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Senator Laushe. I am looking at your paper, page 3, in which you discuss New York service. Senator Monroney has already read a part of this. You state that the ratio of subside to total revenues in New York has decreased from 64 percent in 1961 to 44 percent in 1964.

With respect to New York, can you tell me what us the rate of fare for the shorter run that is made? What is the length of the run and what is the rate of the fare?

Mr. Boyd. One of the shortest segments is from Wall Street to Kennedy Airport, and the fare is $8. My belief, Senator, is that that is over 65 cents a mile.

Senator Lausche. It is how many miles?

Mr. Boyd. I believe about 12 miles.

Senator Lausche. What part of that $8 is paid by the Federal Government?

Mr. Boyd. On that ratio, 44 percent.

Senator Lausche. Forty-four percent of $8 would be about $3.52. 

Mr. Boyd. About $3.50, yes, sir. 

Senator Laushe. I am doing that by mind, and I think that is right. What is the longest run in New York?

Mr. Boyd. That is Newark Airport to Kennedy. 

Senator Lausche. How many miles is that?

Mr. Boyd. Just a moment and I will that mileage figure for you. The fare is $10.

Senator Lausche. $10, and 44 percent would be $4.40.

Mr. Boyd. Yes sir. It is 21 miles.

Senator Lausche. Those people leaving, let’s say, the Wall Street area, what would you say is their principal reason for wanting to get out to the airport in a hurry?

Mr. Boyd. Well—

Senator Lausche. What I am trying to get at, if they are willing to pay this $10 to go this 21 or 22 miles, doesn’t it seem an hour of time to them seems to be of tremendous value and that, therefore, they have their own means of paying the transportation?

Mr. Boyd. I would relate it to their business activity, yes, sir. I would be quite certain if you asked any particular passenger was his time worth more than $10 an hour, he would say, “Obviously, or I wouldn’t be in Wall Street.” 

Senator Lausche. This is, their time is so valuable to them that they can afford and they want this service?

Mr. Boyd. They want it at a price. There is an old economics theory of customer utility which is that everybody has a certain amount of money available and you make choices as to how you spend it. 

Senator Lausche. What is the main type of passengers who use helicopter service? Are they businessmen—agents?

Mr. Boyd. We don’t have a breakdown of that, Senator Lausche. My guess is that they are predominantly business people, or people engaged in some professional or commercial endeavor.