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NEW YORK AIRWAYS 1953 Operating Results Passengers carried (since service inaugurated early in July).......................... 1,237 Passenger Miles.......................... 25,141 Passengers on charter and sightseeing flights.......................... 276 Revenue Plan Miles Flown.......................... 334,100 Available Ton Miles.......................... 133,641 Mail Carried (pounds).......................... 3,347,456 Freight Carried (pounds).......................... 141,116 Revenue Ton Miles Carried.......................... 43,926 Revenue Load Factor.......................... 32.9% Hours Flown.......................... 5882.5 Schedule Completion Factor.......................... 82.7% Average Utilization per Helicopter Calendar Days.......................... 3 hours 57 minutes Schedule Days.......................... 4 hours 43 minutes While the utilization factor is low, in comparison with fixed wing aircraft experience, it is outstanding in the helicopter transportation field, both commercial and military. The company has emphasized the importance of safety in its operations. This has involved keeping its operating limits high and using conservative operating and maintenance techniques. Three of the Company's helicopters have been operated for more hours than any Sikorsky S-55 helicopters which have been built, thus providing your Company's technical staff with an impressive store of technical knowledge and operating experience. MAIL PAY New York Airways' First Annual Report reflected a net loss for the operations conducted during 1952. However, in consequence of recent mail pay action by the Civil Aeronautics Board, the 1952 results have now been adjusted. Accordingly a profit is shown for 1952 operations, as well as for the operations conducted during 1953, in the financial statements included herein. A clear understanding of mail pay position is essential to an appraisal of the Company's progress and prospects, since the Company is (and for a considerable time will remain) dependent upon mail pay as its primary source of revenue. For this reason, and because this question of mail pay is often misunderstood, it appears that it would be useful, before discussing the details, briefly to describe the manner in which the Company's rates of mail pay have been determined. Air carriers which, like the Company, are not in a position to earn sufficient revenues from the carriage of passengers and freight to be self-sustaining on the basis of this type of traffic alone, receive payments for the carriage of the United States mail which are determined not by the actual mail carried, but by the need of the carriers for governmental support, over and above their other revenues, to enable them to continue and develop air transportation in the public interest. In determining the amount of these payments the Civil Aeronautics Board employs two principal types of mail pay rates, - temporary and final rates. Temporary rates are intended to provide only an interim basis of payment pending the establishment of final rates, and are subject to adjustment when final rates are fixed. If operating losses are incurred by a carrier under a temporary rate, such losses are made good retroactively upon the determination of a final rate, and in addition, a reasonable profit is provided for - provided always that the carrier's operations have been conducted in the public interest and under "honest, economical and efficient management."
