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At the present time, 1952, those aircraft produced by the helicopter manufacturing industry for intercity passenger transportation can be operated close to an average direct cost of 10 cents per available seat-mile. By 1965 anticipated technological improvements will make substantially lower costs possible. The level predicted by the trend is 3.6 cents per available seat-mile.

Tables 8 and 9 related to levels of ground and indirect costs where the degree of possible achievement depends upon the willingness of the helicopter operations to abandon, wholly or in part, certain existing procedures associated with fixed-wing air transportation. It is, of course, impossible to predict or establish the indirect operating procedures which will exists among the several helicopters carriers in the next two decades.

Table 8 lists items of fixed-wing indirect operating expense which might be elimi- nated or reduced in the helicopter operation. This tabulation also suggests the amount of reduction which might be sustained by frugal operating practices.

The load factor and passenger mile cost figures in Table 9 are for selected Local Service and trunk airlines. The inverse correlation between load factors and ground and indirect expenses per passenger-mile is clearly illustrated by these data. A sizeable portion of ground and indirect expense do no increase proportionately with increased passenger loads, with the result that as load factors increase ground and indirect costs per passenger-mile decrease.

It is evident that a load factor of 65 per cent should make it possible for local service operators to attain cost levels in the neighborhood of 3¢ per passenger mile for ground and indirect expenses. Inasmuch as helicopter operators are expected to be able to keep ground and indirect expenses at least 15% under those of local service operators, a level of 3¢ per passenger-mile does not appear unattainable by helicopter operators.

Table 10 presents the estimate cost of helicopter operations per passenger-mile in 1955 and 1965. A probable and possible cost level is predicted for each time period Essentially a summary, Table 10 is a combination of the direct cost series (Tables 2,3,4,5,6, and 7) and the indirect (Table 8).

In both time periods direct operating costs are assumed to follow the trend established in Table 4. However, indirect costs for each time period are held constant at a "probable" level or a "possible" level.