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80        HELICOPTER AIR SERVICE PROGRAM

an overburdening degree of maintenance expense in order to achieve reliability of operation. Frequent checks of components, for example were essential, regardless of the manufacturer.
 With time, and because of the high degree of leadtime, as we call it, that these carriers have operated, the large number of hours flown, and through the work of the associated manufacturers, reliability has been greatly increased and the time intervals on these inspections has been reduced.  Also, design innovations have been introduced which permit easier maintenance, less points of concern.
 To expand this further, the high and very large burden-some costs of maintenance have been steadily falling, progressively falling, and particularly so as new generations of aircraft have been introduced, the lowest being achieved with those that are currently in operation.
 It is now our opinion, as we see the general view of helicopter operations, that other factors are beginning to take a part in the role and economics of these carriers. Matters have been discussed here concerning fare, ticketing, routes, and frequencies, and markets.
 I think it would be presumptuous of us as manufacturers to address ourselves to questions in those areas since you will have more competent people here than we in these areas.
 In the overall, however-to swim back to the technical point of comparison with fixed-wing-it is quite probable that there will always be a degree of incremental cost for the ability to fly vertically. The great achievements that have been attained with horizontal-flying aircraft, the jet era, and so on, are being paralleled in the helicopter industry. But by the very nature and definition of the criteria of operation of the helicopter, I think it is reasonable to expect that there will always be a premium paid for the vertical-flight capability over that of horizontal-flight aircraft.
 However, the gap is narrowing; and as new technological achievements are introduced, I think the significance of that increment in the economic welfare of future carriers might well give way to the other factors associated with their business environment.
 Senator LAUSCHE. Thank you very much for this very informative presentation.
 Mr. KAMAN. Thank you, sir
 Senator LAUSCHE. Mr. John L. Pennewell, executive secretary, Helicopter Association of America, Inc. Mr. Pennewell, I will not be able to remain her, but I will read your testimony. Senator Hart will preside.
 Senator Hart. Mr. Pennewell, you may proceed.

STATEMENT OF JOHN L. PENNEWELL, EXECUTIVE SECRETARY,
          HELICOPTER ASSOCIATION OF AMERICA

 Mr. PENNEWELL. Senator Hart and Senator Lausche, we greatly appreciate the opportunity to testify.
 My name is John L. Pennewell, and I am executive secretary for the Helicopter Association of America, a nonprofit association representing commercial helicopter operating companies located in the United States and in other countries in the Western Hemisphere.
 The regular membership of the association, which includes three of the four helicopter airlines, totals 80 companies ranging from small