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

1960

Summary

The salient developments covered by this Report are as follows:

- Civil Aeronautics Board approval has now been secured for the conversion of your Company's services to a new fleet of twin-turbine Boeing Vertol 107 helicopters—representing the most important operating and economic advance ever attained in this field.

- Major ground facility improvements have also been accomplished—including a second Manhattan heliport and provisions for new bases at New York International and La Guardia Airports.

- The Company's re-equipment program will make it possible, for the first time, to improve and extend operations both in the New York/New Jersey/Connecticut Metropolitan Area and to other urban centers where our services can be of public utility. During 1960, New York Airways filed applications with the Civil Aeronautics Board for operating authority in the Washington/Baltimore area as well as between New York and Philadelphia.

- The financial results recorded at the date of this Report indicate a provisional loss for 1960. However, these do not yet reflect the definitive subsidy revenues receivable. Restatement of the accounts to include these revenues when finally determined is expected to show a profit for the year.

The New Fleet

The acquisition of multi-turbine equipment will mark the most significant advance in your Company's history. It will, in fact, transform both the operating and the economic bases of this type of service.

Since 1958 the Company's scheduled operations have been maintained with five single piston-engine V44B helicopters. The Civil Aeronautics Board has now approved the Company's proposals (outlined in our 1959 Annual Report) for replacement of these aircraft with Model V107 helicopters manufactured by the Vertol Division of Boeing Airplane Company.

The Boeing Vertol 107's will be powered by twin General Electric T-58 turbines and will cruise at 155 MPH—an improvement of 70% over the V44B's.