Viewing page 47 of 507
This transcription has been completed. Contact us with corrections.
HELICOPTER AIR SERVICE PROGRAM 39 Senator MONRONEY. And any purported language in the House report stating that a majority of the conferees of the Senate agreed to that without the Senate so specifying, itself, is somewhat of a violation of the communality of the two Houses. I am not asking you to agree to that. [Laughter.] It might cost you more than helicopter service to Houston if you did that. The House Commerce Committee did not say "phase out". Mr. BOYD. No, sir. Senator MONRONEY. The Senate Commerce Committee did not say to "phase out." Mr. BOYD. No, sir. Senator MONRONEY. Nor did the Senate Appropriations Committee, other than the language which I just cited. MR. BOYD. That is correct, sir. Senator MONRONEY. I have, roughly, the reports for 1964-that the trunk lines grossed about $3 billion in 1964, the cash earnings-net income, plus depreciation; or you might want to call it cash flow-totaled approximately $450 million; and the net earnings, probably, were over $200 million, which made it a banner year for the airlines. If they were to engage in helping to subsidize-helping the Federal Government to subsidize-the extension of helicopter service into new areas, would these contributions be subject to income tax deductions? Mr. BOYD. Yes, sir. Senator MONRONEY. Providing at least they were found to be desirable-or some such language by the Civil Aeronautics Board, perhaps. Mr. BOYD. Our quick answer is "Yes." Senator MONRONEY. Would they also not be subject to calculation at any time that the Civil Aeronautics Board was looking over the relative rates and the earnings of various lines on these rates? Mr. BOYD. I should think so. Senator MONRONEY. In other words, such costs would be taken into account, whether in a rate base or whether in an income tax base and would be within the province of the Civil Aeronautics Board. Mr. BOYD. As to taxes, no; but as to rate base, yes. Senator MONRONEY. There would be some cost-saving benefits that the trunk lines would obtain from helicopter operations? Mr. BOYD. That is entirely possible. Senator MONRONEY. Then it would not be-I am not trying to put words in your mouth-extending the fact at all to say that these are savings and that it is not unreasonable, therefore, for the Committee or the Civil Aeronautics Board or other s to ask for the trunks to pay a portion of the helicopter fares in order to maintain them in existence. You don't have to answer that. [Laughter.] Mr. BOYD. You have me in a bind, now, Senator. Senator MONRONEY. This is a matter subject to judicial review, anyway, I would assume. Mr. BOYD. Yes, sir. Senator MONRONEY. I is something which in the near future we hope might come before the Board so you would not like to prejudice your position at that time. Mr. BOYD. Future is a short run, also; I will say that. Senator MONRONEY. Are there any further questions? Senator Cannon, Senator Hart, Senator Lausche?
