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Appendix I for New York Airways reflect support payments under these agreements in 1965, 1966, and 1967. The agreements with both carriers expired on February 15, 1968, thus terminating the assistance to NYA from these sources. However, a new agreement was negotiated with TWA on March 4, 1968, and is pending Board approval under section 412 of the Act. TWA and NYA also filed an application, which is pending in Docket 19746, for approval of the agreement under section 408, if such approval is found to be necessary.
Similar support agreements were reached by San Francisco and Oakland with American and TWA and approved by the Board in October 1965. 7/ The payments noted in Appendix I as subsidy for 1965-1967 are sums paid by American and TWA under these agreements. In addition to the direct support of operations, the TWA agreement provided for the guarantee of $1 million of a loan for %1.5 million from the Bank of America to San Francisco/Oakland. The American agreement provided for an advance by American of $500,000 against payments to be made by American under the support agreement. The agreements were for a one-year period but with provisions for yearly extensions, and they are in effect at the present time.
Los Angeles Airways has been assisted by American and United with both loans and the support of operations. In the spring of 1965 these trunk carriers agreed to lend $3,200,000 for a period terminating on December 31, 1975, with the interest at 5 percent to be subordinated to other expenses and convertible into common
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7/ The American agreement was approved on October 14, 1965, by Order E-22768 and that with TWA on October 28, 1965, by E-22817.