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HELICOPTER AIR SERVICE PROGRAM    107                     

Kennedy International Airport from New York.  Your statement would purport to read that way, and I am surprised:

New York trunklines absorb up to $9.70 of the fare, in San Francisco up to $6, in Chicago and Los Angeles up to @2.50.

Actually, the only possible implication by this statement, which is misleading-and I doubt that you wrote that yourself-would indicate that everyone using the trunklines, benefits from some fare absorption if they are riding the airlines.  Obviously they are not, and only in the case of an interchange would that be possible.  Is that not true?

Mr. TIPTON. Yes, but they are identified, I believe, interline, as joint rates.

Senator MONRONEY  (reading):

The New York trunkline airlines absorb up to $9.75 of the fare, in San Francisco and Los Angeles up to $2.50.

Now, I ride the airplanes just as much as anybody, and I have been riding them all though this period.  And I have yet to have any absorption at any time in any way by any trunkline.  If we took a poll of the members of the committee, they would agree.  How about you, Howard?

Senator CANNON. I agree.

Senator MONRONEY. If we took a poll of the room we would find very few had anything absorbed.  In this statement, taking it on faith, I was shocked to find out that you were supporting the subsidizing of fare between downtown New York, I presume, and Kennedy International up to about $9.70.  This is just an interchange fare arrangement, and I don't like this committee to be used in that way, because we have great and extreme reliability in this.  It should have been identified in your statement as being an interline deal.

Mr. TIPTON. I thought the whole subject here was the establishment of joint rates?

Senator MONRONEY. No, it is not establishment of joint rates. It is the establishment of some portion of the helicopter fare which would not necessarily be joint rates because I don't know how we would ever get our feet into it.  I would like to ask what is the amount of the subsidy you say they have been picking up.  As I gather, you estimate a million dollars, but I don't know how we can figure that out.

Mr. TIPTON. Let me make it plain.  If it was not plain in the statement, I will now proceed to make it extremely plain.

Senator MONRONEY. I want it plain.

Mr. TIPTON. The absorptions that I am talking about are in joint rates.  The way a joint rate works is that the helicopter carrier and the trunkline or international airline publish a single fare from downtown New York via Kennedy to London, say.

Senator MONRONEY. From downtown?  Do they publish a single fare from downtown?

Mr. TIPTON. That is what the helicopter part is, from Wall Street, or from - well, I guess it would be downtown New York, probably Wall Street.  Later it will be the Pan American Building when that is established.  In that fare-

Senator MONRONEY. Where does that fare go to?

Mr. TIPTON. It goes to London.

Senator MONRONEY. That is an international fare?