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SUMMARY AND RECOMMENDATIONS   39

revenues from nonscheduled services to sustain their scheduled operations.

Recommendations:
1. The CAB must attack the local service problems with the full realization that any solution designed for all provides no solution for any. There is a need for case-to-case determination of local service problems, although some corrective measures can be collectively applied. 
2. With respect to the local service airlines and pending individual relief, the Board should continue to apply and enforce the "use-it-or-lose-it" concept, and the class rate system. 
3. Pending the availability of a proven economic and efficient V/STOL aircraft, new certifications should be granted to helicopter operators only in extenuating circumstances in the public interest.
4. While it is not clear that direct subsidization of cargo services is presently warranted, we are of the opinion that indirect air should be provided in the form of Government support of aircargo transport vehicle development, the expanded use of aircargo services fo mail and military cargo, and guaranteed loan legislation subject to the most detailed scrutiny by the Civil Aeronautics Board.

Air Carrier Marketing
The marketing problem is a vital consideration in assessing the future of the air carrier industry. Without the traffic to match the increased capacity of the jets, and without fares adequate to cover costs and return a profit, the jet age may prove to be a technological rather than an economic phenomenon.
Conceivably, given the appropriate route adjustments and necessary consolidations, a brighter future exists for efficiently managed carriers who exploit proven techniques of merchandising and pricing, and who develop new ones. Never before has the industry been confronted with so great a challenge to its marketing imagination and ingenuity.