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the helicopter is expected to offer to the pstal service and the further development of this type of aircraft which may be anticipated, we conclude that the proposed experimental service is required by the public convenience and necessity."

This attitude was re-affirmed on March 15, 1954, when the Board handed down the New York Airways mail rate decision for the period from October 15, 1952, when service started, to December 331, 1953. The Board here stated:14

"It is recognized that during the period covered...the carrier was faced with problems inherent in any initial period of operations plus the problem of instituting the first scheduled passenger service by helicopter...Moreover, it is recognized that today's helicopter operations are of a highly developmental character...It is the board's view that NYA's accomplishments in this period are commendable."

At the same time the Board expressed concern because of the relatively high level of subsidy required by New York Airways and noted that earlier subsidy estimates had been exceeded. The Board added:

"NYA's subsidy requirements should be carefully controlled. In this regard it is the Board's intention that a periodic re-evaluation will be made of the helicopter experiment, including the operations of all three certificated helicopter operators, to assess the subsidy requirements in terms of the benefits derived."

Last December the CAB settled Los Angeles Airways mail pay claims for the period from April 11, 1952 to September 30, 1953 with an award of $932,339, representing break-even need, and allowance of $55,102, representing return on investment, and $33,757 for Federal income taxes. (In reporting to stockholders, return on investment of 455,102 is reduced by disallowed expenses of $19,652.) Subsequently New York Airways mail pay for the period from October 15, 1952 to December 31, 1953 was adjusted to $1,348,464, including $99,079 for return on investment (New York Airways had no tax liability.) Although the allowed profits were not large, the decisions which made it possible for the carriers to report black figures were reassuring to those interested in the future of metropolitan helicopter transportation.

POST OFFICE DEPARTMENT ATTTITUDE

The initial authorization of Los Angeles Airways, granted in May, 1947, was strongly supported by the Post Office. But during the proceedings preceding certifica-

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