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82    HELICOPTER AIR SERVICE PROGRAM

located in almost every section of the country. They are counting on the successful completion of the pioneering effort by the three subsidized carriers as a prerequisite for beginning this service in their own communities.

Without the extensive proving-out of new equipment and the refinement of operating techniques by the three carriers, these other operators realize that they are not able to begin scheduled service under present conditions and be self-sustaining.

It is obvious, therefore, that the introduction of scheduled service to other parts of the Nation is almost totally dependent upon the successful completion of the developmental program in three major cities.

Commercial helicopter operators everywhere are greatly concerned that a termination of Government support to the three carriers will have a depressing effect on the entire industry by undermining public faith in all types of helicopter operations, thus making it more difficult to bring this still-infant industry into a healthy and mature stage of growth.

If the Federal Government gives the scheduled carriers a vote of no confidence, hundreds of other operators will find new obstacles in the path of developing their business successfully.

They will find that in many cases they will have to explain away the demise of the scheduled carriers in order to convince new customers of the value of their specialized services. This would be similar to a situation that the manufacturers of repeater rifles might have encountered if the U.S. Army had gone back to muzzle loaders after the Civil War because of the cost of the new equipment.

We believe that it is pertinent to take a look around us at what is happening in other parts of the world. Scheduled helicopter services with the latest equipment are being operated in England, Australia, Belgium, Pakistan, Japan, and the Soviet Union.

Service with three 24-passenger twin-turbine helicopters also will be initiated in Greenland this spring. With only one exception-the Soviet Union-all of these operations will be using U.S. designed helicopters representing over $10 million of export value, not including the purchase of spare parts or later equipment acquisitions.

This is clear evidence of the feasibility of this form of transportation on a continuing basis, and we question whether the people of the United States will be willing to accept a judgement that we are not to fully develop and maintain comparable transportation services in this country.

With the United States as the acknowledged leader in this area for so many years, it would seem highly illogical to jeopardize the future existence of helicopter air transportation in the United States when it is now within sight of success.

In connection with the above report on foreign helicopter airlines it is particularly significant to note that Sabena, the Belgium airline, first initiated helicopter operations 12 years ago with service to 10 cities in Belgium, Holland, France, and Germany.

This service was not self-sustaining but was underwritten by the airline because of its valuable feeder service to their long-range jet routes. However, in mid-1962, Sabena decided to discontinue helicopter operations due to overall financial difficulties and sold its fleet of eight Sikorski S-58 helicopters to the Belgian Air Force.