Viewing page 16 of 507

This transcription has been completed. Contact us with corrections.


ways. I would like to briefly summarize the history of these operations.

Los Angeles Airways was the first to be licensed by the Board, and has continuously operated since 1947. The carrier initially began operations with nonpassenger S-51 aircraft, converted in 1952 to 7-passenger S-55 helicopters, and in late 1961 to 25-passenger-carrying, twin-engine, turbine-powered S-61 aircraft.

The improvement in this carrier's position from the acquisition of its jet equipment is shown by contrasting its 1961 and 1964 operations: In 1961, the carrier transported 41, 000 passengers. In 1964, it carried some 200,000 passengers.

For the same period, passenger revenues rose from $248,000 to $1,405,000 and the average passengers on board increased from 2.8 to 10.4. Direct costs per available seat-mile decreased from 32.95 cents to 11.59 cents, and the ratio of subsidy to total revenues decreased from 66 to 47 percent.

Chicago Helicopter Airways was originally licensed in 1948. Like Los Angeles Airways, it began operations using nonpassenger Bell aircraft. It is now operating 12-passenger, piston S-58 aircraft, and has not converted to jet equipment.

With the deactivation of Midway Airport in 1962, the Chicago operation has become merely a holding one, and its results are therefore atypical of the other commercial operations.

Whereas in 1961 it carried 245,000 passengers, it has only carried 39,000 in 1964. For the same period, passenger revenues decreased from $1,422,000 to $195,000. The average passengers on board declined from 5 in 1961 to 3.6 in 1964, while its direct costs per available seat-mile increased from 19.74 cents in 1961 to 28.36 cents in 1964. The ratio of subsidy to total revenues increased from 56 to 68 percent.

New York Airways was authorized to carry passenger, mail, and property in 1952. It initially operated S-55 piston aircraft seating 5 passengers, subsequently converted to 12-passenger piston S-58 aircraft, then to 13-passenger V-44 piston aircraft, and since 1961 has operated V-107 and S-61 twin-engine, turbine-powered aircraft carrying 25 passengers.

Like Los Angeles Airways, its operating results since 1961 shows a tremendous improvement. Thus, it carried 144,000 passengers in 1961 as contrasted with 253,000 in 1964. For the same period, its passenger revenue shows a sharp increase from $1,102,000 to $2,243,000.

The average passengers on board increased from 7 to 12.2. The ratio of subsidy to total revenues has decreased from 64 percent in 1961 to 44 percent in 1964.

Thus, it is apparent that, in the case of Los Angeles Airways and New York Airways, there has been a 250-percent increase in passenger traffic, with a resultant 250-percent increase in passenger revenues. 

There has been a sharp decrease in operating costs. In addition, there should be an improvement in performance factors, in that both Los Angeles Airways and New York Airways should be operating under instrument flight rule operations by the summer of this year, thus increasing the reliability of their schedules and making their service more attractive to the traveling public. This in a large measure can be attributed to the use of new equipment since 1962.

The temporary certificate of Los Angeles Airways expired by its terms on December 31, 1964. However, the carrier has continued to