Viewing page 6 of 9

This transcription has been completed. Contact us with corrections.

One last word about the morale problem. Utilizing the suggestion box and encouraging employees to submit new ideas is another fine way of boosting morale. A small prize each month and some praise and encouragement will go a long way towards maintaining a happy team. Each man wants to feel that his opportunities are unlimited and that he is not being held back. We must give him that chance.

This sums up the general problems to be considered by the Personnel Committee. These problems are all the more interesting, of course, because they concern people directly. They should not be treated lightly.

The committee responsible for investigating the Legal, Accounting and Insurance problems of a helicopter business have a relatively easy task. With all the complexities of modern business, when an operator needs the services of any one of this group, he usually needs ti in a hurry. The solution is therefore simple. Get the best Legal, Accounting, and Insurance services obtainable. It is cheapest in the long run. However, let us briefly discuss some of the problems we, as an operator, will have to face. Insurance is one of an operator's biggest headaches. Since his helicopters are frequently operating in crosses areas, public liability and property damage insurance is a necessity. Operation "Santa Claus," for example, requires a landing in an area usually surrounded by several thousand people. Although I know of no accidents during these operations in the past, the potential is there and a operator cannot afford not to carry adequate insurance to cover such contingencies. 

Power line patrol works is another source of potentially enormous damage suits in the  event of an ancient. Although power line patrolling is one of the safest, if not the safest, type of helicopter operation, there is always the possibility of colliding with a power line. If this occurred with a major line serving a large area, the operator could become involved in real financial trouble. 

Therefore, we should plan to carry public liability and property damage insurance, in the amount of at least $100,000/$300,000. 

Agricultural crop damage insurance is another necessity. This insurance is generally available up to $25,000 maximum limit and insures an operator against damage done to adjacent crops. For example a tomato field next to a grain field is a real hindrance to an operator, if he plans to spray the grain from 2,4-D for controlling weeds. He must wait until there is a slight wind blowing from the tomato field towards the grain before applying chemicals. If he doesn't his insurance company will be forced into the catsup business and he will very likely have higher insurance premiums to worry about the following year. 

Helicopter hull insurance is a bank requirement for any operator buying machines on time. The rates are almost prohibitive, however, being approximately 25 to 30 percent of insured valuation per year. In addition, the operator usually must pay the first $1000 cost of any accident. Rates do vary somewhat depending upon an operator's past record. Since there are only three reliable sources of hull insurance today, the operator and the insurance companies are will known to each other and information is freely exchanged. It therefore behooves an operator to maintain good relations with his insurance company and to place extra emphasis on all safety procedures. 

Unless an operator is a Certified Public Accountant, it is most desirable to have an accounting firm maintain the books. The complexities of modern business plus taxes and governmental red tape take too much of an operator's time away from sales. It is more economical to utilize the services of a reputable accounting firm. 

The same reasoning applies to legal representation. When an operator needs a lawyer, he needs a good one. Therefore, it is wise to retain the best law firm available. Sometimes the mere mention of an outstanding lawyer will discourage suit by parties with weak cases or imagines injuries. The best advice is the cheapest in the long run. 

5