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On December 31, 1963, New York Airways had aircraft spare parts and ground property and equipment having an aggregate original cost of approximately $1,700,000 and had placed orders or had leasing arrangements for additional such property with an approximate original cost of $550,000.

The Company's executive and operating offices and its overhaul and maintenance facilities at LaGuardia Airport are occupies under a permit from The Port of New York Authority (the "Port Authority") which remains in effect unless revoked by the Port Authority, or terminated by the Company, upon 30 days written notice. Occupancy fees of $8,186 per month are payable to the Port Authority.

New York Airways leases from the Port Authority counter space, cargo space and gate facilities at LaGuardia and Newark Airports and counter space and cargo space at Kennedy Airport. The rentals for such leases aggregate $1,311 per month, and such leases remain in effect unless revoked or terminated on 30 days written notice by the lessor or lessee. At Kennedy and LaGuardia airports counter and gate facilities are leased from American Airlines. Counter facilities are leased from TWA and Northwest Orient Airlines at Kennedy Airport.

The Company operates the Downtown Manhattan Heliport under and agreement with the Port Authority for a monthly fee of $100 and $1 per landing with a minimum of $500 per month. This agreement is effective until December 31, 1965. This heliport serves the Wall street area and is located on a pier opposite Coenties Slip.

New York Airways has also entered into agreements with Grand Central Building, Inc., covering the lease of ticket counter and waiting room space and the use of the proposed rooftop heliport at the new Pan Am Building which adjoins Grand Central Station at Park Avenue and 45th Street in New York city. Under the terms of the agreement covering the use of such heliport, New York Airways is entitled to operate 50% of the flights which the heliport is capable of accommodating per hour, subject to decrease to 37 1/2% at the request of Pan American for the operation of helicopter services which the Company is unwilling or unable to provide. These agreements are for 20 years and will become effective only when the necessary permits have been obtained for common carrier helicopter operations to and from this proposed heliport. An application for such permits has been filed with the City of New York and approval must be obtained from the Federal Aviation agency. The annual lease cost of the counter and waiting room facilities will be approximately $37,000. The minimum rental for the heliport will be approximately $29,000 per annum, and the Company has agreed to pay 50% of the heliport construction costs up to a maximum of $260,000, provided however that the Company's liability for construction costs will be reduced to the extent that its right to use the heliport is reduced below 50% of its capacity. Such liability accrues only at such time as the agreements become effective, but will continue notwithstanding subsequent legal proceedings or revocation. Under these agreements New York Airways is designated as the operator of the heliport and will have control over, and responsibility for, the operation of the heliport and related facilities. 

New York Airways has also entered into agreement with United Aircraft International ("UAI"), a subsidiary of United Aircraft Corporation, for the operation of the heliport at the Fair. This heliport is leased to UAI by the Port Authority. Under this agreement the Company will furnish all equipment, personnel and services necessary for the operation of the heliport and adjoining facilities, including the servicing of itinerant helicopters, the operation of sightseeing flights and the servicing of scheduled flights. The cost of such equipment, personnel and services, less landing fees in respect of flights

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