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To the stockholders and employees of:
NEW YORK AIRWAYS, INC.
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Developments of 1959

New York Airways continued its progressive development during 1959 while advancing preparations for future expansion.

Operations were inaugurated October 15, 1952 with an airmail service on the "inter-airport route" connecting La Guardia, New York International (Idlewild) and Newark airports. In July, 1953 your Company started passenger service on the same inter-airport route, becoming the first regularly scheduled certificated helicopter passenger airline anywhere. From this initial inter-airport route, the Company's service pattern has been substantially expanded. Starting with the five-passenger Sikorsky S-55—the best then available but limited as to speed and capacity—New York Airways has consistently upgraded its equipment to its existing fleet of fifteen-passenger Vertol tandem rotor transports with new high standards in passenger comfort. Only in this manner could successive new gains be achieved in traffic volumes and revenues.

Despite the developmental nature of its operations, for the seventh consecutive year, from its first full year of service through the 1959 year-end, New York Airways has operated at a profit.

Net Income. For 1959, net income amounted to $25,153 or 10 cents per share on 243,400 shares of common stock outstanding. This compared with 1958 net income of $113,697 or 47 cents per share on the same number of shares outstanding.

Commercial Revenues. Commercial revenues again established a new peak, aggregating $1,086,981 in 1959, a gain of 29% over 1958.

New York Airways, nevertheless, remains dependent upon Federal subsidy payments by the Civil Aeronautics Board for financial support. Such aid has been a material factor in permitting your Company to broaden its operations with the most advanced equipment available. Under a previously established rate order, a total of $2,242,355 in Federal subsidy was received in 1959.

The significant progress attained in decreasing relative dependency upon Federal subsidy is self-evident in the 442% increase in commercial revenues for 1959 as compared with 1954—the first full year of passenger service. During this same six-year period, Federal subsidy increased but 66%.