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tions related to reservations and space control, and certain other cost elements, can be eliminated, it follows that the indirect cost of helicopter operations can be proportionately reduced. Careful estimates indicate that a minimum of 15% saving over the prevailing indirect cost of levels of local service airlines can be attained without undue sacrifice of operating efficiency. If the operator elects to eliminate all items not absolutely necessary to minimum passenger comfort and safety of operation, indirect operating costs can be brought as low as $0.03 per passenger mile. 

Prospective Fare Levels
Although there can be no doubt that the future trend of passenger fares will be downward, the rate of decline and the ultimate level of costs can only be roughly approximated at this time. Assuming that the downward trend in direct aircraft operating costs will partially parallel fixed-wing experience (a reasonable assumption since both types of aircraft have many of the same components) it is possible to foresee an ultimate fare level for inter-city operations only slightly higher than the prevailing fare of 5.6 cents per passenger mile on local service airlines. From 1955 until 1960, a basic passenger tariff of 12 to 13 cents per revenue mile appears to be the lowest which can be established with the assistance of mail pay and moderate government subsidy. By 1960 the basic rate per mile should decline to 10 cents if operators are able to keep indirect costs at 3 cents per passenger mile. A further gradual reduction can be anticipated during the decade of the '60's to a level of 6.5 to 7.5 cents per passenger mile. 

In addition to intercity service, helicopter operators will provide a suburban service and an airport shuttle service (aerocab). Because of different operating problems characterizing these services, costs will differ and these will be reflected in the fares. Suburban services will be characterized by low utilization, low load factors and short stage lengths, all contributing to high costs as compared with intercity service. Aerocab services will probably have to be operated with smaller equipment than the other services so that its operating costs will tend to be higher than either of the other two services. Estimated fares for the three helicopter services are shown in the following table. 

Table 2.3 
ESTIMATED FARES FOR HELICOPTER SERVICES
(in cents per passenger mile)

[[5 columned table]]
| Type of Service | 1953-55 | 1955-60 | 1960-65 | 1965-75 |
| --- | --- | --- | --- | --- |
| Aerocab* .............. | 40-50 | 30-40 | 25-30 | 20-25 | 
| Intercity ............... |     | 12-13 | 9-10 | 6.7-7.5 | 
| Suburban .............. |     |     | 11-13 | 8-10 |
[[Footnote]] * Airport Shuttle Service [[/Footnote]]

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