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Termination of Subsidy. Support from Trunk Carriers. The provision for the subsidy payments was terminated by Congress when it failed to appropriate money for the period following April 12, 1965, through the end of fiscal 1965. Shortly thereafter in a series of cases, the certificates held by Los Angeles Airways, New York Airways, and San Francisco/ Oakland were reissued for indefinite periods in lieu of the temporary terms and the new certificates included a condition precluding the payment of any federal subsidy for the operations. Shortly thereafter Chicago Helicopter Airways petitioned the Board for permission to suspend service, and suspension was granted coincident with the renewal of its certificate for one year to December 11, 1966. 6/

Shortly before the actual subsidy termination by the Congress, New York Airways entered into negotiations with Pan American and TWA which ultimately resulted in loans to New York Airways totaling $1,035,000 with Pan American providing $635,000 and TWA $400,000, and consummation of agreements whereby these trunk carriers would provide financial operating support to assure continuation of the New York Airways services. The TWA agreement provided for the underwriting of certain operations under which schedules were operated between Newark, Wall Street, and Kennedy and LaGuardia Airports; and the Pan American agreement made similar provisions for schedules between the heliport on the Pan Am Building and the Pan American terminal at Kennedy Airport. The subsidy figures noted in
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6/ An application for renewal of the certificate was filed in June 1966 and is pending in Docket 17401. Suspension is now authorized through April 30, 1968, by Order E-2533 entered on June 20, 1967.