SERVICE CASE
Docket No. 11941, et al.

BRIEF OF NEW YORK AIRWAYS, INC.
TO EXAMINER RALPH L. WISER

The central public convenience and necessity issue here is whether helicopter service should be extended to a new area.  This, in turn, depends primarily on whether the helicopter has reached a stage of breakthrough which, by reducing subsidy requirements in relation to the service performed, justifies certification in an additional area. 1/

The Board has confined the helicopter experiment to three areas.  Moreover, it has imposed subsidy limitations which controlled the volume of service provided. 2/ The basic reason for these policies has been the high cost of helicopter operations. Direct costs have been high because of the high seat-mile cost of single-engine piston helicopters. Overhead costs have been high because the certificated helicopter carriers have been too small for economical operations.

The new twin-turbine helicopters will slash direct costs per seat-mile in half and provide a marked improvement in helicopter reliability, comfort and speed. The combination of sharply reduced costs and increased


1/ The essential difference between this case and the traditional fixed-wing route case was expressly recognized by the Board order instituting this proceeding, E-16087, November 30, 1960, p.2. The Board stated that it would expect the record to contain the latest information as to operating characteristics and profitability expectations of helicopter aircraft and that it was "interested in determining the likelihood of profitable helicopter operations in the light of recent technological developments as well as considering the need for such a service in the Washington area."

2/  See, e.g., Orders E-12760, July 8, 1948; E-13748, April 16, 1959; E-15306, June 1, 1960. In the last order cited the Board stated:

"...it is the stated policy of the Board to keep subsidy support of these experimental services under careful control. The question of the total volume of service to be operated by NYA under both its certificate and area exemption authority and to be recognized by the Board is necessarily an important consideration in determining the fair and reasonable amount of subsidy to be awarded the carrier." (p. 2)