Viewing page 34 of 507

This transcription has been completed. Contact us with corrections.


in paying more subsidy for helicopters that led us to fail to certificate, because this is a very tough situation for us.

I think it is fair to say that we don't mind fighting battles when we think we are right, but there is jut no point in running into a buzz saw more than once.

Senator MONRONEY. You are including in that, however, the idea that the sole subsidy would be the responsibility of the Federal Government.

Mr. BOYD. Yes, sir.

Senator MONRONEY. We both admit we are at an impasse.

Mr. BOYD. Yes, sir.

Senator MONRONEY. We can't get the present subsidy to keep present lines alive, therefore we must abandon the entire helicopter experiment or we must certificate, according to the House language, more points that will receive subsidy.

Mr. BOYD. Yes, sir.

Senator MONRONEY. Therefore apparently keep this service expanding but at no expansion in the Government's cost through subsidy.

Mr. BOYD. We can't accomplish that.

Senator MONRONEY. This to my way of thinking produces one result: If it is necessary, if it is helpful, if it stimulates air transportation, which it should, if it is spread to more communites, someone has to help fill in that gap between income and the Government subsidy and what it will cost to operate two or three more of these experimental stations.

Therefore the only place we can look forward to is the people who would directly benefit from better transportation to and from the airport, which would be the airlines.

Does it require legislation for the for the airlines to get together, maybe a waiver from the antitrust laws or agreement by CAB that the combination help meet this requirement by more helicopter service to certain areas, so that they wouldn't be in danger of violation of the Antitrust Act or the rules and regulations. This is the real crux of what we are up against. You, the gentlemen of your Board, are the ones we must look to to see if we can bring some order out of chaos.

Mr. BOYD. The extent of the Board's antitrust powers is currently being litigated in the Supreme Court, Mr. Chairman. I do believe the Board could grant antitrust exemption to the carriers to meet if they so desired to discuss this matter.

We have no authority to force the carriers to meet, nor do we have authority to force the carriers to ante up.

Senator MONRONEY. This is one of our serious problems. Of course this forum often has been a point where we have been able to get together without collaboration in any way. We hope before these hearings are over someone from the airline industry, such as Mr. Tipton, from ATA, might tell us exactly how we are going to settle this very difficult situation that we are on high center and can't get off.

Mr. BOYD. I think, Mr. Chairman, that the cost-benefit study on helicopter operations might well include benefits to the community as well as the carriers.

Senator MONRONEY. Indeed. We should not find ourselves in the position of thinking that only the trunk carriers are benefiting.

You brought up a very important point that might be helpful in this, and Washington might be in a position to set a pattern. I don't know how many millions a year we are losing on this most beautiful