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[[caption]]Commercial Revenue Earned [[/caption]][[Image]][[Caption]]
Total Operating Expenses vs Revenue Yield per Passenger Mile 
[[/caption]][[Image]]
These statistics confirm New York Airways' forecasts of reduced unit costs and increased revenues as a result of converting from piston-powered single-engined helicopters to the twin-turbine aircraft.
The encouraging trends thus evidenced will continue with the improved efficiency of the present equipment and the expansion of our fleet of twin-turbine helicopters so that, with continued development of the order now being accomplished, we may reasonably look forward to an economically self-sustaining operation no later than 1970. In addition, the next generation of helicopters, carrying upwards of 60 passengers at a cruising speed approaching 200 miles an hour, will make its appearance in scheduled service early in the next decade and will offer new horizons of opportunity, including high-frequency, inter-city sky bus and sky truck service as far south as Richmond and Norfolk, Virginia, and north to New England.
However, the overriding considerations now affecting the Company's prospects (as well as those of other subsidized helicopter carriers operating in the Los Angeles and Chicago areas) arise from the questions currently pending in Washington with respect to continuation of federal subsidy support.
The following sections of this Report will cover these matters in greater detail.
BY ORDER OF THE BOARD OF DIRECTORS
Robert L. Cummings
President