Viewing page 50 of 82

This transcription has been completed. Contact us with corrections.

- 38 -
The true management problem in this case is the effort of the local service applicants and D.C. Transit to disperse management into different areas of activity. In contrast, selection of NYA would involve not a dilution of management, but its concentration in one business -- the helicopter business. [[superscript]] 75/ [[superscript]]
3. The selection of NYA will give the Board greater flexibility in developing a sound route structure to meet the public need for short-haul city center to city center service.
In the long run, a major contribution of the helicopter will be to make city center to city center service truly practicable. This role will be particularly significant in the greater super cities on the east coast. [[superscript]] 76/ [[superscript]]
In this case, the Board should, if possible, preserve its flexibility to select either a helicopter carrier or a local service carrier for Washington-New York city center service. In a future case, it could decide that this service could better be rendered by a local service carrier. On the other hand, it could decide that the public interest would be better served by utilizing the accumulated experience of a helicopter operator. [[superscript]] 77/ [[superscript]]
75/ Historically, NYA has welcomed opportunities to participate in helicopter operations in other countries and other areas. Its mission to Pakistan (Tr. 2033-34, 2052-3) is but one of a series of such enterprises, e.g., under contract to Portugal, NYA prepared a detailed study and operational plan for service to be conducted in the Madeira Islands. (NYA 224, p. 4) These efforts have brought profit to the company. Most important, they offer opportunities for that management to know more about the helicopter operations. The benefits of that greater knowledge either in New York or Pakistan or Portugal, will be available to provide better service at a lower cost in the Washington-Baltimore area.
76/ Project Horizon, p.82-3. See also, speech of Chairman Boyd to the Helicopter Association of America, Dallas, Texas, January 22, 1960.
77/ The Board has never been squarely faced with the problem, of who should provide city center to city center services. Local service carriers have generally been selected for airport and airport services. There is a substantial doubt as to their legal right to provide city center service. The central legal question is whether an airport notice for city center service under Part 202.3 of the Board's Economic Regulations would be legally acceptable.
Allegheny's application here is implicit recognition to provide city center to city center service. Thus, NYA is authorized to provide service from city center between such points as Trenton, Bridgeport, New Haven, Paterson and Danbury and New York City. Whatever the existing legal situation as to city center authority, the Board could, through a section 401(g) hearing, amend the certificate of either class of carrier to conform with the policy which it found most consistent with the public interest. 

Transcription Notes:
Check formatting :)