Viewing page 108 of 507

This transcription has been completed. Contact us with corrections.

100  HELICOPTER AIR SERVICE PROGRAM

This is not idle speculation. Scheduled helicopter operations are in effect or soon will be in Great Britain, Belgium, East Pakistan, Greenland, Japan, Australia, Italy, and Russia. All of these countries except one will be using equipment of American design. 

Already, the export market for U.S. helicopter products is a significant source of export earnings and is growing rapidly. Exports of commercial U.S. helicopters increased by 127 percent in 1964 over 1962. Military, government, and commercial operations in 74 foreign countries are using more than 2,000 American-built or licensed units. Export sales in the past 5 years have totaled $134 million. 

U.S. helicopter lines are the showcase for sales of U.S. equipment overseas. Sudden termination of the Government support, particularly when the amount involved is so relatively small, and the trend in helicopter economic results so favorable, must obviously undermine confidence in the product. Indeed, such action would constitute something of a mystery in view of the record. 

There is considerable irony in the proposal to end helicopter subsidies from other point of view. The record shows testimony from experts who tell us that the technical experience accumulated by the scheduled operators and passed on to the military through the  manufacturers has a dollar value for the military of well over twice the total amount so far appropriated for subsidy. 

The operators' dramatic reduction in seat-mile costs has been highly useful to the military. Furthermore, the acceleration of this trend means that future operation of the scheduled helicopters will become increasingly more valuable in the future rather than less. 

How can so few civil companies accumulate experience of importance to the military which operates thousands of helicopters, a question often raised, of course.

The answer is that scheduled operators give their equipment far more intensive use than the military. The fallout from this more intensive use extends the useful life and the time between overhauls of major components, establishes economical routines for maintenance, and generally helps to improve the product. 

Much effort and research must go into extending the allowable time between overhauls but, once proven, such an advance greatly improves the utility and economy of both military and civil helicopters.

Sikorsky Aircraft has placed in a CAB record a statement estimating that the service experience of the helicopter carriers with the S-58 helicopter had increased the utilization of military S-58's by at least 10 percent, saving at least $49 million in helicopters that were not bought. Applying the same experience to S-61's, Sikorsky said the military saved $53 million.

In closing let me say that our economy tends to grow as much from the development of new dimensions as from expansion of the tried and the tested. I have talked so far of the present generation of machines which will lead the helicopter transport industry to self-sufficiency with minimal Government help.

In a short time, the CAB can be preparing to activate old and new applications for unsubsidized helicopter service. Baltimore wants to retain its share of the growing Washington travel market. Congestion on the road to Baltimore is growing faster than on the road to Dulles, and Baltimore will soon have to begin thinking of better ways of getting its passengers to Friendship.