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air carriers serving the New York metropolitan area, for use of available capacity on the Corporation's mail flights for the transfer of air cargo between LaGuardia, New York International and Newark Airports on behalf of these carriers. It is now anticipated that operations under this agreement, which has been filed with the Board for approval, will be initiated during January or February, 1953. Because of the novel and developmental nature of these services it is not at present possible to estimate the traffic volume or the revenues which will be derived either in common carrier air cargo operations or under the inter-airport agreement referred to above. While it is now anticipated that some passenger service will be conducted during 1953, it is impossible to predict the date of inauguration thereof.

During the last two weeks of October, 1952, the Corporation operated one S-55 helicopter a total of 39 1/2 revenue hours; mail carried amounted to 56,750 pounds; and 2,443 scheduled miles were flown. This represented a 98.1% schedule completion factor and an average load factor of 32.6% (based on an initially assumed capacity of 800 pounds). During November the Corporation operated two S-55 helicopters (one commencing on November 10) a total of 111 revenue hours; mail carried amounted to 153,233 pounds; and 7,055 scheduled miles were flown. This represented an 83.7% schedule completion factor and an average load factor of 31.5%. During December the Corporation operated three S-55 helicopters (one commencing on December 10), a total of 190 revenue hours; mail carried amounted to 189,958 pounds and 13,244 scheduled miles were flown. This represented a 79.7% schedule completion factor and an average load factor of 29.2%.

Employee Relations
As of December 1, 1952 the Corporation had 36 persons in its employ.
The Corporation's flight personnel include several with extensive military experience in flying Sikorsky S-55 aircraft. Substantially all of the overhaul and maintenance employees have had extensive experience with certificated air carriers. Of these, several have attended a maintenance training course conducted by the Sikorsky Aircraft Division of United Aircraft Corporation.
Labor relations of air carriers are subject to Title II of the Railway Labor Act, as amended. The Civil Aeronautics Act also requires air carriers, engaged in interstate air transportation, to maintain rates of compensation, maximum hours and other working conditions for pilots and co-pilots so as to conform with Decision 83 made by the former National Labor Board on May 10, 1934.
The Corporation has filed schedules of proposed wages and salaries with with the Salary Stabilization Board and the Railroad and Airline Wage Board, as required of new plants by the regulations of these agencies. The Railroad and Airline Wage Board has modified these schedules in some respects and, as modified, has approved such schedules. The Salary Stabilization Board has not yet acted thereon. Accordingly, all salaries (except for the President) under the jurisdiction of the Salary Stabilization Board are being paid by the Corporation at interim rated pending final action by such Board.

Insurance
The Corporation carries hull, public liability, property damage and other types of insurance which in the opinion of the management are generally adequate as to coverage and amount. The annual premiums for the insurance presently carried aggregate approximately $80,000, exclusive of premiums for workmen's compensation and New York State disability insurance.

Reference is made above to the provisions of the various Statutes, Regulations, and a Decision of the National Labor Board. None of such references purports to be a complete statement of the statute, regulation or decision as it affects the Corporation and each such reference is hereby qualified by reference to the provisions of the statute, regulation, or decision referred to. Reference is also made above